1. Chapter 1 Overview of Marketing
Chapter 1 will provide a broad overview about what Marketing is including defining the role of marketing and explaining its core concepts.

2. Chapter 1: Overview of Marketing
LEARNING OBJECTIVES
LO1 Define the role of marketing and explain its core concepts
LO2 Describe how marketers create value for a product or service
LO3 Summarize the four orientations of marketing
LO4 Understand the importance of marketing both within and outside the firm
These questions are the learning objectives guiding the chapter and will be explored in more detail in the following slides.

3. building value Build & maintain a loyal customer base
LO1, LO2
building value
Build & maintain a loyal customer base
Distinguish from competitors
How do Tim Hortons & Starbucks do it?
Strong brand, customer appeal
Constantly need to protect the brand
Per chapter introduction: the case study focuses on one of Canada’s top brand companies, Tim Hortons
How does Tim Hortons continue to distinguish itself from many of the other key competitors such as Starbucks?
Strong companies need to build and maintain a loyal customer base and each company must distinguish themselves from its competitors by offering products and services and a strong brand that appeal to customers.
Customers of Tim Hortons appreciate their convenience locations, variety of coffee and food choice and good prices. This equates to great customer value!

4. LO1
What is marketing?
Marketing is a set of business practices designed to plan for and present an organization’s products or services in ways that build effective customer relationships.
Marketing is used to create value in products & services
The interrelated marketing mix – or the 4 P’s – creates, transacts, communicates & delivers value.
Good marketing is not a random activity & it requires thoughtful planning with an emphasis on the ethical implications of decisions made on the consumer and society in general.

5. Core aspects of marketing
LO1
Core aspects of marketing
- For a shorter lecture, just review this slide. More detailed slides follow for an expanded lecture.
Ask students about problems they have for which there are no products to meet their needs.? They might think about products that they could use for their homes, their computers, organizing their work, their cars.
This is how marketers generate ideas for new products – by uncovering consumer needs.

6. Satisfying customer needs & wants
LO1
Satisfying customer needs & wants
Need: basic necessities
Want: how to fulfill that need
Understanding & satisfying customer needs and wants is fundamental to marketing success.
The topic of understanding customer needs is described in detail in Ch. 4, which deals with consumer behaviour.
In order to understand customer needs & wants, the company must first identify the customers or market for its products or service.
A market refers to the groups of people who need or want a company’s products or services and have the ability & willingness to buy them.
Ask students: the marketplace for soft drinks is worldwide. How do Pepsi & Coke manage to subdivide this global population so successfully?

7. Entails a marketing exchange
LO1
Entails a marketing exchange
The exchange can occur between any two parties
Not simply a buyer and seller exchanging money for a good or service
Can be an exchange of information for convenience
Marketing is ultimately about an exchange – the trade of things of value between the buyer & the seller so that each is better off as a result.
Ask students to discuss how these exchanges occur in nonprofit settings. What is the exchange at a museum or a lecture?
You might also use the example of a swap or barter page. (An excellent example of swaps can be found on the First Canadian Barter Exchange website

8. Marketing entails an exchange
LO1
Marketing entails an exchange
Customers/ Consumers (Buyers)
Communications/Delivery
Money/Information
Each party to the exchange gives up something of value: The customer gives up not only money but also time and information, and the firm gives up the good or service.
The exchange in the end is mutually beneficial.
Note: click on INDIGO.ca in the photo at the left to link to the website. ( This is a great example of online shopping & how customers obtain value for the exchange.
Goods/Services Producers (Sellers)
INDIGO.ca

9. Marketing requires marketing mix decisions
LO2
Marketing requires marketing mix decisions
This is an overview of the 4P’s which will be discussed in greater depth.
Ask students to choose a product they see in the classroom – VitaminWater, Coke, Aquafina – and ask them to describe the 4P’s for this product.
Stress that the concept of the 4Ps is fundamental to marketing. Remind students that “4Ps” and “the marketing mix” may be used interchangeably to refer to product, price, place, and promotion.

10. Product: creating value
LO2
Product: creating value
Goods
Services
Ideas
The fundamental purpose of marketing is to create value by developing a variety of offerings, including goods, services and ideas, to satisfy customer needs.
Students often can relate to goods and services, but the marketing of ideas is a new concept to them. Use the example of drunk driving prevention; ask students: How is that idea marketed?
Organizations such as Mothers Against Drunk Driving or Students Against Drunk Driving often receive support from brewers and distillers in promoting responsible drinking and safe driving. Ask students: What is the exchange these groups are asking consumers to enter?
Answer: They want you to consume alcohol in a manner that is consistent with safety, which means giving up some consumption or drinking responsibly – do not get behind the wheel if you drink.
Water and the concept of bottled water is an extremely interesting topic of discussion. Spend some time on this concept and ask students – how is it possible that only a few years ago, consumers saw this as simply water that one drank from a faucet. How has bottled water revolutionized marketing? A product has been created where none existed before, that consumers truly value.

11. Price: transacting value
LO2
Price: transacting value
Price is everything the buyer gives up in exchange for the product.
money
energy
Everything has a price, though it doesn’t always have to be monetary.
Price is everything that the buyer gives up, money, time, energy, in exchange for the product or service.
A good example of how price expresses value is the variations in price associated with air travel. The prices can vary based on demand for the flight, timing, and destinations.
This is a good opportunity to remind students that the price paid is more than cash. Also tell them that later in the semester, you will look at how marketers view price, which often differs from the conceptions they may have been taught in finance courses about how to determine price.
Pricing strategies will be discussed in later chapters (Ch. 11), but you may also wish at this point to introduce the notion of market pricing versus cost pricing.
time

12. Place: delivering value
LO2
Place: delivering value
All activities necessary to get the product to the right customer when that customer wants it. Supply chain management is the field that examines these activities. Where would you find this product in the store?
Place delivers the product to the customers. Students may overlook the importance of this component of the marketing mix because of all the areas in marketing, place is not as readily visible from the consumer perspective. Students tend not to think about the importance of getting goods from manufacturers to consumers, which currently requires global approaches.
This semester, they will learn about marketing’s role in this crucial process.
To get this point across, suggest a few products and then trace the path those products likely take from manufacturer to retailer to consumer.

13. Place: Marketing Channels Distribution Strategy
LO2
Place: Marketing Channels Distribution Strategy
How does a company get the product to the right customer when and where they want it?
- Distribution strategy can be complex and requires consideration of many factors, as well as a high level of coordination. This topic appears in greater detail later in the chapter.

14. Promotion: communicating value
LO2
Promotion: communicating value
The communication activities of marketing
Used to inform, persuade and remind potential buyers
Used to influence their opinions or elicit a response
Even the best products & services will go unsold if marketers cannot communicate their value to customers.
Ask students to identify the target audience for this advertisement for Parasuco jeans: What value proposition is it offering and to which audience?
Answer: This ad is targeted to a youthful audience. The provocative advertising has helped create an image that is filled with youth, style, and sex appeal.

15. Marketing can be performed by both individuals & organizations
LO2
Marketing can be performed by both individuals & organizations
B2B: Wholesaling is often only Business to Business
B2C: All retailing is Business to Consumer selling
Marketing intermediaries such as retailers, accumulate merchandise from producers in large amounts and then sell it to you in smaller amounts.
Students often fail to consider that the products they purchase have changed hands before. Offer them the following example: The computer you recently purchased from Best Buy (B to C) was purchased by Best Buy from the manufacturer (B to B). If you sell your computer to your roommate, you have engaged in C to C selling. Thus, the same product might be a part of all three types of marketing.
Ask students whether they’ve bought from other consumers online. Many options are available to buy C2C online, especially with the development of online cooperatives like esty.com. Follow the web link to visit this site.
C2C: Swap Meets, EBay, yard sales, etc.
ETSY Website

16. Social media & marketing
LO2
Social media & marketing
The use of digital tools to easily & quickly create & share content to foster dialogue, social relationships & personal identities.
One thing is very clear: social media has quickly become an integral part of marketing & communication strategies.
A Facebook application developed by TD Bank for students to allow them to monitor and track expenses that need to be shared (split) with roommates. Of course, when students use the application, it gives TD Bank access to information about the users.

17. The four orientations of marketing
LO3
The four orientations of marketing
Product Orientation
- Marketing has been through several eras. This exhibit graphically represents the changes over time from an emphasis on production to one based on value-based marketing. The production-oriented era took place around the turn of the 20th century, when most firms believed a good product would sell itself. In the sales-oriented era, production and distribution techniques improved and supply outpaced demand. Firms found an answer to overproduction by focusing on sales. In the market-oriented era, the focus was on what customers wanted. Now, we are in the value-based era, which maintains the market orientation but also includes a focus on giving greater value than the competition.
Value reflects the relationship of benefits to costs. Value-based marketing means implementing a marketing strategy according to what customers value. Value-based marketing isn’t just about low price, it is also about creating strong products and services.
A relational orientation is based on the philosophy that buyers and sellers should develop a long-term relationship for the benefit of both parties.
Ask students to consider each incarnation of the telephone presented in the slides. How has each been an improvement? Walk students through the eras and discuss how the firm’s focus went from the needs of the firm to the needs of the market.
Market Orientation
Sales Orientation
Value-based Orientation

18. Value-based orientation
LO3
Value-based orientation
To compete successfully, firms focus on the triple bottom line:
People (consumer needs & wants)
Profits (long-term profitable relationships)
Planet (social and environmental responsibility)
value-based companies provide their customers with grater value than the competitors do.
Valuable customer benefits can include: speed, convenience, size, accuracy, price, cost-savings, user-friendliness.
Ask students: for those that purchase Apple products, why are they willing to pay a premium for these products?

19. Value is in the eye of the beholder!
LO3
Value is in the eye of the beholder!
That movie was a waste of money.
That movie was so worth seeing!
Discussion question
If they saw the same movie, what could account for the difference in value derived from the experience?
- This slide provides an opportunity to discuss the subjective nature of value. Each person has his or her own perception and what they deem to be valuable or not.

20. How do firms become more value driven?
LO3
How do firms become more value driven?
Firms focus on four activities:
Sharing information
Balance customer’s benefits & costs
Build relationships with customers
Use technology to connect with customers
As noted in the slide, firms become value driven by focusing on these four activities.
For a shorter presentation, instructors can focus on this single slide, or alternatively, for a more detailed discussion, subsequent slides can be used.

21. LO3
Sharing information
Why is sharing and coordinating information such a critical success factor for any firm?
Marketers share information about customers & competitors that has been collected through customer relationship management (CRM), & integrate it across the firm’s various departments.
How can sharing and coordinating information transmit into success? For Zara, information is crucial to being able to meet the needs and wants of customers.
Ask students why it is important to share information? This brings up the point that many good marketing companies have cross functional teams. The finance, IS and operations departments work together to bring value to the end consumer.

22. Case in point: zara Challenge Answer Results
LO3
Case in point: zara
How does the flagship brand of Europe’s fastest growing apparel retailer keep up with the latest trends?
Challenge
Answer
Results
By implementing sophisticated information technology into its customer tracking and supply chain functions.
For Zara, the Spain-based fashion retailer, collects purchase information & researches customer trends to determine what their customers will want to wear in the next few weeks. Simultaneously, the logisticians, use the same purchase history to forecast sales & allocate appropriate merchandise to individual stores.
Sharing & coordinating such information represents a critical success factor for any firm.
Ask students: How many of you have shopped at Zara?
Zara now has over 1500 women’s clothing stores in 78 countries.
Products move from design through the supply chain and onto the stores shelves in about two weeks.

23. Building customer relationships
LO3
Building customer relationships
Take a long term view of customer relationships
Use data to assist in maintaining the relationship
Relational orientation: think about customers in terms of relationships rather than transactions.
Focus is on the lifetime value of the relationship, not how much money is made during each transaction.
In early conceptions of marketing (before value-based marketing), firms often viewed the closing of the sale as the termination of their relationship with the customer. Today, firms strive to create lifetime value among customers, hoping they will return to the firm for all their future needs.
Use CRM to collect information about customer needs and wants and use that information to target their best customers.

24. Connect with customers using social media
LO3
Connect with customers using social media
Embrace social media to connect better with customers
¾ of North American companies now use social media for marketing purposes
Users are driving the way brands & stores are interacting with social media
Marketers steadily embrace new technologies, such as social & mobile media to allow them to better connect with their customers & thereby serve their needs more effectively.

25. Why is marketing important?
LO4
Why is marketing important?
This slide introduces the next series of slides or can be used as in or shortened lecture.
Ask students why it is marketing so important?
Marketing has shifted its focus dramatically, it also has evolved into a major business function that crosses all areas of a firm or organization.

26. Marketing expands firms’ global presence
Goods are available to consumers from many countries from the far reaches of the globe
Must understand customers needs & wants
Segment-by-segment, region-by-region
Today, many products are manufactured outside of Canada and the United States.
Whether it is groceries or apparel, chances are you will find goods from many countries around the world.
Group activity: Starbucks is one of the fastest expanding global firms. Ask students to brainstorm why Starbucks has been so successful globally
Ideas include type of product (beverages are universal), customer need (luxury and convenience items), local product adaptations, etc. Ideas include type of product (beverages are universal), customer need (luxury and convenience items), local product adaptations, etc.

27. Marketing is pervasive across channel members
LO4
Marketing is pervasive across channel members
Each step in the supply chain involves marketing
All members in the chain must ultimately focus on creating value for their customer and the end user consumer
A supply chain is the group of firms & set of techniques & approaches firms use to make & deliver a given set of goods & services
Ask students: Have you ever considered how products from all over the world get to your home town? Each step in the supply chain takes the good and increases its value by either improving it or delivering it to the end consumer. Remind students that each step involves an exchange.