Mkt100 Textbook - Chapter 1

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SECTION ONE
Assessing the Marketplace
CHAPTER 1

Overview of Marketing

CHAPTER 2

Developing a Marketing Plan and Marketing Strategies

APPENDIX 2A

Writing a Marketing Plan

CHAPTER 3

Analyzing the Marketing Environment

CHAPTER 1

Learning Objectives
After studying this chapter, you should be able to
1. LO1 Define marketing and explain its core concepts
2. LO2 Illustrate how marketers create value for a product or service 3. LO3 Summarize the four orientations of marketing
4. LO4 Identify the role of customer relationship management in creating value 5. LO5 Explain the importance of marketing both within and outside the firm

M

arketing is essentially about creating value for consumers and the company's shareholders.

As you will learn throughout this book, creating value for consumers and the firm requires that marketers develop and nurture long-term, profitable relationships with consumers. This means that marketers must understand consumers' needs and wants and try to satisfy them through the goods and services they offer, the prices they charge, and the way they promote and deliver the goods and services. Let's take a look at how one of Canada's most successful and profitable high-tech companies, Research In Motion (RIM), is creating and delivering value to its consumers and shareholders with its BlackBerry. 1

The BlackBerry is one of Canada's most successful and innovative products. It changed not only the way business executives and professionals communicate, but also the speed and timeliness with which decisions are made. Users around the world attest that the BlackBerry enhances their ability to access key corporate information and connect with co-workers anywhere, anytime. The resulting efficiency means that business deals are made more quickly and key decisions are communicated to stakeholders even when they are on the golf course. The BlackBerry smartphone has become the one device that many business people can't live without.

The BlackBerry was designed for wireless email use. Within a few years of its release, it became the dominant device in the market. Not surprisingly, BlackBerry's market position is consistently challenged by new rivals, such as Apple's iPhone, HTC's Droid Incredible, and Palm's Pre. The iPhone, launched in 2007, created huge buzz and took the smartphone market by storm, gaining more than 25 percent market share in less than three years and becoming the second most popular smartphone. Google's Android, a recently launched operating system (OS) for smartphones, has more than doubled its market share in 2

less than a year.

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To consolidate and grow its market position, RIM successfully entered into the consumer market segment 3
with two hugely popular smartphones, the BlackBerry Curve and the BlackBerry Torch. Consumers quickly adopted both of these smartphones, challenging the market segment where the iPhone is the current favourite. In response, Apple is now trying to gain a foothold in RIM's lucrative business market. The battle between the BlackBerry and the iPhone has many industry analysts pointing to the BlackBerry's weaknesses, such as a lack of applications and a challenging user interface. To silence its critics, RIM released the BlackBerry 6, with a new OS, user interface, and WebKit browser, while also 4

revamping its BlackBerry App World. Although apps and web browsing are all the rage, email access is what drives many voice-only customers to upgrade their plans to include data services, and this area has been the BlackBerry's strength.

The BlackBerry also uses wireless networks more efficiently than competing devices, which means that carriers such as Rogers and Bell can offer data services to BlackBerry customers for less money than customers pay to use competing products. In fact, telecom carriers are feeling the squeeze from data 5 hungry smartphones and have responded by introducing usage-based billing for data services....
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