Lecture Marketing: The core (5/e): Chapter 1 – Kerin, Hartley, Rudelius

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