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 influencing marketing activities, explain how marketing discovers and satisfies consumer needs, distinguish between marketing mix factors and environmental forces,...
McGrawHill/Irwin Copyright © 2013 by The McGrawHill Companies, Inc. All rights reserved. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO: LO1 Define marketing and identify the diverse factors influencing marketing activities LO2 Explain how marketing discovers and satisfies consumer needs LO3 Distinguish between marketing mix factors and environmental forces 12 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO: LO4 Explain how organizations build strong customer relationships and customer value through marketing LO5 Describe how today’s customer relationship era differs from prior eras 13 DISCOVERING HOW COLLEGE STUDENTS STUDY HELPS LAUNCH A NEW PRODUCT AT 3M Discovering Student Study Needs Satisfying Student Study Needs 14 LO1 WHAT IS MARKETING? You Are a Marketing Expert Already • Involved in 1,000s of Buying Decisions • May Be Involved in 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 LO1 WHAT IS MARKETING? DELIVERING BENEFITS Marketing Seeks to: • Discover Needs and Wants of Customers • Satisfy Them Exchange AMA Definition of Marketing 17 LO1 WHAT IS MARKETING? DIVERSE FACTORS INFLUENCE MARKETING ACTIVITIES The Organization Itself and Its Departments Society Environmental Forces 18 FIGURE 1-2 A marketing department relates to many people, organizations, and environmental forces 19 LO1 WHAT IS MARKETING? REQUIREMENTS FOR MARKETING TO OCCUR Two + Parties with Unsatisfied Needs A Desire and Ability to be Satisfied A Way for the Parties to Communicate Something to Exchange 110 LO2 HOW MARKETING DISCOVERS CONSUMER NEEDS NEEDS VS WANTS Need Does Marketing Persuade People to Buy the “Wrong” Things? Market Want 115 FIGURE 1-3 Marketing seeks to discover consumer needs through research and then satisfy them with a marketing program 116 LO3 HOW MARKETING SATISFIES CONSUMER NEEDS Target Market The Ps: Controllable Marketing Mix Factors • Product • Price • Promotion $499 • Place 117 LO3 HOW MARKETING SATISFIES CONSUMER NEEDS Customer Value Proposition Uncontrollable Environmental Forces • Social • Competitive • Economic • Regulatory • Technological 118 LO4 THE MARKETING PROGRAM CUSTOMER VALUE AND RELATIONSHIPS Customer Value Value Strategies • Best Price • Best Service • Best Product 119 LO4 Southwest Airlines, Starbucks, and Home Depot What customer value strategy? 120 LO4 THE MARKETING PROGRAM RELATIONSHIP MARKETING Relationship Marketing • Easy to Understand • Hard to Do Marketing Program 121 LO4 3M’S STRATEGY & MARKETING PROGRAM HELPING STUDENTS STUDY 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 122 FIGURE 1-4 Marketing programs for two new 3M Post-it® brand products targeted at two distinct customer segments: college students and office workers 123 LO4 3M STRATEGY & MARKETING PROGRAM MARKETPLACE SUCCESS? Developed Third Generation Post-it® Flag Highlighter Appeared on The Oprah Winfrey Show 124 FIGURE 1-A Four different orientations in the history of American business Production Era Sales Era Marketing Concept Era Customer Relationship Era • Market Orientation 125 LO5 HOW MARKETING BECAME IMPORTANT EVOLUTION OF THE MARKET ORIENTATION Customer Relationship Management (CRM) Customer Experience • Direct Contacts: Buying the Service • Indirect Contacts: Word-of-Mouth 126 LO5 HOW MARKETING BECAME IMPORTANT ETHICS AND SOCIAL RESPONSIBILITY Ethics Social Responsibility • Societal Marketing Concept 127 LO5 HOW MARKETING BECAME IMPORTANT BREADTH AND DEPTH OF MARKETING Who Markets? What Is Marketed? • Products (Goods) • Services Hermitage • Ideas 128 LO5 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 129 ... Products Fail The Challenge: • “Focus on the Consumer Benefit” • “Learn From the Past” 1 11 LO2 Dr Care Vanilla-Mint Aerosol Toothpaste What “benefits” and what “showstoppers?” 1 12 LO2 Terrafugia... Want 1 15 FIGURE 1- 3 Marketing seeks to discover consumer needs through research and then satisfy them with a marketing program 1 16 LO3 HOW MARKETING SATISFIES CONSUMER NEEDS Target Market The. .. in 1, 000s of Buying Decisions • May Be Involved in Selling Decisions Marketing is NOT Easy 1 5 FIGURE 1- 1 The see-if-you’re-really-amarketing-expert test True True (c) plastic bottles 1 6 LO1