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MKTG 396v7

Introduction to Marketing

About MKTG 396

Introduction to MKTG 396


Course Team

Author: Simon P. Sigu


Course Coordinator: Simon P. Sigu
Editor: Shirley Stashko

This course is a revision of Athabasca Universitys Marketing 396: Introduction to


Marketing (1999). Course team members from previous versions of the course include the
following:

Author: Maureen Hupfer


Revisions and additions: Y. T. John El-Nahhas (1998), Lee Ann Keple (2002)

Opening Comments

Welcome to Marketing 396: Introduction to Marketing.

Marketing is an exciting and practical area of study. Throughout


this course, you will be introduced to marketing concepts,
frameworks, and institutions. You will also examine the influence
of recent developments in the Canadian economy and society on
marketing activities and on the management of individual
organizations. The knowledge you will gain in this course will help
you understand the different steps of the marketing process and,
in particular, how successful profit and not-for-profit organizations
build and maintain long and lasting, mutually profitable
relationships with their customers.

Like accounting, finance, and human resources, marketing is an


organizational function. A career in marketing could include
employment with a variety of organizations such as department
stores, colleges, manufacturers, museums, or sports teams.
However, marketing professionalssuch as advertising
executives, sales managers and representatives, market researchers, and retailersare not
the only people in the business world who need marketing knowledge. Managers can
benefit from understanding marketing because it affects all other organizational functions.
Even if you never become a manager, though, you will benefit as a consumer if you
understand how marketers think.

At the end of this course, you should be able to


demonstrate an understanding of marketing and its integrative role in various settings,
including profit and non-profit organizations.

describe the role of marketing in society and in the Canadian economy.

demonstrate an understanding of the key marketing concepts and link them to


real-world situations.

recognize the career opportunities within the field of marketing.

recognize the consumer and organizational buying processes.

describe a range of common strategies for the different marketing mix elements:
product, pricing, distribution, and promotion.

The course is divided into 14 lessons. Each lesson contains learning objectives, assigned
readings, lesson notes, review questions, and learning activities. As you work through each
lesson, follow the directions in this online Study Guide . Complete the assigned activities in
the textbook and on the MyMarketingLab website, a multimedia website that enriches your
learning experience. Before moving to a new lesson, ensure that you have achieved the
lessons learning objectives and are familiar with the key terms.

Some activities on the MyMarketingLab website are designated as recommended but not
mandatory. By completing these recommended activities, you can evaluate your
understanding of the material covered in the lessons. Note: The activities you complete on
MyMarketingLab are not part of the formal evaluation in this course. However, you are
encouraged to complete them for your own assessment. A good performance there is a
good indication of your readiness for the course examinations.

Some lessons require that you work through a case study. Cases illustrate specific topics
and real-world situations. Read the case as many times as you need to in order to feel
comfortable with it. Then answer the assigned questions. Finally, compare your answers to
the solutions provided in this online Study Guide (Appendix: Practice Case Notes).

I am sure you will enjoy the topics covered in MKTG 396. Your best strategy for successful
completion of this course is a continuous, systematic, and steady effort of studying. Try as
much as possible to ask yourself how the concepts covered in a lesson could be useful to
you in a business setting and how they relate to your own experience as a consumer.

If you have any questions or points you do not fully understand, contact the Student
Support Centre and we will be glad to help out. We also welcome your comments about
what you like or do not like about this course.

Simon P. Sigu, Professor, Marketing

Learning Materials
This course uses electronic materials as resources for learning.

Textbook

Kotler, P., Armstrong, G., Trifts, V., & Cunningham, P. H. (2014). Principles of marketing.
(9th Canadian ed.) Toronto: Pearson Canada Inc.

Note: This course has transitioned from a print textbook to an electronic textbook (eText).
For this reason, you may notice minor discrepancies between the textbook page numbers
referred to in the course and the page numbers in the eText.

You can access the eText through the link on the course front page. You can also purchase
a print copy of the textbook from Pearson at a discounted ratesee the eText Help Guide
for details.

MyMarketingLab

Your course professor has chosen MyMarketingLab to provide you with mandatory and
optional homework.

The activities on this website do not contribute to your final grade in this course.

Go to MyMarketingLab to register and set up your access. You may wish to bookmark this
page. Do not attempt to log in at mymarketinglab.com, as you will get an error message.

If you have previously used a Pearson MyLab product and remember your username and
password, click Sign in.

Otherwise, click Register. You will need two items to be able to register:

You will be asked for the Course ID. For MKTG 396, the ID is sigue57079.

You will also be asked for the course Access Code. This code will be sent to you in an
email from AU Materials Management. If you don't receive it, contact AU Materials
Management as soon as possible at 1-800-788-9041 ext. 6366 or send an email to
cmat@athabascau.ca.

Note: Do not confuse the Course ID and the Access Code.

Note: Although the Pearson MyLab site includes an electronic version of the textbook, you
are advised not to use that one. Instead, you should use the link on the course front
page to access the online version of your eText. If you use the one on the MyLab site, any
notations you make (e.g., highlighting and notes) will not be synched to other versions of
the eText you may be using (offline or mobile versions).

Note: The only browser this product will work with is Internet Explorer (version 7 or
highersee system requirements).

Your final mark in MKTG 396: Introduction to Marketing will be based on your performance
on two assignments and two examinations. To receive credit for this course, you must
achieve a minimum overall grade of D (50%), and your grade on the final examination
must be 50% or better. Any assignments that are not submitted will receive a grade of 0.
You must complete both examinations.

Activity Credit weight When to complete


Assignment 1 20% of final grade after Lesson 6
Assignment 2 20% of final grade after Lesson 12
Midterm Examination 30% of final grade after Lesson 7
Final Examination 30% of final grade after Lesson 14
Total 100% of final grade

MKTG 396v7
Introduction to Marketing

Lesson 1: Marketing: Creating and Capturing Customer


Value

Overview
Marketing is part of our everyday life. You have probably found yourself in a marketer
position, and consciously or not, you have played an active role in helping organizations
or individuals, including yourself, reach goals through careful analysis of the needs and
wants of relevant targets and through the design, production, and commercialization of
services or products that deliver value to others.

For instance, the last time you applied for a job, you probably acted as a marketer. Most
likely you saw an opening, looked for additional information to increase your
understanding of the organization and its activities, and then wrote a cover letter and
adjusted your curriculum vitae to meet the requirements of this position. This is exactly
the process marketers go through to design and market their offerings.

Most of the time, however, you are on the consumer side. Every day you respond or
react to marketers activities as a consumer, donor, voter, or member of an organization
or association. You probably stay longer with organizations that best satisfy your needs
or deliver superior value to you. It is not a surprise that many believe that to be
successful, individuals and organizations need to apply marketing principles and
strategies when they propose products or services to others and that to get the most for
their money as consumers, people need to know why marketers do what they do and
how to react to their actions.

This course exclusively takes the sellers perspective. Your experience as a consumer
will help you realize why it is important that sellers understand people like you in order
to be more successful. Lesson 1 provides an overview of marketing and marketing
management. You will be introduced to the latest thinking on how to create superior
customer value and satisfaction in order to develop, build, and maintain lasting and
successful relationships with customers. This lesson also describes how marketing fits
into todays fast-paced marketplace and world.

Reading and Objectives


Readings
Read Chapter 1 of Principles of Marketing (9th Canadian ed.) by Philip Kotler, Gary
Armstrong, Valerie Trifts, & Peggy H. Cunningham (hereinafter referred to as the
textbook ).

Read the Notes in this online Study Guide.

As you read, check the learning objectives for this lesson.

Learning Objectives

After completing this lesson, you will be able to

1. define marketing, and describe the five-step model of the marketing process.
(textbook, pp. 56)

2. explain the importance of understanding the marketplace and consumer needs, and
define the core concepts critical to the understanding of the marketplace. (textbook, pp.
69)

3. identify the two key questions to answer in the design of a marketing strategy, and
explain the five marketing management orientations that guide marketing strategy.
(textbook, pp. 913)

4. discuss strategies for building lasting and fruitful relationships with customers and
partners. (textbook, pp. 1321)

5. identify the outcomes of developing and maintaining lasting relationships with


customers. (textbook, pp. 2124)

6. describe the major challenges facing marketers. (textbook, pp. 2432)

MKTG 396v7
Introduction to Marketing

Lesson 2: Company and Marketing Strategy: Partnering to


Build Customer Relationships

Overview
Lesson 1 provided an overview of marketing and marketing management. In particular, we
described a five-step model of the marketing process. This lesson focuses on steps two and
three of this model: the design of a customer-driven marketing strategy and the
construction of a marketing program that delivers superior value.

First, however, it is important to understand that in many organizations, marketing is


considered to be an organizational function like accounting, finance, research and
development, and human resource management. As such, the marketing function has to
operate under the parameters that top management sets and must provide information and
other inputs to help management with strategic planning. This dual role of the marketing
function is critical, especially in a fast-paced, changing environment in which organizations
need to continually revise their long-term strategies to find a better fit among their goals,
capabilities, and changing marketing opportunities.

Reading and Objectives


Readings

Read Chapter 2 of the textbook.

Read the notes in this online Study Guide.

As you read, check the learning objectives for this lesson.

Pay special attention to Figure 2.4 on page 54 of the textbook, which illustrates the
factors that influence marketing strategy. This chart is an excellent visual representation
of the marketing process within the microenvironment.

Learning Objectives

After completing this lesson, you will be able to

1. define strategic planning, and outline the steps in the strategic planning process.
(textbook, p. 42)

2. define mission statement, and compare market-oriented and product-oriented mission


statements. (textbook, pp. 4344)

3. discuss the setting of company objectives and goals. (textbook, pp. 4447)

4. describe the two steps of business portfolio planning, and discuss strategies for growth
and downsizing. (textbook, pp. 4751)

5. explain the role of marketing in forming a value chain as well as a value-delivery


network. (textbook, pp. 5153)

6. describe marketing strategy and the factors that influence it. (textbook, pp. 5359)

7. discuss the relationship among the four marketing management functions, and outline
the content of a marketing plan. (textbook, pp. 5963)

8. discuss the importance of measuring and managing return on marketing.


(textbook, pp. 6364)

MKTG 396v7
Introduction to Marketing

Lesson 3: Sustainable Marketing: Social Responsibility and


Ethics

Overview
Lesson 2 offered a general framework that should be followed to prepare a marketing plan.
An important step in this framework is the threats and opportunities analysis that helps
marketers anticipate important positive or negative developments that might affect their
businesss performance.

Lesson 3 is the first in a series of three lessons that will help you understand how new
environmental developments influence marketing. Indeed, recent technological advances,
including the explosive growth of the Internet and social media, have had major impacts on
the way companies communicate and conduct their business. Changes are occurring in the
dynamics of competition within and between industries, as well as in customers
requirements of convenience, speed, information, and service. Companies have no choice
but to adapt their marketing strategies to these new developments in order to maintain or
improve their competitive advantage and offer greater value to their customers.

For example, travel agencies face the competition of airline companies that are now able to
sell effectively and directly to consumers through their websites. Traditional retailers such
as Canadian Tire now also practise ecommerce to create more value to customers and
remain competitive despite the emergence of alternative distribution channels.

At the same time, there is an increasing need for companies to respond positively to social
movements such as consumerism and environmentalism and to practice ethical and socially
responsible marketing. Canadian consumers are more and more sensitive to the
requirements of sustainable development, and they are willing to pay premium prices to
firms that commit to socially responsible practices and to punish those that do not.

Readings and Objectives


Readings

Read Chapter 4 of the textbook.

Read the Notes in this online Study Guide .

As you read, check the learning objectives for this lesson.

Pay special attention to Table 4.1 on page 133 of the textbook, which highlights the
main ethical issues associated with marketing practice.

Take time to familiarize yourself with the content of Table 4.2 on pages 134 and 135 of
the textbook. This table summarizes the American Marketing Association Code of Ethics.
It is a useful reference for the practice of marketing.

Learning Objectives

After completing this lesson, you will be able to


1. define sustainable marketing . (textbook, pp. 108109)

2. describe the major criticisms of marketing made by social analysts.


(textbook, pp. 109119)

3. define consumerism and environmentalism, and describe the effect of each on


marketing strategies. (textbook, pp. 119126)

4. discuss the five principles of sustainable marketing. (textbook, pp. 126131)

5. outline ethical issues marketers face. (textbook, pp. 131136)

MKTG 396v7
Introduction to Marketing

Lesson 4: The Marketing Environment and Managing


Marketing Information

Overview
Business and marketing do not take place in a void. The environment in which companies
operate is always in transition. A marketing plan can be well conceived and executed only if
it takes into account critical key environmental factors that may influence the business.
These factors range from customers needs and what the competition is doing to larger
changes in the world in terms of demographic, economic, technological, cultural, and other
forces.

Lesson 4 illustrates the types of factors that must be considered and discusses some of the
recent shifts and trends that will influence the way marketers conduct business in this new
millennium.

The lesson also stresses the need for marketers to collect and compile information about
customers, competitors, and the environment. This information is vital in order to ensure
that the marketing mix is appropriate, as well as to identify new and emerging trends.

Finally, Lesson 4 describes ways marketers can assess their information needs, access the
information they need, and analyze and utilize it to best effect in their decision making.

Readings and Objectives


Readings

Read Chapters 3 and 5 of the textbook.

Read the Notes in this online Study Guide .


As you read, check the learning objectives for this lesson.

Take time to go through Table 3.2 on page 91 of the textbook to learn how major
federal legislation affects marketing in Canada.

Pay particular attention to Figure 5.1 on page 146 of the textbook. This chart of the
marketing information system provides an excellent overview of this lesson.
Learning Objectives

After completing this lesson, you will be able to

1. differentiate between the marketing microenvironment and macroenvironment.


(textbook, p. 72)

2. describe the environmental forces that affect an organizations ability to serve its
customers. (textbook, pp. 7276)

3. explain how changes in the demographic environment affect marketing decisions.


(textbook, pp. 7685)

4. summarize trends in economic, natural, technological, political, and cultural


environments that have an impact on marketing. (textbook, pp. 8598)

5. discuss ways organizations can respond to the marketing environment. (textbook, p.


98)

6. outline the marketing information system. (textbook, pp. 144146)

7. discuss how a company can assess its information needs. (textbook, p. 146)

8. describe the different ways marketers can obtain marketing information.


(textbook, pp. 147167)

9. explain how companies analyze, distribute, and use marketing information.


(textbook, pp. 167170)

10. discuss the issues marketing researchers face, including issues of public policy and
ethics. (textbook, pp. 170175)

MKTG 396v7
Introduction to Marketing

Lesson 5: Consumer and Business Markets and Buyer


Behaviour

Overview
The marketing process starts with the understanding of customer needs and wants. The
basic idea is that if firms are able to know what consumers really want, it becomes easier to
satisfy them, to create long and lasting relationships with them, and consequently, to
generate profits. This lesson offers you the tools to explore consumer and business
behaviour.

From the consumer market side, it is important to know how individuals who buy goods and
services for personal consumption make decisions and process information about products.
How do they use and dispose of products? How do people perceive, learn from, remember,
forget, and interact with information about products? Why do some people ride
Harley-Davidson motorcycles, while others prefer Volvo sedans?

The business market includes all the organizations that buy goods and services for use in
producing other products and services. Participants in the business market then sell, rent,
or supply these products to others. There are significant differences in the ways businesses
and consumers buy goods and services. This lesson will highlight these differences.

Many terms in this lesson come from the field of psychology. The field of consumer
behaviour is rich and complex. This material is challenging because there are few absolutes
when one is dealing with human beings. Nonetheless, learning how and why consumers act
the way they do is vital for those in the field of marketing.

If you are interested in this subject and want to learn more, you might consider taking
MKTG
406: Consumer Behaviour .

Readings and Objectives


Readings

Read Chapters 6 and 7 of the textbook.

Read the Notes in this online Study Guide .

As you read, check the learning objectives for this lesson.

Take time to study Table 7.1 on page 219 of the textbook; this table summarizes the
characteristics of business markets.

Learning Objectives

After completing this lesson, you will be able to

1. define consumer market, and create a simple consumer buyer behaviour model.
(textbook, pp. 184185)

2. describe the four factors that influence consumer behaviour. (textbook, pp. 185201)

3. discuss four types of buying behaviour. (textbook, pp. 201203)

4. describe the five steps of the buyer decision process. (textbook, pp. 203207)

5. outline the stages in the adoption process, and discuss the influence of individual
differences and product characteristics on new product adoption. (textbook, pp. 207
209)

6. define business market, and explain how these markets differ from consumer markets.
(textbook, pp. 218221)

7. describe three major types of buying situations. (textbook, pp. 223224)

8. list the participants in the business buying process. (textbook, pp. 224226)

9. discuss the four major influences on business buyers. (textbook, pp. 226229)

10. describe the eight stages of the business buying process. (textbook, pp. 229232)

11. discuss the growing trend of eprocurement. (textbook, pp. 232233)

12. compare institutional and government markets, and describe how buying decisions are
made in each. (textbook, pp. 233235)

MKTG 396v7
Introduction to Marketing

Lesson 6: Competitive Advantage and Customer-Driven


Marketing Strategy

Overview
Lets assume you understand what marketing is all about and are able to conduct a
comprehensive environment analysis to identify the factors that may influence a business
positively or negatively. Lets assume, moreover, that after internal and external
information analysis, you know what types of people are interested in a product category
(e.g., soft drink) and why, when, and where they are more likely to make their next
purchases in this product category. Of course, this is an ideal situation for a marketer to be
in.

The next step is to move to the design of a customer-driven marketing strategy


(see Figure 1.1 on page 6 of the textbook). As you learned in Lesson 2, a marketing
strategy is the outline of what a firm plans to do in some markets to stay competitive and
to create long lasting, mutually profitable relationships with customers. It specifies the type
of customers the firm plans to serve and indicates what the firms distinctive approach to
serving these customers will be.

Lesson 6 covers competitor analysis and prepares you to deal with the different elements of
marketing strategy: market segmentation, targeting, and differentiation and positioning.
The lesson is based on three fundamental premises:

Although within a product category (such as soft drink) consumer needs, wants, and
tastes vary widely, it is possible to identify consumers with similar behavioural patterns.
There is not a single product that can appeal to all consumers.

While creating value is a basic requirement for all marketers, a business success is
possible only when a firms product delivers to its targeted customers superior value in
relation to its competitors products.

Readings and Objectives


Readings

Read Chapters 8 and 18 of the textbook.

Read the Notes in this online Study Guide .

Pay attention to Table 8.1 on page 246 of the textbook; it summarizes the major
segmentation variables for consumer markets.

As you read, check the learning objectives for this lesson.

Learning Objectives

After completing this lesson, you will be able to

1. define market segmentation , market targeting , and market positioning , and describe
how they are related. (textbook, pp. 244245)

2. list the major segmentation variables for both consumer and business markets.
(textbook, pp. 245255)

3. discuss issues related to segmenting international markets. (textbook, pp. 255256)

4. identify the five critical requirements for effective segmentation. (textbook, pp. 256
257)

5. explain how organizations identify attractive market segments and determine a market
coverage strategy. (textbook, pp. 257263)

6. explain how organizations can differentiate and position their products to maximize
competitive advantage in the marketplace. (textbook, pp. 263273)

7. describe the three major steps in analyzing competition. (textbook, pp. 599606)

8. explain the fundamentals of competitive marketing strategies. (textbook, pp. 606617)

MKTG 396v7
Introduction to Marketing

Lesson 7: Product, Branding, and Life-Cycle Strategies


Overview
For many organizations, developing a new product or revising the marketing mix for an
existing one is a hit-or-miss procedure. Decisions about branding, packaging, and even
product attributes are often made quickly without consulting all internal departments or
even confirming what customers want. This type of casual attitude to products results in a
high number of product failures in the market and can be detrimental to a companys
bottom line. There are some easy steps companies can follow to help increase a products
chances for success. Lesson 7 explores these steps in detail.

It is estimated that nearly 80 per cent of new consumer packaged goods fail. Companies
who want to thrive must become good at developing and maintaining new products. All
products go through a life cycle of introduction, growth, and decline. However, companies
can take steps to manage this life cycle, either to lengthen the life of the product or to
make changes to the product and so breathe new life into it. Lesson 7 describes ways to
manage the new-product development cycle. It also provides tips on how to get the most
out of the life of both new and existing products on the market.

Readings and Objectives


Readings

Read Chapters 9 and 10 of the textbook.

Read the Notes in this online Study Guide.

As you read, check the learning objectives for this lesson.

Pay special attention to Table 9.1 on page 282 of the textbook; this table is a good
reference guide to consumer product categories and marketing considerations.

Take time to study Figure 9.3 on page 294 of the textbook, which illustrates four
characteristics of services.

Note Table 10.2 on page 343 of the textbook; it provides a good overview of product
life-cycle characteristics, objectives, and strategies.

Learning Objectives

After completing this lesson, you will be able to

1. define product, and describe the main classifications of products and services.
(textbook, pp. 279285)

2. describe the decisions firms make when developing product lines and mixes. (textbook,
pp. 285293)

3. identify the four characteristics that influence the marketing of a service. (textbook, pp.
293295)

4. outline the service-profit chain, and describe the three major marketing tasks of service
companies. (textbook, pp. 295301)

5. explain the importance of branding, and describe the four major brand strategy
decisions. (textbook, pp. 301311)

6. discuss the importance of new-product development. (textbook, pp. 320321)

7. list and describe the steps in the new-product development process from idea
generation and screening to commercialization. (textbook, pp. 322335)

8. describe product life-cycle stages, and explain how marketing strategies change over
the life cycle of a product. (textbook, pp. 335343)

9. discuss the issues of social responsibility and internationalization in product and service
decisions. (textbook, pp. 343346)

MKTG 396v7
Introduction to Marketing

Lesson 8: Pricing

Overview
Pricing is one of the tactical tools that a firm can use to construct marketing programs that
deliver superior value to consumers. From a seller perspective, pricing is the only element
of the marketing mix that generates revenue, while buyers consider a price as a cost that
may reduce the value of an offering. Normally, consumers will be better off when the prices
are set at the lowest possible levels, while marketers will prefer the highest possible prices
that offer them maximum profits without any other environmental consideration. To build
and maintain long and lasting, mutually profitable relationships with customers, marketers
need to find the right balance between customer expectations of low prices and the
marketers own desire to extract more value from customers through higher prices.

In Lesson 8, you will learn that finding this balance is not as easy as it might seem.
Marketers have to take into account internal factors such as the firms marketing
objectives, marketing mix strategy, costs, and organizational factors; external factors
including the nature of the market, demand, and competition; and other environmental
factors like the economy, the requirements of intermediaries, and government actions.
Setting prices may not be a hard science, but proven approaches and strategies, as well as
established guidelines, do exist to find the best prices that create value for both seller and
buyer and that comply with legal and ethical issues surrounding pricing.

Reading and Objectives


Reading

Read Chapter 11 of the textbook.


Read the Notes in this online Study Guide.

As you read, check the learning objectives for this lesson.

Learning Objectives

After completing this lesson, you will be able to

1. define price . (textbook, p. 355)

2. discuss the importance of competition, costs, and consumer value perceptions in setting
prices. (textbook, pp. 355365)

3. describe internal and external factors that have an effect on a company's pricing
decisions. (textbook, pp. 365371)

4. outline new-product pricing strategies. (textbook, pp. 371372)

5. describe five product mix pricing situations. (textbook, pp. 372376)

6. describe seven price adjustment strategies. (textbook, pp. 376382)

7. discuss the key changes involved in initiating and reacting to price changes. (textbook,
pp. 383386)

8. discuss public policy and ethical considerations related to pricing. (textbook, pp. 386
389)

MKTG 396v7
Introduction to Marketing

Lesson 9: Marketing Channels Delivering Customer Value

Overview
Another element in constructing a marketing program that delivers superior value to
consumers is the distribution system. The distribution system makes the product or service
available for use or consumption and, in this way, adds value to the offering. In other
words, the consumer value perceived at the point of purchase includes not only the intrinsic
value of the product but also the added value of the path the product follows from the
producer to reach this point.

As you know, this path is not always direct; it often involves marketing intermediaries such
as wholesalers and retailers that perform several critical functions. Decisions involving
distribution channels are among the most complex and challenging decisions facing
marketers. Once a distribution channel is chosen, the firm usually must stay with it for a
long period. In addition, the chosen channel generally affects the level of service provided
and also the final price charged to consumers. The choice of channel partners is, therefore,
very important.
To fully integrate the distribution system into the creation of consumer value, marketers
need to

assess customer channel-service needs and their channel objectives and constraints

identify the major channel alternatives that are available in terms of the types of
intermediaries, the number of intermediaries, and the channel responsibilities of each

assess the advantages and disadvantages associated with each of them. Channel
choice should be consistent with the positioning adopted by the firm, as discussed in
Lesson 6.

The responsibility of marketers with respect to distribution systems also involves building,
maintaining, and managing fruitful relationships with channel partners. With the growing
importance of ecommerce, marketers have to find effective logistics systems to minimize
the total cost of providing a desired level of customer services, while bringing those
services to the customer with the maximum amount of speed.

Readings and Objectives


Readings

Read Chapter 12 of the textbook.

Read the Notes in this online Study Guide.

Be sure you are familiar with the key terms and concepts before proceeding to the next
lesson.

As you read, check the learning objectives for this lesson.

Learning Objectives

After completing this lesson, you will be able to

1. define supply chain and value delivery network. (textbook, pp. 398399)

2. explain why organizations use distribution channels, and describe the functions these
channels serve. (textbook, pp. 399402)

3. describe how channel members interact and organize to carry out the work of the
channel. (textbook, pp. 402410)

4. discuss channel design decisions, identify the major channel alternatives available to an
organization, and describe how they are evaluated. (textbook, pp. 410415)

5. discuss channel management decisions. (textbook, pp. 415417)

6. outline public policy issues related to distribution decisions. (textbook, p. 417)

7. explain the nature and significance of supply chain management, and describe the goals
and functions of a logistics system. (textbook, pp. 417428)

MKTG 396v7
Introduction to Marketing

Lesson 10: Retailing and Wholesaling

Overview
In Lesson 9, you learned that marketing intermediaries such as wholesalers and retailers
perform several functions that are critical to the delivery of consumer value.

Lesson 10 examines the role retailers and wholesalers play in the distribution channel and
the types of decisions they face. You will learn that retailing includes all the activities
involved in selling goods and services directly to final consumers for their personal use,
while wholesaling is the sale of goods and services that will be resold or used by business
customers. There are various types of retailers and wholesalers. Marketers should know
each of them as well as the marketing functions they can perform.

Readings and Objectives


Reading

Read Chapter 13 of the textbook.

Read the Notes in this online Study Guide.

As you read, check the learning objectives for this lesson.

Pay special attention to Tables 13.1, 13.2, and 13.3 on pages 437, 443, and 459,
respectively, of the textbook, as they summarize most of the content of this lesson.

Learning Objectives

After completing this lesson, you will be able to

1. define retailing and retailer . (textbook, p. 436)

2. describe the major types of retailers and retail organizations. (textbook, pp. 437444)

3. outline the marketing decisions faced by retailers. (textbook, pp. 444451)

4. identify the major trends in retailing. (textbook, pp. 452457)

5. define wholesaling, and identify the major marketing functions wholesalers perform.
(textbook, pp. 457458)

6. describe the major types of wholesalers. (textbook, p. 458)


7. outline the marketing decisions faced by wholesalers. (textbook, pp. 458461)

8. identify the major trends in wholesaling. (textbook, pp. 461462)

MKTG 396v7
Introduction to Marketing

Lesson 11: Integrated Marketing Communications Strategy

Overview
The next three lessons in this course cover the fourth and final P in the marketing mix
promotion. An exhaustive marketing program that can deliver value and build profitable
relationships with customers calls for more than just developing a good product, pricing it
attractively, and making it available to target customers. Marketers should also
communicate with their customers. Promotion provides the primary communications
function. As one of the four major elements of the marketing mix, promotion uses
advertising, sales promotion, public relations, personal selling, and direct marketing to
achieve the organizations communications objectives and shape its positioning.

Lesson 11 provides a broad overview of promotion, also known as the marketing


communications mix. It advocates the use of an integrated marketing communications
strategy, which involves identifying the target audiences and designing well-coordinated
promotional programs to elicit the desired audience responses. In other words, effective
communications programs build on the strengths of the different tools of the promotion mix
and offer consistent messages and images to targeted customers.

Lessons 12 and 13 provide details about the five major tools of the promotion mix.

If you are interested in marketing communications and want to learn more, you may want
to take MKTG 420: Advertising and Promotion .

Readings and Objectives


Readings

Read Chapter 14 of the textbook.

Read the Notes in this online Study Guide .

As you read, check the learning objectives for this lesson.

Note that Chapter 14 provides an introduction to communications topics that are


addressed in more detail in subsequent chapters.

Pay particular attention to Figure 14.1 on page 475 in the textbook; this figure
illustrates how companies should blend the mix of promotion tools.
Learning Objectives

After completing this lesson, you will be able to

1. list and define the five tools of the promotion mix. (textbook, pp. 470471)

2. describe the changing communications environment, and explain the trend toward
integrated marketing communications. (textbook, pp. 471476)

3. list the elements of the communications process. (textbook, pp. 476478)

4. describe the steps involved in developing effective marketing communications.


(textbook, pp. 478485)

5. outline methods for setting the promotion budget, and list factors that affect the design
of the promotion mix. (textbook, pp. 485491)

6. discuss legal and ethical issues involved in the design of marketing communications
programs. (textbook, pp. 491492)

MKTG 396v7
Introduction to Marketing

Lesson 12: Advertising, Sales Promotion, and Public


Relations

Overview
Advertising, sales promotions, and public relations are the most common types of
promotional activities. Advertising is any paid form of nonpersonal presentation and
promotion of ideas, goods, and services by an identified sponsor (textbook, p. 470); sales
promotion is a process providing short-term incentives to encourage purchase or sale of a
product or service (p. 470); and public relations refers to building good relations with the
companys various publics by obtaining favourable publicity, building up a good corporate
image, and handling or heading off unfavourable rumours, stories, and events (p. 471).

You may not be familiar with public relations, but both advertising and sales promotion are
part of your daily life, especially if you read newspapers, watch television, listen to the
radio, or surf the Internet. Marketers capture your attention in many ways and want you to
respond positively to their communications campaigns. Some marketers are successful and
others are not. From a marketers perspective, the problem then is this: how to
communicate so as to produce the maximum effect on the target audience.

Lesson 12 addresses this question and outlines how to most effectively use advertising,
sales promotion, and public relations in order to achieve marketing goals.

Reading and Objectives


Reading and Objectives
Readings

Read Chapters 15 and 16 (pp. 549556) of the textbook.

Read the Notes in this online Study Guide .

As you read, check the learning objectives for this lesson.

Pay particular attention to Figure 15.1 on page 501 of the textbook; it illustrates and
summarizes the factors involved in making major advertising decisions.

Take time to study Table 15.2 on page 512 of the textbook; this table summarizes the
relative advantages and disadvantages of the major types of media.

Learning Objectives

After completing this lesson, you will be able to

1. discuss the four major decisions involved in developing an advertising program.


(textbook, pp. 500515)

2. explain how companies organize for advertising and how they deal with advertising in
international markets. (textbook, pp. 515519)

3. explain how organizations use public relations to communicate. (textbook, pp. 519522)

4. explain the increasing growth of sales promotion and identify sales promotion
objectives. (textbook, pp. 549551)

5. describe the main sales promotion tools. (textbook, pp. 551556)

6. discuss the development of a sales promotion program. (textbook, p. 556)

MKTG 396v7
Introduction to Marketing

Lesson 13: Personal Selling, Direct and Online Marketing

Overview
In the previous lesson, we looked at methods of promotion that did not rely on personal
interaction. Lesson 13 examines personal promotionsby employees, salespeople, and
agents who speak directly to the potential consumer about their company's products and
services.

Today, a successful salesperson is well educated, well trained and interested in building
long-term, value-producing relationships with customers; salespeople are not at all like the
pushy stereotypes from the past.

This lesson also covers direct marketing, including online marketing, as the final component
of the promotion mix.

Readings and Objectives


Reading

Read Chapters 16 (pp. 530549) and 17 of the textbook.

Read the Notes in this online Study Guide.

As you read, check the learning objectives for this lesson.

Learning Objectives

After completing this lesson, you will be able to

1. discuss the nature of personal selling and the role of a sales force in creating value for
customers. (textbook, pp. 530534)

2. explain how firms design their sales force structure and strategy. (textbook, pp. 534
539)

3. explain how businesses recruit, choose, and train their salespeople.


(textbook, pp. 539541)

4. describe how companies compensate and supervise salespeople and how they evaluate
the effectiveness of their sales force. (textbook, pp. 541545)

5. discuss the personal selling process. (textbook, pp. 545549)

6. explain the use of direct marketing and identify its benefits. (textbook, pp. 564568)

7. describe different forms of direct marketing. (textbook, pp. 568577)

8. explain how companies design marketing strategies to respond to the Internet and new
technologies. (textbook, pp. 577578)

9. describe the four major online marketing domains. (textbook, pp. 578581)

10. discuss how firms can set up their online presence and the challenges of online
marketing. (textbook, pp. 581587)

11. discuss public policy and ethical issues in direct marketing. (textbook, pp. 588590)

MKTG 396v7
Introduction to Marketing
Lesson 14: The Global Marketplace

Overview
The world is shrinking rapidly. The cars we drive probably contain components either made
or assembled in a dozen or more different countries. We routinely buy consumer goods and
even foods imported from all over the world. More and more Canadian companies are
entering the global marketplace.

Lesson 14 examines the challenges of international marketing and highlights some of the
factors to consider when doing business with, or in, other countries.

If you would like to learn more about marketing efforts in the global marketplace, you may
want to take MKTG 414: International Marketing and Exporting .

Readings and Objectives


Readings

Read Chapter 19 of the textbook.

Read the Notes in this online Study Guide.

As you read, check the learning objectives for this lesson.

Pay attention to Table 19.1 on page 637 of the textbook; it summarizes the indicators
to consider for the assessment of the market potential in an international context.

Learning Objectives

After completing this lesson, you will be able to

1. list the six major decisions firms face when going international. (textbook, p. 628)

2. describe how the international trade systemas well as global economic, cultural, and
other environmentsaffects an organizations international marketing decisions.
(textbook, pp. 629635)

3. identify critical issues to consider before going international and selecting an


international market. (textbook, pp. 635637)

4. outline the three main approaches to entering international markets.


(textbook, pp. 637640)

5. describe how firms adapt their marketing programs for international markets. (textbook,
pp. 641649)

6. identify how companies organize for global marketing. (textbook, pp. 649650)

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