1. CREATING CUSTOMER RELATIONSHIPS AND VALUE THROUGH MARKETING
CHAPTER
CREATING CUSTOMER RELATIONSHIPS AND VALUE THROUGH MARKETING

2. plus WHAT IS MARKETING? A Philosophy An Attitude A Perspective
A Management Orientation
A Set of Activities, including:
Products
Pricing
Promotion
Distribution
plus

3. American Marketing Association Definition
WHAT IS MARKETING?
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.
Marketing = Using Exchanges to Satisfy Needs

4. 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.

5. to buy a specific product
WHO DO I AIM AT?
Market – All people with both the desire and ability
to buy a specific product
Target Market – One or more subgroups I can satisfy

6. THE CONTROLLABLE MARKETING FORCES
The Four P’s
-the “arrow”
Price
Promotion
Place
Product

7. THE UNCONTROLLABLE MARKETING FORCES
Social
Natural
Economic
Technologic
Political and Legal
Competitive
External
Environmental
Factors
Helps identify market opportunities

8. FIGURE 1-A Summary of factors that affect an organization’s marketing program
An alternative look at the internal and external marketing factors that affect an organization’s marketing program. Information flows from consumers to the marketing department,n which develops a cohesive marketing program to integrate the four marketing mix elements and adapt to the five environmental forces.

9. FIGURE 1-4 Marketing’s task: satisfying consumer needs

10. HOW MARKETING BECAME SO IMPORTANT
Evolution of the Market Orientation
Production Era
Sales Era
Marketing Concept Era
Societal Era

11. MARKETING MANAGEMENT PHILISOPHIES
Orientation
Key Ideas
Production
Focus on efficiency of internal operations –
if we make it, they will buy it
Sales
Focus on aggressive sales techniques and believe that high sales result in high profits
Market
Focus on satisfying customer needs and wants while meeting objectives - if they will buy it, we will make it
Societal
Focus on satisfying customer needs and wants while enhancing individual and societal well-being. I.e.-mfg using recyclables

12. FIGURE 1-B Four different orientations in the history of American business
Societal

13. THE BREADTH & DEPTH OF MARKETING
What Is Marketed?
Goods
Services
Ideas
Who Buys and Uses What Is Marketed?
Ultimate Consumers
Organizational Buyers

14. HOW DO CONSUMERS BENEFIT
Utility – the benefits or customer value received
by users of the product

15. HOW TO DELIVER VALUE
Customer value-benefits received by targeted buyers that include quality, price, convenience, on-time delivery, and both before-sale and after-sale service.
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

16. KEEPING THE CUSTOMER SATISFIED
Meet or exceed customer’s expectations
Provide solutions to customer’s problems
Cultivate relationships, NOT one-time transactions

17. Concept Check
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.

18. Concept Check
1. An organization can’t satisfy the needs of all consumers, so it must focus on one or more subgroups, which are its ____________.
target markets

19. A: product, price, promotion, place
Concept Check
2. What are the four marketing mix elements that make up the organization’s marketing program?
A: product, price, promotion, place

20. 3. What are environmental forces?
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.

21. 1. What are the two key characteristics of the marketing concept?
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.

22. 2. What is the difference between goods and services?
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.

23. Exchange
Exchange is the trade of things of value between buyer and seller so that each is better off after the trade.

24. Market
A market consists of people with both the desire and ability to buy a specific product.

25. Customer Value
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.

26. Marketing Concept
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.

27. Market Orientation
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.

28. Societal Marketing Concept
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.

29. Organizational Buyers
Organizational buyers are those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.

30. Utility
Utility is the benefits or customer value received by users of the product.