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Welcome To Introduction to Marketing
Instructor: Mr. Leon Roberts
Email: [email protected]
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:
LO1
Define marketing and identify the
diverse factors influencing marketing
activities.
LO2
Explain how marketing discovers and
satisfies consumer needs.
LO3
Distinguish between marketing mix
factors and environmental forces.
1-3
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:
LO4
LO5
Explain how organizations build strong
customer relationships and customer
value through marketing.
Describe how today’s customer
relationship era differs from prior eras.
1-4
DISCOVERING HOW COLLEGE STUDENTS STUDY
HELPS LAUNCH A NEW PRODUCT AT 3M

Discovering
Student Study
Needs

Satisfying
Student
Study Needs
1-5
LO1

WHAT IS MARKETING?
You Are a Marketing Expert Already
• Involved in 1,000s of Buying Decisions
• May Be Involved in Selling Decisions

Marketing is NOT Easy
1-6
FIGURE 1-1 The see-if-you’re-really-amarketing-expert test
1. True
2. True
3. (c) plastic bottles
1-7
LO1
WHAT IS MARKETING?
DELIVERING BENEFITS

Marketing Seeks to:
• Discover Needs and Wants of Customers
• Satisfy Them

Exchange
AMA Definition of Marketing
1-8
WHAT IS MARKETING?
LO1
DIVERSE FACTORS INFLUENCE MARKETING ACTIVITIES

The Organization Itself and
Its Departments

Society

Environmental Forces
1-9
FIGURE 1-2 A marketing department relates
to many people, organizations, and
environmental forces
1-10
LO1
WHAT IS MARKETING?
REQUIREMENTS FOR MARKETING TO OCCUR

Two + Parties with
Unsatisfied Needs

A Desire and Ability
to be Satisfied

A Way for the Parties
to Communicate

Something
to Exchange
1-11
LO2
HOW MARKETING
DISCOVERS CONSUMER NEEDS
THE CHALLENGE: NEW PRODUCTS

Consumers May Not Know or Cannot
Describe What They Need or Want

Most New Products Fail

The Challenge:
• “Focus on the Consumer Benefit”
• “Learn From the Past”
1-12
LO2
Dr. Care Vanilla-Mint Aerosol Toothpaste
What “benefits” and what “showstoppers?”
1-13
LO2
Terrafugia Transition
What “benefits” and what “showstoppers?”
1-14
LO2
Pepsi Next
What “benefits” and what “showstoppers?”
1-15
LO2
HOW MARKETING
DISCOVERS CONSUMER NEEDS
NEEDS VS. WANTS

Need

Does Marketing Persuade
People to Buy the
“Wrong” Things?

Market

Want
1-16
LO2
HOW MARKETING
DISCOVERS CONSUMER NEEDS
NEEDS VS. WANTS
Discuss the following:
•What is the difference between a want and a
need? Does a firm have the right to “create”
wants and try to persuade consumers to buy
goods and services they didn't know about
earlier?
•What are examples of “good” and “bad” want
creation? Who should decide what is good
and bad?
1-17
FIGURE 1-3 Marketing seeks to discover
consumer needs through research and then
satisfy them with a marketing program
1-18
LO3
HOW MARKETING
SATISFIES CONSUMER NEEDS

Target Market

The 4 Ps: Controllable
Marketing Mix Factors
• Product
• Price
• Promotion
$499
• Place
1-19
LO3
HOW MARKETING
SATISFIES CONSUMER NEEDS

Customer Value Proposition

Uncontrollable Environmental Forces
• Social
• Competitive
• Economic
• Regulatory
• Technological
1-20
LO4
THE MARKETING PROGRAM
CUSTOMER VALUE AND RELATIONSHIPS

Customer Value

Value Strategies
• Best Price
• Best Service
• Best Product
1-21
LO4
Southwest Airlines, Starbucks, and Home Depot
What customer value strategy?
1-22
LO4
THE MARKETING PROGRAM
RELATIONSHIP MARKETING

Relationship Marketing
• Easy to Understand
• Hard to Do

Marketing Program
1-23
LO4
3M’S STRATEGY & MARKETING PROGRAM
HELPING STUDENTS STUDY

Move from Ideas to
a Marketable
Highlighter Product

Add the Post-it®
Flag Pen

Develop a Marketing
Program for the
Post-it® Flag
Highlighter and Pen
1-24
FIGURE 1-4 Marketing programs for two
new 3M Post-it® brand products targeted at
two distinct customer segments: college
students and office workers
1-25
LO4
3M STRATEGY & MARKETING PROGRAM
MARKETPLACE SUCCESS?

Developed Third
Generation Post-it®
Flag Highlighter

Appeared on
The Oprah
Winfrey Show
1-26
FIGURE 1-A Four different orientations in
the history of American business
Production Era
Sales Era
Marketing Concept Era
Customer Relationship Era
• Market Orientation
1-27
LO5
HOW MARKETING BECAME IMPORTANT
EVOLUTION OF THE MARKET ORIENTATION

Customer Relationship
Management (CRM)

Customer Experience
• Direct Contacts: Buying the Service
• Indirect Contacts: Word-of-Mouth
1-28
LO5
HOW MARKETING BECAME IMPORTANT
ETHICS AND SOCIAL RESPONSIBILITY

Ethics

Social Responsibility
• Societal Marketing Concept
1-29
LO5
HOW MARKETING BECAME IMPORTANT
BREADTH AND DEPTH OF MARKETING

Who Markets?

What Is Marketed?
• Products
(Goods)
• Services
Hermitage
• Ideas
1-30
LO5
HOW MARKETING BECAME IMPORTANT
BREADTH AND DEPTH OF MARKETING

Who Buys & Uses What Is Marketed?
• Ultimate Consumers
• Organizational Buyers

Who Benefits?

How Do Consumers Benefit?: Utility
• Form Utility
• Time Utility
• Place Utility
• Possession Utility
1-31
VIDEO CASE 1
3M’S POST-IT® FLAG HIGHLIGHTER:
EXTENDING THE CONCEPT!
1-32
VIDEO CASE 1
3M’s Post-it® Flag Highlighter
1. (a) How did 3M’s David
Windorski get ideas from college
students to help him in designing
the final commercial version of
the Post-it® Flag Highlighter?
(b) How were these ideas
important to the success of the
product?
1-33
VIDEO CASE 1
3M’s Post-it® Flag Highlighter
2. What (a) special advantages and
(b) potential problems did 3M
have in introducing a new
highlighter-with-flags product for
college students?
1-34
VIDEO CASE 1
3M’s Post-it® Flag Highlighter
3. Visit your college bookstore
before you answer. (a) Where
would you display the Post-it®
Flag Highlighter in a college
bookstore and (b) How can the
display increase student
awareness of the product?
1-35
VIDEO CASE 1
3M’s Post-it® Flag Highlighter
4. In what ways might 3M try to
promote its Post-it® Flag
Highlighter and make students
more aware of the product?
1-36
VIDEO CASE 1
3M’s Post-it® Flag Highlighter
5. What are the (a) special
opportunities and (b) potential
challenges for 3M in taking its
Post-it® Flag Highlighter into
international markets? (c) On
which countries should 3M focus
its marketing efforts?
1-37
Marketing
Marketing is the activity for
creating, communicating,
delivering, and exchanging
offerings that benefit the
organization, its stakeholders,
and society at large.
1-38
Exchange
Exchange is the trade of things
of value between buyer and seller
so that each is better off after the
trade.
1-39
Market
A market consists of people with
both the desire and the ability to
buy a specific offering.
1-40
Target Market
A target market consists of
one or more specific groups of
potential consumers toward
which an organization directs its
marketing program.
1-41
Marketing Mix
The marketing mix consists of
the marketing manager’s
controllable factors—product,
price, promotion, and place—that
can be used to solve a marketing
problem.
1-42
Customer Value Proposition
Customer value proposition is
the cluster of benefits that an
organization promises customers
to satisfy their needs.
1-43
Environmental Forces
Environmental forces consist of
the uncontrollable forces in a
marketing decision involving
social, economic, technological,
competitive, and regulatory forces.
1-44
Customer Value
Customer value is the unique
combination of benefits received
by targeted buyers that includes
quality, convenience, on-time
delivery, and both before-sale
and after-sale service at a
specific price.
1-45
Relationship Marketing
Relationship marketing links
the organization to its individual
customers, employees, suppliers,
and other partners for their
mutual long-term benefits.
1-46
Marketing Program
A marketing program is a plan
that integrates the marketing mix
to provide a good, service, or idea
to prospective buyers.
1-47
Marketing Concept
A marketing concept is the
idea that an organization should
(1) strive to satisfy the needs of
consumers (2) while also trying to
achieve the organization’s goals.
1-48
Market Orientation
A market orientation occurs when
an organization 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.
1-49
Societal Marketing Concept
Societal marketing concept is
the view that organizations should
satisfy the needs of consumers in
a way that provides for society’s
well-being.
1-50
Product
A product is a good, service, or
idea consisting of a bundle of
tangible and intangible attributes
that satisfies consumers’ needs
and is received in exchange for
money or something else of value.
1-51
Ultimate Consumers
Ultimate consumers consist of
the people who use the goods
and services purchased for a
household. Also called
consumers, buyers, or customers.
1-52
Organizational Buyers
Organizational buyers are
those manufacturers, wholesalers,
retailers, and government
agencies that buy goods and
services for their own use or for
resale.
1-53
Utility
Utility consists of the benefits or
customer value received by users
of the product.
1-54