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In this course, you will learn about marketing activities in the retail and service sectors. You will explore what marketing involves and you’ll examine how trends and global influences affect marketing decisions. You’ll learn about the role of customer service in developing a customer base and maintaining customer loyalty. Finally, you will develop skills related to personal selling as well as information technology skills that will prepare you for a variety of marketing-related positions in the workplace.
In the first learning activity of this course, you’ll begin by learning what marketing means and exploring how marketing is a combination of many different activities which include advertising, packaging, and branding. You’ll discover how these activities come together in the marketing mix and how this affects the success of retail stores and other service businesses.
Throughout this course, marketing concepts will be illustrated with the fictitious retail business named “Olivedi Gifts.” These examples will help you make connections between course concepts and see how they apply in practice.
Let’s start by thinking about what marketing means to you, and what experiences you have already had with marketing. Some questions you could ask yourself include the following:
Now, organize your thoughts by creating a mind map about marketing. You can do this using a digital tool, or you can write it down in your notebook. If you’re not sure where to start, use the following step-by-step instructions.
As you continue working through the learning activity, you will be reminded to consider what you have learned and add additional details to your mind map.
Note: At the end of the learning activity, you’ll save a good copy of the mind map to your course portfolio. Continue on to learn more about how to set up and use a portfolio for this course.
Throughout this course, you will create and maintain a portfolio of key tasks. It will be your opportunity to document your learning as you progress through the course, and it will include documents that mark significant milestones along your journey of learning about marketing in the retail and service industries.
Entries will be created throughout the course. Then, in Learning Activity 4.5 you will have the opportunity to select the entries that demonstrate your best work and most important learning. You will polish them to create your final good copies, and you will write short reflections about how they contributed to your growth.
To keep your portfolio organized, it is recommended that you create a digital folder and title it “Marketing Portfolio”. Whenever you encounter a portfolio task, create a new file within the folder. Make sure to save each file with a name that helps you to easily identify the task.
You may already have a general idea of what marketing is. To build on that understanding, it helps to explore how marketing relates to what a business is and what it does.
Start by examining the following images and reading the descriptions of each business example. As you read, think about how each business functions and what makes it successful. Then, take a step back and think about what the businesses have in common and how they are different.
Example 1: A home-based, Indigenous-owned maple syrup producer makes and sells syrup on site, earning a small profit for each bottle sold. Customers come back year after year because they love the flavour of the syrup.
Example 2: A large-scale maple syrup manufacturer purchases raw sap from regional sugar bushes each spring and produces maple syrup throughout the year. Each week, the company incurs $40,000 in costs and sells $50,000 of maple syrup.
Example 3: A transport company is contracted out by the maple syrup manufacturer to ship the raw sap and finished syrup. The business earns a profit from the shipping services it provides rather than from producing a good.
Example 4: Stores and supermarkets buy syrup from manufacturers and resell it for profit. They offer services including purchasing, selling, and distribution of maple syrup.
When you are ready, record your thoughts about the four business examples using the following graphic organizer. You may save a digital version of your work or write your thoughts down in your notebook.
Press the following Document button to access a fillable and printable graphic organizer.
Once you have completed this task, press the Show Suggested Answers button to compare your thinking.
The examples you just examined show how different businesses can contribute to meeting customer demand for maple syrup. Some sell products, which means they are called retailers, and some sell services, which means they are called service businesses. However, they are all part of the supply chain related to producing maple syrup and getting it to consumers. All of the businesses sell something, but two of them sell a physical good they have produced while the others sell services. All of the businesses have a goal of making money as a result of their efforts.
Let’s learn more about making a profit next.
Profit refers to a business’s ability to sell goods or services for more than it costs to produce them. If a business is not able to sell goods and services for more than it cost to produce them, it is said to have a loss. A loss is the opposite of profit. Over time, if a business continues to operate at a loss, it may need to close or declare bankruptcy.
Let’s examine the components that make up the profit calculation.
The first part of the calculation is revenue, or the money that is collected by a business when it sells its goods and services. For example, if you have a lemonade stand and collect $60 from selling your product, your revenue is $60.
The next step is to consider the money a business spends to earn revenue. These are the business’ expenses. For a lemonade stand, expenses would typically include lemons, sugar, cups, a pitcher, and paper for posters. Let’s assume the total of these is $25.
In this example, the profit would be calculated as follows:
If expenses are greater than the revenue, this calculation will result in a negative number, and it means that the business has lost money rather than making a profit.
When a consumer makes a decision about buying something, they often begin by thinking about whether it is something that they need for survival or want for their enjoyment. This leads us to two more important terms in business: Needs and wants.
Needs refer to the goods and services that are required for survival. Examples include food, water and shelter.
Wants refer to the goods and services that are nice to have but are not required for survival. Examples include a large screen TV or an exotic vacation. These items may provide value and entertainment, but they are not needed in order to survive.
As mentioned previously, many concepts throughout this course will be illustrated using the example of Olivedi Gifts. The store is run by Elise, and it operates as an independent retail shop located in Sarnia, Ontario. It sells items like soap, coffee mugs, picnic baskets, and greeting cards bought from manufacturers or distributors.
The store generates a profit by adding a mark-up to the cost of the items it sells. One factor that contributes to its success is offering customers convenient access to a range of products without having to shop around or travel to where they were made.
Let’s look at a typical day of sales at Olivedi Gifts to practice calculating profits.
On a given Saturday in May, Olivedi Gifts earned $1,400 in revenue. It cost the store $700 to buy the goods it sold, and Elise paid an additional $400 to cover the daily costs of doing business (for example, rent, utilities, wages, and so on).
Determine whether the company made a profit that day. How do you know?
Review the following flow chart to explore how Olivedi Gifts’ profit is calculated:
As shown in the previous image, the total expenses are $1,100, which includes cost of goods and overhead costs. The revenue ($1,400) minus the expenses ($1,100) results in a profit of $300.
Saturday is the store’s busiest day, so Olivedi Gifts is not likely to make the same profit on the other days of the week. In fact, on a very slow day, they may experience a loss instead of a profit. However, on average, the store makes a profit of about $1,000 each week.
No matter how large or small a business is, there are five functions that a business owner or the management team must perform: Production, human resources, management, accounting, and marketing.
In a larger business these may operate as separate departments, but in smaller businesses the owner may be responsible for most or all of them.
Let’s learn more about each function next.
Production is what a business offers to its customers. It is usually a product, a service, or sometimes both.
For example, a greeting card manufacturer produces greeting cards (a product) and a store that sells greeting cards produced by other manufacturers provides the service of offering a variety of cards to choose from.
Olivedi Gifts, introduced in the previous example, is a retailer. This means the store sells the service of providing products that other businesses have made.
Another example is a food truck. This business produces food for customers who want a quick meal.
Every business relies on the people that run it. An online business may have just one employee and a large international corporation may employ thousands of people. All the people working in a company are its human resources.
Olivedi Gifts has three full-time and five part-time employees that make up its human resources.
Management refers to the people who run the business perform management functions such as organizing, planning, directing, and controlling the various functions of a business.
Elise is the manager of Olivedi Gifts, and she is also the store’s owner. She is responsible for organizing the store’s inventory, scheduling employees, directing employee labour, and controlling the store’s finances, among many other things.
The accounting department records the businesses’ revenue and expenses, pays bills, and controls the company’s financial records. These records inform the owner about how much the business is worth, its total sales revenues, and how much profit it makes.
At Olivedi Gifts, Elise takes care of the accounting for day-to-day operations, but she hires a professional accountant to prepare the store’s taxes.
Some businesses may hire an accounting firm to oversee all of their accounting needs.
Marketing refers to all of the activities involved in getting products and services from the businesses that make them to the people who use them. It includes planning, setting prices, promoting, moving, and selling products in ways that meet customer needs.
Take a moment to check your understanding of the different business functions you just learned about by completing the following activity.
Select the correct business function or department responsible for each of the scenarios described. Then, press the Check Answer button to see how you did.
Excellent work! You have just completed the section on the functions of a business. Now is a great time to take a break before you move on to the next section on marketing activities.
Earlier, you explored four businesses that help move maple syrup from a Central Ontario forest to a customer’s breakfast table. Producing and transporting the syrup are important steps, but businesses must also market the syrup effectively, so that customers notice it and choose to buy it.
Let’s explore some of the key business activities involved in marketing.
Marketing includes a variety of activities such as research, product development, pricing, branding, packaging, promotion, buying, advertising, selling, transportation, and storage.
Research means finding out what customers want, need, or like. Businesses may use surveys, trends, or customer feedback to learn which products people prefer. This helps companies make informed marketing decisions.
Product development is the process of creating new products or improving existing ones. Companies use ideas from research to design products or services that better match what customers want.
Pricing is deciding how much to charge for a product or service. A business wants the price to cover its costs and make a profit, but it also has to stay affordable for customers.
Branding is how a business creates a clear identity for a product, such as its name, look, and message. A strong brand helps customers recognize it, remember it, and choose it over other options.
A marketing department typically develops a brand in stages. The first step is to create awareness, which refers to when the brand tries to establish its name with consumers. Successful marketing leads to brand identification, where consumers recognize the brand and what it stands for, and eventually brand preference which occurs when consumers make a point of selecting the brand over other similar products. The final stage is brand insistence, where some customers strongly prefer one brand and are unlikely to choose substitute products.
Packaging is the way a product is wrapped or presented. Packaging can protect the product, provide information, and catch a shopper’s attention.
Promotion includes ways businesses encourage people to buy a product or service. Common examples are advertisements, publicity, and sales incentives such as discounts, contests, free samples, and special events.
Buying means choosing which products or materials a business should purchase. Retail businesses rely on selling products manufactured by other businesses, so the job of selecting and buying the right products and obtaining them for a fair price is key.
Effective buying decisions can help save money and improve profits. Even small savings can make a big difference when a business buys large amounts.
Advertising is paid communication that tells people about a product, service, or brand. Ads can appear online, on TV, on social media, or in print, and they help businesses get attention.
Selling is the process of helping customers choose and buy products or services. Salespeople answer questions, explain options, and help customers feel confident about their decisions. Whether they are found in a clothing store, appliance warehouse, car dealership, insurance brokerage, or real estate agency, salespeople act as an important link between customers and the products or services they are considering buying. Along with helping consumers choose the right products, sales professionals support the business by keeping the sales process organized. They handle paperwork, coordinate next steps, suggest add-ons, and help close the sale.
Transportation is moving products from one place to another. It helps businesses get the right products to the right place at the right time.
Reliable transportation by truck, train, ship or airplane ensures that products move efficiently from the producer to the consumer. Transportation can have an impact on pricing and customer satisfaction. For example, faster shipping often costs more, but it means customers receive their products sooner. In contrast, shipping delays lead to inventory shortages and lost sales.
Storage means keeping products safe until they are needed. Businesses use storage spaces such as stockrooms, warehouses, or distribution centres so goods are ready when customers want them.
Take a moment to review what you have learned so far about the various marketing activities and then complete the following activities. You will answer some questions in your notebook followed by a scenario-based matching activity related to some of the marketing activities.
Reflect on what you have learned so far, then complete the following activities in your notebook.
Now it’s time to check your understanding of the different marketing activities by completing the following matching activity.
Drag and drop each marketing activity to the scenario it best represents. Then, press the Check Answer button to see how you did.
Now, it’s time to consider how these marketing activities apply to Olivedi Gifts.
First, you will examine some examples that show how some of the activities are demonstrated at Olivedi Gifts. Then, you will match some additional examples to the remaining marketing activities.
Elise recognizes that big box stores may order thousands of boxes of candles and so the manufacturer may give them a substantial discount that it does not provide to a small store like Olivedi Gifts.
Elise stocks some well-known names that are difficult to find in smaller communities. She does this to attract customers who have a loyalty to particular brands into the store.
Elise places a customer’s purchase in another package; for example, a box or bag with the store’s name on it.
Elise buys a quarter-page ad in the local newspaper at least twice a month, which costs about $1,000. She feels that advertising attracts both local residents and new customers who are visiting the area.
Elise appreciates the visits that sales reps make when they have insights or something new to show. Olivedi Gifts deals with nearly 30 suppliers and Elise makes a point of meeting with each one about once a month.
Elise stocks coffee mugs that are delivered to Olivedi Gifts from London, England.
Now it’s your turn. Read the following descriptions and select the marketing activity each one represents. Then, press the Check Answer button to see how you did.
Next, it’s time to think about how marketing works in the service industry. Companies in the service industry focus on performing activities rather than producing goods, and often, their activities are intangible, which means that you can’t touch them or bring them home with you. For example, you can see the result of the service of getting a haircut, but it would not be possible to go to a store, buy a haircut, and bring it home to use it later.
Explore the following list for other examples of services. Notice that some of them have already been mentioned in this course.
You may have noticed that some businesses combine elements of retail as well as services. For example, a hair salon is traditionally a service business that provides haircuts, but it may also have a retail component that sells shampoos and styling products. Similarly, retail businesses can also offer services, like an appliance store that provides installation or extended warranties, or a clothing store that offers alterations to help customers get a better fit.
At Olivedi Gifts, Elise offers a gift-wrapping service at no extra charge. Customers often indicate that they appreciate these special touches.
Let’s check out more examples of the retail-service mix.
In addition to pet grooming services, a pet grooming studio may offer products such as pet shampoos and toys.
An electronics store sells products such as TVS, laptops, and smartphones. These stores may also offer services such as installation, tech support, and extended warranties.
A music school offers lessons for adults and children, but may also offer products such as instruments and sheet music.
A fitness centre offers services like yoga classes, and may also sell products such as yoga mats, activewear apparel, and supplements.
The activities introduced earlier can be combined in what is commonly known as marketing mix, or the Four Ps of Marketing: Product, Price, Place, and Promotion. The term “mix” indicates that businesses must blend all of their marketing activities in the right combination to ensure success.
Let’s learn more about the Four Ps of the marketing mix.
Product is made up of activities such as product development, packaging, branding, buying, and product research.
When Elise started her gift store business, she spent time designing a logo, a store sign, and special shopping bags. She also researched what items would make great gifts. As a result, Elise has a beautiful store with a distinctive brand, where customers know they can come to find a suitable gift for different occasions.
Price focuses on activities related to buying products from manufacturers, deciding what to charge for them, and knowing how much similar products cost at competing businesses.
Elise shops very carefully for the products she sells at Olivedi Gifts, and she negotiates deals on shipping, payment terms and other price reductions that allow Olivedi Gifts to sell products at a profit. Elise is also very careful about researching prices charged for similar products at other stores. This helps her work to keep her store competitive. Elise also keeps a careful eye on expenses, especially those that directly affect profitability.
Place includes activities such as transportation and storage.
Elise depends on regular shipments from the suppliers but makes sure they are staggered so the store has just enough merchandise to fill the shelves and keep some back stock, but not so much that the stockroom is overcrowded.
Elise is often able to choose the method of transportation for the products. This means she must balance the cost of quick deliveries with the risk of a potential delay associated with less expensive options.
Promotion includes activities such as selling, sales promotion, and advertising. Businesses must have methods in place to tell people about their products or services, advertise them to the general public, and promote their discounts and sales. If promotion is limited or absent, potential customers may be less aware of what a business is selling, where it is located, or how products can be purchased.
Olivedi Gifts runs regular advertisements in local community pages on social media platform, which provides customers with the store’s location and hours, and lets customers know what items the store sells. These ads also provide a way for Elise to notify customers about special sales.
Drag and drop the marketing mix term that corresponds with each example of marketing activity. Then press the Check Answer button to see how you did.
In your notebook, write a brief paragraph explaining how the elements of the marketing mix are connected, and how they can contribute to a business’ success.
Congratulations on completing the first learning activity for this course!
In this learning activity, you’ve had a chance to learn the fundamentals of business and marketing. You have explored essential activities in the marketing function, discovered how they apply in the context of Olivedi Gifts, and considered how they work together as part of the marketing mix.
In the next learning activity, you will learn about different marketing products and services and the choices that businesses must make when deciding upon what products and services they will carry.
To consolidate your learning, revisit your mind map one last time. Make sure it reflects all you have learned about marketing in this learning activity.
When you are finished, save a good copy to your portfolio.
Your culminating assignment will focus on creating a portfolio package that demonstrates what you have learned throughout this course. In other words, it will be a collection of selected work and reflections that shows your understanding of marketing in the context of retail and service businesses, your growth as a learner, and the skills you have developed along the way.
As you work through the course, complete each portfolio task thoughtfully and to the best of your ability. Then, when crafting your culminating assignment, you will have an opportunity to review your portfolio, select the strongest examples that show a complete picture of your learning, and make focused refinements based on feedback on other assignments, practice, and a deeper understanding of marketing.
The package will include seven portfolio entries, with one entry selected from each of the following seven required categories:
Along with each selection, you will include a reflection that explains why you chose the piece, how it connects to course learning, how it could apply to work in the retail or service sectors, and one improvement you would make based on what you have learned.
Complete the following self-check quiz to determine where you are in your learning and what areas you need to focus on.
This quiz is for feedback only, not part of your grade. You have unlimited attempts on this quiz. Take your time, do your best work, and reflect on any feedback provided.
For each question, select the correct answer, then press the Check Answer button to see how you did.
Ontario worked with other provinces in Canada to outline a set of competencies that are important to have to be successful in today’s world. Ontario then developed its Transferable Skills Framework as a set of skills for students to develop over time.
Explore the following video to learn about each of the seven transferable skills.
To learn more about each of the transferable skills, read the following document entitled Transferable Skills Overview to explore the framework and the descriptors for each skill. Download, print, or copy the information in the document into your notes—you'll refer to it in each unit.
Press the following Document button to access the overview.
Throughout this course, you will be given the opportunity to reflect on the transferable skills you are developing. Keep your notebook up-to-date and be mindful of opportunities to apply and develop transferable skills.