**Things to Know!

**
 Midterm #2 is cumulative, but NO FINAL!
 Midterm both all MC!
 Midterm #1 (Chap 1,2,4, &11 *60 MC/ 1.5 h*)
 Midterm 1 Topics MKT 702
Modern marketing management
Interdependency of markets
Holistic marketing
DNCThe–new do not call list home https://lnnte-dncl.gc.ca/en
4 P’s
Strategy
Join CMA $39 job opportunities
The Value Chain
Tools for analysis
The Marketing Plan
Market Research
What is it?
Why is it important?
Marketing Management
Week 1 (Introduction) :
Competition
Strategy
Marketing- includes decisions
 Midterm like who1,2,4,5,10,11,14,15
#2 – Chap the company wants as its customers, which of their
needs to satisfy, what products and services to offer, what prices to set, what communications
 Final Project need to submit online + Hardcopy by MONDAY!
to send and receive, what channels of distribution to use, and what partnerships to develop.

How should marketers respond to disruptive technologies?

How have cell phones revolutionized marketing?
What is “marketing management”?
How to create plan & strategy to implement product to market.
How is it different from “marketing”?
What is Disruptive technology? some examples?–Why do marketers care? Complete this
sentence:–“Great products sell themselves. They don’t.”
Technology that changes the way the industry works. E.g Uber changed the way the
transportation system works (cabs, taxis). Airbnb disrupted the hotel industry. Ali express sells
directly to consumers instead of selling to retailers, wholesalers or intermediaries.
How have these companies (Uber, Airbnb, AliExpress) “disrupted” our world?
https://www.forbes.com/sites/avidan/2015/11/29/the-25-most-disruptive-brands-of-
2015/#15f554767bbd
How have smart phones impacted “marketing management”?
E.g Phone changed the way of a desk.
Product “management” – information density; how to assemble it, warranty
Price “management” – variation of pricing, can now search up different pricings available.
Place “management” -
Promotion “management” -
What’s happened in our society since 2008 regarding smart phones? As marketers, does any of
this matter? https://www.youtube.com/watch?v=Ni6-FXRfMEg
How have smartphones impacted “marketing management”? What’s so disruptive about the
technology?

Week 2 (Chapter 1) :
How have cell phones changed marketing?

Product Price Place Promotion

Tap & Pay Wallet Geo Caching Geo fencing, Social
Media, Gamification
QR Codes – info Instant access to Global marketplace Tailored, customized
density competitive prices

STEPS  ① Segment ② Target ③ Positioning

Disruptive technology
Positive impact?
Negative impact?
•Examples?
Why should marketers care about disruptive technologies?
https://whatis.techtarget.com/definition/disruptive-technology
What can we learn from Seinfeld? https://www.youtube.com/watch?v=M2lfZg-apSA
http://www.stormyourmarket.com/marketing-lessons-i-learned-from-watching-seinfeld/
Demand? Need, wants, demand
Segment? Who, why, when, what
Does United really break guitars? https://www.youtube.com/watch?
v=5YGc4zOqozo&list=PLkGnVVtgiA5P3Zrwyxop51gPtSIvpg9f6
https://www.youtube.com/watch?v=Ay7hFIYQFnw
What lessons can we learn from this?–Who “wins”?
Corporate giants? Dave Carrol a musician got his guitar broken at the airline from
employees throwing around luggage. Took it to YouTube & made a song to get recognition.
When they only offered $100 initially after fighting a year for it. After YouTube, CEO offered the
full amount to him, but he decided to donate it to charity.
How does this story differ? What have we learned over the past 7 years about social media?
https://www.youtube.com/watch?v=OhBmWxQpedI
Social media is a powerful tool, important that companies engage with customers to fix
problems.
What can be marketed? What can be marketed? Goods–Services –Events–Experiences–
Persons–Places–Properties–Organizations–Information–Ideas

Key Customer Markets–Consumer, business, global, non-profit, government

Consumer Markets – where we buy things & pay taxes
Intermediary Markets – distributors, agency, brokers
Manufacturer Markets – raw materials  goods/services
Government Markets – taxes, governance, policies
Resource Markets – money, where to get products, sell
* Intermediaries provide information to people who don’t know too much about product (high
end cameras), but some companies eliminate them (Wish, Ali Express). *
Check this out... www.beinggirl.com...wait a minute…
Is it now www.always.com?
What’s this site all about?
Why? And for whom?
What is the site owner trying to accomplish?
Creating awareness, the need on a commodity product.
The “Core”
How are Needs, Wants and Demands different? Needs generate wants
Why do we segment, target, and position? Everyone is unique (diversity of people)
What is “value proposition” and what does it mean? Brands commitment for providing value
How is “value” determined by buyers? Value determined differently by each individual for
time, monetary value, emotional value, historic value, effort value, personal data
Do we need channels? What are they? Social media, Supply chain
Does the supply chain really matter? Yes, it matters because it has to do with your brand image
and how other view you
Who cares about the competition? Need to be able to find their space in the market
What is holistic marketing?
Holistic marketing is the development, design, and implementation of marketing programs,
processes, and activities that recognize the breadth and interdependencies of today’s
marketing
environment. Four key dimensions of holistic marketing are:
1. Internal marketing—ensuring everyone in the organization embraces appropriate marketing
principles, especially senior management.
2. Integrated marketing—ensuring that multiple means of creating, delivering, and
communicating

value are employed and combined in the best way.

3. Relationship marketing—having rich, multifaceted relationships with customers, channel
members, and other marketing partners.
4. Performance marketing—understanding returns to the business from marketing activities
and programs, as well as addressing broader concerns and their legal, ethical, social, and
environmental
effects.

How does it compare to previous “wisdom”? –Production–Product–Selling–Marketing? Older

marketing only focused on products, later on product, later on product price promotion and
place etc.
How is it related to relationship marketing?
Need clear focus on relationship marketing. We have to work against this & break it
apart, what does this have to do with marketing?

Discuss (on p. 18)–The 10 deadly sins–The 10 commandments

What is the greatest of these and why? Give an example.
Modern Marketing Management
What is it? Developing strategy and plans–Capturing market insights–Connecting with
customers–Building strong brands–Shaping market offerings–Delivering value–Communicating
value–Creating long-term growth
The 4 P’s

The Old The New

Product ①People
Place ②Processes
Price ③Programs
Promotion ④Performance

① Important who represents brand (brand ambassadors)

② Over & over working efficiently
③ Engaging so people invest time & money
④ measure the right predictors
So what about the Soup Nazi? What do you recommend to ensure his survival? Focus on
efficiency, customer service, online app to order.
United Airlines (will they still break guitars?) challenges in their operations model throwing
around bags and challenges in service model in providing support
The old 4 P’s vs. the new 4 P

Week 3 (Chapter 2) :
Strategy?
Define it https://en.wikibooks.org/wiki/Business_Strategy &
https://www.forbes.com/sites/gregsatell/2013/04/16/4-principles-of-marketing-strategy-in-the-
digital-age/#3759f56d6267
Techniques people use to get to the best outcome out of something they are doing.
Provide examples..
Compare

Tims – Efficiency, freshness, convenience Starbucks – Engagement, atmosphere,

experience
 Ryerson – Better social life, more corporate UFT – Prestige (older), more study focused,
opportunities, practical theory based, academic
Hollister – beachy vibes, younger adults/ American Eagle – Casual, larger target
teens
Every business needs some sort of strategy, whether bad or good.
What do brands stand for ? https://www.youtube.com/watch?v=EQnaRtNMGMI
Connecting the Dots
How is “strategy” related to “value proposition” and “perceived value” ?
Value proposition: Customers often always bring their own perception with them when
trying out a new product. Unfair when they compare it to what they are used to. Perceived
value: What is promised to be delivered is not enough for consumers sometimes because they
expect something different. Value proposition – sustainable competitive advantages,
competencies organization structure, corporate culture. Strategy – helps us in creating this
environment where we are delivering on both the value proposition and ensuring we deliver on
perceived value of customer expect. Customer/product process, value chain, 5 forces model,
SWOT, PEST, MOTT?, ROI, Porters, generic strategies.

Michaels Porter’s Value Chain

Ultimately trying to get sustainable competitive advantage driven by ongoing

profitability/margins profit per unit.
Inbound – find coffee beans grown in south America and roast and package the grounds and
into the stores.
Operations – get coffee beans and make the coffee instore with proper procedures and trained
people
Outbound logistics – how to get product into hands of customers
Marketing & sales – communicates products’ benefits and encourages purchases
Service – model that supports above
Procurement – process to acquire goods to be brought into organization
Technology development, Human Resource Management, Firm Infrastructure – supporting
functions to key value chain
Discuss the Ryerson University value chain. How can the model be used to describe a student’s
journey? What is the outcome?

Success Depends Upon... (Describe these phases in the context of Ryerson)

•The market-sensing process–Intelligence, dissemination, action

•The new offering/realization process–Researching, developing, launching
•The customer-acquisition process–Targeting, prospecting
•The customer relationship management process–Building, maintaining and growing
relationships
•The fulfillment management process–Ordering, shipping and payment
Core Competencies
What are Ryerson’s?–How do these link to strategy?
Check out: Distinctive Competencies http://inevitablesteps.com/business/distinctive-
competencies/
Distinctive competencies – figuring out what your company is good at, differently than
other companies.
Strategic Planning
The elastic band
The importance of “mission”
MLSE Mission https://mlse.com/our-company/ Toronto Maple Leafs care about providing
the great experience more for their fan base than actually winning the championships. If they
want to win a game? Invest in inbound logistics (hire the best coaches).
What does this say about winning a StanleyCup? ...or being “champions”?
Products vs. Markets

Strategic Business Unit

•Three dimensions:–Customer groups–Customer needs–Technology Ex: The Leafs, The
Raptors, The Marlies
•Three characteristics:–Separate from the rest of the company–Unique competitors–
Manager Ex: TRSM–Chang School
Why should we care about Organizational Culture?
What is it?
How does it relate to strategy?
What are “yellow sticky notes” all about? https://www.post-it.com/3M/en_US/post-it/
Five Forces Analysis

Watch this: https://www.youtube.com/watch?v=mYF2_FBCvXw

SWOT Analysis, How does this help marketers?
PEST Analysis, How does this differ from SWOT?
Market Opportunity Analysis
•Can the benefits involved in the opportunity be articulated convincingly?
•Can the target market be located and reached cost-effectively?
•Does the company have access to the critical capabilities and resources needed?
•Can the company deliver the benefits better than the competition?
•Will the ROI meet the company’s objectives
Clearly describe the market & needs for idea. Be able to explain to customer of idea & its usage.
Can you differentiate your product with existing?
Checklist Take a look at p. 48
How would you use this? –What are some pitfalls?
Porter’s Generic Strategies
Cost Leadership - Drive & focus on price points (Walmart - Low prices because of low costs).
Differentiation – Specific products for specific customers (Canadian Tire)
Cost Focus – Narrow products main focus on price (Princess Auto)
Jerry and George
Is a show about “nothing” a strategy?
Bringing it all Together The Marketing Plan–P.53-58

Week 4 (Chapter 4) :
Will the Leafs win the Stanley Cup this year?–What clue might help you see the future
Marketing Strategy
•The links between corporate culture, core competencies, mission, vision, values, and
value proposition
Conducting Market Research (find in textbook)
What is it?
Why is it important? Sustainable competitive advantage is a marketing strategy.
Watch this… https://www.youtube.com/watch?v=m-wErh2qp2o
How were products “marketed” in the 1950’s? Focused on what is has and not what it
does for you, assumes that people have problems that need to be fixed.
What has changed? Emerging products world
Now watch this… (focus groups) https://www.youtube.com/watch?v=p8A4yqN4_9A
Comments? Different skills, different needs they all have (different needs they all have).
Engaging with audience gives clues and ideas of how & what they are thinking about the
current product/service on the market.
Can “Vitameatavegemin” be improved?
How can market research help? (think about the Value Chain, holistic marketing, the 5-
Forces what else?) Value chain, what kind of millennials are into? Needs to be more descriptive
of where to buy like retail, online etc…
Loyalty management programs
Why? Customer engagement
What’s the cost to you? Personal data, privacy concerns
What’s the benefit to the company? They get info on your email, name, purchase
history, so they can target us for marketing promotions.
The Good, the bad and the ugly Edward Snowden?? https://www.cbc.ca/news/politics/csec-
used-airport-wi-fi-to-track-canadian-travellers-edward-snowden-documents-1.2517881
What are the issues regarding this type of “research”? Privacy concern
Market research
The systematic design, collection, analysis, and reporting of data findings relevant to a
specific marketing situation facing a company.
Is this only for big companies? No, not true. Just bigger companies are able to invest
more money into it.

Market Research Process

Define the problem & research objectives  Develop the research plan  Collect the
information  Analzye the information  Present the findings  Make the decision
Consider Ryerson’s Challenges
The Dean of a department is frustrated because the failure rate of 1st year students is 50%.
What’s the problem?
Steps?
The problem (too broad or too narrow?)
The plan (Data sources – primary or secondary)
 Approaches (observation, Focus Groups, Survey, Behavourial, Experimental)
Instruments (Questionaire, Qualitative methods, Technological devices)
Sampling
Contact Methods (mail, phone, personal, online)
Collect, Analyze, Present, Decide
* However, surveys can be flaud *
CNE User Panel https://theex.com/footer/get-involved/cne-expert-insights-community
Consumer bias in surveys – people may not answer correctly, and only want the benefits.
Start and Stop?
When does market research begin, and when does it end? No ending or beginning, but
continuos.
Integration
Marketing initiatives may be able to integrate marketing research activities. E.g Corporate IT
training Services – classroom discussions lead to intelligence gatherings.
Watch this https://www.youtube.com/watch?v=Rxwk8345qCE
Are all marketers capable of good research? Not all marketers.
What to measure?
1. External (Awareness, Market Share – volume or value, Relative Price – market share
value/volume, Number of Complaints – level of dissatisfaction, Consumer Satisfaction,
Distribution/Availability, Total # of Customers, Perceived Quality/Esteem, Loyalty/Retention,
Relative Perceived Quality)
List of KPI’s (sales market share, customer service issues). Having a dashboard with list is
important.
2. Internal (Awareness of goals, Commitment to goals, Active innovation support,
Resource adequacy, Staffing/skill levels, Desire to learn, Willingness to change, Freedom to fail,
Autonomy, Relative employee satisfaction)
Why do we measure the wrong things?
Misunderstanding? Unclear objectives? Convenience?
Hard to figure out what customers are thinking.
The Dashboard Read this…
https://courses.ryerson.ca/d2l/common/assets/pdfjs/1.0.0.30/web/viewer.html?file=https%3A
%2F%2Fs3.ca-central-1.amazonaws.com%2Fd2l-docbuilder-prod-ca-central-1-converted
%2F4487ce66-f9f5-49da-b94c-19f2a21e5cf1%2F68f9cdb26c54bd55054fa668880e1c87.pdf
%3FX-Amz-Algorithm%3DAWS4-HMAC-SHA256%26X-Amz-Credential
%3DAKIAJOEGJFTCS3IHJNWA%252f20191004%252fca-central-
1%252fs3%252faws4_request%26X-Amz-Date%3D20191004T210642Z%26X-Amz-Expires
%3D900%26X-Amz-Signature
%3D10dd19708f214993a211673570551c3297b1b3dd07774d833cff3fa6e2b30621%26X-Amz-
SignedHeaders%3Dhost&lang=en-us&container=d2l-fileviewer-rendered-pdf&fullscreen=d2l-
fileviewer-rendered-pdf-dialog&height=578
What are some examples of poor numbers?
Therefore, what are some examples of good numbers?
How has PIPEDA changed the game?

What are the implications for marketers? https://laws-lois.justice.gc.ca/eng/acts/P-8.6/page-

2.html#h-4
Changed the way people can store consumer data. Stores required by law to delete customer
credit card info right as transaction is complete. No more people can buy a list of customers
from companies anymore (e.g magazine subscription list)
Also the Freedom of Information and Protection of Privacy Act
https://www.ontario.ca/laws/statute/90f31
So what about great Clips? https://www.greatclips.com/
The DNCL https://lnnte-dncl.gc.ca/en
Why should you care? Do not call list (report them to prevent telemarketers from
calling)
Your Responsibility
Telemarketing gone bad… https://www.cbc.ca/marketplace/episodes/2012-2013/when-
the-repairman-knocks-air-ducts
Tenets of Respectful Market Research https://www.the-cma.org/regulatory/code-of-ethics
What is the “fine line” between effective market research and invasive or questionable
practices?
Summary
Market Research–What is it?–Why is it important?

Week 5 (Chapter 11) :

Incorporating Research
(Never-ending cycle, Determining/monitoring needs and wants, Creating benefits, Re-
evaluating value proposition, Research Method - What’s the problem?, Know the law, ethics,
and codes of conduct
Dealing with Competition Competitive Dynamics
Sustainable competitive advantage, Long-term position (leader?) – suggests that there
is a leader from a brand, also called market leader
What are the risks? Constant changes
Upstarts
Where did Porter come from?
What about Spotify?
How did Magic Erasers get their start? Magic erasers started with spray bottles, started
with diff product with diff approach
Did Fitbit have any competitors? new opportunity was built, but competitors came and
pushed them to the side lines, stole market share from the
What ever happened to ?
Sears – lot of investment into value proposition, invented new products to try to
connect with millennials, but failed
 Eaton’s – invented sear catalog
Simpsons – invented by hbc?
Future Shop – invented by best buy
Simpsons –
Woolco –
Towers –
K-Mart –
What’s in a brand?
How do Preferences for brands change over time?
2008 – http://canadasfavouritebrands.com/
2014 – https://www.canadianbusiness.com/lists-and-rankings/best-brands/2014-
slideshow/image/26/
2017 – https://www.canadianbusiness.com/lists-and-rankings/best-brands/canadas-best-
brands-2017-the-top-25/
2019 - https://www.uvic.ca/gustavson/brandtrust/top-10/index.php
Strategies
Delivering more for less is the classic threat
To stay number one (a firm must expand the market, defend current market share,
Expand market share). Can expand the market, or new tactics to keep competitors at
bay
Examples: Itunes, Pizza Pizza, McCafe
Where is the brand now? Hypothetical Market Structure
Market Leader (40%) – Looking to defend its position
Market Challenger (30%) –
Market Follower (20%) – Benefits of what id left over
Market Nichers (10%) – Specific expertise in specific field
What’s this all about?
Rouge discount airline (smaller aircraft) – for those on leisure travellers who only care
about price
 Reg Air Canada – care about service quality, premium offers
West Jet swoop –
What is West Jet’s Response? https://airwaysmag.com/airlines/analysis-the-real-target-
of-westjets-new-ulcc-is-air-canada-rouge/
Swoop? https://www.flyswoop.com
Expanding the Market
New Usage – New life for old products by rethinking the benefits of a product
https://science.howstuffworks.com/innovation/repurposed-inventions/10-new-uses-for-
old-inventions.htm#page=10
New Customers – Molson-Coors looking to acquire new customers in younger
generations http://www.molsoncoors.com/en
What is Tide doing?
How is this expanding the market? https://www.youtube.com/watch?v=zYFV3kdLlC4-
Telling you to buy tide pods because it is easy!
How about this? https://www.youtube.com/watch?v=4dVwAFkCUG4 – don’t throw out
your clothes, it will clean stains
What about new packaging https://tide.com/en-us/shop/type/laundry-pods ? – growing
the sales but providing more options people with be interested in
Risk Management Checklist - Risk their home, income, 100% of what they have, organizational
income?
…Entrepreneur
…Established Mid-sized company
…Established unprofitable Mid-sized company
...Established Large company
Ready to take risk and make mistakes?
Is there a vision?
Capability to innovate?
Flexibility?
Proactive thinking/managers?
Defensive Strategies https://www.cbc.ca/news/canada/toronto/leafs-encourage-smash-and-grab-
1.1382227
2013 lockout – NHL (smash and grab) froze jerseys in ice and let them break ice and last
person gets to keep it
Market leader perspective, to try and prevent any attacks to the firm
Six Types od Defence Strategies

1. Making brand impregnable, people believe they are the best

2. Outpost, offering diff solutions from main brand (rouge airline)
3. Instead of building new banks, placing atm machines so people would know them and be
more aware
Increased Market Share
 How did McDonald’s do it? Not growing the market that is available, but stealing
business frm its competitors. Did it but letting people try their drink for free to see if they like
and get them not to buy frm tims.
Specific Attack Strategies
Improved services
Distribution innovation
Manufacturing-cost reduction
Intensive advertising promotion
Price discounts
Lower-priced goods
Value-priced goods
Prestige goods
Product proliferation
Product innovation
Any aspect of the marketing program can serve as the basis for attack, such as lower-
priced or discounted products, new or improved products and services, a wider variety
of offerings, and innovative distribution strategies. A challenger’s success depends on
combining several, more specific, strategies to improve its position over time.
Market Follower Strategies
Followers must know how to hold current customers and win a fair share of new ones. Each
follower tries to bring distinctive advantages to its target market—location, services, financing–
while defensively keeping its manufacturing costs low and its product quality and services high.
It must also enter new markets as they open up. The follower must define a growth path, but
one that doesn’t invite competitive retaliation. We distinguish four broad strategies:
1. The counterfeiter duplicates the leader’s product and packages and sells it on the
black market or through disreputable dealers.
2. The cloner emulates the leader’s products, name, and packaging, with slight
variations.
3. The imitator copies some things from the leader but differentiates on packaging,
advertising, pricing, or location.
4. The adapter takes the leader’s products and adapts or improves them.
Market Nicher Strategies see pg 291
An alternative to being a follower in a large market is to be a leader in a small market, or niche.
Smaller firms normally avoid competing with larger firms by targeting small markets of little or
no interest to the larger firms. But even large, profitable firms may choose to use niching
strategies for some of their business units or companies.
Market Challenger Strategies
Frontal Attack
Flank Attack
Encirclement Attack
By-pass Attack
Guerilla Attack
Steve Jobs, what is he saying? https://www.youtube.com/watch?v=TNYbcqyyj68
Leave the market wide open, cares a lot about supporting great minded people instead
of focusing on technology
What’ s the strategy?
iPhone – positioning as changing the world https://www.youtube.com/watch?
v=9m_K2Yg7wGQ
We know this didn’t’ work, but why ? focusing on product features
https://www.youtube.com/watch?v=_Wrqf2MKLUs
Product Life Cycles
A company’s positioning and differentiation strategy must change as the product, market, and
competitors change over the product life cycle (PLC). PLC (Introduction, growth, maturity, and
decline).To say a product has a life cycle is to assert four things:
1. Products have a limited life.
2. Product sales pass through distinct stages, each posing different challenges,
opportunities, and problems to the seller.
3. Profits rise and fall at different stages of the product life cycle.
4. Products require different marketing, financial, manufacturing, purchasing, and
human resource strategies in each life-cycle stage.
Product Life Cycle Strategies
Continuing reinventing the brand with new line of products to keep market from decline
Growth Stage Strategies
To sustain rapid market share growth now, firms can pursue several strategies including
• improve product quality and adds new features and improved styling;
• add new models and flanker products (of different sizes, flavors, and so forth) to
protect the main product;
• enter new market segments;
• increase its distribution coverage and enters new distribution channels;
• shift from awareness and trial communications to preference and loyalty
communications; and
• lower prices to attract the next layer of price-sensitive buyers. The Smartphone
market is currently in the growth stage.
Maturity Stage Strategies (3 Phases – Growth, Stable, Decaying Maturity)
At some point, the rate of sales growth will slow, and the product will enter a stage of
relative maturity. Most products are in this stage of the life cycle, which normally lasts
longer than the preceding ones. The maturity stage divides into three phases: growth,
stable, and decaying maturity. In the first, sales growth starts to slow. There are no new
distribution channels to fill. New competitive forces emerge. In the second phase, sales
per capita flatten because of market saturation. Most potential consumers have tried
the product, and future sales depend on population growth and replacement demand.
In the third phase, decaying maturity, the absolute level of sales starts to decline, and
customers begin switching to other products. He segmented the market according to
the lifestyle and purchasing patterns of about 20 different types of consumers.
Electrolux now successfully markets its steam ovens to health-oriented consumers, for
example, and its compact dishwashers, originally for smaller kitchens, to a broader
consumer segment that washes dishes more often.