BUSINESSES

AND

THEIR MARKETS

S E S S I O N   O N E

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Mostafa Purmehdi

 

HEC Montreal

Define Marketing

O B J E C T I V E S

EXCHANGE

THE CONCEPT OF

Proliferation of Supply

VALUE IN CENTER OF MARKETING

Marketing Orientation

OPTIMIZE THE RELATIONSHIP OF EXCHANGE

2004

 

An organizational function for

C  R  E  A  T  I  N  G

COMMUNICATING

and DELIVERING VALUE to 

C U S T O M E R S

and managing customer relationships

to benefit organization and its stakeholders

 

DEFINITION

the definition of

marketing  is

EVOLVING

2007

 

the activity, set of institutions, and processes for

CREATING, COMMUNICATING, DELIVERING

and EXCHANGING offerings with VALUE for

C U S T O M E R S

C L I E N T S

P A R T N E R S

and S O C I E T Y at large

Importance of Marketing

O B J E C T I V E S

PRODUCING

SELLING

1. identify appropriate customers
2. sell them your products
3. discover what products customers want
4. feedback the production division on what needs to be produced, what quantity, etc.

 

R O L E S

of Marketing Function

Components

of Marketing Function

• product development
• research
• communication
• pricing
• customer service

Evolution of Marketing

O B J E C T I V E S

PRODUCTION

O R I E N T A T I O N

4 Information System

1 Business

2 Product

3 Market

PRODUCT

O R I E N T A T I O N

4 Business

1 Product

2 Market

3 Information System

S A L E S

O R I E N T A T I O N

4 Business

1 Product, Price, Place, Promotion

2 Market

3 Information System

19th Century

Supply created demand. A seller's market. 

20th Century

Industrialization. Competition intensified. Products satisfy needs, tastes, and wants. 

1910

We have a new term: MARKETING

1920

First market studies. 

After WWII

suburbs and shopping malls. 

The 1950s

toward marketing orientation. 

The 1960s

contributions of psychology and sociology to economic perspective. 

The 1970s 

Specialized in specific sectors. New applications: marketing people, ideas 

The 1990s

Internet and e-commerce. 

Today

We demand businesses to operate ethically. 

​Demarketing at Hydro-Quebec
Four Rs in Construction at HEC Montreal
Life cycle responsibility in Sweden

Elements of the

Marketing Model

O B J E C T I V E S

MARKET

NEED

DEMAND

CONSUMERS

SEGMENTS

INFORMATION SYSTEM

DATA

•    INTERNAL
•    SECONDARY
•    PRIMARY

BUSINESS

ANALYSIS

SET OBJECTIVES

PLANNING

IMPLEMENTATION

CONTROL

MARKETING MIX

PRODUCT

PRICE

PLACE

PROMOTION

PEOPLE

PERSONAL SELLING

PACKAGING?

MARKET

a set of consumers, individuals or businesses

that express wants and needs

by buying products, services or even ideas.

MARKETS

• Consumer Goods market
• Business markets
• Distribution markets
• Government market
• International markets

Does every customer need every product in the market?

THE CURIOUS CASE OF STAPLE GOODS

CONCEPT OF NEED

YOU DONT BUY A CAMERA, BUT MEMORIES.

NOT COSMETICS, BUT DESIRE TO BE BEAUTIFUL.

NOT A SOFT DRINK, BUT A SYMBOL OF YOUTH.

MASLOW'S PYRAMID

NEED IS A STATE OF LACKING SOMETHING

WANT IS A WAY TO MEET THIS NEED

DISCUSS

STAPLE GOODS

MILK, FLOUR, AND SUGAR

FRIVOLOUS GOODS

CHIPS, CARS, AND CLOTHING

VS.

n e e d s ,   w a n t s   &
OPPORTUNITIES

WHEN A TECHNICAL SOLUTION MEETS A MARKET NEED

DEMAND

Quantity expressed in volume or dollars*

* remember to neutralize the effect of inflation

TYPES OF DEMAND

Actual Demand

Potential Demand

Projected Demand

MARKET SHARE

COMPANY DEMAND

OVER

MARKET DEMAND

COMPETITION

SUBSTITUTE  VS.  DIRECT

Competitive Advantage

patents or low manufacturing costs

STRATEGIES

• INNOVATION
• SEGMENTATION
• IMPROVING DISTRIBUTION
• IMPROVING COMMUNICATION

COMPETITIVE ADVANTAGE

MACRO ENVIRONMENT

• Political and Legal environment

• Economic environment

• Demographic environment

• Cultural environment

• Technological environment

• International environment

interdependence element

Ethics in Marketing

O B J E C T I V E S

ETHICS IN MARKETING

BETWEEN

COMPETITORS

REGARDING

CONSUMERS

ETHICS IN MARKETING

PRODUCT

unsafe products

unhealthy products

test on animals

ETHICS IN MARKETING

MARKET RESEARCH

use market research ONLY to sell products

participant confidentiality

confidential information of competitors

industrial espionage

ETHICS IN MARKETING

PACKAGING & LABELLING

false representation

inadequate nutritional labelling

non-eco-friendly packaging

ETHICS IN MARKETING

PRICE

price fixing

price discrimination

ETHICS IN MARKETING

PROMOTION

targeting children and teens

stereotypes

hyper-sexualization

deceiving advertisement

ETHICS IN MARKETING

SALES

sales pressure

damage competitor products