Download Marketing

Chapter 1:
What Marketing’s All About
It’s All About Satisfaction
 Marketing today is applied to virtually all aspects
of a company’s operation that has the potential to
influence customer satisfaction
 Whenever things of value are being exchanged,
marketing principles apply: consider exactly what
is being exchanged (it’s “give” and “get”)
 The ultimate goal is customer satisfaction, which
leads to long-term profitability and success
 Marketing principles apply in all organizations
Figure 1-1 here
…and Creating Value
 Successful marketing involves meeting or
exceeding customer expectations
 When expectations are exceeded, customer
satisfaction or delight results
 Marketing is very much about adding value
through a broadly-defined value proposition
 Value may be created by marketers in many
different ways: value is not only about price
What’s Involved in Marketing?
 Marketing is the total system of activities
designed to plan, price, promote, and
distribute need-satisfying products, services,
and ideas to target markets in order to achieve
the objectives of both the consumer and the
organization.
 It involves all aspects of how the organization
interacts with the customer that have the
potential to influence the customer’s
satisfaction with the organization and its value
proposition.
Key Words in the Definition
 total system: not an ad hoc approach
 business activities: but not just for businesses
 plan, price, promote, distribute: the application
of the marketing mix
 need-satisfying: meeting customers’ needs
 products, services, ideas: not just products
 target markets: not a broad-brush approach
 objectives: the customer’s as well as the firm’s
The Marketing Mix
 The conventional view of the marketing mix
consisted of four components: product, price,
distribution and promotion.
 Generally acknowledged that this is too narrow
today; now includes service, processes, technology
and employees.
 Marketers today are focused on virtually all aspects
of the firm’s operations that have the potential to
affect the relationship with customers.
The Focus of Marketing
 Marketing involves the exchange of things of
value with various target groups.
 Much of marketing’s focus today is on the
creation of value for customers; those who are
best at creating value earn customer loyalty.
 Ultimately, successful marketers develop a close
relationship with customers and others. This is a
long-term strategy that guarantees the future
success of the company.
Drivers of Customer Satisfaction
 Many aspects of the firm’s value proposition
contribute to customer satisfaction:
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The core product or service offered
Support services and systems
The technical performance of the firm
Interaction with the firm and it employees
The emotional connection with customers
 Ability to add value and to differentiate as a firm
focuses more on the top levels
Figure 1-2 here
Marketers and Markets
 Marketers are focused on stimulating exchanges
with customers who make up markets – B2C or
B2B.
 The market is comprised of people who play a
series of roles: decision makers, consumers,
purchasers, and influencers.
 It is absolutely essential that marketers have a
detailed understanding of consumers, their needs
and wants.
 Much happens before and after the sale to affect
customer satisfaction
Figure 1-3 here
Evolution of Marketing Thinking
 Marketing has evolved through five stages:
 in the product-focus stage, emphasis is on producing
more and better products
 at the sales-orientation stage, focus shift to selling,
moving product from warehouse to customer
 at the customer-interest stage, emphasis shifts to the
customer and the satisfaction of needs
 the customer-service stage places emphasis on
customer service as well as good products
 the customer-relationship stage sees a much longerterm focus on building relationships with customers
Figure 1-4 here
It’s All About Value
 If we create value for the customer, the
firm and its shareholders benefit
 Value may be created in many ways – it’s
much more than price
 The value proposition comprises
everything the company offers its
customers – must be defined very broadly
 Linked to stages of marketing thinking
Figure 1-5 here
Figure 1-6 here
Customer-Relationship Thinking
 The customer-relationship view of
marketing requires some new thinking:
 It is very much a long-term strategy
 Requires that management take the
customer’s view
 The value proposition must be defined
very broadly
 Different measures of success are needed
The New View of Marketing
 The marketing emphasis today is on
keeping existing customers as well as
getting new ones
 Four principles guide marketing:
 retention: keeping them coming back
 referrals: encourage them to recommend us
 relationships: build an emotional connection
 recovery: solve problems as they arise
The Modern Marketing Concept
 All planning and operations are designed to create longterm customer satisfaction: “everyone in the firm is
involved in marketing”
 All of the marketing activities of the organization should
be consistently designed and delivered, and should be
coordinated across departments
 All of the organization’s planning and operations are
customer-oriented, meeting customer needs and
achieving profitability
 All activities are focused on the long-term and designed
to create an emotional connection with customers
Figure 1-7 here