Marketing: an organizational function and set of processes for creating,
communicating, and delivering value to customers and for managing
customer relationships in ways that benefit the organization and is
Marketing begins with discovering unmet customer needs and continues
with researching the potential market; producing a good/service that can
satisfy the targeted customers; and promoting, pricing, and distributing that
good or service.
Exchange Process: an activity in which two or more parties trade something
of value (such as goods, services, or cash) that satisfies each other’s needs.
Utility: the power of a good or service to satisfy a consumer want/need.
o Form Utility: converting raw materials, component parts, and other
inputs into finished goods and services.
o Time Utility: making a good or service available when customers want
to purchase it.
o Place Utility: making a product available in a location convenient for
o Ownership Utility: an organized transfer of goods and services from
the seller to the buyer.
Marketing Concept: a companywide consumer focus on promoting long-term
Emergence of the marketing concept is best explained by the shift from a
seller’s market (shortage of goods/services, to a buyer’s market (too many
goods/services). 1950’s Canada was a buyer’s market.
Celebrities often play a big role in not-for-profit organizations raising funds
for their missions.
Not-for-profit organizations often use one or more of the non-traditional
methods of marketing:
o Person Marketing
Efforts that are designed to attract the attention, interest, and
preference of a target market toward a person. (i.e. Sidney
Crosby and Tim Hortons)
o Place Marketing
An attempt to attract people to a particular area, such as a city,
region, region, or country. (i.e. 3 mascots of Vancouver
Olympics sold 2 year in advance)
o Event Marketing Marketing or sponsoring of short-term events such as athletic
competitions and cultural and charitable performances. (i.e.
Canadian Diabetes Association sponsoring marathons)
Event marketing often leads to partnerships between not-for-
profit and for-profit organizations.
o Cause Marketing
Marketing that promotes a cause or social issue, such as
preventing child abuse, anti-littering efforts, and stop-smoking
o Organization Marketing
A marketing strategy that influences consumers to accept the
goals of an organization, receive the services of an
organization, or contribute in some way to an organization. (i.e.
U of T)
A firm’s marketers study the individuals and business decision-makers in its
potential market to find a need.
A market consists of people who have purchasing power, a willingness to
buy, and the authority to make purchase decisions.
There are two types of products:
o Consumer products: goods and services that are purchased by end
o Business products: goods and services purchased to be used, either
indirectly or directly, in making other goods that will be resold (B2B).
Target Market: a group of people that an organization markets its goods,
services, or ideas toward, using a strategy designed to satisfy this groups
specific needs and preferences.
Marketing Mix: a blending of the four elements of marketing strategy –
product, distribution, promotion, and pricing – to satisfy chosen customer
Product strategy: more than designing a good/service by adding needed
qualities. Also includes decision about package design, brand names,
Distribution strategy: ensures that customers receive their purchases in the
proper quantities at the right times and locations.
Promotional strategy: effectively blends advertising personal selling, sales
promotion, and public relations to achieve its goals of informing, persuading,
and influencing purchase decisions.
Pricing strategy: firms need to set profitable and justifiable prices for their
Firms can decide to offer the same marketing mixtures in foreign markets
(standardization) or develop a unique mix to fit each market (adaptation).
Mass customization allows a firm to mass-produce goods and services while
also adding unique features to individual or small groups of orders.
Marketing Research: the process of collecting and evaluating information to
support marketing decision-making. It links business decision-makers to the marketplace by providing data about
potential target markets that help them design effective marketing mixes.
A firm can gather information from:
o Internal Data
Data published within their organization (i.e. financial records
that show inventory levels).
o External Data
Data published by other organizations (i.e. data collected from
o Secondary Data
Previously published data that is low cost and easy to obtain
(i.e. census from the government).
o Primary Data
Data collected firsthand through such methods as observation
o Focus Group
A group of 8-12 people who discuss a specific topic or test
products before they come out for sale to the general public.
The group will give their opinions and changes (if any) will be
Business Intelligence: a field of research that uses activities and technologies
for gathering, storing, and analyzing data to make better competitive
decisions (i.e. Dell’s IdeaStorm).
Data Mining: the task of using computer-based technology to evaluate data in
a database and identify usefu