Basic Marketing

A Global
Managerial
promotion

Approach
Eleventh Canadian Edition

■ Wong ■ Shapiro
price
product

■ Perreault ■ McCarthy
place

© 2004 McGraw-Hill Ryerson, All Rights Reserved

 Chapter One

The Nature
promotion

of Marketing
price
product
place

For use only with this text.

© 2004 McGraw-Hill Ryerson,
www.mcgrawhill.ca/college/wong
All Rights Reserved © 2004 McGraw-Hill Ryerson, All Rights Reserved
When we finish this chapter, you should
Know what marketing is—and why you
should learn about it.
Understand how marketing creates satisfied
customers.
promotion

Understand how marketing serves customer

differences.
Know what the marketing concept is—and
how it affects how we manage a firm or
price

nonprofit organization.
product

Understand what customer value is and why

it is important to customer satisfaction.
place

© 2004 McGraw-Hill Ryerson, All Rights Reserved

 What’s In It For You?
Get
Get aa Job
Job

Job
Job Performance
Job Performance
Performance
promotion

Better
Better Leader
Better Leader
Leader

Better
Better Consumer
BetterConsumer
Consumer
price
product

Community
Community Role
CommunityRole
Role

Social
Social Skills
SocialSkills
Skills
place

© 2004 McGraw-Hill Ryerson, All Rights Reserved

Marketing - What’s It All About?
More than Selling and Advertising
promotion

All Those
More than Selling and Advertising
Bicycles!
price
product
place

© 2004 McGraw-Hill Ryerson, All Rights Reserved

Things a Firm Should Do in Producing a Bike

Analyze
Analyze Needs
Needs
Predict
Predict Wants
Wants
Estimate
Estimate Demand
Demand
Predict
Predict When
When
Determine
Determine Where
Where
Estimate
Estimate Price
Price
Decide
Decide Promotion
Promotion
Estimate
Estimate Competition
Competition
Provide
Provide Service
Service
© 2004 McGraw-Hill Ryerson, All Rights Reserved
 Production vs. Marketing
Marketing
Makes sure right goods
& services are produced
promotion

Production
• Making Goods
• Performing Services
price
product
place

Creates Customer Satisfaction

© 2004 McGraw-Hill Ryerson, All
© 2001 McGraw-Hill Rights Reserved
Companies, Inc., McGraw-Hill/Irwin
 Exhibit 1-1

Types of Utility and How They Are Provided

Provided by production with Provided by marketing
guidance of marketing
Time
Form

Utility
Value that comes Place
from satisfying
human needs

Task Possession

© 2004 McGraw-Hill Ryerson, All Rights Reserved

Interactive Exercise: Utility
promotion
price
product
place

© 2004 McGraw-Hill Ryerson, All Rights Reserved

 Exhibit 1-2

A Marketing Orientation
Customer Total Company
Satisfaction Effort
promotion

The
Marketing
Concept
price
product

Profit
place

© 2004 McGraw-Hill Ryerson, All Rights Reserved

Exhibit 1-3
Example: Contrasting Marketing-Oriented and
Production-Oriented Managers – A WEBSITE

If we have a
A new way to
website
serve
customers will
customers
flock to us

Marketing
Orientation Production
Orientation

© 2004 McGraw-Hill Ryerson, All Rights Reserved

Adoption of the Marketing Concept
promotion
price
product

+
place

© 2004 McGraw-Hill Ryerson, All Rights Reserved

 Marketing Concept
promotion
price
product
place

© 2004 McGraw-Hill Ryerson, All Rights Reserved

Customer Value
Take
Take Customer’s
Customer’s
Point
Point of
of View
View

Customer
Customer May
May
Not
Not Dwell
Dwell On
On
Value
Value

Costs Benefits Where

Where Does
Does
Competition
Competition Fit?
Fit?

Builds
Builds
Relationships
Relationships
© 2004 McGraw-Hill Ryerson, All Rights Reserved
Putting It All Together
Superior
Superior
Customer
Customer Value
Value
Total
Total Company
Company Customer
Customer
Effort
Effort to
to Satisfy
Satisfy Acquisition
Acquisition
Customers
Customers

Profitable
Profitable Customer
Customer
Relationships
Relationships with
with Satisfaction
Satisfaction
Customers
Customers
Customer
Customer
Retention
Retention
© 2004 McGraw-Hill Ryerson, All Rights Reserved
In Non-profit Organizations

Support
Support and
and
Newcomers
Newcomers toto Satisfied
Satisfied
Marketing
Marketing “Customers”
“Customers”
Characteristics
Characteristics
Marketing
Marketing of
of Non-profit
Non-profit
Concept
Concept Organizations
Organizations The
The Bottom
Bottom
Provides
Provides Line
Line
Focus
Focus
May
May Not
Not Be
Be
Organized
Organized for
for
Marketing
Marketing
© 2004 McGraw-Hill Ryerson, All Rights Reserved
 Marketing Concept Use by Non-profit Services
promotion
price
product
place

© 2004 McGraw-Hill Ryerson, All Rights Reserved

The Marketing Concept Guides Ethics

Group Needs Individual Needs

Conflict
0

Should
Should
Should All
Should All
All
All
Social
Social
Social
Social What
What ifif Profits
Profits
Needs
Needs BeBe
Responsibility
Responsibility
Responsibility
Responsibility Suffer?
Suffer?
Satisfied?
Satisfied?
Satisfied?
Satisfied?

© 2004 McGraw-Hill Ryerson, All Rights Reserved

 Key Terms
 Customer satisfaction  Production orientation
 Customer value  Social responsibility
 Form utility  Task utility
promotion

 Market-oriented firm  Time utility

 Marketing concept  Utility
 Marketing ethics
 Marketing orientation
price
product

 Place utility
 Possession utility
 Production
place

© 2004 McGraw-Hill Ryerson, All Rights Reserved

 Integrated Learning Package

Integrated Tools for Students

Online
Student Learning
Learning
CD-ROM Aid
promotion

Centre
Click on a Tool for More Information

Integrated Tools for Instructors

Instructor’s McGraw-Hill
Instructor’s PowerPoint
Resource Ryerson
Manual Slides
price

CD-ROM i-Services
product

Online
CBC Videos The Electronic
Learning
and Guide integrator Test Bank
Centre
Click on a Tool for More Information
place

© 2004 McGraw-Hill Ryerson, All Rights Reserved

Student CD-ROM

The Student CD-ROM packaged with every new copy of Basic

Marketing includes an electronic glossary with hotlinks, copies of
selected illustrations, of Microsoft® PowerPoint® slides, and a
small number of chapter-keyed videos .

Return to Integrated Learning Package

© 2004 McGraw-Hill Ryerson, All Rights Reserved
 Learning Aid
The Learning Aid can be used alone or with instructor direction.
Portions of the Learning Aid help students review what they have
studied. For example, there is a list of important new terms,
true/false questions (with answers) that cover important terms and
concepts, and multiple-choice questions (with answers) illustrating
the kinds of questions that may appear on examinations. In
addition, the Learning Aid has cases, exercises, and problems—
with clear instructions and worksheets for the student to complete.
The Learning Aid exercises can be used as class work or
homework—to drill on certain topics and to deepen understanding
of others by motivating application and then discussion. In fact,
reading Basic Marketing and working with the Learning Aid can
be the basic activity of the course.

Return to Integrated Learning Package

© 2004 McGraw-Hill Ryerson, All Rights Reserved
 Online Learning Centre
Both students and faculty can access the Online Learning Centre
for a variety of support materials, including an interactive glossary,
computer-aided problems, student quizzes with e-mail feature,
video cases, learning objectives, and additional Appendices.
Accessing and using the material at this site will help students
obtain a better understanding of what is in the text. Visit the site at
www.mcgrawhill.ca/college/wong.

Return to Integrated Learning Package

© 2004 McGraw-Hill Ryerson, All Rights Reserved
 Instructor’s Manual
The Instructor’s Manual and Lecture Guide provides lecture
outlines, suggestions and ideas about teaching introductory
marketing, and numerous teaching suggestions, chapter-by-
chapter aids, case teaching notes, and answers to end-of-chapter
exercises.

Return to Integrated Learning Package

© 2004 McGraw-Hill Ryerson, All Rights Reserved
Instructor’s Resource CD-ROM
The Instructor’s Resource CD-Rom provides includes in
electronic format all of the instructor resources available for Basic
Marketing.

Return to Integrated Learning Package

© 2004 McGraw-Hill Ryerson, All Rights Reserved
 Powerpoint Slides

A completely new and expanded archive of Microsoft®

PowerPoint® Presentation lecture slides incorporating text
figures and multimedia assets to support the professor.

Return to Integrated Learning Package

© 2004 McGraw-Hill Ryerson, All Rights Reserved
 McGraw-Hill Ryerson i-Services
Superior Service — Service takes on a whole new meaning with McGraw-Hill Ryerson and Basic Marketing. More than just bringing you the textbook,
we have consistently raised the bar in terms of innovation and educational research—both in marketing and in education in general. These investments
in learning and the education community have helped us to understand the needs of students and educators across the country, and allowed us to
foster the growth of truly innovative, integrated learning.

Integrated Learning — Your Integrated Learning Sales Specialist is a McGraw-Hill Ryerson representative who has the experience, product
knowledge, training, and support to help you assess and integrate any of our products, technology, and services into your course for optimum teaching
and learning performance. Whether it’s using our test bank software, helping your students improve their grades, or putting your entire course online,
your i-Learning Sales Specialist is there to help you do it. Contact your local i-Learning Sales Specialist today to learn how to maximize all of McGraw-
Hill Ryerson’s resources!

i-Learning Services Programme — McGraw-Hill Ryerson offers a unique iServices package designed for Canadian faculty. Our mission is to equip
providers of higher education with superior tools and resources required for excellence in teaching. For additional information, visit
www.mcgrawhill.ca/highereducation/eservices.

Teaching, Technology & Learning Conference Series — The educational environment has changed tremendously in recent years, and McGraw-Hill
Ryerson continues to be committed to helping you acquire the skills you need to succeed in this new milieu. Our innovative Teaching, Technology &
Learning Conference Series brings faculty together from across Canada with 3M Teaching Excellence award winners to share teaching and learning
best practices in a collaborative and stimulating environment. Pre-conference workshops on general topics, such as teaching large classes and
technology integration, will also be offered. We will also work with you at your own institution to customize workshops that best suit the needs of your
faculty. These include our Teaching Excellence and Accounting innovation symposium series.

Research Reports into Mobile Learning and Student Success—These landmark reports, undertaken in conjunction with academic and private-
sector advisory boards, are the result of research studies into the challenges professors face in helping students succeed and the opportunities that new
technology presents to impact teaching and learning.

Return to Integrated Learning Package

© 2004 McGraw-Hill Ryerson, All Rights Reserved
 CBC Videos & Guide
A complete set of new and updated teaching CBC Videos to bring
real-world relevance to chapter concepts.

Return to Integrated Learning Package

© 2004 McGraw-Hill Ryerson, All Rights Reserved
 The iNTEGRATOR
This pioneering instructional resource from McGraw-Hill Ryerson
is your roadmap to all the elements of your text’s support package.
Keyed to the chapters and topics of your McGraw-Hill Ryerson
textbook, the integrator ties together all of the elements in your
resource package, guiding you to where you’ll find corresponding
coverage in each of the related support package components!

Return to Integrated Learning Package

© 2004 McGraw-Hill Ryerson, All Rights Reserved
 Electronic Test Bank
Computerized Test Bank Using Brownstone Diploma—More
than 3,000 questions are supplied in true/false and multiple-choice
formats in the easy-to-use Brownstone software.

Return to Integrated Learning Package

© 2004 McGraw-Hill Ryerson, All Rights Reserved
 Online Learning Centre
Both students and faculty can access the Online Learning Centre
for a variety of support materials, including an interactive glossary,
computer-aided problems, student quizzes with e-mail feature,
video cases, learning objectives, and additional Appendices.
Instructors adopting this text are also given password-protected
access to additional support materials. Visit the site at
www.mcgrawhill.ca/college/wong.

Return to Integrated Learning Package

© 2004 McGraw-Hill Ryerson, All Rights Reserved