ADMS 2200 Lecture Notes - Strategic Alliance, Marketing Myopia, Marketing Strategy
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Marketing: The Art and Science of Satisfying Customers
What is Marketing?
Production and marketing together create utility.
Utility – Want-satisfying power of a good or service.
Four Types of Utility:
1. Form – (Production) Conversion of raw materials and components into finished goods and
services. I.e. iPod, Shirt from Mark’s Work Wearhouse
2. Time – (Marketing) Availability of goods and services when consumers want them. I.e. Dental
appointment, digital photographs
3. Place – (Marketing) Availability of goods and services at convenient locations. I.e. Soft-drink
machines outside gas stations; on-site day care; banks/atm in grocery stores
4. Ownerships (Possessions) – (Marketing) Ability to transfer title to goods or services from
marketer to buyer. I.e. Retail sales (in exchange for currency or credit-card payment)
o Organizations must create utility and customers to survive.
o Activities marketers perform to create customers:
o Identifying customer needs
o Designing products to meet those needs
o Communicating information
o Making the products available when and where customers want them
o Pricing merchandise and services
o Providing service and follow-up
Marketing – An organizational function and a set of processes for:
o Creating, communicating, and delivering value to customers
o Managing customer relationships in ways that benefit the organization and its
Today’s Global Marketplace
o Factors that have extended economic views
o Increase in international trade agreements
o Growth of electronic business
o Interdependence of the world’s economies
o Companies seek the most efficient manufacturing sites and most lucrative markets
o Companies are tailoring their marketing efforts to the needs and preferences of local
Four Eras in the History of Marketing
Exchange process- Activity which two or more parties give something of value to each other
to satisfy perceived needs
The Production Era
Production orientation – Stressing efficiency in producing a quality product, with the
attitude toward marketing that “a good product will sell itself”
Characterized by production shortages and intense consumer demand
The Sales Era
Sales orientation – Customers will resist purchasing nonessential items.
Task of personal selling and creative advertising is to persuade them to buy
The Marketing Era and the Emergence of the Marketing Concept
o Shift from a seller’s market to a buyer’s market
o Strong buyer’s market created the need for consumer orientation.
o Emergence of marketing concept – A companywide consumer orientation to achieve long-
o A strong market orientation improves market success and overall performance.
The Relationship Era
Relationship marketing – Developing long-term, value-added relationships over time with
customers and suppliers
Strategic alliances and partnerships benefit everyone.
Converting Needs to Wants
o Consumers acquire goods and services on a continuing basis to fill certain needs.
o To convert needs into wants, marketers:
o Focus on the benefits of goods and services
o Require skill
o Should listen to consumer needs
Avoiding Marketing Myopia
o Marketing myopia – Management’s failure to recognize the scope of its business
o Focusing on customer need satisfaction can overcome myopia
Marketing in Not-for-Profit Organizations
o Operate in both the public and private sector
o Adopt marketing strategies to meet service objectives
o Communicate their messages by appearing in advertisements relating to their goals
o Form alliances with for-profit firms to promote each other’s causes
Characteristics of Not-for-Profit Marketing
o Focus is to generate revenue to support their causes and not on the bottom line
o May market tangible goods and services
o Markets to multiple audiences
o Often possess some degree of monopoly power in a given geographic region
o Service users have less control over the firm’s future
Person Marketing – Focus on marketing of fictional characters, celebrities, and political
o Marketing efforts designed to cultivate the attention and preference of a target
market toward a person. I.e. Steve Nash, Nelly Furtado, Stephen Harper
Place Marketing - Focus on marketing places as tourist attractions, business locations
o Marketing efforts designed to attract visitors to a particular are; Improve consumer
images of a city, province or country; and/ or attract new business. I.e. Nova Scotia:
Canada’s Ocean Playground, Saskatchewan: Land of Living Skies
Cause Marketing – Identification and marketing of a social issue, cause or idea to selected
markets. I.e. “Reading is fundamental”, “Friends don’t let their friends drive drunk”, “Be a
o Many profit-seeking firms link their products to social causes
o Strong support among customers and employees for cause-related marketing
Event Marketing – Marketing of sporting, cultural, and charitable activities to selected target
markets. I.e. Grey cup, Super bowl, 2010 Vancouver Olympics, Calgary Stampede, Toronto
Organization Marketing - Marketing efforts of mutual-benefit organizations, service
organizations, and government organizations that seek to influence others to accept their
goals, receive their services, or contribute to them in some way.
Attempts to influence others:
o Accept the organization’s goals
o Receive its services
o Contribute in some way
o Used to raise funds by selling licensed merchandise
From Transaction-based Marketing to Relationship Marketing
o Transaction-based marketing – Buyer and seller exchanges characterized by limited
communications and little or no ongoing relationships between the parties
o Marketers realize that consumers are becoming more and more sophisticated.
o Relationship marketing – Gives a company new opportunities to gain a competitive edge
by moving customers up a loyalty ladder
o It starts with determining what customers need and want, then developing high-quality
products to meet those needs.
Using Interactive and Social Marketing to Build Relationships
Mobile Marketing – Marketing messages transmitted via wireless technology
Interactive marketing – Buyer-seller communications in which the costumer controls the
amount and type of information received from a marketer.
Social marketing – The use of online social media as a communications channel for
Buzz marketing – Word-of-mouth messages that bridge the gap between a company and its
Developing Partnerships and Strategic Alliances
o Relationship marketing extends to business-to-business relationships with suppliers,
distributors, and other partners.
o Strategic alliances – Provide firms competitive advantage
o Forms of alliances:
o Product development partnerships
o Vertical alliances
Eight Universal Marketing Functions
1. Buying - Ensuring product offerings are available in sufficient quantities to meet customer
2. Selling - Using advertising, personal selling, and sales promotions to match products to customer
3. Transporting – Moving products from their point of production to locations convenient for
4. Storing – Warehousing products until needed for sale.
5. Standardizing and Grading – Ensuring product offerings meet quality and quantity controls of size,
weights, and other variables.
6. Financing – Providing credit for channel members (wholesalers and retailers) and consumers.
7. Risk Taking – Dealing with uncertainty about future purchases.
8. Securing Marketing Information – Collection information about consumers, competitors, and
channel members for use in making marketing decisions.