CREATING CUSTOMER RELATIONSHIPS AND VALUE THROUGH MARKETING C HAPTER http://highered.mcgraw-hill.com/sites/0070043450/student_view0/index.html
WHAT IS MARKETING? A Philosophy An Attitude A Perspective A Management Orientation A Set of Activities, including: Products Pricing Promotion Distribution plus
WHAT IS MARKETING? Marketing = Using Exchanges to Satisfy Needs American Marketing Association Definition Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.
The Concept of Exchange The idea that people give up something to receive something they would rather have. Both buyer and seller are better off after the trade.
Market – All people with both the desire and ability
to buy a specific product
Target Market – One or more subgroups I can satisfy
WHO DO I AIM AT?
THE CONTROLLABLE MARKETING FORCES The Four P’s -the “arrow” Price Promotion Place Product
THE UNCONTROLLABLE MARKETING FORCES Helps identify market opportunities Social Natural Economic Technologic Political and Legal Competitive External Environmental Factors
FIGURE 1-A Summary of factors that affect an organization’s marketing program
Orientation Key Ideas Production Sales Market Societal Focus on efficiency of internal operations – if we make it, they will buy it Focus on satisfying customer needs and wants while meeting objectives - if they will buy it, we will make it Focus on satisfying customer needs and wants while enhancing individual and societal well-being. I.e.-mfg using recyclables Focus on aggressive sales techniques and believe that high sales result in high profits MARKETING MANAGEMENT PHILISOPHIES
FIGURE 1-B Four different orientations in the history of American business Societal
Who Buys and Uses What Is Marketed?
THE BREADTH & DEPTH OF MARKETING
What Is Marketed?
HOW DO CONSUMERS BENEFIT Utility – the benefits or customer value received by users of the product
Offer products that perform
Give consumers more than they expect
Avoid unrealistic pricing
Give the buyer facts
Offer organization-wide commitment in service and after-sales support
Customer value- benefits received by targeted buyers that include quality, price, convenience, on-time delivery, and both before-sale and after-sale service. HOW TO DELIVER VALUE
Meet or exceed customer’s expectations
Provide solutions to customer’s problems
Cultivate relationships, NOT one-time transactions
KEEPING THE CUSTOMER SATISFIED
1. What is marketing?
A: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
1. An organization can’t satisfy the needs of all consumers, so it must focus on one or more subgroups, which are its ____________.
Concept Check 2. What are the four marketing mix elements that make up the organization’s marketing program?
A: product, price, promotion, place
Concept Check 3. What are environmental forces?
A: Environmental forces are those that the organization’s marketing department can’t control. These include social, economic, technological, competitive, and regulatory forces.
Concept Check 1. What are the two key characteristics of the marketing concept?
A: (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals.
Concept Check 2. What is the difference between goods and services?
A: Goods are physical objects whereas services are complex intangible items, such as legal advice, a college education, or airline travel.
Exchange is the trade of things of value between buyer and seller so that each is better off after the trade.
A market consists of people with both the desire and ability to buy a specific product.
Customer value is the unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-time delivery, and both before-sale and after-sale service.
The marketing concept is the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals.
An organization that has a market orientation focuses its efforts on (1) continuously collecting information about customers’ needs, (2) sharing this information across departments, and (3) using it to create customer value.
The societal marketing concept is the view that an organization should satisfy the needs of consumers in a way that provides for society’s well-being.
Societal Marketing Concept
Organizational buyers are those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.
Utility is the benefits or customer value received by users of the product.