Chapter 1 ~ Introduction to Marketing

Key Terms: What is Marketing?

1.1
Term

Text Definition

marketing

Planning, distributing, pricing, promoting and selling of goods and

services to satisfy needs and wants.

Consumer
market

Everyone who might buy a product

Raw materials

Unfinished goods, usually marketed to businesses that process them or use

them in manufacturing.

Processed goods

Sold as finished goods or semi-finished goods.

Target market

Any group of consumers to whom marketers want to sell to

Who markets? 5

Manufacturers
Politicians
Service business
Non-profit
Individuals

Types of Products-2

Goods
Services

Types of Goods or services-2

Industrial
Consumer

Raw Materials are:

Unfinished goods, usually marketed to businesses

that process them or use them in manufacturing

Processed Goods are:

Sold as finished goods or semi-finished goods.

Finished Goods are:

Products that no longer require processing

The difference between industrial

and consumer goods and services:

Consumer goods are non-industrial products

intended for personal use by the public.

A target Market is:

Any group of consumers to whom marketers want

to sell to

1.2

3 major steps of the Marketing Concept:

Identify an opportunity in a specific consumer or industrial market.
Ensure the opportunity has not been met
Use marketing to sell it
The importance of marketing activities changes with supply and demand. When the demand is
greater then the supply of goods, excessive marketing is redundant because the product sells
itself.
When there is more supply than demand, marketing becomes a major factor in success.
The industrial revolution (mass production) changed the balance of supply and demand
because before mass production, demand was usually greater than supply!!!
The internet has connected buyers and sellers globally.
1.3
Regional organization

Definition: can be within a city, province or

area

Example & Website:

Crest, Colgate in Quebec
International organization

Definition: sets up marketing and distribution

centers in foreign markets.

Example & Website: golf retailers, Nike

Brand management

Definition: assigns their specific brands to

different managers to be treated separatelymost popular

Example & Website: Proctor & Gamble

Distribution management

Definition: organizes marketing around the

way product or service is delivered.

Example & Website: Coke & Pepsi-Stores,

schools, vending machines
Marketing divisions can be organized
by:

region
country
brand
distribution
Combination

Research

Conducting surveys gathers:

Preferences
habits
lifestyle
competition

Product Development

3 concerns of the product and development

team:
Make a product that meets needs
Can be delivered effectively
Competitively priced

Packaging

Pricing
Branding

Includes a products:
name
logo
slogan
Package design
Trademark

Sale
Physical distribution
Inventory management

A company tries to have:

Enough to satisfy demand
Not more than they can sell

Storage
Promotion

advertising
publicity

1.5 Consumer and Competitive Markets

Complete as you read 19-20
A consumer market is

All of those consumers who are or may become interested

in a product or service and who have the means of buying
it

A competitive market is

All of the products or services that compete for customers

within a specific category

An aggregate market is

A market that includes everybody

A differentiated market is

One which targets consumers by some type of

demographic profile

Provide a specific example of the organization on the left and their target market
Org.

Example

Target

Clothing

Le Chateau

Young, fashion conscious,

aged 14-25. Early adopters,

leading edge image

Shoe retailer

Payless

Everyone ( kids, young

adults, and adults)

Fast food

KFC

Young adults, and adults

Recording artist

Ariana Grande

Young, aged 16 25, enjoy

pop. genre

Non-profit organization

Trillium Gift of Life

Anyone over the age of 16

that have an interest in organ
donation

Industry of your choice 1

Walmart

Everyone, very versatile.

Purchasing target young adult
and adults.

Industry of your choice 2

Petsmart

People who own animals

1.6 Marketing Mix

4 Elements of the Marketing Mix

1.
1.
2.
3.

Product
develop
package
Brand

2.Promotion
1. advertise
2. Sales promotion
3. publicity
3.Price
4.Place
1. distribution
2. storage
3. channel

Use the following table to compare the marketing mix of the following companies. Explain your answer
in as much detail as possible. Use a Google search if possible to obtain more information.
Product
Quality

Place or
places

Price
(higher/lower)

Promotion
What kind?

Location
Pizza Pizza vs.

Excellent

Seaway Mall

Higher

Commercials,
flyer, coupons,
Posters/signs,
website

Local pizza
place

Good

473 Thorold
Road,
Welland

Higher

Flyers,
poster/signs,
coupons

McCains
Frozen Pizza

Satisfactory

Nofrills

Lower

Coupons,
commercials

YMCA vs.

Good

300
Woodlawn
Road
Welland

Higher

Commercials,
flyers, signs,
website

local gym

Satisfactory

Anytime
Fitness 306 Glendale
Avenue
St. Catharines

Lower

Flyers,
coupons,
signs

Local Sports
store vs.

Good

Good Sports
Excellence
-17
Southworth
Street North
Welland

Lower

Signs, flyers,
coupons

Sportcheck

Excellent

Seaway Mall

Higher

Commercials,
posters, signs,
website

Used car lot

Satisfactory

Niagara Auto

Lower

Flyers, signs,

vs.

Chevrolet
dealership

Sales - 1031
Niagara
Street
Welland

commercials,
website

Excellent

915 Niagara
Street,
Welland

Higher

Commercial,
flyers, website

Magic Cuts vs

Good

Seaway Mall

Lower

Flyers,
coupons,
signs/
posters,
website

Local
Hairstylist

Good

Palazzo
Soalon &
Spa- 91 East
Main Street
#1
Welland

Lower

Flyers,
coupons,
signs

GNC vs.

Excellent

7555
Montrose Rd

Higher

Local health
store

Good

Health Wise
-Seaway Mall

Lower

Best Buy vs.

Excellent

420
Vansickle
Road
St. Catharines

Higher

Commercials,
flyers, website

Future Shop
vs.

Excellent

7555
Montrose Rd,
Niagara

Higher

Website,
commercials,
flyers

The Source

Good

Seaway Mall

Lower

Website,

commercials,
flyers

7 UP vs.

Good

Mountain
Dew

Good

Coke vs.

Excellent

Wal-mart

Lower

Commercials,
flyer,
Posters/signs,
website

Red Bull vs.

Excellent

Wal-mart

Lower

Commercials,
flyer,
Posters/signs,
website

Gatorade

Excellent

Wal-mart

Lower

Commercials,
flyer,
Posters/signs,
website

Marketing Plan=Goals+target market+4ps

Brand Strategy

To communicate the value of a product or service to the consumer

Value

Difference between perceived cost and perceived satisfaction

Value Equation

Total Benefits Total costs

A rule of marketing

In your words, explain what Perception is reality means. (Not in

Book)
Once a person believes something to be true it is very difficult to
change their minds, regardless of the facts or truth.

Distribution
Strategies

1. Push
2. Pull
3. Combo

Push Strategy

Products purchased as bargain, gift or impulse. Sell, market to

retailers, importers or wholesalers, not to end user. If they see it,
theyll buy it. In your face!

Pull Strategy

Attempts to increase consumer demand directly rather than rely

on retailers. Requires major advertising and promotion. Create
need or want by talking about benefits. Softer approach.

Combination

Pull strategy needs to combine with push, but push does not need
pull!

1. Classify the following marketing as being a push, pull or combination strategy.

2. Explain your answer.
Activity

Push, Pull, Combo

Explain

New packaging

Pull

Promotes new and improved

advertising through a fresh
look

Point of purchase materials

Push

Persuades the consumer into

buying things they may not
necessarily need by putting it
in eyes view when making a
final purchase

Billboard Advertising

Pull

Use of a display to promote

the company or products
benefits

Taking a client golfing

Push

Use of a gift/ bargain to

persuade the consumer to
purchase a particular item

Coupons

Combo

Use of both advertising and

bargains to increase
consumer demand

In Store-Discounts

Push

Drives consumer into buying

more than they may need.
For example, 10 for 10 deal
however they may not need
10 of the same items

Moving the product closer to

the cash register

Push

Drives the consumer into

purchasing items they may
not need. They achieve this
by putting small items in eyes
view when making a final
purchase