Download CHAPTER 1 Marketing

Principles of
Contemporary Marketing
Kurtz & Boone
Chapter 1
Marketing: The Art and Science of
Satisfying Customers
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Chapter Objectives
1.
Define marketing, explain how it creates utility, and describe
its role in the global marketplace.
2.
Contrast marketing activities during the four eras in the history
of marketing.
3.
Explain the importance of avoiding marketing myopia.
4.
Describe the characteristics of not-for-profit marketing.
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Chapter Objectives
5.
Identify and briefly explain each of the five types of
nontraditional marketing.
6.
Explain the shift from transaction-based marketing to
relationship and social marketing.
7.
Identify the universal functions of marketing.
8.
Demonstrate the relationship between ethical business
practices, social responsibility, sustainability and marketplace
success.
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
What is Marketing?
o Organizations must create utility to survive
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
A Definition of Marketing
o Marketing - An organizational function and a set of
processes for:
o Creating, communicating, and delivering value to
customers
o Managing customer relationships in ways that benefit
the organization and its stakeholders
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Today’s Global Marketplace
o Factors that have extended economic views
o Increase in international trade agreements
o Growth of electronic business
o Interdependence of the world’s economies
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Four Eras in the History of Marketing
o The essence of marketing is the exchange process
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Characteristics of the Four Eras
Era in marketing
Focus
Production Era
Production orientation
Sales Era
Sales orientation
Marketing Era
Consumer orientation
Relationship Era
Relationship marketing
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Avoiding Marketing Myopia
o Marketing myopia - Management’s failure to recognize
the scope of its business
o Focusing on customer need satisfaction can overcome
myopia
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Not-for-Profit Marketing
o Marketing in not-for-profit organizations
o Marketing strategy is adopted to meet service objectives
o Not-for-profit organizations form alliances with business
firms for mutual benefit
o Characteristics of not-for-profit marketing
o Does not focus on bottom line
o Markets to multiple audiences
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Relationship Marketing
o Focus is on moving the customers up the loyalty
ladder to increase their lifetime value
o Interactive marketing creates direct communication
with customers, allows larger exchanges, and puts the
customer in control
o It is increasingly taking place on social media sites like
Facebook, Twitter, and blogs
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Partnerships and Strategic Alliances
o Strategic alliances provide firms competitive advantage
o Forms of alliances
o Product development partnerships
o Vertical alliances
o Not-for-profits often raise awareness and funds
through strategic partnerships
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CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Costs and Functions of Marketing
o Firms spend money (thereby incurring costs) to create
utility
o Functions of marketing
o Exchange functions - Buying and selling
o Physical distribution functions - Transporting and
storing
o Facilitating functions - Standardizing and grading,
financing, risk taking, and securing marketing
information
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Ethics and Social Responsibility
o Companies that promote ethics and social
responsibility produce increased employee loyalty and
customer growth
o Social responsibility programs are meant to enhance
the society but help in improving public image of the
firm
o Sustainable products and practices are goals of socially
responsible firms
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.