The Marketing Concept

Evolving Perspectives

What Is Marketing?
Simple Definition: Marketing is
managing profitable customer
relationships.
Goals:
1. Attract new customers by promising
superior value.
2. Keep and grow current customers
by delivering satisfaction.

Marketing Management Philosophies

Societal
Societal Marketing
Marketing Concept
Concept
Marketing
Marketing Concept
Concept
Selling
Selling Concept
Concept
Product
Product Concept
Concept
Production
Production Concept
Concept

The Production Concept

The Product Concept

Marketing and Sales Concepts Contrasted

Societal Marketing Concept

This Is a Need
Needs - state of felt
deprivation
including physical,
social, and
individual needs.

Maslows
Hierarchy
of Needs

This Is a Want
Wants - form that
a human need
takes, as
shaped by
culture and
individual
personality.

Need / Want Fulfillment

Needs and Wants

Fulfilled through a
Marketing Offer :

Some combination of
products, services,
information, or
experiences offered to a
market to satisfy a need
or want.

What Satisfies Consumers

Needs and Wants?
Products
Products

nything that
Anything
that can
can be
be Offered
Offered to
to aa Market
Market to
to Satisfy
Satisfy aa Need
Need or
or Want
Want

Persons
Persons

Places
Places

Information
Information

Organizations
Organizations
Ideas
Ideas

Services
Services

Activity
Activity or
or Benefit
Benefit Offered
Offered for
for Sale
Sale That
That is
is Essentially
Essentially
Intangible
Intangible and
and Does
Does Not
Not Result
Result in
in the
the Ownership
Ownership of
of Anything
Anything

Marketing Myopia

Sellers pay more

attention to the specific
products they offer than
to the benefits and
experiences produced
by the products.
They focus on the
wants and lose sight
of the needs.

This Is Demand
Wants

Buying Power

Demand

What is a Market?

The set of actual

and potential buyers
of a product.

These people share

a need or want that
can be satisfied
through exchange
relationships.

Segmentation and Target Marketing

#1
Market Segmentation:
Divide the market into
segments of
customers

Target Marketing:
Select the segment to
cultivate

#
2

Customer Satisfaction

Dependent on the
products perceived
performance relative
to a buyers
expectations.

Value and Satisfaction

Expectatio
n
8

Performance
10

Expectatio
n
10

Performance
8

If performance is lower than expectations, satisfaction is

low.
If performance is higher than expectations, satisfaction is
high.

Customer Perceived Value

Customers evaluation
of the difference
between all the
benefits and all the
costs of a marketing
offer relative to those
of competing offers.

Customer Relationship Levels

Basic
Relationshi
p

Continuum

Full
Partnership

Loyalty and Retention

Social
Benefits

Financial
Benefits

Structural
Ties

Customer Relationship Management

The process of
building and
maintaining
profitable customer
relationships by
delivering superior
customer value and
satisfaction.

Customer Loyalty & Retention

Customer Lifetime Value

The entire stream of

purchases that the customer
would make over a lifetime of
patronage.

Share of Customer

The share a company

gets of the customers
purchasing in their
product categories.