CHAPTER

CREATING CUSTOMER RELATIONSHIP S AND VALUE THROUGH MARKETING

WHAT IS MARKETING?

A Philosophy An Attitude

A Set of Activities, including: Products Pricing Promotion

A Perspective
A Management Orientation

Distribution

WHAT IS MARKETING?

American Marketing Association Definition

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

Marketing = Using Exchanges to Satisfy Needs

The Concept of Exchange

The idea that people give up something to receive something they would rather have.
Both buyer and seller are better off after the trade.

WHO DO I AIM AT?

Market All people with both the desire and ability

to buy a specific product

Target Market One or more subgroups I can satisfy

THE CONTROLLABLE MARKETING FORCES

The Four Ps -the arrow

Promotion Place Product

Price

THE UNCONTROLLABLE MARKETING FORCES

Social
Natural Economic External Environmental Factors Technologic Political and Legal Competitive

Helps identify market opportunities

FIGURE 1-A Summary of factors that affect an organizations marketing program

FIGURE 1-4 Marketings task: satisfying consumer needs

HOW MARKETING BECAME SO IMPORTANT

Evolution of the Market Orientation

Production Era Sales Era Marketing Concept Era Societal Era

MARKETING MANAGEMENT PHILISOPHIES

Orientation
Production Sales Market

Key Ideas
Focus on efficiency of internal operations if we make it, they will buy it Focus on aggressive sales techniques and believe that high sales result in high profits Focus on satisfying customer needs and wants while meeting objectives - if they will buy it, we will make it Focus on satisfying customer needs and wants while enhancing individual and societal well-being. I.e.-mfg using recyclables

Societal

FIGURE 1-B Four different orientations in the history of American business

Societal

THE BREADTH & DEPTH OF MARKETING

What Is Marketed?
Goods Services Ideas

Who Buys and Uses What Is Marketed?

Ultimate Consumers Organizational Buyers

HOW DO CONSUMERS BENEFIT

Utility the benefits or customer value received by users of the product

HOW TO DELIVER VALUE Customer value-benefits received by targeted buyers

that include quality, price, convenience, on-time delivery, and both before-sale and after-sale service.

Offer products that perform Give consumers more than they expect Avoid unrealistic pricing Give the buyer facts Offer organization-wide commitment in service and after-sales support

KEEPING THE CUSTOMER SATISFIED

Meet

or exceed customers expectations solutions to customers problems

Provide

Cultivate

relationships, NOT one-time transactions

Concept Check

1. What is marketing? A: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Concept Check

1. An organization cant satisfy the needs of all consumers, so it must focus on one or more subgroups, target markets which are its ____________.

Concept Check

2. What are the four marketing mix elements that make up the organizations marketing program?
A: product, price, promotion, place

Concept Check

3. What are environmental forces? A: Environmental forces are those that the organizations marketing department cant control. These include social, economic, technological, competitive, and regulatory forces.

Concept Check

1. What are the two key characteristics of the marketing concept? A: (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organizations goals.

Concept Check

2. What is the difference between goods and services?

A: Goods are physical objects whereas services are complex intangible items, such as legal advice, a college education, or airline travel.

Exchange

Exchange is the trade of things of value between buyer and seller so that each is better off after the trade.

Market

A market consists of people with both the desire and ability to buy a specific product.

Customer Value

Customer value is the unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-time delivery, and both before-sale and after-sale service.

Marketing Concept

The marketing concept is the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organizations goals.

Market Orientation

An organization that has a market orientation focuses its efforts on (1) continuously collecting information about customers needs, (2) sharing this information across departments, and (3) using it to create customer value.

Societal Marketing Concept

The societal marketing concept is the view that an organization should satisfy the needs of consumers in a way that provides for societys well-being.

Organizational Buyers

Organizational buyers are those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.

Utility

Utility is the benefits or customer value received by users of the product.