Chapter 1 Marketing 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 Concepts Company Offering - combination of products, services, information, and experiences Overall objective: __________ Costs: ________________________ Implications: company decisions must consider its offerings, objective, and costs Core Marketing Concepts Customer Overall 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?