1-3 Marketing “ The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organization goals.” American Marketing Association
1-4 The Importance of Marketing Marketing is Valuable to a Variety of Organizations: Corporate For-Profit Nonprofit The Military Religious & Ethnic Groups Small Firms Individual Marketers
1-5 Marketing as an Organizational Philosophy Can be Stated Formally as a Mission Statement Indicates the Types of Activities the Organization Values Can be Established Informally through The Communications and Actions of Top Management
1-7 The Marketing Concept The purpose of an organization is to satisfy customer needs. Satisfying needs requires integrated and coordinated efforts through out the organization. Organizations should focus on long-term success.
1-8 Building Customer Equity Customer Equity is the Financial Value of a Firm’s Customer Relationships and Consists Of: 1.Profits from first-time customers, and, 2.Expected profits from all future sales.
1-9 Three Ways to Increase Customer Equity 1.Decrease the cost of acquiring new customers. 2.Retain more customers longer. 3.Increase profits from retained customers by selling them more at higher margins and with lower marketing expenses.
1-10 Building Customer Equity Integrates: Short-term Orientations Short-term Orientations Long-term Orientations Long-term Orientations New Customers New Customers Existing Customers Existing Customers
1-11 3 Keys to Building Customer Equity 1.High loyalty levels lead to increased sales growth, higher profitability & higher customer equity. 2.Completely delighted & satisfied customers are best for earning customer loyalty. 3.Exceptional value is needed to delight & completely satisfy customers.
1-12 Customer Value The Calculation: The revenue stream from repeat purchases +The revenue stream from referrals =The Lifetime Value of a Loyal Customer
1-13 Marketing as a Societal Process Defined as “a process that facilitates the flow of goods and services from producers to consumers in a society.” Producers of Goods & Services Consumers of Goods & Services
1-14 Marketing as a Societal Process Issues to Consider: –What institutions are involved in the system? –What activities do these institutions perform? –How effective is the system at satisfying customer needs? –How efficiently can the system provides desired goods and services?
1-15 Marketing as a Societal Process A society’s marketing system is closely related to its political and economic systems.
1-16 Marketing Concerns in Eastern Europe How to: 1.Become more market-oriented and consumer- responsive? 2.Improve product quality? 3.Change product design, assortment, finishing & packaging? 4.How to increase communications efforts? 5.Increase merchandising efforts? 6.Use competitive pricing? 7.Institute promotional pricing & price discounts
1-17 Marketing is a Process Consisting Of: Marketing Exchanges Marketing Strategies Marketing Activities Marketing Positions Marketing Institutions
1-18 Marketing Exchanges EXCHANGE is the “transfer of something tangible or intangible, actual or symbolic between 2 or more social actors.” Transactions in marketing exchanges can use: Money Barter Time & Money Votes Marketer’s Goods Or Services Buyer’s Exchange
1-19 Marketing Strategies Select a Target Market Develop a Marketing Mix To Satisfy Market Needs