1. marketing in a changing world creating customer value and satisfaction
- 1. Chapter 1 (Plus Section of Chapter 2) Marketing in a Changing World: Creating Customer Value and Satisfaction
- 2. What is Marketing? (pp. 5-6) The process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. (p. 6) Simply put: Marketing is the delivery of customer satisfaction at a profit. (p. 5)
- 3. Marketing Strategy Marketing Mix “ The 4 Ps,” Tactical Tools (“The 4 Cs”) (Fig. 2.6, pp. 67-68) Target Customers Intended Positioning Product (Customer Solution) Goods-and-service combination that a company offers a target market Price (Customer Cost) Amount of money that consumers have to pay to obtain the product Activities that persuade target customers to buy the product Promotion (Communication) Company activities that make the product available Place (Convenience) Advertising Personal Selling Sales Promotion Public Relations
- 4. Core Marketing Concepts (Fig. 1.1, pp. 6-13) Needs, wants, and demands Products and services Value, satisfaction, and quality Exchange, transactions, and relationships Markets
- 5. Needs - state of felt deprivation for basic items such as food and clothing, and complex needs such as for belonging. (i.e. I am hungry.) Wants - form that a human need takes as shaped by culture and individual personality. (i.e. I want a hamburger, French fries, and a soft drink.) Demands - human wants backed by buying power . (i.e. I have money to buy this meal.) What are Consumer’s Needs, Wants and Demands? (pp. 6-7)
- 6. What Will Satisfy Consumer’s Needs and Wants? (pp. 7-8) Caution: Avoid “Marketing Myopia” (pp. 8, 18) Products Anything that can be offered to a market to satisfy a need or want Services Activities or benefits offered for sale that are essentially intangible and don’t result in the ownership of anything Experiences Persons Places Organizations Ideas Information
- 7. How Do Consumers Choose Choose Among Products & Services? (pp. 9-11) Customer Value – Value gained from owning a product less the costs Customer Satisfaction – Perceived performance in providing value, relative to expectations Quality – Total quality management (TQM) -continuous improvement Caution: Avoid “Marketing Myopia” (pp. 8, 18)
- 8. How Do Consumers Obtain Products and Services? (p. 11) Transactions Exchanges The core concept of marketing Relationships Building a marketing network with supporting stakeholders (p. 14) Relationship Marketing & Customer Lifetime Value
- 9. Who Purchases Products and Services? (pp. 12-13) Market Actual and potential buyers who share a particular need or want that can be satisfied through an exchange or relationship. Needs or wants Resources to exchange Willingness to exchange Actual buyers Potential buyers
- 10. Connections With Customers (p. 14) Most marketers are targeting fewer, potentially more profitable customers. Asking: What value does the customer bring to the organization? Are they worth pursuing? Focus has shifted to: keeping current customers, and building lasting relationships based on superior satisfaction and value.
- 11. Marketing Management (p. 14) Marketing Management Implementing programs to create exchanges with target buyers to achieve organizational goals Demand Management Finding and increasing demand, also changing or reducing demand such as in “ Demarketing” Profitable Customer Relationships Attracting new customers and retaining and building relationships with current customers
- 12. Marketing Management Philosophies (pp. 15-22) Based on different assumptions about: - what customers want - what marketers should do Production Concept Product Concept Selling Concept Marketing Concept Societal Mktg. Concept Consumers favor products that are available and highly affordable. Consumers favor products that offer the most quality, performance, and innovative features. Consumers will buy products only if the company aggressively promotes/ sells these products. Focuses on needs & wants of target markets & delivering satisfaction better than competitors. Focuses on needs & wants of target markets & maintaining or improving societal and customer well-being.
- 13. Production Concept Late 1800s & Early 1900s Demand > Supply; High Costs (Still appropriate under these limited circumstances) (pp. 16-17) Consumers Favor: Widely available Highly affordable Management’s Focus: “engineer” Improving production efficiency Improving distribution efficiency Fails to recognize customer needs/wants
- 14. Product Concept Late 1940s (Post World War II) Demand < Supply (p. 18) Consumers Favor: Quality, performance Innovative features Management’s Focus: “inventor” Make superior products (“build a better mousetrap”) Make continuous improvements Danger: “Marketing Myopia” Focus on physical products , not customer needs & wants “ Fall in love” with the product , not the customer Customers don’t need or want (“just don’t care”) Over-improve New technology replaces
- 15. Selling Concept Late 1940s (Post World War II) Demand < Supply (p. 18) Consumers Favor: Not buying or not buying enough Management’s Focus: “hard-sell salesman” Large-scale selling and promotion efforts Coaxing & pushing people to buy Danger: “Sell what you can make” (versus “Make what you can sell”)
- 16. Marketing Concept 1950s – Present Demand < Supply (pp. 18-20) Consumers Favor: Products that satisfy their needs and wants Management’s Focus: “customer oriented” Understanding the needs and wants of consumers Satisfying them more efficiently and more effectively than competitors (NOTE: Efficiency & effectiveness - keeps the best of the production & product concepts) (Focuses on the underlying and latent needs as well as the stated needs)
- 17. Marketing and Sales Concepts Contrasted (Fig. 1.4, pp. 18-20) The Marketing Concept (“outside-in”) Factory Existing Products Selling and Promoting Profits through Volume The Selling Concept (“inside-out”) Starting Point Focus Means Ends Market Customer Needs Integrated Marketing Profits through Satisfaction
- 18. Societal Marketing Concept Late 20 th Century – Still emerging Recognizes potential conflict (pp. 20-22) Societal Marketing Concept Company (Profits) Consumers (Short-term wants) Society (Societal & customer well-being) Maintain & improve long-term well-being Social responsibility Ethics Environment Do good Stop doing bad
- 19. Chapter Review (pp. 36-37) Define what marketing is and discuss its core concepts. Explain the relationships between customer value, satisfaction, and quality. Define marketing management and examine how marketers manage demand and build profitable customer relationships. Compare the five marketing management philosophies.