POLI 203 Lecture Notes - Lecture 6: Naproxen, Resale Price Maintenance, Cash Cow
Ethical trade-off: low costs vs. doing the right thing
MICRO
-High prices due to high costs of distribution
●advertising + promotion costs
●excessive markups
-Deceptive practices (‘greenwashing’ vrs true greening of the environment)
(See Air Canada pricing article) VW cheating on diesel emission results
-High pressure selling
-Shoddy or unsafe products
-Planned obsolescence
-Poor Service to disadvantaged consumers
MACRO
●False wants & too much materialism
●Too few social goods (highway repairs vs. vehicles)
●Cultural pollution (billboards everywhere. See article re Plateau Montreal area bylaw)
●Too much political power (the oil, tobacco, auto industries)
Needs
Wants
Demands
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
Universal Functions of Marketing
●Transactional:
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●Buying & selling (exchange & promotion process)
●Logistical:
●Transporting & storing (material handling & distribution)
●Facilitating:
●Assorting (6 pack of cereal, assorting people’s needs)
●Sorting (bulk breaking)
●Grading (into quality standard)
●Risk taking (obsolescence, shrinkage, etc)
●Marketing information
●Quality control & testing
●Financing (to provide credit)
Marketing Tasks & Goals - External
●•Conversional (Aleve, Advil)
●•Stimulational Bayer Aspirin for pain relief & heart attack prevention
●•Developmental (Arm & Hammer baking soda) or Bayer Aspirin as noted above
●•Remarketing Las Vegas = ‘sin city’, Carlos Santana, ‘diamond’ shape Shreddies,
Rambo # 4, The ‘Expendable’ actors)
●•Synchro Marketing (Summer/Xmas movies, ‘Windows 10 vrs Windows 10.1
software or IPhone 7 vrs IPhone SE)
●•Maintenance Marketing
●•Demarketing (to limit consumption: Seagrams, Shell Oil, Grand Canyon
overcrowding; Loto Quebec re gambling)
●•Counter Marketing (to destroy consumption: Vioxx, Coke Classic, Rely
Tampons, Tylenol, Perrier, Bausch & Lomb – ‘Renu’ contact solution); Maple Leaf
Foods ref Listeria outbreak.
Macro-Micro dilemma
●Casinos, pesticides, alcohol, guns, cigarettes, etc. are good for some industries, but may
be harmful to our society in the long run.
Purpose of Marketing
●Attract new clients with superior value.
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●Keep & grow clients by delivering satisfaction.
Marketing : Kotler’s definition: a human activity directed at satisfying needs
& wants through exchange processes.
Sustainable Marketing: Marketing that meets the present needs of consumers & businesses
while preserving or enhancing the ability of future generations to meet their needs.
(The societal concept focuses on business’ current needs, not future ones à la ‘sustainable
marketing’).
Marketing Management Defined
●The activity, set of institutions, & processes for creating, communicating, delivering, &
exchanging offerings that have value for customers, clients, partners, & society at large.
AMA 2007
●The process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return (page 6) ( FINAL
EXAM QUESTION)
Marketing Management Orientations
●Production concept
●Product concept
●Selling concept
●Marketing concept
●Societal concept
How can society “ counter” cigarettes?
What is marketing myopia?
Environment Chapter 2
Microenvironment: The Company
●Marketing success depends on others:
●Other departments in the firm
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Document Summary
Ethical trade-off: low costs vs. doing the right thing. High prices due to high costs of distribution. Deceptive practices ( greenwashing" vrs true greening of the environment) (see air canada pricing article) vw cheating on diesel emission results. Too few social goods (highway repairs vs. vehicles) Too much political power (the oil, tobacco, auto industries) Build & maintain a loyal customer base. Buying & selling (exchange & promotion process) Transporting & storing (material handling & distribution) Assorting (6 pack of cereal, assorting people"s needs) Marketing tasks & goals - external: conversional (aleve, advil, stimulational bayer aspirin for pain relief & heart attack prevention, developmental (arm & hammer baking soda) or bayer aspirin as noted above, remarketing las vegas = sin city", carlos santana, diamond" shape shreddies, Tampons, tylenol, perrier, bausch & lomb renu" contact solution); maple leaf. Casinos, pesticides, alcohol, guns, cigarettes, etc. are good for some industries, but may be harmful to our society in the long run.