Chapter 1

Marketing is defined as the activity of exchanging offerings that have value to customers.
There are four components of marketing:
● Creating Value: The process of collaborating with suppliers and customers to create
offerings that have
● value.
● Communicating Value: Broadly describing those offerings, and learning from
customers.
● Delivering Value: Getting those offerings to the consumer in a way that optimizes value.
● Exchanging Value: Trading the value for offerings.
Value is defined as everything a customer gets for the price they pay. Value is considered from
the perspective of the customer, developed by the company's marketing efforts.
Value = benefits received(product and service) - price
4 P’s:
● Product: Goods and services. Product/service strategy involves creating an offering with
a tangible good and an intangible service that outweighs the cost.
● Price: The amount exchanged for the product. The exchange of the product is usually
done with money. But other forms of exchange include flier miles or cash-back points.
● Place: Getting the product to an accessible location for the customer.
Marketing has to deliver value to the customers, by making sure the customer
understands how to get the most out of the product. Products are delivered through the
company supply chain.
● Promotion: Communication of the product. Communicating is a broad term to describe
the process of describing the product. It can mean educating customers about the
potential value of a product or making customers aware of where they can find a
product. Companies use social media to interact with customers and provide customer
service or support.
The Marketing Concept is a philosophy that describes how the company seeks to meet certain
customer needs.
Production Orientation marketing is when the product has been recently invented and
there are no other competitors, such as when the first car was built.
Sales Orientation is when the customer has a choice between products and they have
to be convinced to buy this specific product.
Marketing Orientation is when the customers are grouped into segments and targeted
based on these groups.
Societal Marketing Orientation involves making a product that will improve the
environment or the consumer’s life such as environmentally friendly or healthy products.
Relationship Marketing is when the company engages with its customers to focus on
making a satisfying product.

Key Marketing Terms

● Exchange: Multiple parties are involved in an appropriate deal where they communicate
and deliver on the exchange of something of value.
 ● Customer Value: marketers interested in customer value offer performing products, and
loyalty programs, and give consumers the facts on the products.
● Market Segments: Groups of customers. Companies, families, individuals.
● Building Relationships:
● Marketing Mix: 4 Ps

Chapter 2
Strategic planning is a process that helps an organization allocate its resources to capitalize on
marketplace opportunities. This involves asking questions to base their strategies on.

Planning Phase: Situational Analysis;

Evaluating Internal environment; company resources, competition, and partners.
Direct competitors: companies with the same service, eg. McDonald’s vs Burger King
Indirect competitors: companies with similar services, eg. McDonald's vs Pizza Pizza
External environment; political, economic, social, and technological factors.

SWOT Analysis
● Strengths: Internal/Positive
● Weaknesses: Internal/Negative
● Opportunities: External/Positive
● Threats: External/Negative

SMART Objectives
● Specific, Measurable, Achievable, Realistic, Timely
Example: To increase the market share of Gatorade by 2% by the end of 2023.
Four Primary Strategies

Strategies: Existing New Products

Products

Existing Market Product

Markets Penetration Development

New Markets Market Diversification

Development

Three advantages
Cost advantage: producing a product or providing a service at a lower cost than competitors
Offer advantage: differentiating a product by adding features that customers value
Niche advantage: serving a specific segment of the market better than anyone else

Sustainable Competitive Advantage:

Locational: Multiple locations, internet presence, difficult to replicate.
Operational: Supply chain management, network relationships. Reduce costs, lower prices,
and improve delivery.
Product: Creating higher value through product or branding. Greater benefits can maximize
profits.
Customer: Retain customer loyalty, and provide excellent service. Loyal customers increase
long-term revenue.

Three Strategic Planning levels.

Corporate level: (Pepsico Inc.) Increase profits for all businesses by 3%
Business level: (Pepsico America’s Beverage) Increase this specific branch’s profits
Functional level: (Marketing dept.) Marketing the launch of new packaging for products

High Relative Market Low

Share

Market Stars ?
Growth
Share

Low Cash Cows Dogs

Stars: Invest more in improvement and improve promotion and distribution.

?s: Decide whether to invest in a potential future or reduce investment.
Cash Cows: Manage them to generate revenue to fund star projects.
Dogs: Divest

Chapter 3
Consumer Purchase Decision Process
● Need/Want Recognition: Becoming aware of a problem that requires a solution. Eg. I am
hungry. I want a burger.
● Search: Finding a solution to the problem. Ex. Finding a good restaurant.
● Evaluation: Examining alternatives to find your best need. Ex. What do I care most about
in my restaurant choices?
● Choice: Purchasing the option that best fits your choice. Ex. I have found the optimal
burger place.
● Post-Purchase Evaluation: After buying the product, determine whether it met your
expectations. Eg. Would I buy this burger again?

Low VS High Involvement

Low Moderate High

Risks (social, Low Limited High
financial)

Info required Very little Some High

Decision Steps two Undetermined All

Marketing Grab attention ? Provide Info

Strategies Be available Personal selling
Post-Purchase
Service

Factors that influence consumer behavior

External Factors
● Situational factors: Where the product is situated can impact decision-making.
● Social norms: Expectations for behaviors that arise from society’s values.
● Time: Time factors can impact the type of products consumed.
● Reason for purchase: Whether the purchase is routine or special can affect
decision-making.
Personal Factors
● Demographics: Sex, Race, Age. Demographics that may help reach consumer groups.
● Psychographics: Lifestyle, Activities, Interests. How you spend your time, your values,
and your preferences.
● Mood: Positive, negative. The consumer’s mood will temporarily impact their interests.
● Personality: Consumer’s main personality traits can influence their spending habits.
Psychological Factors
● Motivation: The desire to get what you want/need.
● Perception: How we understand the world around us.
● Learning: Gaining information that leads to behavioral change.
● Attitude: Mental positions, emotions, and feelings.
Societal Factors
● Culture: shared beliefs, attitudes, and behaviors that influence a society.
● Reference Groups: social groups a consumer identifies with and may join.
● Opinion leaders: People with expertise in certain areas.

Marketing Research steps

● Defining the problem
● Designing the research
● Designing the data collection forms
● Specify the sample
● Collect the data
● Analyze the data
● Report findings
 Chapter 4
B2B VS B2C
B2B Market: High # of customers, Large concentration, Large order size.
B2C Market: Low # of customers, Low concentration, Small order size.

B2B Product: High level of technical-ness, Raw or semi-finished material,

B2C Product: Low level of technical-ness, Finished product,

B2B Buying Process: High Complexity, Formalness, Criteria, Committee of decision-makers

B2C Buying Process: Low Complexity, Formalness, Criteria, 1-2 decision-makers.

B2B Marketing Mix: Place; use direct selling, Promotion; technical ads, Price; Negotiated,
Product; Customized,
B2C Marketing Mix: Place; Use intermediaries, Promotion; Less technical ads, Price;
Pre-determined, Product; Standardized,

Types of B2B buyers

● Producers: Transforms purchase goods into other products or services.
● Resellers: Sell purchased goods to customers without changing them.
● Government: Using purchased goods.
● Institutions: Using large quantities of purchased goods.

Buying business Process

Need Recognition: The organisation has a need that can be solved by purchasing goods.
Product Specification: Putting parameters on what needs to be purchased.
Supplier Search: Seeking info about products and vendors.
Proposal Evaluation: Review and select the final candidate.
Order Specification: The final order is put together.
Performance Assessment: Evaluating satisfaction with goods and services.

Chapter 5
Mass VS Targeted Marketing
- Mass Marketing: All customers offered the same products, promotion, and price.
- Targeted Marketing: Focusing on specific customers, and giving certain groups
different marketing

One to One Marketing

1. Establish short term metrics to evaluate consequences of efforts.
2. Identity your customers.
3. Differentiate among your customers.
4. Interact with your customers, targeting the most profitable ones.

How Markets are Segmented

 1. Need Based Segmentation: Ex: I need more trunk space.
2. Segment Identification: By behaviours, demographics, geography, psychographics,
ect. Ex: Who needs more trunk space?
3. Segment Attractiveness: Is it identifiable?, accessible?, responsive?,
sizable/profitable?, targeted yet?, resources sufficient? Fits with objectives?
4. Segment Profitability: Multi-segment vs concentrated vs niche.
5. Segment Positioning:
a. Right down positioning statement: Target market characteristics, nodes reserved
benefits provided, clear points of differentiation.
b. Differentiate your Offering: Product, personnel, channel image.
c. Create a Perceptible Map: Two attributes that differentiate yourself from
competitors.
d. Reposition your Offering.
6. Marketing Mix Strategy.

Chapter 6
Product Line Depth: All of the products in a product line.
Product Line Breadth: All of the product lines in a category. (Ex. Different canned soup lines)

Consumer Offerings
- Convince Offering: Products you don’t think about buying. Ie Laundry detergent, toilet
paper. (Low involvement, high frequency.)
- Shopping Offering: Products you actively shop for. Ie Tv, appliances. (High
involvement, medium frequency.)
- Specialty Offering: Not regularly purchased or rare items. Ie diamonds. (High
involvement, low frequency.)
- Unsought Offering: Products/services we need but don’t want. Ie Insurance, funeral
home. (High involvement, low frequency.)
Types of B2B Offerings
1. Create New Offerings: Raw materials, capital equipment, OEM.
2. Assist Operations: Maintenance, repaire, operations, facciting.

Elements of an Offering
1. Branding: Putting your logo and brand on a product. This will equate this product with
past products your brand has made. This can help the product if your brand’s reputation
is good, it will hurt your product if not.
2. Labelling: Legally required. Informs the consumer of materials/ingeratends used in the
products construction and any harm they can cause.
3. Packaging: Containing/protecting the product. Can serve as advertisement.

Managing the Offering

- Line Filling: Adding a new product to an existing product line.
- Line Modification: Updating, or upgrading the products in an existing product line.
- Line Pruning: Removing a product from an existing product line.
 - Line Stretching: Adding a new product line to an existing category.

Developing an Offering
1. Idea Generation: The basic idea is developed and described.
2. Idea Screening: The costs, profits, and sales of a product are calculated at different
price levels. Considering how well the product fits with different strategies.
3. Feature Specification: Detailed specifications for the product are developed. Its
features and pricing are established.
4. Development: The actual offering is developed.
5. Testing: The offering is tested, first in a lab, then with real consumers.
6. Launch (Commercialization): The product is made available to consumers.
7. Evaluation: The product is evaluated as to whether it is delivering the appropriate value
to customers, as well as meeting the brands goals.

A product should add value/satisfy a need, be produced timely, sold at a desirable price, have
enough demand, produced within budget, have after sale service, fit the company image, and
not be harmful.
Complet Launch: Launch the product to all markets at once.
Rolling Launch: Launch the product in certain markets first, then others later.

Product Life Cycle

Introduction Price Strategies:
- If entering into an existing market, use price penetration.
- If entering into a non-existing market, use price skimming.
Growth Stage
- Biggest risk is more competitors entering the market with price penetration.
Maturity Stage
- Biggest risk is the large number of competitors.
- Promotion Strategy: Emphasis comparative advantages.
- Price Strategy: Reduce prices to counter competition.
- Place Strategy: Increase trust and cooperation with partners.
- Product Strategy: Keep quality of product higher than competitors while offering as many
features as possible.
Customer Types
- Innovators (2.5% of consumers): Risk takers, highly knowledgeable in the product
category. Not worried about price.
- Early Adopters (13.5% of consumers): Take fewer risks than Innovators. Need
favourable feedback from Innovators. Opinion leaders to the next two groups.
- Early Majority (34% of consumers): Avoid most risks. Wait until problems in new
product has been sorted out
- Late Majority (34% of consumers): Highly cautious and sceptical. Buy when close to
market maturity.
- Laggards (16% of consumers): Advoids change until it can no longer be avoided.
 Chapter 7
- Services account for ~71% of Canada’s GDP and ~80% of jobs
- The value of a service is harder to calculate than the value of a product.

Distinct Characteristics of Service

1. Intangibility: Strategy: Use the intangible aspects of service to reduce the perceived
risks.
2. Inseparability:
3. Variability: Strategy: Increase the standardisation of the service industry.
4. Perishanbleity: Strategy: Optimise demand. Price deductions during low demand times.
Ie movie theatres offering discounts and specials during the weekdays.

Customer Evaluation of Services

- Reliability: Dependable, accurate, and consistent service.
- Responsiveness: Timely delivery of service.
- Assurance: Convene knowledge to build trust.
- Empathy: Caring and individualised attention to customers; Knowing more about
customers.
- Tangibles: Physical evidence that reflects the quality and price of the service, tools, and
equipment.

Service Quality Gaps

- Knowledge Gap:
- Definition: Discontent between what the customer expects and what
management thinks the customer expects.
- How to Avoid: Conduct thorough market research.
- Standards Gap:
- Definition: Disconnect between what management wants to deliver and what
management specifies for delivery.
- How to Avoid: Communicate effectively to employees.
- Delivery Gap:
- Definition: Disconnect between the standard set by management and the delivery
produced by the employees.
- How to Avoid: Employee training and feedback.
- Communication Gap:
- Definition: Disconnect between what management promises and what is
delivered.
- How to Avoid: Communicate honestly, don’t embellish or lie.
- Expectations Gap:
- Definition: Disconnect between what customers expect and what they perceive
after the service is provided.
- How to Avoid: Increase marketing research into having a deeper understanding
of consumer expectations.
 Chapter 8
The Importance of Price:
1. Balancing value with cost. (Profit= Revenue - Cost)
2. Conveying the quality of the offering (Price is a value indicator.)
3. Reach different target customers by varying price.
The Pricing Framework
1. Set the Pricing Objective
a. Profit Oriented: Sell to a specific target market.
b. Sales Oriented: Maximise amount units sold.
c. Status Quo: Match price of competitors.
2. Estimate Demand, Costs, and Profits.
a. Understanding Demand:
- The buyer/target market.
- Value creation.
- Price elasticity: Changes in demand due to changes in price.
- Compators
b. Understanding Costs:
- Fixed Costs.
- Variable Costs.
- Break Even Point.
3. Determine Pricing Strategy.
a. Price Skimming: Setting the price to recuperate fixed costs as soon as possible.
b. Price Penetration: Setting the price to reach the maximum number of people.
c. Free Give Away: Give away the product for free and then charge them when they
want more.
d. Cost-Plus Pricing: Determining price based on cost and adding profit margin on
top of it.
4. Select Pricing Targets.

Pricing Tactics
Lower Prices Than Competitors
1. Loss Leader Pricing: Pricing one or more highly popular products at a loss to attract
customers.
2. Everyday Low Prices: The promise that customers will always have low prices without
having to wait for sales.
3. Promotional Pricing: Short-term price reductions to increase purchase frequency and
volume.
4. Price Bundling: Different products are sold together for a lower price than the sum of
the individual products.
Psychological Lowering of Prices
1. Psychological Appeal: Lowering the price by a small amount to make it seem much
lower. Ie 100 vs 99.99.
2. Instalments: Offering the full price as multiple smaller payments that equal or exceed
the original price.
 3. Two Part Pricing: Paying one price level to access the service/product with the option to
pay more for more features.
Price Customization
1. Price Differentiation: Different prices for different customers. Ie seniors or student
discounts.
2. Dynamic Pricing: Automated price adjustments based on a customer’s online search
history.
Limiting Price Alternatives
1. Price Listing: Provide limited price levels for options in the same product category to
make it easier to make a choice.
2. Demand Backwards Pricing: For limited products (ie. Holiday products) estimate
customers WTP (Willingness To Pay) and work backwards to determine the price.
Repeat Purchases
1. Subscription Based Pricing: Weekly, monthly, or yearly fee to access a
product/service.
2. Captive Pricing: Having to purchase a product at a specific price because there are no
other alternatives. (The crux of the “Give them the razors, sell them the blades” method.)
Other Tactics: B2B Related Pricing
1. Sealed Bid Pricing: Submitting monetary bids to a purchase directly and privity to the
seller.
2. Going Rate Pricing: A good is sold at the same price level regardless of where and
from the good is purchased. Often implemented on government regulated markets.

Chapter 9
Marketing Channels & Channel Members
1. Direct Channels: Manufacturer → Consumer.
2. Indirect Channels: Manufacturer → Agent → Wholesaler → Retailer → Consumer.
3. International Channels: Exporting → Licensing/Franchising → Direct Foreign Investment
(You can also have multiple channels. You can sell directly to consumers and sell to
wholesalers.)
Why Have Channel Partners?
- Increased efficacy through division of labour.
- Reduced costs required for different options.
Supply Chain: A supply chain includes all companies connected to the process. This includes
companies with no direct connection to the product. Ex. Tech support for the wholesaler.
Marketing Channels:
B2C Markets: Indirect Channels> Direct Channels
B2B Markets: Direct Channels> Indirect Channels
Disintermediation: When a company has an indirect channel will full control of all channel
members

Functions of Channel Members

1. Disseminating Marketing Communications:
 a. Push Technique: Manufacture ‘pushes’ (or sells greater numbers of products) to
resellers who ‘push’ the product onto consumers.
b. Pull Technique: Manufacturer directly reaches and promotes to consumers. Who
demands the product from retailers.
2. Sort and Regroup: Buying a bulk order of units, breaking them into smaller groups and
sending them to multiple retailers.
3. Store and Manage Inventory: Retailers buy enough product from wholesalers to not
only fill the shelves but also have backup in inventory.
4. Distributing Products: Wholesalers and retailers are incharge of distribution of
products.
5. Assuming Ownership and Risks:
a. Free Onboard Origin: The buyer is at risk & takes ownership of goods once the
seller ships the product.
b. Free Onboard Destination: The seller retains the risk until they reach the buyer.
6. Sharing Information: All channel members share information about the product so that
they can all adjust strategies appropriately.

Channel Strategies
1. Type of customer:
- B2C: best to use indirect channels.
- B2B: best to use direct channels.
2. Type of Product:
- Indirect Channels are best for products with a low financial risk and ownership in
transportation.
- Direct Channels are best for products with a high financial risk and ownership in
transportation.
3. Channel Member Capabilities:
- Low Capabilities = Indirect Channels
- High Capabilities = Direct Channels
4. Business Environment and Technology:
- Use international partners if the currency prosperity is high compared to other
countries/if the company’s money is worth more in foreign markets.
- Use national partners if the currency prosperity is low compared to other
countries/if the company’s money is worth less in foreign markets.
5. Competing Products Marketing:
- If competitors are doing well, copy their channel strategies, if they’re not avoid
using their strategy.

Channel Dynamics
1. Leader: The one with the most power. ie brand awareness, money, ect.
2. Conflicts:
- Vertical Conflict: Channel members above and below each other don’t agree. ie
retailers/wholesalers/manufacturers.
 - Horizontal Conflict: Channel members on the same level don’t agree with each
other. ie two retailers distributing the same product.
3. Cooperation:
- Prove your importance: Emphasise your value to partners.
- Improve sales and cooperation with partners.
- Financial incentives.
- Agree on pricing.
4. Integration:
- Forward Integration: When a manufacturer also becomes a wholesaler/retailer.
- Backwards Integration: When a wholesaler/retailer also becomes a manufacturer.
- Subscription Services: The company controls the product selection, distribution,
and timing of purchase.
- Predefined: Selecting delivery period of a product based on usage rate.
Ex. Dollar Shave Club.
- Curated: Getting access to the speciality offers of a brand in regular
intervals. Ex. Netflix.
- Surprise: Getting products from a category without knowing the exact
product you will be receiving. Ex. Curiosity Box.

Chapter 10
Integrated Marketing Communication Benefits
- Build customer relationships
- Manage brand equity
- Communicate social responsibility
The Promotion Mix
- Advertising
- Sales Promotion
- PR & Publicity
- Sponsorships
- Direct Promotion
- Mail, Flyers, Catalogs
- Digital/online Marketing
- Mobile Marketing
- Professional Selling
Important Factors
1. Internal Factors
a. Financial Considerations
- Budget
b. Marketing Considerations
- Stage in PLC
- Type of product
- Target market
- Pull vs push
2. External Factors
 a. Customers
- Value
- Social media presence
b. Compators
Selection of Message Strategy
- Unique Selling Proposition
- Promotion Objectives
- Media
- Budget
- Audience Characteristics
- Product Characteristics
Promotion Objectives
- AIDA Mode
- Attention
- Interest
- Desire
- Action
Promotion Budget
- Objective and Task Method
- Determine communication objectives
- Determine activities & media needed
- Determine segment based needs
- Return on Marketing Investment (ROMI) Method
- Calculate campaign costs
- Calculate expected profits
- Find if ROMI reaches a certain threshold.

Manage Characteristics
Message Characteristics Explanation Examples/Details

Appeal Attract attention and incite Humour, scare, rational

emotion

Message tactics Open or closed-ended, one “It tastes awful, and it works!”
or two sided

Slogans, jingles, mascots Increase memorability with “Just do it” Energizer bunny
short sentences/repetitive
music

Order of presentation Include brand name in the

beginning and end of the
message to increase
memorability.
Sales Promotion
1. B2C
a. Product Trial
b. Incentives
c. Display Placement
2. B2B
a. Increase Contact
b. Increase Prominence
- Trade allowance: Give products at a reduced rate to improve
advertisement or display placement
- Sales contest: Give sales people prizes for being top sellers.

Chapter 10
PR Goals
1. Increase positive image
2. Reduce criticism
3. Perceived neutrality
4. Reliance of outside sources
PR Tools
1. Press Release
2. Annual Reports
3. Brochures/Magazines for Employees
4. Brochures/Magazines for Public
5. Websites
6. Youtube Channels
7. Linkedin Accounts

Sponsorships
- Increasing Awareness
- What to Sponsor?
a. Events
b. Individuals
c. Venunes
- Product Placement

Direct Promotion
- Print Media
- Phone Calls
- Tv Ads
- Online Ads
- Social Media Ads
Types of Direct Promotion
- Online
 - Display advertising
- Email advertising
- Search advertising
- Social Media
- Ad-based
- Branded
- Industreal
- Apps
- Traditional Media Direct Promotion
- Catalogues
- Direct mail
- Flyers
- Direct response TV
- Voice Calls

Chapter 12
What Salespeople Do
1. Create Value
2. Manage Relationships
3. Relay Information
Types of Salespeople
1. Missionary
2. Trade
3. Prospector
4. Account Manager
5. Others
a. Order takers
b. Sales support

Types of Sales Relationships

- Transactional
- Each sale is a separate exchange
- No interest in maintaining a relationship
- Functional
- Purchases are out of habit & continue as long as needs are met
- Affiliative
- Significant expertises from the seller
- Trust is needed
- Strategic
- Buyer and seller commit time and money to expand the market for both parties.

Selling Strategies
- Script-Based
- Need Satisfaction
 - Consultative
- Strategic Partner

Sales Funnel
Leads (potential customers) → Suspects (potential customers with interest) → Prospects
(potential customers who needs are outlined) → Customers

Sales Metrics
1. Conversion Ratio
2. Activity Goals
3. Win/Loss Analysis
4. Incentives

Typical Sales Process

1. Pre Approach
2. Approach
a. Introductions
b. Benefits
3. Identify Needs
a. Ask questions
b. Outline SPIN (Situation, Problem, Implication, Payoff)
c. Prepared Presentation
4. Present
a. FEBA (Feature, Evidence, Benefits/Objections, Agreement)
5. Handle Objections
6. Close
a. Direct questions
b. Minor points
c. Summary

Ethics in Sales: Company Safeguards

- Write down policies
- Provide documentation
- Provide training
- Put in mechanisms to enforce policies

Integration with Marketing

- Closed Loop Management System:
Marketing identifies leads → Marketing scores leads as hot, warm, or cold →
Sales receives leads, calls hot ones → Sales makes calls and closes sales → Sales
reports outcomes to marketing → Marketing evaluates and reinvests → Marketing
identifies leads…