Management and Organizational Studies
Mid Term 1- Exam Notes
At the core of every great marketing program is a creative ides. This idea
becomes the catalyst that inspires every element of the marketing program It is
essential that the marketer uses this idea to inform, stimulate, and guide all of the
elements of the marketing mix.
- Andrew Barrett, vice president of marketing, LG Canada.
Marketing Fundamentals : In 2008, LG Canada brashly launched a new line of cell phones
with a marketing program that beat apples iPhone. The essence of marketing is discovering
consumer insights, said the vice president of LG. He also explains that you must be relevant
and engaging enough for consumers to choose your product or service. The programs
purpose was to create awareness and hype for the new products, prompt support from retailers,
and encourage consumers to gather information and buy the product. The youthful target market
for the touch phones was the stylish- conscious and techno-savvy university and college crowd.
All launch elements were designed with Canadians consumers in mind. Research determined
product needs, that is which features were most appealing, what technology was required and
which product names should be used. The price was established based on a competitive
evaluation, and the fact that expensive data plans were an issue for consumers. Importantly,
distribution was worked through the cell phone carriers. Once these elements were finalized a
promotional campaign was crafted to fit the needs of the target audience and create a buzz in the
market. The following were components in the marketing fundamentals for LG: public Relations,
TV Advertising, Print based advertising, online advertising and point of sale material.
The Essence of Marketing: Marketing success is rooted in focusing on consumers and
providing them with value through products and services that meet their needs. The challenge is
to craft a marketing program setting the product apart from competition. The Canadian market is
very competitive, and that is why it is important to stay on top of competition. The launch of LG
is a prime example, because they took advantage of the fact that consumers were demanding the
iPhone, and were going at great lengths to get one from the states, this gave LG the opportunity to
create a product for the Canadian market, tailored to consumer needs, and fortunately it was a
great success. It is important to understand that marketers ultimate objective is to gain profit, or
if they are non- profit, to obtain enough revenue to carry out their expenses.
Focusing on Consumer Needs: The challenge is to clearly determine consumer needs, and to
understand how they can best be met with meaningful marketing approaches. Consumers do not
always know what they want; consumers do not always want to articulate their feelings;
and in some cases, consumers are unable to communicate and rationalize their preferred
choices. In many product categories, such as fragrances or luxury cars, choices are not entirely
rational, but partly based on self- image and emotional attachment to a brand. Sometimes during
research marketers do not ask the right questions. Sometimes the target groups are unable to
provide information marketers need because they are either too busy (example doctors) or simply
cannot crystallize their needs (babies)
Creating Customer Value: Developing customer loyalty is prompting many firms to focus on
customer value by providing customers with products and services that have added value through
a combination of: 1. Pricing strategies, 2. Product design, and 3. Service elements. Companies
such as Zellers focus on low prices and Apple uses a combination of unique product design and superior service levels to market their Ipods and premium products. Customer Value: is the
unique combination of benefits received by targeted buyers that include quality, price,
convenience, on time delivery, and both before sale and after sale service.
Appealing to Target Markets : In a competitive marketplace, companies cannot satisfy
everyones needs with a singe product, and so they design their products to appeal to specific
target markets. Marketing follows the principle that with limited funds, it is better to channel your
funds to consumers that have both the buying power and to people who are willing to buy the
product. Target Market: The specific group of existing and potential consumers to which a
marketer targets its marketing efforts. This assures that the people they want to see their product
see their product, which they are marketing.
Coordinating the Marketing Mix: The elements of the marketing mix- also known as the 4
Ps. (Please refer to chart below).
The elements of
Product All the attributes that make up a good, a service, or an idea, the marketing mix
including product design, features, colors, packaging, need to be
warrantees and service levels. carefully managed
Price The expected retail shelf price and sale price of the product. to ensure that they
Place The distribution channels and retailers required to sell the are well
product. coordinated and
Promotion The communication tools needed to inform consumers about that each element
appeals to the
the product, including advertising, sales promotion, public distinct
relations, direct marketing, and personal selling. characteristics of
the target market for the product. If marketers promote a product through the newspaper and their
target market doesnt even read the newspaper, than their marketing efforts are useless. They
must market the product in areas where they are sure that their target market will get the message.
(Look at the smarties and after eight examples in the text- page 7)
The Marketing Process: (A logical process that focuses on consumer needs:)
Step 1: Step 3:
Identifying marketing mixto Realize profits for
Consumer Needs meet consumer the company
Throughout the cycle, marketers constantly evaluate the success of their programs implementing
and recommending future changes to make their programs more competitive and alluring to their
customers. Marketers are ultimately responsible for generating company profits or revenues.
Marketing: The process of planning goods, services, or ideas to meet consumer needs and
organizational objectives. It includes the conception of these products and the pricing, promotion,
and distribution programs designed to make a profit. Exchange: The trade of things of value
between buyers and sellers so that each benefits. Good: A product you can touch and own.
Service: A good that is intangible, that you cannot touch. Idea: A concept that typically looks for
What is A Market: A market is a potential consumer with both the willingness and ability to
buy. Importantly just being willing to purchase a product does not necessarily mean you can buy
the product. For example: Fishers Price had a cycle for children, of course the children want the
product, but it is the parents and adult market which is targeted because they are t he ones who
are able to purchase items, not the child themselves.
The Evolution of Business Philosophies: Marketing was not always the driving force in
business philosophy. Up until 1930s, businesses were in the production orientation stage: which focused on manufacturing goods. Which until the industrial revolution was not a widespread
phenomenon. Manufactured goods tended to sell regardless of their quality, because they were in
short supply. Consumer needs were not a priority. The second stage was from the 1930s- 1960s
and was the Sales Orientation Stage: This stage focused on selling as many products as possible.
The market had become more competitive, production had become more efficient, and products
were in abundance. Companies started to hard- sell and consumer needs were still not a priority.
The basic marketing stage evolved in the 1960s. At this point consumer needs became more
paramount, and marketing concepts arose and became the focus of business. The Marketing
Orientation Stage: focuses on the idea that an organization should strive to satisfy all needs of
consumers while also trying to achieve the organizations goals. The Marketing Concept: follows
this idea, and that is the idea that an organization should strive to satisfy the needs of consumers
while also trying to achieve organizational goals. Relationship Marketing: When organizations
create long term links with customers, employees, suppliers and other partners to increase loyalty
and customer retention.
The Evolution of Business Philosophies
Production Sales Marketing Marketing
Orientation Orientation Orientation