CHAPTER 1-----What Can Be Marketed.doc

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Western University
Management and Organizational Studies
Management and Organizational Studies 1021A/B

What Can Be Marketed? *** product encompasses goods, services, and ideas. >>>These can all be marketed to encourage people to buy something or, as in the case of ideas, to encourage support. **A good isaproductyoucantouchandown . Examples are a pair of Adidas running shoes or a can of Red Bull energy drink. »» Red Bull >energy drink * PRODUCT: a tangible product that is marketed in four varieties *PRICE: sold at a premium price *PLACE: merchandised in-store *PROMOTION: promoted with :humorous ads, the sponsorship of extreme sporting events. (eg: motor sports, and music events online on its Web TV channel ) >>>its target market that engages with online content. **Aservice isan intangible productyoucannottouch. A physiotherapy session, a holiday, or going to a movie are examples of services » watch a movie at Cineplex: marketers have worked to ensure that your experience encourages you to return: Movie selection, theatre layout, seating, and concession items have all been carefully selected with the comfort and needs of the target market in mind. *Partnership Marketing: The Cineplex-Scotiabank SCENE loyalty rewards program has been designed to encourage customers to return to Cineplex movie theatres time after time to collect points and receive benefits such as discounted concession items, free movies, or discounted DVDs. ** Anidea isaconceptthattypicallylooksforsupport.  Marketing ideas can encourage people to support causes. Marketing Ideas: Earth Hour : >>encourages people around the world to show their support to reduce climate change by turning off their lights for one hour on the last Saturday of March. >>a successful marketing campaign for Earth Hour, an event created by the World Wildlife Fund (WWF) to put a spotlight on global warming and to raise awareness of climate change. >>This campaign has been tremendously successful with the latest results showing over one billion people supported the cause in over 134 countries and 4,000 cities and towns. The WWF successfully marketed the idea and garnered support for the cause Eg: EarthHourusesdigitalmarketingtoolstocommunicatewithparticipants. It usessocialmediatoolstocommunicatewithsupportersandpostinspiringstories, photos,andvideos to highlight neighbourhood events. (a website, blog, YouTube channel, Facebook page, Flickr stream, Myspace account, BlackBerry app, Twitter account, and LinkedIn group) ****Manysuccessfulmarketerstodaylaunchproductswithlayersofgoods,services,andideastoconnectwithconsumers Smart cars,> a division of Mercedes-Benz, * PRODUCT: a zero-emissions car that can run 135 km on a single battery charge. *SERIVE: # During the testing phase, Smart Canada worked with Toronto Hydro to provide battery charging stations in testers' garage. # Also provided auxiliary services such as battery charging stations, winter tire packages, and 24-hour roadside assistance *IDEA: Promotional programs such as the Smart Electric Lounge at the 2011 International Auto Show also pointed to the importance of using electric power to support the environment What Is a Market? The term market is used in marketing to describe potential consumers who have both the willingness and ability to buy a product Eg: Fisher Price's iXL learning tablet > an interactive hand-held gadget for children three to six years old , they interactively read, draw, look at pictures, and play video games using the product's six programs,  Although the product was designed for young children, thesechildrenarenotconsideredthemarket because they do not have the money or the physical means to buy the product. >>>>Themarketconsistsofparentswithyoungchildrenagesthreetosixyears. >>>>While thmarketfor Fisher Price's iXL is parents with children three to six years old, the marketing also needs to focus on the children, who may exert some influence over their parents. Therefore, we see theketfor the productincludesbothchildrenandparents. >>>> Finally, the consumers of the product, in this case the users, are the children, not the parents, and marketers need to ensure that the product is designed with their abilities and interests in mind, without overlooking the parents who are the main decision-makers in the purchase process. The Evolution of Business Philosophies  production orientation stage Before1930, >> focused on manufacturing >>Manufactured goods tended to sell, regardless of their quality, because they were in short supply. Consumer needs were not a priority (NO CHOICES)  stage. 1930s sales orientation >> focused on selling as many products as possible >> The market had become more competitive & production had become more efficient & products were in abundance . >> Companies started to hard-sell 车车车车车 to make a profit(VOLUME DISCOUNT ]车车车车),and consumer needs were still not a major consideration. marketing concept: The idea that an organization should strive to satisfy the  The marketing orientation stage 1960s needs of consumers while also>> Focusing organizational efforts to collect and use information about trying to achieve organizational goals (14) customers' needs to create customer value (see what they want ) >> short -term transaction : care what u choose today not tomorrow  The Relationship marketing orientation stage 1990s >> focuses on building long-term customer relationships to increase loyalty and customer retention 车车车车车车车车 >>> customer retention and ongoing customer satisfaction rather than short-term transactions. >>considered the lifetime value of their customers and striving to offer better services, higher-quality products, and meaningful long-term relationships. VS individual sale Eg:  An individual sale >one sale. & one interaction. > A single transaction or exchange, with little real thought 车 车 towards building an ongoing relationship between business and consumer.  computer-iTunes>ipod>iphone >> lock u in> > The lifetime value of a customer is one of the main justifications for a relationship marketing strategy.  Organizations can look to that lifetime value and see whether it is worth the energy and expense to think beyond individual sales and build an ongoing and personal relationship with their customers. Moreover, organizations can use the relationship they build with their customers as a way of maximizing customer lifetime value. >> Relationship can start before a sale occurs and last beyond the sale; Eg: Owners of Smart cars can joins an online car to access forums, post articles and view updates. >>Internet technology is fuelling v.车车 the growth of relationship marketing Social medis formally defined as a form of online media that alloas a business approach members to create their own network • Important areas of the relationship marketing stage are customer of friends and contacts to share comments, videos, and images as a relationship management (CRM) and corporate social responsibility (CSR). form of self-expression. SOCIAL MEDIA: as added a new dimension to relationship marketing, making it more immediate and >>>> interactive. provides consumers with the ability to interact with marketing messages by posting comments that are visible to all. This open environment encourages >>>> DATABASE TECHNOLOGY: A tool that facilitarelationship marketing by putticustomer relationship management (CRM) for the marketing industry. Eg: 1. Air Miles is an example of a widely recognized and sophisticated CRM program that partners with brands to provide members with travel rewards 2. .Shoppers Drug (retailer) Mart with its Optimum Card are pioneers of CRM in Canada. 3. If a pregnant woman buys prenatal vitamins at a store that uses CRM tracking software, such as loyalty cards, in time she may start receiving coupons for diapers, baby food, and tips on infant nutrition; her prenatal purchase has triggered sophisticated computer programs to recognize her eventual need for baby products >>>> CORPORATE SOCIAL RESPONSIBILITY (CSR):  DEFINITION: When organizations voluntarily consider the well-being of society by taking responsibility for how their businesses impact consumers, customers, suppliers, employees, shareholders, communities, the environment, and society in general (16) Eg: the Bank of Montreal reducing its greenhouse gas emissions by 5 percent over a three-year period. >>>>> CSR initiatives can range from the simple to the complex, and typically include one of three approaches.  Initssimplestforms,CSRcaninvolve: (1) the sponsorship and/or spearheading of community programs, (2) the sponsorship and/or involvement in fundraising initiatives 车车车车 for charitable organizations. \(3) as a business philosophy that permeates an organization that implements socially responsible business practices to positively impact the community at large. At its most sophisticated level, execut
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