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Marketing chapter 1a creating customer relationships

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



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