Chapter 1

Marketing:
Creating
Satisfaction
through Customer
Relationships

Copyright © 2007 by Nelson, a division of Thomson Canada Limited

 What is Marketing

 Marketing creates utility through the exchange

process
Utility: Want-satisfying power of a good or
service
 Form utility
 Time utility
 Place utility
 Ownership utility

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  Four Types of Utility
Organizational
Function
Responsible
Type Description Examples
Form Conversion of raw materials Scotia Bank checking account; Lincoln Production
and components into Navigator; Ramen Noodles (nutrition for
finished goods and services students who are hungry, broke, and can’t
—or won’t—cook)

Time Availability of goods and Digital photographs; LensCrafters Marketing

services when consumers eyeglass guarantee; Canada Post
want them Expresspost

Place Availability of goods and Soft-drink machines outside gas stations; Marketing
services at convenient on-site day care; banks in grocery stores
locations

Owner- Ability to transfer title to Retail sales (in exchange for currency or Marketing
goods or services from credit-card payment)
ship
marketer to buyer

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 A Definition of Marketing
Marketing: the process of planning and
executing the conception, pricing,
promotion, and distribution of ideas, goods,
services, organizations, and events to
create and maintain relationships that will
satisfy individual and organizational
objectives.

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 The definition identifies the marketing
variables that together provide customer
satisfaction
Product
Price
Promotion
Distribution

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 Creating customers that want to stay with you
is all about identifying needs, providing goods
and services that meet those needs, pricing,
and follow-up service.

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Four Eras in the History of Marketing

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 Avoiding Marketing Myopia
 Marketing Myopia is management’s failure
to recognize the scope of its business.
To avoid marketing myopia, companies
must broadly define organizational goals
toward consumer needs
Focus on benefits

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 Nontraditional Marketing

 Person Marketing

 Place Marketing

 Cause Marketing

 Event Marketing

 Organization Marketing

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 Nontraditional Marketing

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 Person Marketing
Efforts to cultivate the attention, interest, and
preferences of a target market toward a
celebrity or authority figure

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 Place Marketing
Attempt to attract
people and
organizations to
a particular
geographic area.

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 Cause Marketing
Identification
and marketing of
a social issue,
cause, or idea to
selected target
markets

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 Event Marketing
The marketing of sporting, cultural, and
charitable activities to selected target
markets
Petro-Canada, is one of many Canadian
official sponsors for the Winter 2010
Olympic Games to be held in Vancouver

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 Organization Marketing
Involves attempts to influence others to
accept the goals of, receive the services of,
or contribute in some way to an
organization.

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 How Marketers Use the Web
Interactive brochures
Online newsletters
Virtual storefronts
Information clearinghouses
Customer service tools

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 One-to-One Marketing
 Customized marketing program designed
to build long-term relationships with
individual customers.
 Identifying a firm’s best customers and
increasing their loyalty.

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 Figure 1.11
 Eight Universal Marketing Functions – OTHER Functions and
scholarly interests are Involved (i.e. accounting, philosophy, etc)

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 Ethics and Social Responsibility: Doing
Well by Doing Good

 Increased Employee Loyalty

 Better Public Image
 Market Place Success
 Improved Financial
Performance
 WestJet Promotional
Message rescuing stranded
survivors of Hurricane Katrina

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