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Chapter 1: Creating customer relationships and value through marketing. After reading this chapter you should be able to: Define marketing and identify the diverse factors that influence marketing actions, explain how marketing discovers and satisfies consumer needs, distinguish between marketing mix factors and environmental forces, explain how organizations build strong customer relationships and customer value through marketing.
Copyright © 2015 McGrawHill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGrawHill Education LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO: LO 1-1 Define marketing and identify the diverse factors influencing marketing actions LO 1-2 Explain how marketing discovers and satisfies consumer needs LO 1-3 Distinguish between marketing mix factors and environmental forces 12 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO: LO 1-4 Explain how organizations build strong customer relationships and customer value through marketing LO 1-5 Describe how today’s customer relationship era differs from prior eras 13 LAUNCHING A NEW BILLION-DOLLAR FOOD CATEGORY—IN JUST SEVEN YEARS! Developing Chobani’s Unique Greek Yogurt Reaching Customers Chobani Today Chobani, Marketing, and You 14 LO 1-1 WHAT IS MARKETING? You Are a Marketing Expert Already • Involved in 1,000s of Buying Decisions • Involved in Some Selling Decisions Marketing is NOT Easy 15 FIGURE 1-1 The see-if-you’re-really-amarketing-expert test True True (c) plastic bottles 16 LO 1-1 WHAT IS MARKETING? Marketing and Your Career • Goal is to “Do Marketing!” • Small Businesses Offer Marketing Careers You Too Could Start a Successful Business While in College! 17 LO 1-1 WHAT IS MARKETING? DELIVERING BENEFITS Marketing Seeks to: • Discover Needs and Wants of Customers • Satisfy Them Exchange AMA Definition of Marketing 18 LO 1-1 WHAT IS MARKETING? DIVERSE ELEMENTS INFLUENCE MARKETING ACTIONS The Organization Itself and Its Departments Society Environmental Forces 19 FIGURE 1-2 A marketing department relates to many people, organizations, and environmental forces 110 LO 1-3 HOW MARKETING SATISFIES CONSUMER NEEDS THE FOUR Ps Target Market The Ps: Controllable Marketing Mix Factors • Product • Price • Promotion $499 • Place 118 LO 1-3 HOW MARKETING DISCOVERS CONSUMER NEEDS ENVIRONMENTAL FORCES Customer Value Proposition Uncontrollable Environmental Forces • Social • Competitive • Economic • Regulatory • Technological 119 LO 1-4 THE MARKETING PROGRAM CUSTOMER VALUE Customer Value Value Strategies • Best Price • Best Service • Best Product 120 LO 1-4 Target, Starbucks, and US Bank What customer value strategy? 121 LO 1-4 THE MARKETING PROGRAM RELATIONSHIP MARKETING Relationship Marketing • Easy to Understand • Hard to Do Marketing Program Market Segments 122 LO 1-4 3M’S STRATEGY & MARKETING PROGRAM DISCOVERING & STATISFYING STUDENT STUDY NEEDS + 3M Post-it® Notes or Post-it® Flags = Felt Tip Highlighters 3M product that will combine Post-it® Notes or Post-it® Flags and Highlighters 123 LO 1-4 3M’S STRATEGY & MARKETING PROGRAM DISCOVERING & STATISFYING STUDENT STUDY NEEDS 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 124 FIGURE 1-4 Marketing programs for two new 3M Post-it® brand products targeted at college students and office workers 125 LO 1-4 3M’S STRATEGY & MARKETING PROGRAM DISCOVERING & STATISFYING STUDENT STUDY NEEDS Developed Third Generation Post-it® Flag Highlighter Appeared on The Oprah Winfrey Show 126 FIGURE 1-5 Four different orientations in the history of American business Production Era Sales Era Marketing Concept Era Customer Relationship Era • Market Orientation 127 LO 1-5 HOW MARKETING BECAME IMPORTANT EVOLUTION OF THE MARKET ORIENTATION Customer Relationship Management (CRM) Customer Experience • What Firms Think They Offer Customers • What Customers Say They Receive 128 LO 1-5 HOW MARKETING BECAME IMPORTANT ETHICS AND SOCIAL RESPONSIBILITY Ethics Social Responsibility • Societal Marketing Concept 129 LO 1-5 HOW MARKETING BECAME IMPORTANT BREADTH AND DEPTH OF MARKETING Who Markets? What Is Marketed? • Products (Goods) • Services • Ideas 130 LO 1-5 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 131 VIDEO CASE CHOBANI: MAKING GREEK YOGURT A HOUSEHOLD NAME 132 ... strategy? 1 21 LO 1- 4 THE MARKETING PROGRAM RELATIONSHIP MARKETING Relationship Marketing • Easy to Understand • Hard to Do Marketing Program Market Segments 1 22 LO 1- 4 3M’S STRATEGY & MARKETING. .. NOT Easy 1 5 FIGURE 1- 1 The see-if-you’re-really-amarketing-expert test True True (c) plastic bottles 1 6 LO 1- 1 WHAT IS MARKETING? Marketing and Your Career • Goal is to “Do Marketing! ” • Small... Definition of Marketing 1 8 LO 1- 1 WHAT IS MARKETING? DIVERSE ELEMENTS INFLUENCE MARKETING ACTIONS The Organization Itself and Its Departments Society Environmental Forces 1 9 FIGURE 1- 2 A marketing