Presentation on theme: "CREATING CUSTOMER RELATIONSHIPS AND VALUE THROUGH MARKETING"— Presentation transcript:
1 CREATING CUSTOMER RELATIONSHIPS AND VALUE THROUGH MARKETING CHAPTERCREATING CUSTOMER RELATIONSHIPS AND VALUE THROUGH MARKETING
2 plus WHAT IS MARKETING? A Philosophy An Attitude A Perspective A Management OrientationA Set of Activities, including:ProductsPricingPromotionDistributionplus
3 American Marketing Association Definition WHAT IS MARKETING?American Marketing Association DefinitionMarketing 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 abilityto buy a specific productTarget Market – One or more subgroups I can satisfy
6 THE CONTROLLABLE MARKETING FORCES The Four P’s-the “arrow”PricePromotionPlaceProduct
7 THE UNCONTROLLABLE MARKETING FORCES SocialNaturalEconomicTechnologicPolitical and LegalCompetitiveExternalEnvironmentalFactorsHelps 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.
10 HOW MARKETING BECAME SO IMPORTANT Evolution of the Market OrientationProduction EraSales EraMarketing Concept EraSocietal Era
11 MARKETING MANAGEMENT PHILISOPHIES OrientationKey IdeasProductionFocus on efficiency of internal operations –if we make it, they will buy itSalesFocus on aggressive sales techniques and believe that high sales result in high profitsMarketFocus on satisfying customer needs and wants while meeting objectives - if they will buy it, we will make itSocietalFocus 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?GoodsServicesIdeasWho Buys and Uses What Is Marketed?Ultimate ConsumersOrganizational Buyers
14 HOW DO CONSUMERS BENEFIT Utility – the benefits or customer value receivedby users of the product
15 HOW TO DELIVER VALUECustomer 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 performGive consumers more than they expectAvoid unrealistic pricingGive the buyer factsOffer organization-wide commitment in service and after-sales support
16 KEEPING THE CUSTOMER SATISFIED Meet or exceed customer’s expectationsProvide solutions to customer’s problemsCultivate relationships, NOT one-time transactions
17 Concept Check1. 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 Check1. 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 Check2. 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 Check3. 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 Check1. 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 Check2. 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 ExchangeExchange is the trade of things of value between buyer and seller so that each is better off after the trade.
24 MarketA market consists of people with both the desire and ability to buy a specific product.
25 Customer ValueCustomer 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 ConceptThe 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 OrientationAn 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 UtilityUtility is the benefits or customer value received by users of the product.