Chapter 1Marketing in the 21st Century

The New Economy:• A substantial increase in buying power

• A greater variety of goods and services

• A great amount of information about practically anything

• A greater ease in interacting and placing and receiving orders

• An ability to compare notes on products and services

Marketing in the 21st Century

Implications for companies• Collect fuller and richer information about markets,

customers, prospects, and competitors

• Faster flow of information

• Greater and of production, marketing, and communications

Key Definitions and Concepts

Marketing Management: and of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer (p. 6)

Key Definitions and Concepts

Offering:combination of products, services, information, and experiences

Value: combination of quality, service, and price (QSP)Value = _________________

Key Definitions and Concepts

Value = Benefits to consumer

Costs to Consumer

Benefits to consumer:

Costs to consumer:

Defining Marketing – Simple Model

Core Marketing ConceptsCompany

Offering - combination of products, services, information, and experiences

Overall objective: __________Costs: ________________________

Implications: company decisions must consider its offerings, objective, and costs

Core Marketing Concepts

CustomerOverall objective:____________

Why does value change over time?What do we (consumers) value and why?

Implications: research trends in the environment

Core Marketing Concepts

Competition

All the actual and potential rival offerings and substitutes that a buyer might consider

Implications: Know your competitor; How might the company exceed competition in delivering value? Who is the competitor(s)?

Company Orientations Toward the Marketplace

Production Concept:

Consumers prefer products that are _________

and inexpensive

Company Orientations

Product Concept:

Consumers favor products that offer the most quality, performance, or innovative features

Problem: customer input? _________________

Company Orientations

Selling Concept:

Consumers will buy products only if the company aggressively promotes/sells these products

Problem: customer dissatisfaction

Company Orientations

Marketing Concept: key to achieving organizational goals consists of the company being more effective than __________ in creating, delivering, and communicating superior _____ to its chosen target markets (pp. 13, 14)

Customer Concept: Focuses on needs and wants of ______________ and delivering value better than competitors

Company Orientations

Societal Marketing Concept:

determine needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and _________ well-being.

How Business and Marketing are Changing (Trends)

Customers increasingly expect higher quality and service and some customization (greater value)

Manufacturers face greater ____________ resulting in higher promotion costs and shrinking profit margins

Store-based Retailers face ___________ from giant retailers and non-store retailers

Business Response to Changes

Outsourcing

E-commerce

Benchmarking

Form alliances

etc.

Marketer Response to Changes

Customer relationship marketing: build long-term, profitable customer relationships by focusing on their most profitable customers, products, and channels

Target Marketing: serve well-defined target markets

Integrated marketing communications

Every employee is a marketer

Key Points

Explain how company, customer, and competition are inter-related. Give an example.

_____________________________:generate profits, deliver value to customers, exceed competition, adapt accordingly.

____________________: how do we obtain best value for the money?