This document provides an overview of key concepts in marketing. It discusses how marketing helps organizations connect with customers and adapt to changes. The marketing process involves assessing customer needs, developing a strategy around product, price, place, and promotion, and evaluating results. It also covers newer approaches like socially responsible marketing, customer relationship management, and partnership marketing.

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Education Canada
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Chapter 1: Contemporary Marketing
Importance of Marketing
Marketing helps lead an organization into the
future by:
•Providing a means of keeping pace with
change
•Offering a means of connecting with
customers
•Ensuring an organization offers the right
goods and services
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Chapter 1: Contemporary Marketing
Marketing Defined
“An organizational function and a set of
processes for creating, communicating and
delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders.”
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Education Canada
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Chapter 1: Contemporary Marketing
Marketing Past and Present
Production
Orientation
Socially
Responsible
Marketing
Orientation
Selling
Orientation
Marketing
Orientation
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Chapter 1: Contemporary Marketing
Socially Responsible Marketing
Socially
Responsible
Marketing
Deliver satisfaction
Better than the
competition
Identify and
satisfy customer
needs
Enhance society
through good
corporate
citizenship
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Chapter 1: Contemporary Marketing
Socially Responsible Marketing
SRM can be divided into two main areas:
1. Programs that conserve, preserve, and
protect the environment
2. Programs that support causes (cause
marketing)
Companies that demonstrate corporate social responsibility
must make the public aware of its doings.
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Chapter 1: Contemporary Marketing
The Marketing Process
Assess Customer
Needs
Identify and Select
a Target
Develop Marketing
Strategy
Develop Customer
Relationship Strategy
Evaluation and
Control
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Chapter 1: Contemporary Marketing
Assessing Customer Needs
An organization collects information about
needs to determine if a market is worth
pursuing.
1. Market Analysis
2. Consumer Analysis
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Chapter 1: Contemporary Marketing
Target Identification and Selection
A target market is a group of people that have
something in common. They may be in the same
age range, have similar educational backgrounds,
live in the same area, or share an interest or
activity.
Generation Y
Generation X
Baby Boomers
Seniors
Canada’s population is
aging; this poses a challenge
for marketers currently
appealing to older targets
but wanting to attract
younger targets.
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Chapter 1: Contemporary Marketing
Developing a Marketing Strategy
Product
Price
Marketing
Communications
Distribution
Marketing
Mix
Consumer
or
Business
Customer
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Chapter 1: Contemporary Marketing
Product Strategy
A product may possess tangible and intangible
characteristics. Product decisions are numerous
and embrace:
 Quality
 Features
 Brand Name
 Image
 Size
 Format
 Service
 Guarantees
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Chapter 1: Contemporary Marketing
Product Differentiation
“A strategy that focuses marketing activity on the
unique attributes or differential advantages of a
brand to distinguish it from other brands.
Wal-Mart…..Save money. Live better.
Tim Hortons…..Always fresh.
Visa…..All you need.
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Chapter 1: Contemporary Marketing
Price Strategy
Establishing a fair and equitable price for customers
while being profitable for the organization. Price
decisions consider the following factors:
 Cost of manufacturing a good
 Desired profit level
 Location of customers
 Degree of competition
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Chapter 1: Contemporary Marketing
Distribution Strategy
The selection and management of marketing
channels and the physical distribution of products.
Producers of
Goods
Distributors of
Goods
Users of
Goods
A marketing channel is a series of firms
that participate in the flow of goods and
services from producers to final users.
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Chapter 1: Contemporary Marketing
Marketing Communications Strategy
Companies now focus on an “integrated marketing
communications” strategy. The intent is to deliver
a consistent message regardless of the method of
communication.
Due to technology and shifting consumer behaviour,
organizations now place more emphasis on digital
communications. A company must follow their
customers’ eyeballs wherever they may be and adjust
their budget allocations accordingly.
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Chapter 1: Contemporary Marketing
IMC Mix
Advertising
Direct Response
Interactive
Sales Promotion
Event Marketing
Public Relations
Personal Selling
Consumer or
Business
Customer
Coordination and integration
generates more impact on the
audience.
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Chapter 1: Contemporary Marketing
Public Image
A good reputation is an important asset and
reputation is earned through good marketing.
An organization must:
Be sensitive to customer needs and interests
Support communities they operate in
Be socially responsible marketers
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Chapter 1: Contemporary Marketing
Customer Relationship Management
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Marketing today is about building relationships;
relationships with channel members and consumers.
CRM refers to strategies that optimize profitability,
revenue, customer retention, and customer satisfaction.
Successful CRM programs rely on a strong internal data
management system.

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Chapter 1: Contemporary Marketing
Customer Retention Strategies
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Loyalty Programs
An incentive offered to customers to encourage
repeat purchases.
Customer Relationship Management Programs
A system that collects and analyzes information for
the purpose of devising unique marketing offers to
individual customers. It encourages more purchases
of same product or new purchases of complementary
products.

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Chapter 1: Contemporary Marketing
Partnership Marketing
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Building relationships with other companies can
pay dividends.
Supplier Manufacturer Distributors Consumers
In partnerships common objectives among
members are established, and teamwork and
cooperation replace competition and conflict.

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Chapter 1: Contemporary Marketing
Partnership Marketing
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Another partnership option is a strategic alliance.
In a strategic alliance two firms combine their
resources for the purpose of satisfying the
customers they share.
Laura Secord Hallmark Cards
Mac’ Milk Subway

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Chapter 1: Contemporary Marketing
Evaluating Marketing Activity
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Marketing strategies must be periodically reviewed
for effectiveness. A typical review may include an
assessment of:
Market conditions (external influences)
Competitor activity (their success or failure)
Brand performance to date (are objectives being
achieved?)
Potential changes in marketing strategy are
addressed in the review process.