An Introduction to Marketing
July 2015
A program by the Government of Ontario in partnership with Ryerson
University.
The Most Relevant 4 tools
1.
2.
3.
4.
Environmental Scan: Why is general business knowledge
important and how to get it?
Market Research: Why is research important?
Segment, Target & Position: How to find the “White Space”
within business opportunities?
Best Practices: How to get inspiration by looking around?
Direct Brand Work Experience
What is Marketing?
“the science and art of exploring, creating, and
delivering value to satisfy the needs of a target market
at a profit. Marketing identifies unfulfilled needs and
desires. It defines, measures and quantifies the size of
the identified market and the profit potential. It
pinpoints which segments the company is capable of
serving best and it designs and promotes the
appropriate products and services.”
Philip Kotler
What is Marketing?
“the science and art of exploring, creating, and
delivering value to satisfy the needs of a target
market at a profit. Marketing identifies unfulfilled
needs and desires. It defines, measures and
quantifies the size of the identified market and the
profit potential. It pinpoints which segments the
company is capable of serving best and it designs and
promotes the appropriate products and services.”
Philip Kotler
Marketing Defined
Main Entry: mar·ket·ing
Pronunciation: \ˈmär-kə-tiŋ\
Function: noun
Date: 1561
1 a : the act or process of selling or purchasing in a market
1 b : the process or technique of promoting, selling, and
distributing a product or service
2 : an aggregate of functions involved in moving goods from
producer to consumer
Marketing is Gray: There are several right
answers to a problem
Black
Marketing
White
What is your business?
Service Based
•
•
•
What you sell is note
tangible
S1. High cost low volume
(personal sales)
S2. Low Cost, High volume
(almost retail)
Product Based



What you sell is tangible
P1.High cost, low volume
(personal sales)
P2. Low Cost, High
volume (retail type sales)
Sit in a group with people that share similar
business characteristics.
MOST RELEVANT
4 TOOLS
1. ENVIRONMENTAL
ANALYSIS
Environmental Scanning
PEST




Political
Economic
Social-Cultural
Technical
CEPLTS






Competition
Economic
Political
Legal /Regulatory
Technical
Socio-cultural
Resources::
• Environmental Scan Basic: http://en.wikipedia.org/wiki/Environmental_scanning
• Environmental Scan Other: http://www.marketingteacher.com/lesson-store/lesson-pestel.html
• Sample Business Plan:
http://tourismwindsoressex.com/wps/wcm/connect/cd6083004f0be495baa3bbba902011de/2013+Marketing+Plan+for+Web+Site.pdf?MOD
=AJPERES&2013%20Marketing%20Plan%20for%20Web%20Site
Purpose of environmental analysis
To identify potential Threats and Opportunities to the business
you have partnered with. Does the trend represent a threat or
opportunity?
A true threat is an external force that may be of greater
concern to your business than other businesses.
e.g. Health and Wellness Trend re-KFC
Similarly, a true opportunity is an external force that may offer
the business a competitive advantage.
e.g. Tech savvy companies capitalizing on Technology
trend/forces – Fairmont Hotels
Economic Recession
If an economic recession happened today,
what would happen to the revenues for these
companies?
Tourism Windsor Essex PeLee Island
Regional Tourism
Organization 1
Background information: www.vistiwindsoressex.com
Watch Video: http://www.visitwindsoressex.com/wps/wcm/connect/TWEPI/TWEPI/MAIN+NAV/WINERIES+AND+AGRI-TOURISM/
TWEPI PEST - Political




Unstable political climate on federal and provincial
governmental levels
Accommodations sector could be forced to use the Destination
Marketing Fund (DMF) model at a higher rate of tax to recoup
the full HST at 13%
Increase in obtaining proper government-issued documentation
by U.S. market when crossing the border, has contributed to an
uptick in visits to Canada
If passed, a federal single-sports betting bill could be a
potential goldmine for tourism
TWEPI PEST - Economic





U.S. dollar was flat and is expected to continue to remain at
parity with the Canadian dollar
Unemployment rates in Ontario were on the rise in the latter
part of 2012
Anemic economic growth; no growth strategy based on a lack
of governmental fiscal policy
Gas prices are largely unstable
Spike in Canadians cross-border shopping in the U.S. based on
higher exemption levels
TWEPI PEST – Social/CUltural




Lower cost of living, combined with a higher quality of life
Improvements to and expansion of educational infrastructure
Authentic experiences being touted via local, esoteric tastes in
culinary, arts and culture
Increased attendance in regional, seasonal festivals
TWEPI PEST – Technological



Smart phone technology, mobilized websites and GPS tracking
continue to play an integral role in travel planning, particularly
spontaneous daytrips and staycations
Social networking platforms have become more target specific
– with Facebook, Pinterest and YouTube being lauded by
mature markets; while an increase in Twitter and Instagram
exists amongst younger demos
Website navigation and wireless hotspots have become more
streamlined in assisting travelers with their plans via easy-touse tablet platforms
Finishing the Play
CEPLETS






Competition
Economic
Political
Legal /Regulatory
Technical
Socio-cultural
What is Missing

Competition

Legal/Regulatory
Competitors
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
“The Saifullah Check”
How was this discussion about environmental
scanning relevant to your summer company last
year?
Buzz Group Activity
Activity




Get into your group of 3
students
Pick one company to work
with
In groups of students, use
CEPLETS to identify Threats
and Opportunities for your
company.
You will have 4 minutes to
come up with some ideas.
CEPLTS






Competition
Economic
Political
Legal /Regulatory
Technical
Socio-cultural
2. MARKET RESEARCH
Types of Research and Inquiry
•
Secondary vs. Primary
•
Internal vs. External
•
Qualitative vs. Quantitative
•
Secondary vs. Primary
Secondary
Primary
Published information that is
available.
Information that needs to be
collected for the first time

Internet Searches

Surveys

Public Databases

Focus Groups

Newspapers

Observations

News Services/Blogs

Experiments

Etc.

Etc.


Fast + inexpensive
More time consuming + more
expensive
Internal vs. External
Internal

Secondary: analysis of
financial information or
monitoring reports
External



Primary: feedback from
frontline staff or questions
through general data
collection (ie. Forms)
Secondary: competitive
analysis, industry data &
publications.
Primary: Focus groups,
surveys, data collection, etc.
Qualitative vs Quantitative
Qualitative Research
Quantitative Research
Objective
• To gain a qualitative
understanding of the
underlying reasons and
motivations
• To quantify the data and
generalize the results from
the sample to the
population of interest
Sample
• Small number of non
representative cases
• Large number of
representative cases
Data Collection
• Unstructured
• Structured
Data Analysis
• Non statistical
• Statistical
Outcome
• Develop an initial
understanding
• Recommend a final course
of action
Quantitative Descriptive research
Teens
Youth
Gen Y
Gen X
Younger
Boomers
Older
Boomers
Seniors
(12-17)
(18-21)
(22-26)
(27-40)
(41-50)
(51-61)
(62 plus)
34%
37%
30%
19%
12%
7%
5%
24%
37%
34%
25%
18%
15%
11%
51%
70%
57%
29%
15%
8%
6%
49%
59%
54%
41%
31%
26%
19%
Creators
Publish own webpage,
Blog, YouTube, Facebook
Critics
Comment on blogs
Posts reviews, ratings
Joiners
Use social network Sites
Spectators
Read blogs, watch videos
Listen to podcasts
Social networking by Age. Source: Forrester Research 2007
Qualitative Research
Advantages
• deep understanding
• quick, cheap
• flexible, fluid, open,
suggestive
• accessible (in language,
method and data) to the
manager
• able to tap deep,
important, enduring
meanings
Disadvantages
• not generalizable
• requires expertise
• ‘subjective’ interpretations
• subjective to the selective
perception of manager or
analyst
Qualitative Research
Observation
In-depth Interviews
Qualitative research types
Exploratory Research
What is the real problem and what needs to be
studied
Descriptive Research
Describes Customers
Cause-and-effect Research
“Does X cause Y?”
Exploratory research – OXO Grips
–
1989 Sam Farber Unretired
Hires Smart Design for a 3% royalty
Design team interviews people with arthritis
–
1990 to 2004 - $273 M company
–
–
Qualitative research examples
• Towne Place Suites
• Shadowed guest & talked with employees
• New Lobby & New guestrooms
“extended stay guests want to maintain routines
while travelling”
Qualitative research examples
Nike Focus Groups
Watch John Mayer: http://www.youtube.com/watch?v=ES3wFlpwjiM
John Mayer Focus
Group
Watch Ted Talk Spagetti Sauce: http://www.youtube.com/watch?v=UGWA7Nuz9e4
“The Saifullah Check”
How was this discussion about research relevant
to your summer company last year?
What research methods did you use?
Buzz Group Activity
In your group of 3 students identify some research
methods you could use to gain insight about your
selected company.
3. SEGMENT, TARGET &
POSITION
Dating Site targets
•
Single Segment – Six Minute Dates, Inc. (Calgary)
• Selective Specialization – Compatible Introductions
Ltd. (Vancouver, Vancouver Island, Sunshine Coast)
• Product Specialization – Thomas Services Canada
(personality assessment tools for multiple sectors,
including dating)
• Market Specialization – 50yearsplus.com
• Full Market Coverage – Match.com (a language
dating site in 29 languages on 6 continents)
Segmentation principles
How do you segment pillow customers by usage?
Market-product grid showing the types of bed pillow
segments and their relative sizes as percentage of total
market
Market
Segments
Side
Sleepers
Back
Sleepers
Stomach
Sleepers
Firm
Pillows
Bed Pillow Products
Medium
Pillows
Soft
Pillows
Market-product grid showing the types of bed pillow
segments and their relative sizes as percentage of total
market
Market
Segments
Side
Sleepers
Back
Sleepers
Stomach
Sleepers
Firm
Pillows
73%
Bed Pillow Products
Medium
Pillows
Soft
Pillows
22%
5%
Market Segmentation
Segmentation is the process of dividing a market into
distinct groups of customers, prospective customers
or buying situations in which members are similar in
the way they
• perceive value
• view products and services
• purchase products and services
and who might require separate marketing mixes
Benefits of Market Segmentation
• A more efficient allocation of the marketing budget
• A more effective marketing approach to the needs of
individual segments
• Enhanced abilities to identify new marketing opportunities
through better feedback and communication abilities
• The development of specialist knowledge and extra effort
that may enable an organization to dominate particular
segments and gain competitive advantage
Market Segments Must Be…
• Accessible (i.e., must be able to reach them with a marketing
program)
• Durable (i.e., will exist over time)
• Identifiable (i.e., distinguishable from other segments)
• Substantial (i.e., economically viable to target with a
segmented marketing program)
• Unique (i.e., needs, wants, and behaviors are different from
other segments)
• Winnable
Ways to segment
Regions
Urban/Suburban/Rural
Population Density
City Size
Climate
Psychological Variables
Lifestyles
Personality
Self-image
TARGETING
Psychographic
Potential
Segments
Demographic/Geodemographic
Sex
Age
Family Life Cycle
Race/Ethnic Group
Education
Income
Occupation
Family Size
Religion
Home Ownership
Behavioral
Occasions For Use
Benefits Sought
User Status
Usage Rates
Loyalty Status
Buyer Readiness Stage
Attitude
RESPONSE
Geographic
What is Positioning
49
Starts with your product or service, your
offering and its image
• Not what you do to the product, but what you do
to the mind of the prospect
Design to occupy a distinctive place in the
mind of the target market
• Marketing mix reflects the positioning you are
trying to establish with your target market
Developing a positioning statement
Should include:
• Target Market Characteristics
• Customer Need
• Customer Benefit
• Point of Differentiation
Why differentiate?
To avoid the commodity
trap, marketers must start
with the belief that you can
differentiate anything.
Differentiation Strategies
Feature
s
Salespe
ople
Performance
Durabili
ty
Style, Design
Ease of Order
Cust. Service
Product
Personnel
Tech Support
Repair Team
Delivery
Install
Maintenance
Covera
ge
Channel
Image
Character and
Value Prop
Distinctive Way
Expertise
Emotional Power
Performance
Cost
Developing a positioning statement
Should include:
• Target Market Characteristics
• Customer Need
• Customer Benefit
• Point of Differentiation
Let’s look at a Positioning Statement
10-54
Mountain Dew: To young, active
soft-drink consumers who have
little time for sleep, Mountain Dew
is the soft drink that gives you
more energy than any other brand
because it has the
highest level of caffeine.
How is apple positioning IPOD?
iPod Shuffle
$55 (1GB)
iPod Nano
$169 (8GB)
iPod Touch
$329 (8GB)
Younger, music listening consumer who may
be looking for a basic
music listening device , at
a low cost, because it
offers a limited feature
set
be looking for a more
enriching listening
experience, from an easy
to navigate device
because it has a patented
scroll wheel design
be looking for a feature
rich multi-use device, that is
integrated with other
applications, because it
does more than just play
music
What are The positioning strategies?
iPod Shuffle
$55 (1GB)
iPod Nano
$169 (8GB)
iPod Touch
$329 (8GB)
Younger, music listening consumer who may
be looking for a basic
music listening device , at
a low cost, because it
offers a limited feature
set
be looking for a more
enriching listening
experience, from an easy
to navigate device
because it has a patented
scroll wheel design
be looking for a feature
rich multi-use device, that is
integrated with other
applications, because it
does more than just play
music
Buzz Group Activity
In groups of 3 students write a positioning statement
for your company. Remember a good positioning
statement has four key elements.
1.
2.
3.
4.
Target Market Characteristics
Customer Need
Customer Benefit
Point of Differentiation
“The Saifullah Check”
How did you use Segment Target and Position
your company last year?
4. BEST PRACTICES
Best Practices
Best Practices focus on the ability of a method or process that
demonstrates superior results. Organizations use best practices to
improve business strategy through learning from or benchmarking
to other organizations.
“The Saifullah Check”
Are best practices relevant to a summer
company entrepreneur?
MOST RELEVANT
4 TOOLS
The Most Relevant 4 tools
1.
2.
3.
4.
Environmental Scan: Why is general business knowledge
important and how to get it?
Market Research: Why is research important?
Segment, Target & Position: How to find the “White Space”
within business opportunities?
Best Practices: How to get inspiration by looking around?