1. Define Marketing, explain how it creates utility, and describe its role in the marketplace.
• Utility- The want-Satisfying power of a good or service.
• Form Utility- Firm converts raw materials and component inputs into finished goods
Marketing Function focuses on influencing consumer and audience preferences,
organization`s production creates form utility.
• Marketing creates time, place, and ownership utilities
• Time and place utilities happen when consumers find goods and services when and
where they want to purchase them.
• Transfer of title of goods or services at the time of purchase creates ownership utility.
Ex. purchasing a new phone, signing up for a cruise, or going to Gold without Limits
creates ownership utility.
All organizations must create utility to survive.
• To create a customer every organization must identify needs in the marketplace, and
find out which needs the organization can profitably serve, and develop goods and
services to convert potential buyers into customers.
Marketing is an organizational function and a set of processes for creating, communicating,
and delivering value to customers and for managing customer relationships in ways that
benefit the organization and its stakeholders.
• 3 Factors have forced marketers to embrace a global marketplace
i. Expanded international trade agreements
ii. New Technology that brings previously isolated nations to the marketplace
iii. Greater interdependence of world economies.
2. Contrast marketing Activities during the Four eras in the History of Marketing
Exchange Process- two or more parties give something of value to each other to satisfy
o Production era
Business philosophy stressing efficiency in producing a quality product with
the attitude toward marketing “that a good product will sell itself” o Sales Era
Customers resist purchasing non-essential goods and services that the task
of personal selling and advertising is to persuade them to buy.
o Marketing Era
Company-wide consumer orientation should lead to greater long-run profits.
o The Relationship Era
Focuses on establishing and maintaining relationships with both customers
and suppliers, this involves long-term, value added relationships developed
over time with customers and suppliers.
The Major distinction between production and sales era is that in production era a good
product will often times sell itself, but in the sales era you must sell the goods and services
due to customers resisting purchasing non-essentials.
3. Explain the importance of avoiding marketing myopia
Marketing myopia- Managements failure to recognize the scope of its business. Product-
Oriented rather than customer oriented management will hurt future growth of the firm
o A firm can avoid marketing myopia through striving to meet ever changing
consumer needs. Ex Apple developing solar-powered devices in response to
customer demand for longer battery life.
4. Describe the characteristics of Non-profit organizations
Not-for-profit organizations hope to generate as much revenue as possible to support
their causes; not-for-profit marketing must market to multiple publics, which complicate
decision making about correct markets to target. Not-for-profit organizations tend to have
some degree of monopoly power in any given geographic area.
Most obvious distinction between non-profit and commercial organizations are the
bottom line, (The overall profitability of an organization)
Good PR for profit organizations and beneficial for the Not-for-profit organizations
through lower costs, Transportation, and goods and services
5. Identity and briefly explain each of the 5 types of non-traditional marketing.
• Person marketing- Efforts designed to cultivate the attention, interests, and
preferences of a target market toward a celebrity or authority figure.
• Place Marketing – marketing efforts designed to attract visitors to a particular areal
improve consumer images of a city, province, or country; and/or attract new business • Cause marketing- Identification and marketing of a social issue, cause, or idea to
selected target markets.
• Event marketing- marketing of sporting, cultural, and charitable activities to selected
• Organization marketing- Marketing by mutual-benefit organizations, service
organizations, and government organizations intended to influence others to accept
their goals, receive the services, or contribute them in some way.
• Event and Organizational marketing may overlap, for instance a charity fundraiser can
be an event for fundraising awareness of Children’s obesity sponsored by Sobeys or
some other for profit organization
• Explain the shift from transaction-based marketing to relationship and social marketing.
6. Explain the shift from transaction-based marketing to relationship marketing.
Transaction Marketing – buyer and seller exchanges characterized by limited
communications and little or no ongoing relationships between the parties.
Relationship marketing- focuses on establishing a relationship between you, suppliers, and
customers to reap the long term benefits and profits.
Interactive and social marketing are important tools for marketers because of the fact that
social marketing is the number 1 activity on the internet and interactive marketing promotes
Strategic alliances- Partnerships in which two or more companies combine resources and
capital to create competitive advantages in a new market.
7. Identify the universal functions of marketing.
Buying, selling, transporting, storing, standardizing and grading, financing, risk taking,
and securing marketing information.
Exchange Functions – Buying and Selling
Transporting and storing- Physical distribution functions
Transporting- physically moving goods from the seller to the purchaser, Storing involves
warehousing goods until they are needed for sale
Facilitating functions- standardizing and grading, financing, risk taking, and securing
marketing information. • Ethics- Moral standards of behaviour expected by a society
• Social Responsibility- marketing philosophies, policies, procedures and actions that have
the enhancement of societies welfare as a primary objective
• Sustainable products- Products that can be used, produced, and disposed of with
minimal impact on the environment
8. Demonstrate the relationship between ethical business practices, social responsibility and
sustainability and market place success.
• For market place success a company must abide by ethical business practices
because if not due to the company being in the eye of society will be found out and
trust of the company falls. Social responsibility is a big factor too, donating to
charities, sponsoring fundraisers, and etc. These programs often produce benefits of
improved customer relationships, increased employee loyalty, marketplace success,
and improved financial performance. Through ethics and SR it promotes marketing
philosophies, policies, procedures, and actions who’s primary objective is the
enhancement of society and protection of the environment through sustainable
products and practices.
• Planning is the process of anticipating future events and conditions and of
determining the best way to achieve organizational objectives.
• Marketing planning- implementing planning activities devoted to achieve marketing
objectives. Chapter 2.
1. Distinguish between strategic planning and tactical planning.
• Strategic planning- process of determining an organizations primary objectives and
adopting courses of action that will achieve these objectives.
• Tactical planning- planning that guides the implementation of activities specified in
the strategic plan.
2. Explain how marketing plans differ at various levels in an organization.
• Top management (Board of directors, CEO’s, COO’s, and divisional VP’s take time to
strategically plan organization-wide objectives, fundamental strategies, long-term
plans, and total budget. • Middle Management (General Sales managers, Business unit manager, Director of
Marketing research) Plan tactically plan quarterly and semi-annual plans; divisional
budgets, divisional, policies and procedures.
• Supervisory Management (District Sales manager, Supervisor- Telemarketing office)
takes time to plan operationally the Daily and weekly plans; unit budgets,
departmental rules and procedures.
• Input from a wide variety of people throughout the company is important because it
helps ensure many ideas are considered and make the variety of people advocates
of the plan due to participation in the idea stages.
3. Identify the steps in the marketing planning process.
Corporate level with a definition of a firm’s mission. It then determines its objectives,
assesses its resources, and evaluates environmental risks and opportunities. With this
information marketers within each business unit then formulates a marketing strategy,
implement the strategy through operating plans, and gather feedback to monitor and adapt
strategies when necessary.
Mission statement – Essential purpose that differentiates one company from the next.
Defining the organizations mission and objectives.
o The mission statement specifies the organizations overall goals and operational
scope and provides general guidelines for future management actions.
o An organization lays out its basic objectives or goals in its complete mission
statement. These objectives in turn guide development if supporting marketing
objectives and plans. Soundly conceived objectives should state specific intentions.
Assessing organizational resources and evaluating environmental risks and opportunities
o An assessment of an organizations strengths, weaknesses, and available
o An overall company-wide program for selecting a particular target market then
satisfying consumers in that market through the marketing mix
o The final step in the marketing planning process is extremely important, monitoring
the plan set in motion if anything goes wrong then organizations can quickly
change the product
4. Describe successful planning tools and techniques, including Porter’s Five Forces model,
first and second mover strategies, SWOT analysis, and the strategic window. Porter’s five forces – Identifies five competitive forces that influence planning strategies:
The threat of new entrants, the threat of substitute products, rivalry among competitors, the
bargaining power of buyers, and the bargaining power of suppliers.
First Mover- Companies that is first to offer a product in a market place will be the long-
term market winner
Second Mover – Observing closely the innovations of first movers and then introducing
new products that improve on the original offering to gain advantage in the marketplace.
SWOT analysis- Helps planners compare internal organizational strengths and weakness
with external opportunities and threats.
Strategic Window- limited periods during which the key requirements of a market and the
particular competencies of a firm fit together.
5. Identify the basic elements of a marketing strategy.
• The target market
• The marketing mix variables of the 4ps that combine to satisfy the needs of the target
Target market- The group of people toward the firm decides to direct its marketing efforts
and ultimately its merchandize.
Product strategy- What goods or services a firm will offer its customers; also includes
decisions about customer service, packaging, brand names, and the like.
Distribution strategy- Ensures that consumers find their products in the proper quantities at
the right times and places
Promotional strategy- Communications link between buyers and sellers. Function of
informing, persuading, and influencing a consumer’s purchase decision.
Pricing strategy- Methods of setting profitable and justifiable prices.
6. Describe the environmental Characteristics that influence strategic decisions.
The 5 dimensions of the marketing environment are competitive, political-legal,
economic, technological, and social-cultural. Marketers must also address growing
concern about the natural environment- including new regulations and increasing
cultural diversity in the global marketplace. 7. Describe the methods for marketing planning; include business portfolio analysis, the BCG
market share/Market Growth matrix, and the Strategic growth opportunity matrix.
The Business portfolio analysis evaluates a company’s products and divisions, including
strategic business units (SBU). The SBU focuses the attention of company managers
so they can respond effect