Basic Marketing

A Marketing Strategy Planning Approach

William D. Perreault Jr. Joseph P. Cannon E. Jerome McCarthy

CHAPTER ONE

Marketings Value to Consumers, Firms, and Society

www.mhhe.com/fourps

Questions Questions

Questions

Questions

What is Marketing?
What is Selling? What is Advertising?

When we finish this lecture you should

1.

2.
3.

4.

Know what marketing is and why you should learn about it. Understand the difference between micro marketing and macro-marketing. Know the marketing functions and why marketing specialistsincluding middlemen intermediaries and marketing collaborators develop to perform them. Understand what a market-driven economy is and how it adjusts the macro-marketing system.

When we finish this lecture you should

5. 6. 7.

Know what the marketing concept isand how it should guide a firm or nonprofit organization. Understand what customer value is and why it is important to customer satisfaction. Know how social responsibility and marketing ethics relate to the marketing concept.

MarketingWhats It All About?

More than Selling or Advertising

All Those More than Selling and Advertising Bicycles!

Things a Firm Should Do in Producing a Bike

YouTube: What Women Want

Analyze Needs

Predict Wants
Estimate Demand Predict When
Marketers must know what their customers want

Determine Where Estimate Price

Decide Promotion
Estimate Competition Provide Service

Production vs. Marketing Marketing

Makes sure right goods & services are produced

Production
Making Goods
Performing Services
Henry Fords Model-T

Creates Customer Satisfaction

Marketing Is Important to You!

Important to every consumer!

Important to your job!

Affects innovation and standard of living!

Marketing Stimulates New Ideas

What Is Marketing?
Marketing is more than selling and advertising, but it also possible to define marketing too broadly. In defining marketing, there are really two alternative views a micro view and a macro view.

Micro View
Set of activities
Performed by individual organizations and

Macro View
Social process
Matches supply with demand

Marketing

Profit and Nonprofit Focus on MicroMarketing

More than Persuasion

Key Characteristics

Begins with Needs

Builds Relationships

Involves Exchanges

Doesnt Go It Alone

Building Customer Relationships

YouTube: FedEx is keeping up

Macro-Marketing

Emphasis on Whole System

Every Economy Needs It

Key Characteristics

Matches Producers and Consumers

Provide Social Marketing Solutions

Increase Reputation Quotient

Stronger & better image & reputation while satisfying needs

Universal Functions of Marketing

Buying Market Information Risk Taking

Selling

Transporting

Marketing Functions
Storing Standardization & Grading

Financing

Who Performs Marketing Functions?

Producers

Wholesalers

Other Specialists

Transport Firms ISP's Product Testing Firms

Retailers Ad Agencies

Research Firms

Consumers

How Decisions are Made in an Economic System

Command Economy Market-Directed Economy

Government officials decide May work well if: Simple economy Little Variety Adverse Conditions

Adjusts itself

OR

Price is value measure Freedom of choice

Governments role limited

Marketings Role Has Changed Over Time

Simple Trade Era

Focus: Sell Surplus Focus: Increase Supply

Production Era

Sales Era Marketing Department Era Marketing Company Era

Focus: Beat Competition

Focus: Coordinate and Control Focus: Long-Run Customer Satisfaction

The Marketing Concept (Exhibit 1-3)

The cornerstone of the marketing-oriented company is the marketing concept.

Customer Satisfaction

Total Company Effort

The Marketing Concept

Profit

Creating Title here Customer Satisfaction

YouTube: Customer Satisfaction

Adopting the Concept of Marketing

The Marketing Concept and Customer Value

We want a long-lasting partnership relationship with customers through creating customer value (and customer satisfaction)

Take Customers Point of View Customer May Not Dwell On Value

Costs

Benefits

Where Does Competition Fit? Customer Value Builds Relationships

Putting It All Together (Exhibit 1-6)

Offer Superior Customer Value Total Company Effort to Satisfy Customers Attract New Customers

Build Profitable Customer Relationships Retain Customers

Satisfy Customers

The Marketing Concept Applies in Nonprofit Organizations

Newcomers to Marketing Characteristics of Nonprofit Organizations

Support and Satisfied Customers

Marketing Concept Provides Focus

The Bottom Line?

May Not Be Organized for Marketing

Government Marketing

The Marketing Concept, Social Responsibility, and Marketing Ethics

Micro - Macro Dilemma

Group Needs

Individual Needs

Social Responsibility

Should All Needs Be Satisfied?

What if Profits Suffer?

The Marketing Concept Guides Ethics

The Micro-Macro Dilemma Title here

Trans fat in fast food vs. Consumer wants

Panera Breads calorie counters

You now

1.

2.
3.

4.

Know what marketing is and why you should learn about it. Understand the difference between marketing and macro-marketing. Know the marketing functions and why marketing specialistsincluding middlemen intermediaries and marketing collaborators develop to perform them. Understand what a market-driven economy is and how it adjusts the macro-marketing system.

You now

5. 6. 7.

Know what the marketing concept isand how it should guide a firm or nonprofit organization. Understand what customer value is and why it is important to customer satisfaction. Know how social responsibility and marketing ethics relate to the marketing concept.

Key Terms

Production Customer satisfaction Innovation Marketing Pure subsistence economy Macro-marketing Economies of scale Universal functions of marketing

Buying Selling Transporting Storing Standardization and grading Financing Risk-taking Market information Intermediary (or middleman)

Key Terms

Collaborators E-commerce Economic system Command economy Market-directed economy Simple trade era Production era Sales era Marketing department era

Marketing company era Marketing concept Production orientation Marketing orientation Customer value Micro-macro dilemma Social responsibility Marketing ethics