chapter 1 © 2014 cengage learning. all rights reserved. may not be scanned, copied or duplicated,...

1

Chapter 1

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

MARKETING: THE ART AND SCIENCE OF SATISFYING CUSTOMERS


Chapter 1 Marketing: The Art and Science of Satisfying Customers

Heidelberg Declaration of 1543

▮ That I with body and soul, both in life and death, am not my own, but belong unto my faithful Savior Jesus Christ; who, with his precious blood, has fully satisfied for all my sins, and delivered me from all the power of the devil; and so preserves me that without the will of my heavenly Father, not a hair can fall from my head; yea, that all things must be subservient to my salvation, and therefore, by his Holy Spirit, He also assures me of eternal life, and makes me sincerely willing and ready, henceforth, to live unto him.

www.amazon.comwww.nike.comwww.starbucks.com

http://www.amazon.com/

http://www.nike.com/

http://www.starbucks.com/



1. Define Marketing

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▮ Marketing - An organizational function and a set of processes for:• Creating, communicating, and delivering value to

customers• Managing customer relationships in ways that

benefit the organization and its stakeholders

A Definition of Marketing


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▮ American Marketing Association’s new official definition of marketing released August 2004:

• 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.



2. What is the ultimate goal of marketing?


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▮ The passion to understand and satisfy the needs of customers in well-defined target markets.

Ultimate Goal of Marketing


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3. What are the core marketing concepts?


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Core Concepts of Marketing(1 of 2)

▮ Needs (a state of felt deprivation)▮ Wants (needs shaped by culture and individual

personality)▮ Demands▮ Marketing Offers (product, service, and

experience)▮ Value



Core Concepts of Marketing(2 of 2)

▮ Satisfaction (customer expectations)▮ Exchange ▮ Transaction▮ Market (set of all actual and potential buyers

of a product or service)▮ Utility (want satisfying power of a good or

service)

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Utility

▮ Production and marketing together create utility

▮ Utility - The want-satisfying power of a good or service



Four Types of UtilityTABLE 1.1



4. What are the six eras in the history of marketing?


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Six Eras of Marketing

SALES

PRODUCTION

PRODUCT

MARKETING

SOCIETY

RELATIONSHIP



Five Eras of Marketing HistoryFIGURE 1.1



The Production Era

▮ Period before 1925▮ Production orientation - Stressing efficiency

in producing a quality product, with the attitude toward marketing that “a good product will sell itself”

▮ Business success was defined solely in terms of production successes

▮ Characterized by production shortages and intense consumer demand



The Sales Era

▮ Sales orientation - Customers will resist purchasing nonessential items • Only personal selling and creative advertising

would persuade them to buy

▮ With the sophistication of production techniques, output grew from the 1920s into the early 1950s• Manufacturers began to increase their emphasis on

effective sales forces



The Marketing Era

▮ Emergence of the marketing concept• Shift from a seller’s market to a buyer’s market• A strong buyer’s market created the need for

consumer orientation• Marketing concept - A companywide consumer

orientation to achieve long-run success• A strong market orientation improves market

success and overall performance



The Relationship Era

▮ Emerged during the 1990s and continues to grow in importance

▮ Relationship marketing - Developing long-term, value-added relationships over time with customers and suppliers

▮ Strategic alliances and partnerships benefit everyone



The Social Era

▮ Characterized by the accessibility to the Internet and the creation of social media sites

▮ Routine use of the Web and social networking sites by companies to connect to consumers



5. What is Marketing Myopia?


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Marketing Myopia

▮ Marketing myopia - Management’s failure to recognize the scope of its business

▮ Overcoming marketing myopia• Developing broader marketing-oriented business

ideas focusing on customer need satisfaction



Avoiding Marketing MyopiaTABLE 1.2

AVOIDING MARKETING MYOPIA

Broad vs. Narrow

▮ Broad Definition

• Furniture

• Telecommunications

• Beverages

• Global mail delivery

• Travel & tourism

▮ Narrow Definition

• Wrought-iron lawn furniture

• Long-distance telephone service

• Soft drinks

• Overnight package delivery

• Caribbean cruises



Not-for-Profit Marketing

▮ Marketing in not-for-profit organizations• Operate in both the public and private sector• Adopt marketing strategies to meet service

objectives• Communicate their messages through

advertisements relating to their goals • Form alliances with for-profit firms to promote

each other’s causes



6. What are the characteristics of not-for-profit marketing?


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Characteristics of Not-for-profit Marketing

▮ Focus is to generate revenue to support their causes and not on the bottom line

▮ May market tangible goods and services▮ Markets to multiple audiences▮ Often possess some degree of monopoly

power in a given geographic region▮ Service users have less control over the firm’s

future



7. What are the five types of non-traditional marketing?


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Categories of Nontraditional MarketingTABLE 1.3



Nontraditional Marketing

▮ Person marketing – Efforts to cultivate the attention, interest, and preferences of a target market toward a person • Celebrity endorsements

▮ Place marketing - Efforts to attract people and organizations to a particular geographic area• Tourism enhancements




▮ Cause marketing - Identification and marketing of a social issue, cause or idea to selected target markets

▮ Many profit-seeking firms link their products to social causes

▮ Strong support among customers and employees for cause-related marketing




▮ Event marketing - Marketing of sporting, cultural, and charitable activities to selected target markets• Also, includes sponsorship of such events by firms

▮ Event sponsorships have gained effectiveness in increasing brand recognition, enhancing image, boosting purchase volume




▮ Organization marketing - Intended to persuade others to:• Accept the organization’s goals• Receive its services• Contribute to the organization in some way

▮ Adopted by mutual-benefit organizations, service organizations, and government organizations



Non-Traditional Marketing

▮ A two-page magazine ad with a photograph of the beach in Barbados

▮ A poster informing music lovers of an upcoming Toby Mac concert

▮ A recruitment ad for the Coast Guard▮ A radio ad advising teenagers not to drink▮ The mayor’s efforts to attract enough voters

to be re-elected



Developing Partnerships and Strategic Alliances

▮ Relationship marketing extends to business-to-business relationships with suppliers, distributors, and other partners

▮ Strategic alliances - Partnerships in which two or more companies combine resources and capital to create competitive advantages in a new market

chapter 1 © 2014 cengage learning. all rights reserved. may not be scanned, copied or duplicated,...

Documents

division of cengage

accessible website

ultimate goal of marketing

organizational function

customer relationships

set of processes

eternal life

faithful savior jesus