1. An Overview of Strategic Marketing1
An Overview of Strategic Marketing

2. To be able to define marketing as focused on customers
Objectives
To be able to define marketing as focused on customers
To identify some important marketing terms, including target market, marketing mix, marketing exchanges, and marketing environment
To become aware of the marketing concept and marketing orientation
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3. To understand the importance of building customer relationships
Objectives (cont’d)
To understand the importance of building customer relationships
To learn about the process of marketing management
To recognize the role of marketing in our society
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4. Understanding the Marketing Concept Managing Customer Relationships
Chapter Outline
Defining Marketing
Understanding the Marketing Concept
Managing Customer Relationships
Value-Driven Marketing
Marketing Management
The Importance of Marketing in Our Global Economy
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5. Defining Marketing Marketing Customers
The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers in a dynamic environment
Customers
The purchasers of organizations’ products; the focal point of all marketing activities
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6. Components of Strategic Marketing
FIGURE 1.1
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7. Marketing Focuses on Customers
Target Market
A specific group of customers on whom an organization focuses its marketing efforts
Large or small customer groups
Single or multiple product markets
Single or multiple products
Local to global markets
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8. Marketing Deals with Products, Distribution, Promotion, and Price
The Marketing Mix
Four marketing activities—product, distribution, promotion, and pricing—that a firm can control to meet the needs of customers within its target market
Product
Distribution
Promotion
Pricing
Target Market
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9. Marketing Mix Variables
Product
Goods, services, or ideas that satisfy customer needs
Distribution
The ready, convenient, and timely availability of products
Promotion
Activities that inform customers about the organization and its products
Pricing
Decisions and actions that establish pricing objectives and policies and set product prices
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10. Marketing Builds Satisfying Exchange Relationships
The provision or transfer of goods, services, or ideas in return for something of value
FIGURE 1.2
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11. Marketing Builds Satisfying Exchange Relationships (cont’d)
Exchange Conditions
Two or more participants have something of value that the other party desires.
Exchange provides mutual benefit/satisfaction.
Each party has confidence in the exchange value of the other party’s offering.
Each party must meet the expectations of the exchange to become trusted by the other parties.
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12. Marketing Occurs in a Dynamic Environment
Marketing Concept
A philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals
Customer satisfaction
Analysis of customers’ current and long-term needs
Analysis of competitors’ capabilities
Integration of firm’s resources
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13. Evolution of the Marketing Concept
Product Orientation
Late 19th century: efficient production of goods allowed firms to meet strong customer demand.
Sales Orientation
Mid-1920s–early 1950s: weakened demand required that products would have to be “sold.” (personal selling, advertising, and distribution was the focus)
Marketing Orientation
Early 1950s–2000s: adopting a customer focus means a commitment to researching and responding to customer needs.
FIGURE 1.3
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14. Implementing the Marketing Concept
Becoming marketing oriented requires
Establishing an information system to discover customers’ needs and using the information to create satisfying products.
Coordinating all marketing activities by restructuring the organization.
Obtaining the support of all managerial and staff levels in the organization.
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15. Managing Customer Relationships
Relationship Marketing
Establishing long-term, mutually satisfying buyer-seller relationships allowing for cooperation and mutual dependency
Increased value of customer (loyalty) over time results in increased profitability.
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16. Managing Customer Relationships (cont’d)
Customer Relationship Management (CRM)
Using information about customers to create marketing strategies that develop and sustain desirable customer relationships
Identifying buying-behavior patterns of customers
Using behavioral information to focus on the most profitable customers
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17. Value-Driven Marketing
A customer’s subjective assessment of benefits relative to the costs in determining the worth of a product
Customer value = customer benefits – customer costs
Customer benefits
Anything desired by the customer that is received in an exchange
Customer costs
Anything a customer gives up in an exchange for benefits
Monetary price of the benefit
Search costs (time and effort) to locate the product
Risks associated with the exchange
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18. Marketing Management Marketing Management
The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently
Effectiveness
The degree to which an exchange helps an organization achieve its objectives
Efficiency
The process of minimizing the resources an organization must spend to achieve a specific level of desired exchanges
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19. Marketing Management (cont’d)
Planning
Assessing opportunities and resources
Determining marketing objectives
Developing a marketing strategy and plans for implementation and control
How, when and by whom are marketing activities performed?
Organizing
Developing the internal structure of the marketing unit
Functions, products, regions, customer types
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20. Marketing Management (cont’d)
Implementation
Coordinating marketing activities
Motivating marketing personnel
Developing effective internal communications within the unit
Control
Establishing performance standards
Comparing actual performance to established standards
Reducing the difference between desired and actual performance
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21. Effective Marketing Control Process
Provides for quick detection of differences in planned and actual performance
Accurately monitors activities and is flexible enough to accommodate changes
Incurs low process costs relative to the costs of a “no-control” situation
Is understandable by both managers and subordinates.
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22. The Importance of Marketing in Our Global Economy
Marketing costs consume a sizable portion of buyers’ dollars
Marketing is used in nonprofit organizations
Marketing is important to business and the economy
Marketing fuels our global economy
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23. The Importance of Marketing in Our Global Economy (cont’d)
Marketing knowledge enhances consumer awareness
Marketing connects people through technology
Socially responsible marketing can promote the welfare of customers and society
Marketing offers many exciting career prospects
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24. After reviewing this chapter you should:
Be able to define marketing as focused on customers.
Know the meaning of important marketing terms, including target market, marketing mix, marketing exchanges, and marketing environment.
Be more aware of the marketing concept and marketing orientation.
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25. After reviewing this chapter you should:
Understand the importance of building customer relationships.
Have learned about the process of marketing management.
Recognize the important role of marketing in our society.
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