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CHAPTER
CREATING
CUSTOMER
RELATIONSHIP
S AND VALUE
THROUGH
MARKETING
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WHAT IS MARKETING?
A Philosophy
An Attitude
A Perspective
A Management
Orientation
A Set of Activities,
including:
Products
Pricing
Promotion
Distribution
WHAT IS MARKETING?
American Marketing Association Definition
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 goals.
Marketing = Using Exchanges to Satisfy Needs
The Concept of Exchange
The idea that people give up
something to receive something
they would rather have.
Both buyer and seller are better
off after the trade.
WHO DO I AIM AT?
 Market – All people with both the desire and ability
to buy a specific product
 Target Market – One or more subgroups I can satisfy
THE CONTROLLABLE MARKETING FORCES
The Four P’s
-the “arrow”
Price
Promotion
Place
Product
THE UNCONTROLLABLE MARKETING
FORCES
Social
Natural
Economic
External
Environmental
Factors
Technologic
Political and Legal
Competitive
Helps identify market opportunities
FIGURE 1-A Summary of factors that affect
an organization’s marketing program
FIGURE 1-4 Marketing’s task: satisfying
consumer needs
HOW MARKETING BECAME
SO IMPORTANT
• Evolution of the Market Orientation
 Production Era
 Sales Era
 Marketing Concept Era
 Societal Era
MARKETING MANAGEMENT
PHILISOPHIES
Orientation
Key Ideas
Production
Focus on efficiency of internal operations –
if we make it, they will buy it
Sales
Focus on aggressive sales techniques and
believe that high sales result in high profits
Market
Societal
Focus on satisfying customer needs and wants
while meeting objectives - if they will buy it, we
will make it
Focus on satisfying customer needs and
wants while enhancing individual and
societal well-being. I.e.-mfg using recyclables
FIGURE 1-B Four different orientations in
the history of American business
Societal
THE BREADTH & DEPTH OF MARKETING
 What Is Marketed?
• Goods
•
Services
•
Ideas
 Who Buys and Uses What Is Marketed?
• Ultimate Consumers
•Organizational Buyers
HOW DO CONSUMERS BENEFIT
Utility – the benefits or customer value received
by users of the product
HOW TO DELIVER VALUE
Customer value-benefits received by targeted buyers
that include quality, price, convenience, on-time
delivery, and both before-sale and after-sale service.
•
•
•
•
•
Offer products that perform
Give consumers more than they expect
Avoid unrealistic pricing
Give the buyer facts
Offer organization-wide commitment in service
and after-sales support
KEEPING THE CUSTOMER SATISFIED
Meet
or exceed customer’s expectations
Provide
solutions to customer’s problems
Cultivate
relationships,
NOT one-time transactions
Concept Check
1. What is marketing?
A: 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.
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 ____________.
Concept Check
2. What are the four marketing mix
elements that make up the
organization’s marketing program?
A: product, price, promotion, place
Concept Check
3. What are environmental forces?
A: Environmental forces are those that
the organization’s marketing
department can’t control. These
include social, economic,
technological, competitive, and
regulatory forces.
Concept Check
1. What are the two key characteristics
of the marketing concept?
A: (1) strive to satisfy the needs of
consumers (2) while also trying to
achieve the organization’s goals.
Concept Check
2. What is the difference between goods
and services?
A: Goods are physical objects whereas
services are complex intangible
items, such as legal advice, a college
education, or airline travel.
Exchange
Exchange is the trade of things of value
between buyer and seller so that each is
better off after the trade.
Market
A market consists of people with both the
desire and ability to buy a specific
product.
Customer Value
Customer value is the unique
combination of benefits received
by targeted buyers that includes quality,
price, convenience, on-time delivery, and
both before-sale and after-sale service.
Marketing Concept
The 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.
Market Orientation
An organization that has a market
orientation 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.
Societal Marketing Concept
The societal marketing concept is the
view that an organization should satisfy
the needs of consumers in a way that
provides for society’s well-being.
Organizational Buyers
Organizational buyers are those
manufacturers, wholesalers, retailers,
and government agencies that buy goods
and services for their own use or for
resale.
Utility
Utility is the benefits or customer value
received by users of the product.