Marketing chapter 1a creating customer relationships
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McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:
LO1
Define marketing and identify the
requirements for marketing to occur.
LO2
Explain how marketing discovers and
satisfies consumer needs.
LO3
Distinguish between marketing mix
elements and environmental forces.
1-2
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
oriented to production and selling.
LO6
Explain how marketing creates utilities
for consumers.
1-3
LO1
WHAT IS MARKETING ?
You Are a Marketing Expert Already
• Involved in 1,000s of
Buying Decisions
• Some Involved in Selling Decisions
Marketing
• Is NOT Easy
• Affects ALL Individuals, Organizations,
Industries, and Countries
1-7
FIGURE 1-1 The see-if-you’re-really-amarketing-expert test
1. True
2. (c) 30%
3. True
4. (c) plastic bottles
1-8
LO1
WHAT IS MARKETING?
DELIVERING BENEFITS
Marketing Seeks to:
• Discover Needs and Wants of Customers
• Satisfy Them
Exchange
AMA Definition of Marketing
1-10
WHAT IS MARKETING?
LO1
AMA Definition of Marketing
Marketing: the activity for creating,
communicating, delivering, and
exchanging offerings that benefit the
organization, its stakeholders and
society at large
1-11
LO1
WHAT IS MARKETING?
DIVERSE FACTORS INFLUENCE MARKETING ACTIVITIES
Organization Itself
Society
Environmental Forces
1-12
FIGURE 1-2 A marketing department relates
to many people, organizations, and
environmental forces
1-13
LO1
WHAT IS MARKETING?
REQUIREMENTS FOR IT TO OCCUR
Parties with Unsatisfied Needs
A Desire and Ability to be Satisfied
A Way for the Parties to Communicate
Something to Exchange
1-14
LO2
HOW MARKETING
DISCOVERS CONSUMER NEEDS
THE CHALLENGE: NEW PRODUCTS
Consumers May Not Know or Cannot
Describe What They Need or Want
Most New Products Fail
The Challenge:
• “Focus on the Consumer Benefit”
• “Learn From the Past”
1-15
LO2
HOW MARKETING
DISCOVERS CONSUMER NEEDS
NEEDS VS. WANTS
Need
Want
Does Marketing Persuade People to
Buy the “Wrong” Things?
Market
1-20
LO3
HOW MARKETING SATISFIES
CONSUMER NEEDS
Target Market
The 4 P’s: Controllable Marketing Mix
Factors
• Place
• Product
• Price
$399
• Promotion
1-22
FIGURE 1-3 Marketing seeks to discover
then satisfy consumer needs through
research and a marketing program
1-23
LO3
HOW MARKETING SATISFIES
CONSUMER NEEDS
Uncontrollable Environmental Forces
• Social
• Economic
• Technological
• Competitive
• Regulatory
1-24
LO4
MARKETING PROGRAM
CUSTOMER VALUE AND RELATIONSHIPS
Customer Value
Value Strategies
• Best Price
• Best Product
• Best Service
1-25
LO4
MARKETING PROGRAM
RELATIONSHIP MARKETING
Relationship Marketing
• Easy to Understand
• Hard to Do
Marketing Program
1-27
LO4
3M PRODUCT & MARKETING PROGRAM
HELPING STUDENTS STUDY
Move from Ideas to a Marketable
Highlighter Product
Extend the Product Line
Develop a Marketing
Program for the
Post-it® Flag
Highlighter and Pen
1-28
FIGURE 1-4 Marketing programs for two
new 3M Post-it® brand products targeted at
two distinct customer segments: college
students and office workers
1-29
LO5
HOW MARKETING BECAME IMPORTANT
EVOLUTION OF THE MARKET ORIENTATION
Production Era
Sales Era
Marketing Concept Era
Customer Relationship Era
• Market Orientation
• Customer Relationship Management (CRM)
• Customer Experience
1-30
FIGURE 1-5 Four different market
orientations in the history of American
business
1-31
LO5
HOW MARKETING BECAME IMPORTANT
ETHICS AND SOCIAL RESPONSIBILITY
Ethics
Social Responsibility
1-32
LO6
HOW MARKETING BECAME IMPORTANT
BREADTH AND DEPTH OF MARKETING
Who Markets?
What Is Marketed?
• Goods
• Services
• Ideas
1-33
LO6
HOW MARKETING BECAME IMPORTANT
BREADTH AND DEPTH OF MARKETING
Who Benefits?
Who Buys & Uses What Is Marketed?
• Ultimate Consumers
• Organizational Buyers
How Do Consumers Benefit?
• Utility
Form Utility
Place Utility
Time Utility
Possession Utility
1-34
