COMM 103 Lecture Notes - Cap Product, Direct Market, Consumer Reports
26 Jun 2018
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Week 9
Marketing's Purpose
● process that encompasses assessing market dynamics, identifying needs and solutions,
and determining what price to charge
● ensuring that customers have access to the product through the development of
distribution channels and options
● delivering the communication message in order to create awareness and preference for
the products that an organization is offering to its customers
● create perceived difference in value
● purpose of marketing is to design, develop, and communicate value
○ why its product/service offering meets the needs of these individuals and
businesses
○ why it should be judged superior to those of competitive alternatives
1. Customers don't buy products or services—they buy solutions to problems or needs.
2. Customers will not pay more for a product if they can get a similar product for less.
Value
● real or perceived
● based on intangible attributes such as peer acceptance, status, emotional benefits, pride
of ownership, brand loyalty
● customer's value relationship with an organization can is the overall experience that the
customer has when interacting with an organization
Role of Marketing
● who desires a given product
● what is important to them in making this decision
● how the company should position its solution relative to rivals
● how to communicate and deliver the value
Marketing's Link to Strategy
● marketing is communications link between an organization and its marketplace
Six R's of marketing
1. right need to pursue
2. right solution to offer
3. right value proposition to position the organization's products and services around
4. right methodology for delivery
5. right price to charge
6. right communication message to use
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The Concept of Positioning
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● the place in the consumer's mind that you want your organization's brand, products,
and/or services to own
● developing a unique, credible, sustainable, and valued place in the minds of our
customers
● can be built around product
○ features
○ attribute
○ functional benefits
○ emotional benefits
○ cultural values
Development and Validation of Marketing Research
● involves conducting analyses relating to
○ competitors
○ customers
○ potential market segments
○ internal competencies in order to determine where and how the organization will
position its brand and products
Segmentation and Target Marketing
● “one size does not fit all”
● necessary to find a target market
● development of marketing research information
○ Primary source
■ organization develops for information specific to the organization and its
products
■ customer surveys
■ customer input via social media sites
■ focus groups
■ formal test marketing initiatives
■ behavioural observations
○ Secondary sources
■ already exist and are available at no cost or on a fee basis
■ Statistics Canada Web site to gather demographic information about a
particular geographic area
■ reviewing various media options to better understand current and
forward-occurring social and cultural trends
■ accessing Conference Board of Canada information relating to national
economic trends
■ conducting generic information searches via Google or Bing
■ undertaking information searches of competitors via company Web sites,
annual reports, or third-party commentary
■ evaluating product test results from third-party testing organizations
(Consumer Reports, CNET, etc.)
● Customer Profile
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