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CHAPTER
DEVELOPING
CUSTOMER
RELATIONSHIPS AND
VALUE THROUGH
MARKETING
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
• Define marketing and explain the
importance of (1) discovering and
(2) satisfying consumer needs and
wants.
• Distinguish between marketing mix
elements and environmental factors.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
• Understand how organizations build
strong customer relationships using
current thinking about customer value
and relationship marketing.
• Describe how today’s market orientation
differs from prior eras oriented to
production and selling.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
• Understand the meaning of ethics and
social responsibility and how they relate
to the individual, organizations, and
society.
• Know what is required for marketing to
occur and how it creates customer
value and utilities for
customers.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DEVELOPING CUSTOMER
RELATIONSHIPS AND VALUE
THROUGH MARKETING
• FUSION, CORE, AND LIGHTNING!
PHYSICS 101?
• The Three-Century Old Innovation
• Understanding the Consumer
• What a Difference a Decade Makes
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DEVELOPING CUSTOMER
RELATIONSHIPS AND VALUE
THROUGH MARKETING
• Rollerblade Skates, Marketing, and You
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
WHAT IS MARKETING?
• Being a Marketing Expert:
Good News-Bad News
• The Good News: You Already Have
Marketing Experience
• The Bad News: Surprises About
the Obvious
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
WHAT IS MARKETING?
• Marketing: Using Exchanges to
Satisfy Needs
• The Diverse Factors Influencing
Marketing Activities
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
WHAT IS MARKETING?
• Requirements for Marketing to Occur
•
•
•
•
Two or More Parties with Unsatisfied Needs
Desire and Ability to Satisfy These Needs
A Way for the Parties to Communicate
Something to Exchange
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. What is marketing?
A: 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 objectives.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
discovering
2. Marketing focuses on __________
satisfying consumer needs
and ___________
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
3. What four factors are needed for
marketing to occur?
A: (1) Two or more parties with
unsatisfied needs, (2) A desire and
ability on their part be satisfied, (3) A
way for the parties to communicate,
and (4) Something to exchange.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
HOW MARKETING DISCOVERS AND
SATISFIES CONSUMER NEEDS
• Discovering Consumer Needs
• The Challenge of Launching Winning
New Products
• Consumer Needs and Consumer Wants
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
HOW MARKETING DISCOVERS AND
SATISFIES CONSUMER NEEDS
• What a Market Is
• Satisfying Consumer Needs
 Target market
• The Four Ps: Controllable
Marketing Mix Factors
• The Uncontrollable,
Environmental Factors
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
THE MARKETING PROGRAM: HOW
CUSTOMER RELATIONSHIPS ARE BUILT
• Global Competition, Customer Value,
and Customer Relationships
• Relationship Marketing and the
Marketing Program
• Relationship Marketing: Easy to
Understand
• Relationship Marketing: Difficult to
Implement
• The Marketing Program
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
THE MARKETING PROGRAM: HOW
CUSTOMER RELATIONSHIPS ARE BUILT
• A Marketing Program for Rollerblade
• Expanding the Market for Rollerblade
Skates
• Exploiting Strengths in Technology
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
THE MARKETING PROGRAM: HOW
CUSTOMER RELATIONSHIPS ARE BUILT
• Staying Ahead of the Trends
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. An organization can’t satisfy the
needs of all consumers, so it must
focus on one or more subgroups,
target markets
which are its ____________.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. What are the four marketing mix
elements that make up the organization’s
marketing program?
A: product, price, promotion, place
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
3. What are uncontrollable variables?
A: Environmental factors the
organization’s marketing department
can’t control. These include social,
economic, technological, competitive,
and regulatory forces.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
HOW MARKETING
BECAME SO IMPORTANT
• Evolution of Market Orientation
•
•
•
•
Production Era
Sales Era
The Marketing Concept Era
The Market Orientation Era
 Customer relationship management
(CRM)
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
HOW MARKETING
BECAME SO IMPORTANT
• Ethics and Social Responsibility:
Balancing the Interests of Different
Groups
• Ethics
• Social Responsibility
 Societal marketing concept
 Macromarketing
 Micromarketing
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
HOW MARKETING
BECAME SO IMPORTANT
• The Breadth and Depth of Marketing
• Who Markets?
• What is Marketed?
• Who Buys and Uses What is Marketed?
 Ultimate consumers
 Organizational buyers
• Who Benefits?
• How Do Consumers Benefit
 Utility
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. Like Pillsbury and General Electric,
many firms have gone through four distinct
orientations for their businesses: starting
with the production
__________ era and ending with
today’s ________________
market orientation era.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. What are the two key characteristics of
the marketing concept?
A: An organization should (1) Strive to
satisfy the needs of consumers (2)
While also trying to achieve the
organization’s goals.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
3. In this book the term product refers to
what three things?
A: Goods (physical products), services,
and ideas
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin