Chapter 1 MKT-702 Notes
The Scope of Marketing
Marketing: is about identifying and meeting human and social needs. “Meeting customer needs
AMA Definition: Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering and exchanging offerings that have value for customers, clients, partners and society at large
Marketing Management: The art and science of choosing target markets and getting, keeping, and
growing customers through creating, delivering and communicating superior customer value
What is marketed?
Goods – Physical goods comprise the most of countries production and marketing efforts. (Food, cars,
Services – Canadian economy produces 72:28 services-to-goods mix. Services include airlines, hotels,
barbers, bankers, lawyers, engineers etc.
Events – Promotion of time-based events such as Olympics, sporting events, concerts etc
Experiences – Orchestrating several services and goods, a firm can create a marketing experience.
Amusement parks, hockey camps, customized experiences such as a climb up mount Everest
Persons – Artists, CEOs, physicians all get help from celebrity marketers. People can essentially become
brands such as Oprah and the David Beckham
Places – Cities, regions, and whole nations compete for tourism, residents, factories and headquarters.
Place marketers include economic development specialists, real estate agents, and advertising and
public relations agencies.
Properties – Properties are intangible rights of ownership for real estate property or financial property
(stocks or bonds). These exchanges require marketing.
Organizations – Organizations build strong, favourable and unique images in the minds of target publics.
Universities, museums, performing arts orgs, use marketing to boost public image and compete for
audience and funding.
Information – The production, packaging and distribution of information are major industries.
Information is essentially what books, schools, and universities produce, market and distribute at a price
to parents, students and the general public.
Ideas – Every market offering includes a basic idea. “The factory produces cosmetics, the drug-store sells
hope” Chapter 1 MKT-702 Notes
Marketer – Someone who seeks a response, attention, a purchase, a vote, a donation from another
party know is known as the prospect.
1. Negative demand – consumers dislike the product and may even pay to avoid it
2. Nonexistent demand – consumers may be unaware of or uninterested in the product
3. Latent demand – consumers may share a strong need that cannot be satisfied by an existing
4. Declining demand- consumers begin to buy the product less frequently or not at all
5. Irregular demand – consumers purchases vary on a seasons, monthly, weekly, daily or even
6. Full demand- Consumers are adequately buying all products put in the marketplace
7. Overall demand- More consumers would buy the product than can be satisfied
8. Unwholesome demand – Consumers may be attracted to products that have undesirable social
Key Customer Markets
Consumer Markets – Companies selling mass consumer goods and services such as juices, cosmetics,
athletic shoes, and air travel. A large effort establishing brand image by developing a superior product
and packaging and ensuring its availability.
Business Markets – Business buyers buy goods to make or resell a product to others as a profit. Business
markets must demonstrate how their product will help achieve higher revenue or lower costs.
Advertising plays a lesser role than sales force, price, and reputation
Global Markets – Companies in global marketplace must decide which countries to enter: How to enter
each country (exporter, licensor, joint venture partner). How to price products in each country and
design communications for different cultures.
Non-profit and governmental markets – Companies selling to non-profit orgs with limiting purchasing
power such as churches, universities, government agencies, need to price carefully. Lower selling prices
affect the features and quality the seller can build into the offering.
Meta –Market: Describes the cluster of complementary products and services closely related in the
minds of consumers, but spread across a diverse set of industries. The result of marketers packaging a
system that simplifies carrying out these related product-service activities.
Core Marketing Concepts
Marketers do not create needs but influence wants. Five types of needs: Chapter 1 MKT-702 Notes
1. Stated needs ( the customer wants an inexpensive car)
2. Real needs ( the customer wants a car whose operating costs, not initial price is low)
3. Unstated needs ( The customer expects good/services from the dealer)
4. Delight needs ( The customer would like the dealer to include an onboard GPS navigation
5. Secret needs ( The customer wants friends to see him or her as a savvy customer)
Offerings and Brands
Value proposition – Companies address needs by putting forth value proposition, a set of benefits
that satisfy needs. The intangible value proposition is made physical by offering, which can be a
combination or products, services, information and experiencies
Brand – Offering from a known source. A brand name carries association into people’s minds that
make up an image. Companies strive to build brand image that is favourable and unique.
Value – Value is the sum of tangible and intangible benefits with relation to cost. A combination of
quality, service and price.
Satisfaction – Reflects a person’s judgement of a products perceived performance in relation to
Marketing Channels – Communication channels deliver and receive messages from target buyers.
Newspapers, magazines, radio, television, internet etc.
Distribution channel – Channel to display, sell, or deliver the physical product or service. May be
direct with internet, phone or indirect with retailers, wholesalers etc.
Service channels – Warehouses, transportation companies, banks to carry out transactions.
Supply Chain – A longer channel stretching from raw materials to components to finished products
carried to buyers.
Competition – Includes all rivals and potential rival offerings (substitutes).
Task environment- includes the actors engaged in producing, distributing, and promoting the
offering. These are the company, supplier, dealers and target cusomters. Supplier group are material
suppliers, service supplies ( banking, ad agencies, insurance firms) Distributers are agents, brokers,
Broad Environment – Consists of demographic , economic, social-cultural, natural, technological and
New Marketing Realities Chapter 1 MKT-702 Notes
Network information technology- The digital revolution has created an Information Age that
promises to lead to more accurate levels of production, more targeted communications, and more
Globalization - Technological advances in transportation, shipping, and communication have made it
easier for companies to market in, and consumers to buy in, almost any country in the world.
Deregulation - Ma