1. McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Explain how marketing discovers and satisfies consumer needs.
LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:
Define marketing and identify the diverse factors influencing marketing activities.
LO1
LO2
Explain how marketing discovers and satisfies consumer needs.
LO3
Distinguish between marketing mix factors and environmental forces.
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3. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:
Explain how organizations build strong customer relationships and customer value through marketing.
LO4
LO5
Describe how today’s customer relationship era differs from prior eras.
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4. Discovering Student Study Needs
DISCOVERING HOW COLLEGE STUDENTS STUDY HELPS LAUNCH A NEW PRODUCT AT 3M
Discovering Student Study Needs
Satisfying Student Study Needs
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5. You Are a Marketing Expert Already
WHAT IS MARKETING?
LO1
You Are a Marketing Expert Already
Involved in 1,000s of Buying Decisions
May Be Involved in Selling Decisions
Marketing is NOT Easy
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6. FIGURE 1-1 The see-if-you’re-really-a-marketing-expert test
True
True
(c) plastic bottles
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7. WHAT IS MARKETING? DELIVERING BENEFITS AMA Definition of Marketing
LO1
Marketing Seeks to:
Discover Needs and Wants of Customers
Satisfy Them
Exchange
AMA Definition of Marketing
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8. WHAT IS MARKETING? DIVERSE FACTORS INFLUENCE MARKETING ACTIVITIES
LO1
The Organization Itself and Its Departments
Society
Environmental Forces
1-8

9. FIGURE 1-2 A marketing department relates to many people, organizations, and environmental forces
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10. WHAT IS MARKETING? REQUIREMENTS FOR MARKETING TO OCCUR
LO1
Two + Parties with Unsatisfied Needs
A Desire and Ability to be Satisfied
A Way for the Parties to Communicate
Something to Exchange
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11. HOW MARKETING DISCOVERS CONSUMER NEEDS THE CHALLENGE: NEW PRODUCTS
LO2
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”
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12. Dr. Care Vanilla-Mint Aerosol Toothpaste What “benefits” and what “showstoppers?”
LO2
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13. Terrafugia Transition What “benefits” and what “showstoppers?”
LO2
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14. Pepsi Next What “benefits” and what “showstoppers?”
LO2
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15. HOW MARKETING DISCOVERS CONSUMER NEEDS NEEDS VS. WANTS
LO2
Need
Want
Does Marketing Persuade People to Buy the “Wrong” Things?
Market
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16. FIGURE 1-3 Marketing seeks to discover consumer needs through research and then satisfy them with a marketing program
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17. HOW MARKETING SATISFIES CONSUMER NEEDS
LO3
Target Market
The 4 Ps: Controllable Marketing Mix Factors
Product
Promotion
Price
$499
Place
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18. HOW MARKETING SATISFIES CONSUMER NEEDS
LO3
Customer Value Proposition
Uncontrollable Environmental Forces
Social
Competitive
Economic
Regulatory
Technological
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19. THE MARKETING PROGRAM CUSTOMER VALUE AND RELATIONSHIPS
LO4
Customer Value
Value Strategies
Best Price
Best Service
Best Product
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20. Southwest Airlines, Starbucks, and Home Depot What customer value strategy?
LO4
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21. RELATIONSHIP MARKETING
THE MARKETING PROGRAM
RELATIONSHIP MARKETING
LO4
Relationship Marketing
Easy to Understand
Hard to Do
Marketing Program
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22. 3M’S STRATEGY & MARKETING PROGRAM HELPING STUDENTS STUDY
LO4
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
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23. FIGURE 1-4 Marketing programs for two new 3M Post-it® brand products targeted at two distinct customer segments: college students and office workers
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24. 3M STRATEGY & MARKETING PROGRAM MARKETPLACE SUCCESS?
LO4
Developed Third Generation Post-it® Flag Highlighter
Appeared on The Oprah Winfrey Show
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25. FIGURE 1-A Four different orientations in the history of American business
Production Era
Sales Era
Marketing Concept Era
Customer Relationship Era
Market Orientation
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26. HOW MARKETING BECAME IMPORTANT EVOLUTION OF THE MARKET ORIENTATION
LO5
Customer Relationship Management (CRM)
Customer Experience
Direct Contacts: Buying the Service
Indirect Contacts: Word-of-Mouth
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27. HOW MARKETING BECAME IMPORTANT ETHICS AND SOCIAL RESPONSIBILITY
LO5
Ethics
Social Responsibility
Societal Marketing Concept
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28. HOW MARKETING BECAME IMPORTANT BREADTH AND DEPTH OF MARKETING
LO5
Who Markets?
What Is Marketed?
Hermitage
Products (Goods)
Services
Ideas
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29. HOW MARKETING BECAME IMPORTANT BREADTH AND DEPTH OF MARKETING
LO5
Who Buys & Uses What Is Marketed?
Ultimate Consumers
Organizational Buyers
Who Benefits?
How Do Consumers Benefit?: Utility
Form Utility
Time Utility
Place Utility
Possession Utility
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30. 3M’S POST-IT® FLAG HIGHLIGHTER: EXTENDING THE CONCEPT!
VIDEO CASE 1
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31. 3M’s Post-it® Flag Highlighter
VIDEO CASE 1
3M’s Post-it® Flag Highlighter
1. (a) How did 3M’s David Windorski get ideas from college students to help him in designing the final commercial version of the Post-it® Flag Highlighter? (b) How were these ideas important to the success of the product?
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32. 3M’s Post-it® Flag Highlighter
VIDEO CASE 1
3M’s Post-it® Flag Highlighter
2. What (a) special advantages and (b) potential problems did 3M have in introducing a new highlighter-with-flags product for college students?
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33. 3M’s Post-it® Flag Highlighter
VIDEO CASE 1
3M’s Post-it® Flag Highlighter
3. Visit your college bookstore before you answer. (a) Where would you display the Post-it® Flag Highlighter in a college bookstore and (b) How can the display increase student awareness of the product?
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34. 3M’s Post-it® Flag Highlighter
VIDEO CASE 1
3M’s Post-it® Flag Highlighter
4. In what ways might 3M try to promote its Post-it® Flag Highlighter and make students more aware of the product?
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35. 3M’s Post-it® Flag Highlighter
VIDEO CASE 1
3M’s Post-it® Flag Highlighter
5. What are the (a) special opportunities and (b) potential challenges for 3M in taking its Post-it® Flag Highlighter into international markets? (c) On which countries should 3M focus its marketing efforts?
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36. Marketing
Marketing is the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large.
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37. Exchange
Exchange is the trade of things of value between buyer and seller so that each is better off after the trade.
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38. Market
A market consists of people with both the desire and the ability to buy a specific offering.
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39. Target Market
A target market consists of one or more specific groups of potential consumers toward which an organization directs its marketing program.
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40. Marketing Mix
The marketing mix consists of the marketing manager’s controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem.
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41. Customer Value Proposition
Customer value proposition is the cluster of benefits that an organization promises customers to satisfy their needs.
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42. Environmental Forces
Environmental forces consist of the uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.
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43. Customer Value
Customer value is the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
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44. Relationship Marketing
Relationship marketing links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.
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45. Marketing Program
A marketing program is a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.
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46. Marketing Concept
A 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.
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47. Market Orientation
A market orientation occurs when an organization 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.
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48. Societal Marketing Concept
Societal marketing concept is the view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being.
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49. Product
A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value.
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50. Ultimate Consumers
Ultimate consumers consist of the people who use the goods and services purchased for a household. Also called consumers, buyers, or customers.
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51. Organizational Buyers
Organizational buyers are those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.
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52. Utility
Utility consists of the benefits or customer value received by users of the product.
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