Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Essentials of Marketing
Chapter 1
Marketing’s Value to
Consumers, Firms, and
Society
At the end of this presentation, you should
be able to:
1. Know what marketing is and why you should learn
about it.
2. Un...
At the end of this presentation, you should
be able to:
5. Know what the marketing concept is—and how it
should guide a fi...
More than Selling or Advertising
All Those
Bicycles!
The Management Job in Marketing
More than Selling and Advertising
1–4
Things a Firm Should Do in Producing a
Bike
The
marketing mix
The
marketing mix
Predict Wants
Estimate Demand
Predict When...
Production vs. Marketing
Creates Customer Satisfaction
Marketing
Makes sure right goods &
services are produced
Production...
Marketing Is Important to You!
Important to every consumer!
Important to your job!
Affects innovation and
standard of livi...
Marketing
Stimulates
New Ideas
Courtesy of The Procter & Gamble Company.
1–8
Marketing Affects Innovation
1–9
What Is Marketing?
and
Macro View
• Social process
• Matches supply
with demand
Micro View
• Set of activities
• Performed...
Marketing
Key
Characteristics
Profit and
Nonprofit
More than
Persuasion
Begins with
Needs
Doesn’t Go It
Alone
Involves
Exc...
Building
Customer
Relationships
1–12
Macro-Marketing
Key
Characteristics
Matches
Producers and
Consumers
Emphasis is on
Whole System
Every
Economy
Needs It
1–13
Can Mass Production Satisfy a Society’s
Consumption Needs?
Economies of Scale - Lower Unit Cost
Unit
Cost
$
Producers Cons...
Overcoming
Spatial
Separation
1–15
Marketing Facilitates Production and
Consumption (Exhibit 1-1)
Production Sector
Marketing
needed to
overcome
discrepancie...
Universal Functions of Marketing
Marketing
Functions
Buying Selling
Transporting
Storing
Standardization
& Grading
Financi...
Who Performs Marketing Functions?
Transport
Firms
ISP's
Product
Testing
Firms
Ad Agencies
Research
Firms
Wholesalers Other...
How Decisions are Made in an Economic
System
OR
Command
Economy
• Government
officials decide
• May work well if:
• Simple...
Model of a Market-Directed Macro-Marketing
System (Exhibit 1-2)
Many Individual Producers
(heterogeneous supply)
Intermedi...
Marketing’s Role Has Changed Over Time
Focus:
Sell Surplus
Long-Run
Customer Satisfaction
Focus:
Focus:
Increase Supply
Fo...
The Marketing Concept (Exhibit 1-3)
Profit (or another measure
of long-term success) as
an objective
Total
company
effort
...
Creating
Customer
Satisfaction
Prestige Brands Holdings, Inc. 1–23
Checking Your Knowledge
A store that is popular with newlyweds runs a wedding gift registry.
Five minutes before closing t...
Adopting the
Marketing
Concept
1–25
The Marketing Concept and Customer Value
Costs Benefits
Take Customer’s Point
of View
Customer May Not
Dwell on Value
Wher...
Costs, Benefits, and Customer Value
(Exhibit 1-5)
Perceived
superior
value
Perceived
inferior
value
High
HighLow
Low
Costs...
Interactive Exercise: Customer Value
1–28
Checking Your Knowledge
Which of the following statements, made by marketing managers,
illustrates an understanding of the...
Checking Your Knowledge
A computer manufacturer is attempting to increase the
customer value associated with purchases of ...
Total Company
Effort to Satisfy
Customers
Total Company
Effort to Satisfy
Customers
Putting It All Together (Exhibit 1-6)
...
The Marketing Concept Applies in Nonprofit
Organizations
Newcomers
to Marketing
Will “Satisfied
Customers”
Offer
Support?
...
Government
Marketing
1–33
Marketing Concept Used by Nonprofit
Services
1–34
Social
Responsibility
The Marketing Concept, Social
Responsibility, and Marketing Ethics
Should All
Consumer
Needs Be
Sati...
The Micro-
Macro
Dilemma
1–36
Social Responsibility
1–37
You should now be able to:
1. Know what marketing is and why you should learn
about it.
2. Understand the difference betwe...
You should now be able to:
5. Know what the marketing concept is—and how it
should guide a firm or nonprofit organization....
Key Terms
 Production
 Customer satisfaction
 Innovation
 Marketing
 Pure subsistence economy
 Macro-marketing
 Eco...
Key Terms
 Collaborators
 E-commerce
 Economic system
 Command economy
 Market-directed economy
 Simple trade era
 ...
Upcoming SlideShare
Loading in …5
×

Global Strategic Marketing Introduction

2,475 views

Published on

Introduction to Marketing

Published in: Marketing
  • Be the first to comment

Global Strategic Marketing Introduction

  1. 1. Essentials of Marketing Chapter 1 Marketing’s Value to Consumers, Firms, and Society
  2. 2. At the end of this presentation, you should be able to: 1. Know what marketing is and why you should learn about it. 2. Understand the difference between marketing and macro-marketing. 3. Know the marketing functions and why marketing specialists—including intermediaries and collaborators—develop to perform them. 4. Understand what a market-driven economy is and how it adjusts the macro-marketing system. 1–2
  3. 3. At the end of this presentation, you should be able to: 5. Know what the marketing concept is—and how it should guide a firm or nonprofit organization. 6. Understand what customer value is and why it is important to customer satisfaction. 7. Know how social responsibility and marketing ethics relate to the marketing concept. 8. Understand the important new terms. 1–3
  4. 4. More than Selling or Advertising All Those Bicycles! The Management Job in Marketing More than Selling and Advertising 1–4
  5. 5. Things a Firm Should Do in Producing a Bike The marketing mix The marketing mix Predict Wants Estimate Demand Predict When Determine Where Estimate Price Decide Promotion Estimate Competition Provide Service Analyze Needs 1–5
  6. 6. Production vs. Marketing Creates Customer Satisfaction Marketing Makes sure right goods & services are produced Production • Making Goods • Performing Services 1–6
  7. 7. Marketing Is Important to You! Important to every consumer! Important to your job! Affects innovation and standard of living 1–7
  8. 8. Marketing Stimulates New Ideas Courtesy of The Procter & Gamble Company. 1–8
  9. 9. Marketing Affects Innovation 1–9
  10. 10. What Is Marketing? and Macro View • Social process • Matches supply with demand Micro View • Set of activities • Performed by individual organizations 1–10
  11. 11. Marketing Key Characteristics Profit and Nonprofit More than Persuasion Begins with Needs Doesn’t Go It Alone Involves Exchanges Builds Relationships 1–11
  12. 12. Building Customer Relationships 1–12
  13. 13. Macro-Marketing Key Characteristics Matches Producers and Consumers Emphasis is on Whole System Every Economy Needs It 1–13
  14. 14. Can Mass Production Satisfy a Society’s Consumption Needs? Economies of Scale - Lower Unit Cost Unit Cost $ Producers ConsumersMarketing Functions Marketing Bridges the Gap! Output 1–14
  15. 15. Overcoming Spatial Separation 1–15
  16. 16. Marketing Facilitates Production and Consumption (Exhibit 1-1) Production Sector Marketing needed to overcome discrepancies and separations Discrepancies of Quantity Discrepancies of Assortment Spatial Separation Separation in Time Separation of Information Separation in Values Separation of Ownership Consumption Sector 1–16
  17. 17. Universal Functions of Marketing Marketing Functions Buying Selling Transporting Storing Standardization & Grading Financing Risk Taking Market Information 1–17
  18. 18. Who Performs Marketing Functions? Transport Firms ISP's Product Testing Firms Ad Agencies Research Firms Wholesalers Other Specialists Retailers Consumers Producers 1–18
  19. 19. How Decisions are Made in an Economic System OR Command Economy • Government officials decide • May work well if: • Simple economy • Little Variety • Adverse Conditions Market-Directed Economy • Adjusts itself • Price is value measure • Freedom of choice • Government’s role limited 1–19
  20. 20. Model of a Market-Directed Macro-Marketing System (Exhibit 1-2) Many Individual Producers (heterogeneous supply) Intermediaries Collaborators Perform universal marketing functions To overcome discrepancies and separation of producers and consumers To create value and direct flow of need-satisfying goods and services Many Individual Consumers (heterogeneous demand) Monitoring by government(s) and public interest groups 1–20
  21. 21. Marketing’s Role Has Changed Over Time Focus: Sell Surplus Long-Run Customer Satisfaction Focus: Focus: Increase Supply Focus: Beat Competition Focus: Coordinate and Control Simple Trade Era Production Era Sales Era Marketing Department Era Marketing Company Era 1–21
  22. 22. The Marketing Concept (Exhibit 1-3) Profit (or another measure of long-term success) as an objective Total company effort Customer satisfaction The Marketing Concept 1–22
  23. 23. Creating Customer Satisfaction Prestige Brands Holdings, Inc. 1–23
  24. 24. Checking Your Knowledge A store that is popular with newlyweds runs a wedding gift registry. Five minutes before closing time on a Sunday, a young couple enters the store and wants to register—a process that usually takes 30 minutes or more. A sales associate advises the couple to come back when they have more time, even though a recent memo from the store’s regional manager specifically instructed store personnel to stay after closing time to help such customers. Which key element of the marketing concept is the main problem area in this situation? A. Customer need B. Total company effort C. Customer satisfaction D. Marketing orientation E. Product orientation 1–24
  25. 25. Adopting the Marketing Concept 1–25
  26. 26. The Marketing Concept and Customer Value Costs Benefits Take Customer’s Point of View Customer May Not Dwell on Value Where Does Competition Fit? Customer Value Builds Relationships Customer Value Reflects Benefits and Costs 1–26
  27. 27. Costs, Benefits, and Customer Value (Exhibit 1-5) Perceived superior value Perceived inferior value High HighLow Low Costs target customer sees to obtain benefits Benefits target customer sees in a firm’s goods and services 1–27
  28. 28. Interactive Exercise: Customer Value 1–28
  29. 29. Checking Your Knowledge Which of the following statements, made by marketing managers, illustrates an understanding of the concept of customer value? A. “It’s more important to acquire new customers than to retain old ones.” B. “The only time it’s really necessary to demonstrate superior customer value is right before the actual sale.” C. “My main concern is with meeting this month’s sales quota—I’ll worry about relationship building later.” D. “I might think my product is a good value, but what really counts is if the customer thinks it’s a good value.” E. “Customer value really boils down to which product is the least expensive.” 1–29
  30. 30. Checking Your Knowledge A computer manufacturer is attempting to increase the customer value associated with purchases of its products. Which of the following might be a way to achieve this increase in value? A. Reduce price. B. Increase technical support for customers. C. Increase warranty coverage. D. Offer free shipping. E. Any of the above, depending on the needs of the target market. 1–30
  31. 31. Total Company Effort to Satisfy Customers Total Company Effort to Satisfy Customers Putting It All Together (Exhibit 1-6) Build Profitable Customer Relationships Attract Customers Offer Superior Customer Value Satisfy Customers Retain Customers Increase Sales to Customers 1–31
  32. 32. The Marketing Concept Applies in Nonprofit Organizations Newcomers to Marketing Will “Satisfied Customers” Offer Support? The Bottom Line? May Not Be Organized for Marketing Characteristics of Nonprofit Organizations 1–32
  33. 33. Government Marketing 1–33
  34. 34. Marketing Concept Used by Nonprofit Services 1–34
  35. 35. Social Responsibility The Marketing Concept, Social Responsibility, and Marketing Ethics Should All Consumer Needs Be Satisfied? What if Profits Suffer? Micro - Macro Dilemma The Marketing Concept Guides Ethics Group Needs Individual Needs Do All Marketers Act Responsibly? 1–35
  36. 36. The Micro- Macro Dilemma 1–36
  37. 37. Social Responsibility 1–37
  38. 38. You should now be able to: 1. Know what marketing is and why you should learn about it. 2. Understand the difference between marketing and macro-marketing. 3. Know the marketing functions and why marketing specialists—including intermediaries and collaborators—develop to perform them. 4. Understand what a market-driven economy is and how it adjusts the macro-marketing system. 1–38
  39. 39. You should now be able to: 5. Know what the marketing concept is—and how it should guide a firm or nonprofit organization. 6. Understand what customer value is and why it is important to customer satisfaction. 7. Know how social responsibility and marketing ethics relate to the marketing concept. 8. Understand the important new terms. 1–39
  40. 40. Key Terms  Production  Customer satisfaction  Innovation  Marketing  Pure subsistence economy  Macro-marketing  Economies of scale  Universal functions of marketing  Buying function  Selling function  Transporting function  Storing function  Standardization and grading  Financing  Risk-taking  Market information function  Intermediary 1–40
  41. 41. Key Terms  Collaborators  E-commerce  Economic system  Command economy  Market-directed economy  Simple trade era  Production era  Sales era  Marketing department era  Marketing company era  Marketing concept  Production orientation  Marketing orientation  Customer value  Micro-macro dilemma  Social responsibility  Marketing ethics 1–41

×