FREE ESSAY ON TALES OF MARKETING

TALES OF MARKETING

MARKETING
CHAPTER 1
Field Of Marketing
INFORMATION TECHNOLOGY
-New marketing based on info technology. EX. Royal Bank
-Royal spent $15 million on data base technology to serve customers more uniquely.
-Increased response rate from 4% to 60%.
NATURE AND SCOPE OF MARKETING
EXCHANGE AS THE FOCUS
-Marketing occurs any time 1 social unit (person or organization) exchanges something of

value with another social unit.
-Marketing consists of activities designed to generate & facilitate exchanges intended to
satisfy
human needs or wants
Exchange-is one of 3 ways in which a person can satisfy a want.
EX. Clothes make, borrow, use some form of coercion to get them 
or offer something of value to another who will voluntarily exchange
-Only last approach they call exchange in the sense that marketing is taking place.
Following must exist for marketing exchange to take place.
-2 or more social units must be involved & each must have wants to be satisfied. If you
are self sufficient
there is no need for exchange.
-Parties must be involved voluntarily (Although argued monopolies deter this.)
-Each party must have something of value to contribute & each must believe that it will
benefit
-Parties must communicate even if done through 3rd party. Without communication, no
trade.
Marketers-take initiative in trying to stimulate & facilitate exchanges.
-They develop marketing plans & programs & implement them to create exchange that can be
repeated
over time.
Market-on other side of exchange, made up of social units to whom marketing programs are
directed & who will play a key role in acceptance or rejection of marketers offer.
Markets made of customers
Customers-Any person or group with whom an individual or organizational marketer has an
existing or potential exchange relationship.
People who constitute a market play a number of roles.
A. Decision maker, individual or organizational unit that has the authority to commit to
an exchange
B. Consumer, who actually uses or consumes the product.
C. Purchaser, The party who actually carries out the exchange
D. Influencers, who affect decisions of others because of their expertise, position, or
power.
Worth Baseball, new safer ball, but clashes with tradition
Needs-viewed in strict physiological sense (food, clothing, shelter) everything else is a
want.
Product-the objective of the exchange or what is being marketed generically as the
product.
-It can be a tangible, physical product, a service, an idea, a person, or a place.
tangible, physical product-corn flakes
a service-accounting advise
an idea-advertising slogan
person-individual applying for a marketing position
A place-provincial gov't trying to attract tourism is an example of marketing a place as
the product.
THE CONCEPT OF RELATIONSHIP IN EXCHANGE
Relationship-can develop when 2 people or organizations are voluntarily involved in an
exchange situation, are communicating with each other, & are contributing something of
value to the exchange & thereby mutually satisfy needs or wants.
-relationships are of more long-term nature & involve many exchanges & interactions over
a # of years.
-longer relationship lasts, more likely it will be of special value to those taking part
in it. Better you 
understand each other, the better the needs are satisfied.
APPLICATIONS OF MARKETING
Books definition of marketing:
Marketing is a total system of business activity designed to plan, price, promote &
distribute want-satisfying products, services, & ideas to target markets in order to
achieve the objectives of both the consumer & the organization.
Marketing is
A total system designed to: for business activities plan, price, promote & distribute
Something of value: want-satisfying products, services, & ideas in the context
of a valuable relationship.
For the benefit of: the target mkt. -
Present & potential household consumers or business users.
To achieve the: satisfaction of the needs & objectives of both the consumers & the firm
Definition has implications when marketing is properly applied:
-It's a systems definition, meaning it should be understood & applied by all in firm.
-Entire system of business or organizational activities must be customer orientated &
focus on quality of 
the customer relationship- customers needs & wants must be recognized & satisfied
effectively.
-Marketing program starts with an idea for a product or service & doesn't end until the
customer's 
are completely satisfied, which may be some time after the exchange.
wants-Marketing program, generally termed the marketing mix, usually consists of 4
coordinated elements:
A. a product or service assortment
B. a pricing structure
C. distributions systems & channels
D. promotional activities
-Marketing mix doesn't guarantee customer satisfaction.
EVOLUTION OF MARKETING
-Foundations in Canada were laid by French & English settlers in pioneer times
-Developed marketing relationships also with various Native groups.
-Since then marketing has evolved through 3 successive stages of development:
-production orientation, sales orientation & marketing orientation.
-Following from last stage, marketing now more focused on processes involved in providing
service & 
developing marketing relationships.
-All firms today are at different stages of marketing.
PRODUCTION ORIENTATION STAGE
-firms in this stage, typically manufacturers, focused on increasing output while
assuming that customers
would seek out & buy reasonably priced & well made products.
-Executives in production & engineering shaped firm's planning.
-finding customers was viewed as a relatively minor function, term marketing not yet
used. (stage 
dominant until early 1930's.) Some mining firms still here. 
SALES ORIENTATION STAGE
-After great depression it was clear that main problem in economy no longer was to
produce, but how to
sell the output.
-Making best product didn't assure success. Realized you needed promotional effort.
-began sales orientation stage-when selling activities and sales executives gained new
respect &
responsible from company management.
-stage common until 1950's, when marketing era began to emerge.
MARKETING ORIENTATION STAGE
-as a result of WWII there was enormous pent up demand for consumer goods.
-postwar spending slowed down as supply caught up with demand, & firms had to find way to
sell excess
capacity, this began sales orientation era.
-consumers got smarter bringing forth greater variety of goods.
-In marketing orientation stage companies identify what consumers want & tailor all the
activities of the
firm to satisfy those needs as efficiently as possible.
-in this stage firms are marketing rather than merely selling.
**********SEE TABLE 1-1 (What Business You in?) page 8
DIFFERENCES BETWEEN MARKETING & SELLING ORIENTATIONS
-term marketing & selling are often used interchangeably, but really are vastly
different.
-Basic difference is that selling is orientated to what is available & to the
organizations needs, while 
marketing is orientated to the customers needs & how a product & service mix can satisfy
them.
SERVICES
-experienced shift from goods production to service production over last 20 years.
-resulting in meeting of needs of consumers through providing efficient, effective, &
high quality service.
-can think of services as falling into 2 different categories:
1) non-tangible product to be sold, such as cleaning service
2) service accompanying the sale of most tangible products, such as delivery of stove.
-useful to distinguish between core elements & noncore features.
Ex. Core product; traveler checking into hotel is purchasing a room for the night.
Once checked in customer will expect all sorts of services like cleaning, AIR C, nice
employees etc.
FACTORS THAT DRIVE CUSTOMER SATISFACTION FIG 1-2
AFFECTIVE DIMENSIONS OF THE INTERACTION
INTERACTION WITH THE FIRM & ITS EMPLOYEES
TECHNICAL PERFORMANCE
PROCESSES & SUPPORT
CORE
-Above example includes 5 levels of customer satisfaction, called drivers of customer
satisfaction.
Core-is the basic product or service provided by the firm. Can be service or product.
Process & support-(2nd level) for hotel includes such things as reservation services, 
Billing systems, convenience of hotel location & room service menu.
Technical performance-(3rd level) which determines whether the service provider gets the
core product & support services right.
-emphasis is on meeting the expectations of the customer.
Interaction with the firm & its employees-(4rth level) can involve both face to face
interaction & the interaction based through other technology.
Affective dimensions of the interaction-consider subtle messages that firms send to
customers as sometimes dissatisfaction has little to do with the service or quality of
product. Create positive or negative feelings toward the company.
RELATIONSHIP MARKETING
-concept that embodies building personal, long-term bonds with customers.
-Emphasis on relationship marketing is a further step in the development of the market
orientation.
-While many factors affect the development of a strong relationship marketing program, 2
major factors 
are (1) the provisions of quality products & services and (2) the conducting of marketing
relationships 
within a trusting & ethical framework.
THE MARKETING CONCEPT
Marketing concept-philosophy emphasizing customer orientation & the coordination of
marketing activities to achieve the mutual long-term objectives of both the customer &
the organization.
NATURE & RATIONALE (SEE FIG 1-3)
-all planning & operations should be customer orientated
-every dept. & employee should be focused on contributing to the satisfaction of
customers needs.
-All marketing activities in an organization should be co-ordinated marketing efforts
(product & service planning, pricing, distribution, promotion, & customer service) 
should be designed & combined in a coherent, consistent way, & one executive should have
overall
authority & responsibility for the complete set of marketing activities.
-customer-orientated, co-ordinated marketing is essential to achieve the organization's
performance objectives while at the same time meeting the customer's needs.
NEW FOCAL POINTS IN THE MARKETING CONCEPT
THE SOCIETAL MARKETING CONCEPT
-social responsibility can be quite compatible with the marketing concept.
-compatibility depends on 2 things: how broadly a firm perceives its marketing goals &
how long it's
willing to wait to achieve those goals.
-firm that sufficiently extends the breadth & time dimensions of its marketing goals to
fulfill its social
responsibility is practicing the societal marketing concept.
-Company shouldn't just recognize only the buyers buy also those affected by its
operations.
-Firm should look at long-term view of customer satisfaction & performance objectives.
A. satisfy the wants of its product buying customers
B. meet the societal needs of others affected by the firms activities
C. achieve the company's performance objectives.
TRUST, ETHICS, & MARKETING RELATIONSHIPS
tools marketers use to deliver to customers include the design of product or service, the
price at which it is offered, the message used to describe it, the channel through which
it is made available, & the level of service provided to customers.
WHAT IS ETHICAL BEHAVIOUR? (See table 1-2 on page 13)
Ethics-are the rules we play by, the standards of behaviour generally accepted by a
society.
INSTILLING AN ETHICAL ORIENTATION
-Create ethical environment by holding ethical workshops & setting up committees
-make sure that performance demands on employees are reasonable.
THE BENEFITS OF ETHICAL BEHAVIOUR: CONSUMER TRUST
-successful firms are built with successful relationships with suppliers, customers, 
& employees. Unethical behaviour undermines trust.
QUALITY AND THE MARKETING RELATIONSHIP
WHAT IS QUAQLITY?
One definition of quality is the absense of variation in products& services.
-should have variance control to better serve customers.
-quality control misleading because its limited to inspecting.
-real indication of quality is how well a product meets both the product & service
expectations of the
consumer, not of the production department.
Total quality management-delegating quality control to more than 1 department to meet the
expectations of the customer.
Goals
1) better, more appealing, & less variable product & service quality.
2) Quicker & less variable responses from design all the way to delivery.
3) Greater flexibility in responding to customers needs.
4) Lower costs as result of quality improvements.
Marketers must do 2 things;
A. ensure that all marketing activities contribute to creating reasonable customer 
expectations.
2. eliminate variations in customers experience.
INSTILLING QUALITY
-study others to identify high standards of performance in such areas as delivery
delays,
Eliminating defects, & training. Process called benchmarking.
-Must try to improve customer contact performance.
-All members of company should constsntly try to improve the business.
-Form partnerships sp you can ideas from them for improvements.
-Measuring product & service quality & the resulting customer satisfaction.
IMPORTANCE OF MARKETING
IN THE GLOBAL ECONOMY
-Not facing competition from just Japan, Europe & U.S. anymore more global economy
-reduction in trade barriers worldwide. More opportunity but also more competition.
IN THE CANADIAN SYSTEM
-now have growing mass customization.
-making products in Canada has been easy its marketing them that has become tough.
EMPLOYMENT & COSTS
-between 25 & 33 percent of Canadian labour force is engaged in marketing activities.
-on average 55 cents of every dollar consumer spends goes to cover marketing costs.
CREATING CUSTOMER VALUE
-the quality that makes a product capable of satisfying wants is its value or utility.
IN ORGANIZATIONS
-Marketing is the only activity that produces revenue directly.
-1997 stats Can report survey found that one in 5 small ventures will make it past 10
years.
(surveyed 3000 companies)
SERVICE MARKETERS
-service becoming more important then actual product
NOT-FOR-PROFIT MARKETERS
-Even charities are increasingly needing to market themselves, which has occurred
because:
-Increasing competition among non-profit organizations
-firms need to improve image to get more funds.
SIX TYPES OF UTILITY
Form utility-associated primarily with production 
Place utility-exists when a product is readily accessible to potential customers. 
Time utility-means having a product available when you want it
Information utility-created by informing prospective buyers that a product exists
Possession utility-created when ownership is transferred to the buyer
Satisfaction utility-created when customer is pleased with product.
CHAPTER 2
THE CHANGING ENVIROMENT
ENVIROMENTAL MONITORING
Environmental monitoring- (environmental scanning) is the process of (1) gathering info
regarding s company's external environment (2) analyzing it & (3) forecasting the impact
of the trends suggested by the analysis.
TWO LEVELS OF EXTERNAL FORCES
-macro influences-includes demographics, eco conditions, technological development,
culture & laws.
-micro influences-consists of suppliers, marketing, intermedediaries, & customers.
EXTERNAL MACROENVIROMENT
-6 interrelated macroenvironmental forces have a considerable effect on any organizations
marketing
system. Yet they are largely not controllable by management.
Company's Marketing Program
A. Demography
B. Economic conditions
C. Competition]
D. Social & cultural forces
E. Technology
F. Political & legal forces
DEMOGRAPHY
Demography-is the statistical study of human population & its distribution.
-most significant is baby boomers (born between 1946-1966)
-people in BB segment now passing through middle years.
-baby boomers children also important demographic. (Generation X)
-today's seniors another important segment as population is aging.
-David Foot breaks down to: young seniors (65-74), mid-seniors (75-84), & 
senior seniors (85 & up)
-today 20% of Canadian households are made of people who live alone.
ECONOMIC CONDITIONS
-is a significant force that affects the marketing system of just about any
organization.
STAGE OF THE BUSINESS CYCLE
-traditional cycle goes through 4 stages prosperity, recession, depression, & recovery.
-today depression is excluded because of its rarity in occurrence.
-Prosperity is typically is a period of economic growth.?companies tend to expand.
-in recessions less is spent by consumers because of economic hardship.
-in the recovery the economy moves from recession to prosperity.
INFLATION-is arise in price levels, causes decline in buying power.
INTEREST RATES-when interest rates high consumers refrain in buying expensive items.
UNEMPLOYMENT RATES-important figure, if people aren't employed tougher to sell to.
COMPETITION
-executives should be gathering intelligence & otherwise be monitoring all aspects of
their competitors 
marketing activities.
-Firm faces competition from 3 sources
A. Direct brand competition & store competition from marketers of similar & directly
Competing products & services.
B. Substitute products that satisfy the same basic need.
C. Every company or organization is competing for the consumers limited buying power.
SOCIAL & CULTURAL FORCES
CHANGING VALUES-EMPHASIS ON QUALITY OF LIFE
-focus today is on quality of life not merely the quality of goods & services.
-education, health, environment more important.
-also immigrants have different values
-915,000 Chinese lived in Canada in 1996, expected to grow to 2.1 million by 2001.
ROLE OF MEN & WOMEN -male female stereotypes & roles slowly coming down
ATTITUDES TOWARD PHYSICAL FITNESS & EATING
-fish & chicken have gone up in consumption dramatically
EMPHASIS ON SERVICE QUALITY
-quality in service depends on expectations of customers.
CONCERN FOR THE ENVIROMENT
-using more biodegradable materials & recyclable products.
-as many as 50% of consumers in the future are expected to make purchases on the basis of

environmental factors.
DESIRE FOR CONVENIENCE
-want products ready & easy to use & convenient credit programs.
-want stores close by, open 24 hours.
-Growth of Internet
IMPULSE BUYING
impulse buying-purchasing done without much advance planning.
-partly because of attractive displays
TECHNOLOGY
Technology-has a tremendous impact on our lifestyles, consumption patterns, & economic
well being.
-Internet will have big impact on marketing & business.
-with new technology come new problems. For example credit card security over net.
-in 1997, 8% or nearly 2 million Canadians accessed the Internet.
Major technological breakthroughs have a 3 fold impact on marketing:
-to start entirely new industries such as CD-ROM,
-To alter & virtually destroy existing industries. 
-to stimulate other markets & industries not related to the new technology.
POLITICAL & LEGAL FORCES
-Influence from government policies.
A. General monetary & fiscal policies
B. Legislative framework & codes & policies set by government agencies.
C. Social Legislation seatbelts, no smoking
D. Government relationships with individual industries.
E. Legislation specifically related to marketing should know laws
F. The provision of info & the purchase of products.
EXTERNAL MICROENVIROMENT
-3 environmental forces that are external, but are a part of a company's marketing
system, are that firm's market, its suppliers, & its marketing intermediaries.
THE MARKET (see page 40, table 2-2)
-place where buyers & sellers meet, G & S are offered for sale, & transfer of ownership
occurs. 
-in mkt. Demand for any given product or service, there are 3 factors to consider:
A. people or organizations with wants (needs0
B. their purchasing power
C. the buying behaviour
SUPPLIERS
-critical to market success, that's why suppliers part of marketing system.
MARKETING INTERMEDIARIES
-There are 2 types of intermediaries:
A. firms called middlemen or intermediaries-wholesalers & retailers
B. various organizations that provid4e such services as transportation, warehousing, &
financing that are needed to complete exchanges.
ORGANIZATIONS INTERNAL ENVIROMENT
(SEE page 41, fig 2-3 & 2-4)
-organizations marketing system is also shaped by internal forces that are controllable 
by management. These influences include firms production, financial & personal act.
CHAPTER 3
STRATEGIC MARKETING PLANNING
PLANNING AS PART OF MANAGEMENT
Management process, as applied to marketing, consists basically of (1) planning a
marketing program, (2) implementing it & (3) evaluating its performance.
-planning stage includes setting goals & designing tactics to reach these goals
-the implementation stage entails forming & staffing the marketing organization according
to the plan.
-the evaluation stage consists of analyzing past performance in relation to
organizational goals.
-This third stage indicates the interrelated, continuing nature of the mgmt. Process.
-the results of this stage of the mgmt. Process are used in planning goals & strategies
for future periods. 
And the cycle continues 
PLANNING IMPLEMENTATION EVALUATION
Analyze situation Organize Compare
Set goals e Staff e performance 
Select strategies & tactics Operate with goals
Forecast demand FIG 3-1
Feedback plays role in first 2 stages.
THE NATURE OF PLANNING
-management first should decide what it intends to accomplish as a total organization &
then develop a
strategic plan to achieve these results.
-on basis of this overall plan, each division of organization should determine what its
own plans will be.
Planning-is deciding now what we are going to do later, including how & when we are going
to do it.
Strategic planning-managers match an organization's resources with its market
opportunities over the long run.
Strategic window-was suggested to describe the limited amt. Of time in which a firm's
resources can actually be made available to take advantage of a opportunity.
-typically strategic window is only open temporarily, thus firm must move quickly.
KEY PLANNIONG CONCEPTS
MISSION (What business are we in?)
Mission-states what customers it serves, what needs it satisfies, & what types of product
it offers.
-A mission statement indicates in general terms the boundaries of an organizations
activities.
OBJECTIVES & GOALS (What do we want to accomplish?)
-book treats goals & objectives as synonyms,
Objective-is simply a desired outcome.
-effective planning must begin with a set of objectives.
To be worthwhile & workable objectives should be:
Clear & specific
Stated in writing 
Ambitious, but realistic
Consistent with on another
Quantitatively measurable whenever possible
Tied to a particular time period
STRATEGIES & TACTICS (How are we going to get job done?)
Strategy-is a broad plan of action by which an organization intends to reach its
objectives. 
Tactic-is a means by which a strategy is implemented. 
EXAMPLE
Objectives Possible Strategies
Increase sales next year by 8% over this years figure. 1) Intensify marketing efforts 
Domestic markets.
2) Expand into foreign markets.
3) Increase customer retention by
reducing account closings by 10%
Strategy Tactics
Direct our promotion to males aged 25-40 1) Advertise in magazines read by this group of
peeps
2) Advertise on TV programs watched by these peeps 
Increase revenue from existing customers 3) Redesign the customer info system
4) Create a loyalty program for light & medium users
5) Retrain account analysts & service personnel.
SCOPE OF PLANNING
-strategic planning is usually long-range, coverage 3,5,10 or infrequently 25 years
-short-range planning typically covers 1 year or less
Planning at 3 different levels:
Strategic company planning: At this level, management defines an organizations mission,
sets long-range goals, & formulates broad strategies to achieve these goals.
Strategic marketing planning: The top marketing execs set goals & strategies for an
organizations marketing effort.
Annual marketing planning: Short-term plans should be prepared for a firms major
functions. Based on strategic marketing plan.
STATEGIC COMPANY PLANNING
Consists of 4 essential steps:
1) Defining the organizational mission-influences all subsequent planning.
2) Analyzing the situation-
3) Setting organizational objectives
4) Selecting strategies to achieve these objectives.
Situational analysis-gathering & studying info pertaining to one or more specified
aspects of an organization.
Organizational strategies-represents broad plans of action by which an organization
intends to achieve its goals & fulfill its mission 
STRATEGIC MARKETING PLANNING (SEE PAGE 51, FIG 3-2)
-strategic marketing planning is a 5 step process:
A. Conduct a situation analysis
B. Develop marketing objectives
C. Determine positioning & differential advantage.
D. Select target markets & measure market demand
E. Design a strategic marketing mix
SITUATION ANALYSIS
-involves analyzing the company's marketing program has been, how it has been doing,
& what it's likely to face in the years ahead.
-enables firm to know if to revise or devise plans.
-normally covers external environmental forces & internal non-marketing resources.
-SWOT assessment is part of the situational analysis that many organizations perform.
In this activity firm identifies & evaluates its most significant strengths, weaknesses,

Opportunities, & threats.
MARKETING OBJECTIVES
-each objective should be assigned a priority based on its urgency & potential impact
On the marketing area & in turn the organization.
POSITIONING & DIFFERNTIAL ADVANTAGE
-involves 2 complementary decisions: how to distinguish it from competitors.
Positioning-refers to a product's image in relation to directly competitive products as
well as other products marketed by the same company.
Differential Advantage-refers to any feature of an organization or brand perceived by
customers to be desirable & different from those of the competition.
TARGET MARKETS & MARKET DEMAND
-a market consists of people or firms with needs to satisfy, money to spend, &
willingness to spend it.
Target market-refers to a group of people or organizations at which a firm directs a
marketing program.
MARKITINGF MIX
Marketing Mix-the combination of a product or service, how it is disturbed & promoted, &
its price.
-traditionally, the marketing mix has been considered in terms of 4 elements that
together must satisfy the 
needs of the organization's target markets & at the same time achieve its marketing
objectives.
Product: strategies are needed for managing existing products over time, adding new ones,
& dropping failed products. Also decisions about service levels, branding, packaging, &
other product features such as warrantees.
Price: necessary strategies pertain to the locations of customers, price flexibility,
related items within a product line, & terms of sale. Also, pricing strategies for
entering a mkt. Especially with a new product, must be designed.
Distribution: involves the mgmt. Of the channels by which ownership of products is
transferred from producer to customer & in many cases, the systems by which goods are
moved from the place where they are produces to the place where they are purchased by the
final customer.
Marketing communications: Strategies are needed to combine individual methods such as
advertising, personal selling, & sales promotion into a co-ordinated campaign.
Customer service: This component deals with how the customer is handled as he/she deals
with the firm.
-elements of marketing mix are interrelated.
ANNUAL MARKETING PLAN
-is master blueprint for a year's marketing activity for a specified organizational
division or major product
-separate plan normally should be prepared for each major product & company division
PURPOSES & RESPONSIBILITIES
-It summarizes marketing strategies & tactics that will be used to achieve specified 
Objectives in the upcoming year. (become s what-to-do document)
-Plan focuses on how to do it, pointing to what needs to be done with respect to the 
other steps in the management process, primarily implementation.
-Moreover plan outlines who is responsible for which activities, when the activities are

to be carried out, & how much time & money can be spent.
-executive responsible for the division or product covered by the plan typically prepares
it.
-work starts 9 or more months before start of actual year planned & bulk of it is done 3
months in advance
RECCOMENDED CONTENTS
-exact contents of marketing plan should be determined by an organizations circumstances.

EX. Firm in intensely competitive industry would asses its competitor
In a separate area. Firm in another industry would present the assessment as part of
situational analysis
SELECTED PLANNING MODELS
Table 3-4
A. Executive summary: 1 or 2 page section, the thrust of the plan is described &
explained. Its intended for execs who desire an overview of the plan but need not be
knowledgeable about the details.
Bibliography
MARKETING
CHAPTER 1
Field Of Marketing
INFORMATION TECHNOLOGY
-New marketing based on info technology. EX. Royal Bank
-Royal spent $15 million on data base technology to serve customers more uniquely.
-Increased response rate from 4% to 60%.
NATURE AND SCOPE OF MARKETING
EXCHANGE AS THE FOCUS
-Marketing occurs any time 1 social unit (person or organization) exchanges something of

value with another social unit.
-Marketing consists of activities designed to generate & facilitate exchanges intended to
satisfy
human needs or wants
Exchange-is one of 3 ways in which a person can satisfy a want.
EX. Clothes make, borrow, use some form of coercion to get them 
or offer something of value to another who will voluntarily exchange
-Only last approach they call exchange in the sense that marketing is taking place.
Following must exist for marketing exchange to take place.
-2 or more social units must be involved & each must have wants to be satisfied. If you
are self sufficient
there is no need for exchange.
-Parties must be involved voluntarily (Although argued monopolies deter this.)
-Each party must have something of value to contribute & each must believe that it will
benefit
-Parties must communicate even if done through 3rd party. Without communication, no
trade.
Marketers-take initiative in trying to stimulate & facilitate exchanges.
-They develop marketing plans & programs & implement them to create exchange that can be
repeated
over time.
Market-on other side of exchange, made up of social units to whom marketing programs are
directed & who will play a key role in acceptance or rejection of marketers offer.
Markets made of customers
Customers-Any person or group with whom an individual or organizational marketer has an
existing or potential exchange relationship.
People who constitute a market play a number of roles.
A. Decision maker, individual or organizational unit that has the authority to commit to
an exchange
B. Consumer, who actually uses or consumes the product.
C. Purchaser, The party who actually carries out the exchange
D. Influencers, who affect decisions of others because of their expertise, position, or
power.
Worth Baseball, new safer ball, but clashes with tradition
Needs-viewed in strict physiological sense (food, clothing, shelter) everything else is a
want.
Product-the objective of the exchange or what is being marketed generically as the
product.
-It can be a tangible, physical product, a service, an idea, a person, or a place.
tangible, physical product-corn flakes
a service-accounting advise
an idea-advertising slogan
person-individual applying for a marketing position
A place-provincial gov't trying to attract tourism is an example of marketing a place as
the product.
THE CONCEPT OF RELATIONSHIP IN EXCHANGE
Relationship-can develop when 2 people or organizations are voluntarily involved in an
exchange situation, are communicating with each other, & are contributing something of
value to the exchange & thereby mutually satisfy needs or wants.
-relationships are of more long-term nature & involve many exchanges & interactions over
a # of years.
-longer relationship lasts, more likely it will be of special value to those taking part
in it. Better you 
understand each other, the better the needs are satisfied.
APPLICATIONS OF MARKETING
Books definition of marketing:
Marketing is a total system of business activity designed to plan, price, promote &
distribute want-satisfying products, services, & ideas to target markets in order to
achieve the objectives of both the consumer & the organization.
Marketing is
A total system designed to: for business activities plan, price, promote & distribute
Something of value: want-satisfying products, services, & ideas in the context
of a valuable relationship.
For the benefit of: the target mkt. -
Present & potential household consumers or business users.
To achieve the: satisfaction of the needs & objectives of both the consumers & the firm
Definition has implications when marketing is properly applied:
-It's a systems definition, meaning it should be understood & applied by all in firm.
-Entire system of business or organizational activities must be customer orientated &
focus on quality of 
the customer relationship- customers needs & wants must be recognized & satisfied
effectively.
-Marketing program starts with an idea for a product or service & doesn't end until the
customer's 
are completely satisfied, which may be some time after the exchange.
wants-Marketing program, generally termed the marketing mix, usually consists of 4
coordinated elements:
A. a product or service assortment
B. a pricing structure
C. distributions systems & channels
D. promotional activities
-Marketing mix doesn't guarantee customer satisfaction.
EVOLUTION OF MARKETING
-Foundations in Canada were laid by French & English settlers in pioneer times
-Developed marketing relationships also with various Native groups.
-Since then marketing has evolved through 3 successive stages of development:
-production orientation, sales orientation & marketing orientation.
-Following from last stage, marketing now more focused on processes involved in providing
service & 
developing marketing relationships.
-All firms today are at different stages of marketing.
PRODUCTION ORIENTATION STAGE
-firms in this stage, typically manufacturers, focused on increasing output while
assuming that customers
would seek out & buy reasonably priced & well made products.
-Executives in production & engineering shaped firm's planning.
-finding customers was viewed as a relatively minor function, term marketing not yet
used. (stage 
dominant until early 1930's.) Some mining firms still here. 
SALES ORIENTATION STAGE
-After great depression it was clear that main problem in economy no longer was to
produce, but how to
sell the output.
-Making best product didn't assure success. Realized you needed promotional effort.
-began sales orientation stage-when selling activities and sales executives gained new
respect &
responsible from company management.
-stage common until 1950's, when marketing era began to emerge.
MARKETING ORIENTATION STAGE
-as a result of WWII there was enormous pent up demand for consumer goods.
-postwar spending slowed down as supply caught up with demand, & firms had to find way to
sell excess
capacity, this began sales orientation era.
-consumers got smarter bringing forth greater variety of goods.
-In marketing orientation stage companies identify what consumers want & tailor all the
activities of the
firm to satisfy those needs as efficiently as possible.
-in this stage firms are marketing rather than merely selling.
**********SEE TABLE 1-1 (What Business You in?) page 8
DIFFERENCES BETWEEN MARKETING & SELLING ORIENTATIONS
-term marketing & selling are often used interchangeably, but really are vastly
different.
-Basic difference is that selling is orientated to what is available & to the
organizations needs, while 
marketing is orientated to the customers needs & how a product & service mix can satisfy
them.
SERVICES
-experienced shift from goods production to service production over last 20 years.
-resulting in meeting of needs of consumers through providing efficient, effective, &
high quality service.
-can think of services as falling into 2 different categories:
1) non-tangible product to be sold, such as cleaning service
2) service accompanying the sale of most tangible products, such as delivery of stove.
-useful to distinguish between core elements & noncore features.
Ex. Core product; traveler checking into hotel is purchasing a room for the night.
Once checked in customer will expect all sorts of services like cleaning, AIR C, nice
employees etc.
FACTORS THAT DRIVE CUSTOMER SATISFACTION FIG 1-2
AFFECTIVE DIMENSIONS OF THE INTERACTION
INTERACTION WITH THE FIRM & ITS EMPLOYEES
TECHNICAL PERFORMANCE
PROCESSES & SUPPORT
CORE
-Above example includes 5 levels of customer satisfaction, called drivers of customer
satisfaction.
Core-is the basic product or service provided by the firm. Can be service or product.
Process & support-(2nd level) for hotel includes such things as reservation services, 
Billing systems, convenience of hotel location & room service menu.
Technical performance-(3rd level) which determines whether the service provider gets the
core product & support services right.
-emphasis is on meeting the expectations of the customer.
Interaction with the firm & its employees-(4rth level) can involve both face to face
interaction & the interaction based through other technology.
Affective dimensions of the interaction-consider subtle messages that firms send to
customers as sometimes dissatisfaction has little to do with the service or quality of
product. Create positive or negative feelings toward the company.
RELATIONSHIP MARKETING
-concept that embodies building personal, long-term bonds with customers.
-Emphasis on relationship marketing is a further step in the development of the market
orientation.
-While many factors affect the development of a strong relationship marketing program, 2
major factors 
are (1) the provisions of quality products & services and (2) the conducting of marketing
relationships 
within a trusting & ethical framework.
THE MARKETING CONCEPT
Marketing concept-philosophy emphasizing customer orientation & the coordination of
marketing activities to achieve the mutual long-term objectives of both the customer &
the organization.
NATURE & RATIONALE (SEE FIG 1-3)
-all planning & operations should be customer orientated
-every dept. & employee should be focused on contributing to the satisfaction of
customers needs.
-All marketing activities in an organization should be co-ordinated marketing efforts
(product & service planning, pricing, distribution, promotion, & customer service) 
should be designed & combined in a coherent, consistent way, & one executive should have
overall
authority & responsibility for the complete set of marketing activities.
-customer-orientated, co-ordinated marketing is essential to achieve the organization's
performance objectives while at the same time meeting the customer's needs.
NEW FOCAL POINTS IN THE MARKETING CONCEPT
THE SOCIETAL MARKETING CONCEPT
-social responsibility can be quite compatible with the marketing concept.
-compatibility depends on 2 things: how broadly a firm perceives its marketing goals &
how long it's
willing to wait to achieve those goals.
-firm that sufficiently extends the breadth & time dimensions of its marketing goals to
fulfill its social
responsibility is practicing the societal marketing concept.
-Company shouldn't just recognize only the buyers buy also those affected by its
operations.
-Firm should look at long-term view of customer satisfaction & performance objectives.
A. satisfy the wants of its product buying customers
B. meet the societal needs of others affected by the firms activities
C. achieve the company's performance objectives.
TRUST, ETHICS, & MARKETING RELATIONSHIPS
tools marketers use to deliver to customers include the design of product or service, the
price at which it is offered, the message used to describe it, the channel through which
it is made available, & the level of service provided to customers.
WHAT IS ETHICAL BEHAVIOUR? (See table 1-2 on page 13)
Ethics-are the rules we play by, the standards of behaviour generally accepted by a
society.
INSTILLING AN ETHICAL ORIENTATION
-Create ethical environment by holding ethical workshops & setting up committees
-make sure that performance demands on employees are reasonable.
THE BENEFITS OF ETHICAL BEHAVIOUR: CONSUMER TRUST
-successful firms are built with successful relationships with suppliers, customers, 
& employees. Unethical behaviour undermines trust.
QUALITY AND THE MARKETING RELATIONSHIP
WHAT IS QUAQLITY?
One definition of quality is the absense of variation in products& services.
-should have variance control to better serve customers.
-quality control misleading because its limited to inspecting.
-real indication of quality is how well a product meets both the product & service
expectations of the
consumer, not of the production department.
Total quality management-delegating quality control to more than 1 department to meet the
expectations of the customer.
Goals
1) better, more appealing, & less variable product & service quality.
2) Quicker & less variable responses from design all the way to delivery.
3) Greater flexibility in responding to customers needs.
4) Lower costs as result of quality improvements.
Marketers must do 2 things;
A. ensure that all marketing activities contribute to creating reasonable customer 
expectations.
2. eliminate variations in customers experience.
INSTILLING QUALITY
-study others to identify high standards of performance in such areas as delivery
delays,
Eliminating defects, & training. Process called benchmarking.
-Must try to improve customer contact performance.
-All members of company should constsntly try to improve the business.
-Form partnerships sp you can ideas from them for improvements.
-Measuring product & service quality & the resulting customer satisfaction.
IMPORTANCE OF MARKETING
IN THE GLOBAL ECONOMY
-Not facing competition from just Japan, Europe & U.S. anymore more global economy
-reduction in trade barriers worldwide. More opportunity but also more competition.
IN THE CANADIAN SYSTEM
-now have growing mass customization.
-making products in Canada has been easy its marketing them that has become tough.
EMPLOYMENT & COSTS
-between 25 & 33 percent of Canadian labour force is engaged in marketing activities.
-on average 55 cents of every dollar consumer spends goes to cover marketing costs.
CREATING CUSTOMER VALUE
-the quality that makes a product capable of satisfying wants is its value or utility.
IN ORGANIZATIONS
-Marketing is the only activity that produces revenue directly.
-1997 stats Can report survey found that one in 5 small ventures will make it past 10
years.
(surveyed 3000 companies)
SERVICE MARKETERS
-service becoming more important then actual product
NOT-FOR-PROFIT MARKETERS
-Even charities are increasingly needing to market themselves, which has occurred
because:
-Increasing competition among non-profit organizations
-firms need to improve image to get more funds.
SIX TYPES OF UTILITY
Form utility-associated primarily with production 
Place utility-exists when a product is readily accessible to potential customers. 
Time utility-means having a product available when you want it
Information utility-created by informing prospective buyers that a product exists
Possession utility-created when ownership is transferred to the buyer
Satisfaction utility-created when customer is pleased with product.
CHAPTER 2
THE CHANGING ENVIROMENT
ENVIROMENTAL MONITORING
Environmental monitoring- (environmental scanning) is the process of (1) gathering info
regarding s company's external environment (2) analyzing it & (3) forecasting the impact
of the trends suggested by the analysis.
TWO LEVELS OF EXTERNAL FORCES
-macro influences-includes demographics, eco conditions, technological development,
culture & laws.
-micro influences-consists of suppliers, marketing, intermedediaries, & customers.
EXTERNAL MACROENVIROMENT
-6 interrelated macroenvironmental forces have a considerable effect on any organizations
marketing
system. Yet they are largely not controllable by management.
Company's Marketing Program
A. Demography
B. Economic conditions
C. Competition]
D. Social & cultural forces
E. Technology
F. Political & legal forces
DEMOGRAPHY
Demography-is the statistical study of human population & its distribution.
-most significant is baby boomers (born between 1946-1966)
-people in BB segment now passing through middle years.
-baby boomers children also important demographic. (Generation X)
-today's seniors another important segment as population is aging.
-David Foot breaks down to: young seniors (65-74), mid-seniors (75-84), & 
senior seniors (85 & up)
-today 20% of Canadian households are made of people who live alone.
ECONOMIC CONDITIONS
-is a significant force that affects the marketing system of just about any
organization.
STAGE OF THE BUSINESS CYCLE
-traditional cycle goes through 4 stages prosperity, recession, depression, & recovery.
-today depression is excluded because of its rarity in occurrence.
-Prosperity is typically is a period of economic growth.?companies tend to expand.
-in recessions less is spent by consumers because of economic hardship.
-in the recovery the economy moves from recession to prosperity.
INFLATION-is arise in price levels, causes decline in buying power.
INTEREST RATES-when interest rates high consumers refrain in buying expensive items.
UNEMPLOYMENT RATES-important figure, if people aren't employed tougher to sell to.
COMPETITION
-executives should be gathering intelligence & otherwise be monitoring all aspects of
their competitors 
marketing activities.
-Firm faces competition from 3 sources
A. Direct brand competition & store competition from marketers of similar & directly
Competing products & services.
B. Substitute products that satisfy the same basic need.
C. Every company or organization is competing for the consumers limited buying power.
SOCIAL & CULTURAL FORCES
CHANGING VALUES-EMPHASIS ON QUALITY OF LIFE
-focus today is on quality of life not merely the quality of goods & services.
-education, health, environment more important.
-also immigrants have different values
-915,000 Chinese lived in Canada in 1996, expected to grow to 2.1 million by 2001.
ROLE OF MEN & WOMEN -male female stereotypes & roles slowly coming down
ATTITUDES TOWARD PHYSICAL FITNESS & EATING
-fish & chicken have gone up in consumption dramatically
EMPHASIS ON SERVICE QUALITY
-quality in service depends on expectations of customers.
CONCERN FOR THE ENVIROMENT
-using more biodegradable materials & recyclable products.
-as many as 50% of consumers in the future are expected to make purchases on the basis of

environmental factors.
DESIRE FOR CONVENIENCE
-want products ready & easy to use & convenient credit programs.
-want stores close by, open 24 hours.
-Growth of Internet
IMPULSE BUYING
impulse buying-purchasing done without much advance planning.
-partly because of attractive displays
TECHNOLOGY
Technology-has a tremendous impact on our lifestyles, consumption patterns, & economic
well being.
-Internet will have big impact on marketing & business.
-with new technology come new problems. For example credit card security over net.
-in 1997, 8% or nearly 2 million Canadians accessed the Internet.
Major technological breakthroughs have a 3 fold impact on marketing:
-to start entirely new industries such as CD-ROM,
-To alter & virtually destroy existing industries. 
-to stimulate other markets & industries not related to the new technology.
POLITICAL & LEGAL FORCES
-Influence from government policies.
A. General monetary & fiscal policies
B. Legislative framework & codes & policies set by government agencies.
C. Social Legislation seatbelts, no smoking
D. Government relationships with individual industries.
E. Legislation specifically related to marketing should know laws
F. The provision of info & the purchase of products.
EXTERNAL MICROENVIROMENT
-3 environmental forces that are external, but are a part of a company's marketing
system, are that firm's market, its suppliers, & its marketing intermediaries.
THE MARKET (see page 40, table 2-2)
-place where buyers & sellers meet, G & S are offered for sale, & transfer of ownership
occurs. 
-in mkt. Demand for any given product or service, there are 3 factors to consider:
A. people or organizations with wants (needs0
B. their purchasing power
C. the buying behaviour
SUPPLIERS
-critical to market success, that's why suppliers part of marketing system.
MARKETING INTERMEDIARIES
-There are 2 types of intermediaries:
A. firms called middlemen or intermediaries-wholesalers & retailers
B. various organizations that provid4e such services as transportation, warehousing, &
financing that are needed to complete exchanges.
ORGANIZATIONS INTERNAL ENVIROMENT
(SEE page 41, fig 2-3 & 2-4)
-organizations marketing system is also shaped by internal forces that are controllable 
by management. These influences include firms production, financial & personal act.
CHAPTER 3
STRATEGIC MARKETING PLANNING
PLANNING AS PART OF MANAGEMENT
Management process, as applied to marketing, consists basically of (1) planning a
marketing program, (2) implementing it & (3) evaluating its performance.
-planning stage includes setting goals & designing tactics to reach these goals
-the implementation stage entails forming & staffing the marketing organization according
to the plan.
-the evaluation stage consists of analyzing past performance in relation to
organizational goals.
-This third stage indicates the interrelated, continuing nature of the mgmt. Process.
-the results of this stage of the mgmt. Process are used in planning goals & strategies
for future periods. 
And the cycle continues 
PLANNING IMPLEMENTATION EVALUATION
Analyze situation Organize Compare
Set goals e Staff e performance 
Select strategies & tactics Operate with goals
Forecast demand FIG 3-1
Feedback plays role in first 2 stages.
THE NATURE OF PLANNING
-management first should decide what it intends to accomplish as a total organization &
then develop a
strategic plan to achieve these results.
-on basis of this overall plan, each division of organization should determine what its
own plans will be.
Planning-is deciding now what we are going to do later, including how & when we are going
to do it.
Strategic planning-managers match an organization's resources with its market
opportunities over the long run.
Strategic window-was suggested to describe the limited amt. Of time in which a firm's
resources can actually be made available to take advantage of a opportunity.
-typically strategic window is only open temporarily, thus firm must move quickly.
KEY PLANNIONG CONCEPTS
MISSION (What business are we in?)
Mission-states what customers it serves, what needs it satisfies, & what types of product
it offers.
-A mission statement indicates in general terms the boundaries of an organizations
activities.
OBJECTIVES & GOALS (What do we want to accomplish?)
-book treats goals & objectives as synonyms,
Objective-is simply a desired outcome.
-effective planning must begin with a set of objectives.
To be worthwhile & workable objectives should be:
Clear & specific
Stated in writing 
Ambitious, but realistic
Consistent with on another
Quantitatively measurable whenever possible
Tied to a particular time period
STRATEGIES & TACTICS (How are we going to get job done?)
Strategy-is a broad plan of action by which an organization intends to reach its
objectives. 
Tactic-is a means by which a strategy is implemented. 
EXAMPLE
Objectives Possible Strategies
Increase sales next year by 8% over this years figure. 1) Intensify marketing efforts 
Domestic markets.
2) Expand into foreign markets.
3) Increase customer retention by
reducing account closings by 10%
Strategy Tactics
Direct our promotion to males aged 25-40 1) Advertise in magazines read by this group of
peeps
2) Advertise on TV programs watched by these peeps 
Increase revenue from existing customers 3) Redesign the customer info system
4) Create a loyalty program for light & medium users
5) Retrain account analysts & service personnel.
SCOPE OF PLANNING
-strategic planning is usually long-range, coverage 3,5,10 or infrequently 25 years
-short-range planning typically covers 1 year or less
Planning at 3 different levels:
Strategic company planning: At this level, management defines an organizations mission,
sets long-range goals, & formulates broad strategies to achieve these goals.
Strategic marketing planning: The top marketing execs set goals & strategies for an
organizations marketing effort.
Annual marketing planning: Short-term plans should be prepared for a firms major
functions. Based on strategic marketing plan.
STATEGIC COMPANY PLANNING
Consists of 4 essential steps:
1) Defining the organizational mission-influences all subsequent planning.
2) Analyzing the situation-
3) Setting organizational objectives
4) Selecting strategies to achieve these objectives.
Situational analysis-gathering & studying info pertaining to one or more specified
aspects of an organization.
Organizational strategies-represents broad plans of action by which an organization
intends to achieve its goals & fulfill its mission 
STRATEGIC MARKETING PLANNING (SEE PAGE 51, FIG 3-2)
-strategic marketing planning is a 5 step process:
A. Conduct a situation analysis
B. Develop marketing objectives
C. Determine positioning & differential advantage.
D. Select target markets & measure market demand
E. Design a strategic marketing mix
SITUATION ANALYSIS
-involves analyzing the company's marketing program has been, how it has been doing,
& what it's likely to face in the years ahead.
-enables firm to know if to revise or devise plans.
-normally covers external environmental forces & internal non-marketing resources.
-SWOT assessment is part of the situational analysis that many organizations perform.
In this activity firm identifies & evaluates its most significant strengths, weaknesses,

Opportunities, & threats.
MARKETING OBJECTIVES
-each objective should be assigned a priority based on its urgency & potential impact
On the marketing area & in turn the organization.
POSITIONING & DIFFERNTIAL ADVANTAGE
-involves 2 complementary decisions: how to distinguish it from competitors.
Positioning-refers to a product's image in relation to directly competitive products as
well as other products marketed by the same company.
Differential Advantage-refers to any feature of an organization or brand perceived by
customers to be desirable & different from those of the competition.
TARGET MARKETS & MARKET DEMAND
-a market consists of people or firms with needs to satisfy, money to spend, &
willingness to spend it.
Target market-refers to a group of people or organizations at which a firm directs a
marketing program.
MARKITINGF MIX
Marketing Mix-the combination of a product or service, how it is disturbed & promoted, &
its price.
-traditionally, the marketing mix has been considered in terms of 4 elements that
together must satisfy the 
needs of the organization's target markets & at the same time achieve its marketing
objectives.
Product: strategies are needed for managing existing products over time, adding new ones,
& dropping failed products. Also decisions about service levels, branding, packaging, &
other product features such as warrantees.
Price: necessary strategies pertain to the locations of customers, price flexibility,
related items within a product line, & terms of sale. Also, pricing strategies for
entering a mkt. Especially with a new product, must be designed.
Distribution: involves the mgmt. Of the channels by which ownership of products is
transferred from producer to customer & in many cases, the systems by which goods are
moved from the place where they are produces to the place where they are purchased by the
final customer.
Marketing communications: Strategies are needed to combine individual methods such as
advertising, personal selling, & sales promotion into a co-ordinated campaign.
Customer service: This component deals with how the customer is handled as he/she deals
with the firm.
-elements of marketing mix are interrelated.
ANNUAL MARKETING PLAN
-is master blueprint for a year's marketing activity for a specified organizational
division or major product
-separate plan normally should be prepared for each major product & company division
PURPOSES & RESPONSIBILITIES
-It summarizes marketing strategies & tactics that will be used to achieve specified 
Objectives in the upcoming year. (become s what-to-do document)
-Plan focuses on how to do it, pointing to what needs to be done with respect to the 
other steps in the management process, primarily implementation.
-Moreover plan outlines who is responsible for which activities, when the activities are

to be carried out, & how much time & money can be spent.
-executive responsible for the division or product covered by the plan typically prepares
it.
-work starts 9 or more months before start of actual year planned & bulk of it is done 3
months in advance
RECCOMENDED CONTENTS
-exact contents of marketing plan should be determined by an organizations circumstances.

EX. Firm in intensely competitive industry would asses its competitor
In a separate area. Firm in another industry would present the assessment as part of
situational analysis
SELECTED PLANNING MODELS
Table 3-4
A. Executive summary: 1 or 2 page section, the thrust of the plan is described &
explained. Its intended for execs who desire an overview of the plan but need not be
knowledgeable about the details.