Marketing Review for mid term - Chapter 1, 2,3,5,7

Vocabulary flashcards covering core foundational concepts, definitions, frameworks, historical eras, and theorists from Chapter 1: Creating Customer Relationships and Value through Marketing.

what is Marketing

The activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large

whats the main goal in Marketing?

1. Is about the sellers connecting to the buyers

2. Is the act of bringing products and services to individuals (or organizations) that want topurchase a product

Four Factors Needed for Marketing to Occur

(1) Two or more parties with unsatisfied needs,

(2) Desire and ability to be satisfied,

(3) A way for the parties to communicate,

(4) Something to exchange.

What is marketing?

• Customer vs Consumer

• Ultimate Consumers consist of the people who use the products and services purchased for a household

what is Marketing

Understand your customer intimately and make a product that meets their needs

How do we learn about consumers

• consumer research

1. primary research

2. secondary research

Primary research

• Survey Research

• Focus Groups

• Interviews

• Observational Research

• Experimental Research

Marketing concept

All about understanding consumer needs

motivation

the driving force within individuals that impels them to action

need

• the essence of the marketing concept

• A need occurs when a person feels deprived of basic necessities

Want

• A want is a need that is shaped by a person’s knowledge, culture and individual personality

What is a market

People with the desire and ability to buy a specific product

Who markets

• For-profit (Canadian Tire, Tim Horton’s)

• Not-for profit (charities, e.g. Cancer Society)

• Academic Institutions (UGH)

• Individuals (Kim Kardashian)

What do we market

• People

• Goods / Food

• Entertainment

• Information

• Places

• Ideas

Customer value proposition

The cluster of benefits that an organization promises customers to satisfy their needs

Utility

consists of the benefits or customer value received by users of the product.

Example of Customer Value Proposition

” the best experiences are made with apple”

Example of Customer Value Proposition

“ Fast, free delivery, exclusive deals, and more.”

Target Market

The target market is the specific group(s) of potential consumers that a product/service will be marketed to

Importance of Target Markets

1. Efficiency

2. Better Product Fit

3. Competitive Advantage

The Marketing Mix

• Product

• Features brand names, Packaging, service, Warranty 

• Price 

• List price, Discount, Allowances,Credit Terms 

• Payment Period

• Promotion

• Advertising, personal selling, sales promotion, public relations, direct marketing 

• Place

• Outlets, Channels, coverage, transportation, Stock level 

External / environmental factors

1. social forces

2. Technological

3. Economic forces

4. Competitive Forces

5. Regulatory forces

PESTEL - Poltical

• Fiscal policy

• Government activity

• Conflict/help

• Taxes

PESTEL - economical

• GDP

• Employement rate

• Exchange rate

• inflation

• income level

PESTEL - social

• Demographic varibales

• cultural factor

• religion

• lifestyle

• Education level

PESTEL- technological

• Technological access

• Infrastructure

• research

• Technology trends

PESTEL - enivornmental

• Environmental policies

• recyling

• consumption trends

• production processes

• natural risks

PESTEL - legal

• Wages

• rights

• job security

• regulations

• controlled of marketing

Customer Relationship Management (CRM)

The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.

Salesforce - Example of CRM Software

1. Centralized Customer Data

2. Automated Marketing

3. Sales Pipeline Management

4. Customer Service Integration

5. Analytics and Reporting

Philip Kotler

"Marketing is not the art of finding clever ways to dispose of what you make. It is the art of creating genuine customer value."

John Wanamaker

"Half the money I spend on advertising is wasted; the trouble is I don't know which half."

The Evolution of Marketing

Four distinct stages:

1. Production era – Goods were scarce

2. Sales era – Manufacturers produced more goods than buyers could consume

3. Marketing concept era – Manufacturers met consumer needs while achieving organization’s goals

4. Customer relationship era – Satisfy high consumer

expectations

Societal Marketing Concept

The view that organizations should satisfy the needs of consumers in a way that provides for society's well-being.

Structure of Today’s Organization

1.The corporate level is where top management

directs overall strategy for the entire

organization.

2.The strategic business unit level is the level at

which business unit managers set the direction

for their products and markets.

3.The functional level is where groups of

specialists create value for the organization

(departments). I.E. finance, HR, etc.

Organizational Foundation

1. Core values. What business are we in?

2. Mission. Statement that defines organizational

scope, customers, markets, products,

technology and values

3. Organizational culture: corporations must

connect customers and stakeholder on internal

and external bases

Organizational Foundation: Why Does It Exist?

“… at Starbucks, I’ve always said

we’re not in the coffee business

serving people, we’re in the

people business servicing

coffee.” Howard Schultz

What is Strategy?

an organization’s long-term course

of action designed to deliver a unique customer

experience while achieving its goals

Strategy

plan to help you reach your goals

Tactic

specific ways in which is being

implemented

Why do firms need strategy

Need a plan/roadmap to help get you to where

you want to go

clinging can in a ever- changing world may fail

Domino’s Reinvented

1. Admitted product weakness

2. Invested in digital ordering

3. Delivery innovation

4. Data & loyalty

5. Franchise support

6. Marketing transparency

7. Menu expansion

8. Global growth

Domino’s Reinvented Overview

• 2009: Domino’s stock traded around $8–$9 per share. By 2021, it peaked at

over $500/share

• 2009–2017: Domino’s reported 29 consecutive quarters of same-store sales

growth

• Over 70% of sales now come through digital channels

• Domino’s became the #1 pizza company in the world by sales in 2018

• As of 2025, Domino’s operates in 90+ international markets with more than

20,000 stores worldwide

• Domino’s has consistently spent $100M+ annually on technology to maintain its

edge in ordering and delivery

Setting Strategic Directions

1. Where are we now?

2. Where do we want to go

A Look Around: Where Are We Now?

• Competencies – “What do we do BEST?”

• Competitive advantage

• customers

• Competitors

Product/Market Growth Matrix - Market Penetration:

• Getting the existing customers to buy more of

existing products

Product/Market Growth Matrix - Marketing development

Taking existing products into new markets

Product/Market Growth Matrix - Product Development

Developing new products and placing them in

existing markets

Product/Market Growth Matrix - Diversification

Developing new

products for new markets

Strategic Marketing Process

• Involves an organization allocating its marketing mix

resources to reach its target markets

• This process is divided into three phases:

planning, implementation, and control

• Four principles and assumptions:

1. Customers are different

2. Customers change

3. Competitors change and react

4. Organizational resources are limited

What are the 3 phases of the Strategic

Marketing Process?

P = Planning

I = Implementation

E = Evaluation/control

Strategic Marketing Process – PHASE #1 Planning

• Step 1: Situation (SWOT) Analysis

SWOT analysis

• Step 2: Market-Product Focus and Goal Setting

•Set marketing and product goals

Select target markets

Find points of difference

Position the product

• Step 3: Marketing Program

Product, Price, Promotion & Place strategies

Why are Beer Sales Down?

• First let’s think about how do people drink beer? On what occasions?

1. Out with friends

2. With a meal

3. Celebrations

4. Sports

Who is drinking beer?

• Young – middle-aged adults

• Majority are male

• A large segment are blue collar

• A large segment are lower income

beer - Social Trends

• Aging. Baby boomers and millennials are getting older so they are drinking more

refined options like wine

• Health. Perception that beer has too many calories and too many carbs

• Quality over quantity: Craft brew vs. a mainstream beer (but drink less of it)

• Changing preferences: RTD mixed drinks are becoming more popular among many

different age groups

Beer - Technology Trends

• Internet has increased promotion and knowledge of different alcoholic beverages

• Growth of alcohol delivery apps (e.g., Drizly, Uber Eats, Instacart)

• Technological improvements in fermentation and flavouring have led to much better

non-alcoholic beers and alcohol-free alternatives

beer - Economic

• Recessionary Pressure. In downturns, consumers may “trade down” from

premium/craft beers to cheaper mainstream brands

• Changing Disposable Income. Younger demographics often face tighter budgets

(student debt, housing costs), which can reduce discretionary spending on beer

beer - competitve forces

• High rivalry. Global giants battle for market share while thousands of craft breweries

compete locally

• Price promotions, advertising wars, and shelf-space battles intensify competition

• Craft beer has fragmented the market, making differentiation (brand, taste,

packaging, sustainability) essential

beer - competitve forces

• High rivalry. Global giants battle for market share while thousands of craft breweries

compete locally

• Price promotions, advertising wars, and shelf-space battles intensify competition

• Craft beer has fragmented the market, making differentiation (brand, taste,

packaging, sustainability) essential

Regulations

• Regulations – drinking and driving

• New law* as of Dec. 18th police may demand a breath sample at the roadside, without reasonable

grounds

• 20% shelf space to craft

Importance of external environmental scanning

• Changes in the marketing environment are

sources of opportunities and threats

• Environmental scanning:

• The process of continually acquiring

information on events occurring outside the

organization to identify and interpret

potential trends

External FORCES = P.E.S.T. E.L.)

• P = Political

• E = Economic

• S = Social / Sociocultural

• T = Technological

• E = Environmental (Ecological)

• L = Legal / Regulatory

P.E.S.T. - poltical

• What is the current political party?

Conservative or Liberal? What political

changes could happen? How would this

affect my industry?

• What new laws could harm or help my

business?

• Tax policy

• Labour policy

• Trade policy

P.E.S.T. - economic

• What is the economic environment?

Booming economy or a recession?

• High unemployment or low unemployment?

• Lots of hiring? Or none at all?

• How do exchange rates affect my business?