Chapter 14 Notes 1
Marketing: Building Customer and Stakeholder Relationships
What is Marketing?:
Marketing is the process of determining customer needs and wants and then
developing goods and services that meet or exceed these expectations.
Green marketing is the marketing efforts to produce, promote, and reclaim
Evolution of Marketing
The evolution of marketing involves: 1.) production, 2.) sales, 3.) marketing
concept, and 4.) customer relationship.
1.) Production: since the early European settlers arrived in Canada until the
start of the 1900s, the general philosophy of business was to produce as
much as possible because there were limited production capabilities and
great demand. Manufacturers focused on production, as most goods were
bought as soon as they became available. The greatest marketing need
was for distribution and storage.
2.) Sales: by the 1920s, businesses had developed mass production techniques
(car assembly lines) and production capacity often exceeded market
demand. Thus, the business philosophy switched to an emphasis on
production to an emphasis on sales, especially in an effort to sell existing
3.) Marketing: after the end of WWII in 1945, there was great demand for
goods and services for returning soldiers. Since there was also the baby
boom, competition wasfierce for the consumer’s money. To be
responsive to consumers, businesses started marketing. Customer
orientation dealt with figuring out what customers want and provide it to
them. Service orientation is ensuring that everyone in the organization has
the same objective: customer satisfaction. Profit orientation is the focus on
the goods and services that will earn the most profit and enable the
organization to survive and expand to serve more consumer wants and
Customer relationship management (CRM) is the process of learning as much
as possible about customers and doing everything you can to satisfy them, or
even exceed their expectations, with goods and services over time. The idea is
to enhance customer satisfaction and stimulate long-term customer loyalty
(ex. Airlines offer frequent-flier programs that in the long-run increase
customer loyalty by providing free flights).
Non-profit organizations use marketing to get people to know about their
services and to help (ex. Canadian Blood Services needed 80000 new blood
donors so they used marketing to find these people to donate blood).
Marketing Mix: Chapter 14 Notes 2
The marketing mix are the ingredients that go into a marketing program: 1.)
Product; 2.) Price; 3.) Place (where people will buy it) and; 4.) Promotion.
A product is any physical good, service, or idea that satisfies a want or need.
Test marketing is the process of testing products among potential users.
The service continuum shows the balance between service-dominated
offerings (intangible services such as teaching and nursing) compared to
good-dominated offerings (tangible goods such as neckties and dog food).
A brand name is a word, device (design, shape, sound, or colour), or
combination of these used to distinguish a seller’s goods or services from
those of competitor’s.
Price is the money or other consideration (including other goods and services)
exchanged for the ownership or use of a good or service.
Place involves the thinking of where you want to sell (ex. Personally deliver or
sell in a specialty store).
Promotion is all the techniques sellers use to motivate customers to buy their
products (ex. Advertising, personal selling, public relations, and coupons).
Promotion deals with the aspect of relationship-building with customers.
Providing Marketers with Information:
Marketing research is the analysis of markets to determine opportunities and
challenges, and to find the information needed to make good decisions. It
helps determine what customers have bought in the past and what changes
have occurred to affect future purchases.
The Marketing Research Process
Four key steps are involved in marketing research: 1.) Defining the question
and determining the present situation, 2.) Collecting data, 3.) Analyzing the
research data and, 4.) Choosing the best solution and implementing it.
Defining the Question and Determining the Present Situation: Marketing
researchers should be given the freedom to help discover what the present
situation is, what the problems or opportunities are, what the alternatives are,
what info is needed, and how to go about gathering and analyzing the data.
Collecting Data: Second