Lecture Marketing (11/e): Chapter 1 – Kerin, Hartley, Rudelius
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McGrawHill/Irwin Copyright © 2013 by The McGrawHill Companies, Inc. All rights reserved.
1-1
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.
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.
1-3
RESEARCHING HOW COLLEGE STUDENTS
STUDY TO LAUNCH A NEW PRODUCT AT 3M
Discovering
Student
Needs
Satisfying
Student
Needs
1-4
INNOVATION AND MARKETING AT 3M
DISCOVERING & SATISFYING 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
1-5
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
1-6
FIGURE 1-1 The see-if-you’re-really-amarketing-expert test
1. True
2. True
3. (c) plastic bottles
1-7
MARKETING MATTERS
LO1
When Your College Instructor Says,
“You Didn’t Do Very Well,” There’s Still Hope!
1-8
LO1
WHAT IS MARKETING?
DELIVERING BENEFITS
Marketing Seeks to:
• Discover Needs and Wants of Customers
• Satisfy Them
Exchange
AMA Definition of Marketing
1-9
LO1
WHAT IS MARKETING?
DIVERSE FACTORS INFLUENCE MARKETING ACTIVITIES
The Organization Itself and
Its Departments
Society
Environmental
Forces
1-10
FIGURE 1-2 A marketing department relates
to many people, organizations, and
environmental forces
1-11
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
1-12
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”
1-13
LO2
Dr. Care Vanilla-Mint Aerosol Toothpaste
What “benefits” and what “showstoppers?”
1-14
LO2
Hot Pockets Snackers
What “benefits” and what “showstoppers?”
1-15
LO2
Terrafugia Transition
What “benefits” and what “showstoppers?”
1-16
LO2
Pepsi Max
What “benefits” and what “showstoppers?”
1-17
LO2
HOW MARKETING
DISCOVERS CONSUMER NEEDS
NEEDS VS. WANTS
Need
Does Marketing Persuade
People to Buy the
“Wrong” Things?
Market
Want
1-18
FIGURE 1-3 Marketing seeks to discover
consumer needs through research and then
satisfy them with a marketing program
1-19
LO3
HOW MARKETING
SATISFIES CONSUMER NEEDS
Target Market
The 4 Ps: Controllable
Marketing Mix Factors
• Product
• Price
• Promotion
$499
• Place
1-20
LO3
HOW MARKETING
SATISFIES CONSUMER NEEDS
Customer Value Proposition
Uncontrollable Environmental
Forces
• Social
• Competitive
• Economic
• Regulatory
• Technological
1-21
LO4
THE MARKETING PROGRAM
CUSTOMER VALUE AND RELATIONSHIPS
Customer Value
Value Strategies
• Best Price
• Best Service
• Best Product
1-22
LO4
Southwest Airlines, Starbucks, and Home Depot
What customer value strategy?
1-23
LO4
THE MARKETING PROGRAM
RELATIONSHIP MARKETING
Relationship Marketing
• Easy to Understand
• Hard to Do
Marketing Program
1-24
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
1-25
