Principles of Marketing BA 3365 Section 006 Introduction to Marketing Professor Andrei Strijnev The University of Texas at Dallas Fall 2005

DEVELOPING CUSTOMER RELATIONSHIPS AND VALUE THROUGH MARKETING 1 1 C HAPTER

Marketing: Using Exchanges to Satisfy NeedsMarketingExchanges The Diverse Factors Influencing Marketing Activities WHAT IS MARKETING?

FIGURE 1-3 FIGURE 1-3 An organization’s marketing department relates to many people, groups, and forces

Toro’s iMow What “benefits” and what “showstoppers”?

Discovering Consumer Needs The Challenge of Launching Winning New Products Consumer Needs and Consumer Wants What a Market IsMarket HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDS

FIGURE 1-4 FIGURE 1-4 Marketing’s first task: discovering consumer needs

Satisfying Consumer Needs  Target market Target market The Four Ps: Controllable Marketing Mix Factors Marketing Mix The Uncontrollable, Environmental Factors Environmental Factors HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDS

Wal-Mart Customer Value: Best Price

Lands’ End Customer Value: Exceptional Service

Global Competition, Customer Value, and Customer RelationshipsCustomer Value Relationship Marketing and the Marketing Program Relationship Marketing: Easy to UnderstandRelationship Marketing Relationship Marketing: Difficult to Implement The Marketing ProgramMarketing Program THE MARKETING PROGRAM: HOW CUSTOMER RELATIONSHIPS ARE BUILT

FIGURE 1-5 FIGURE 1-5 Marketing’s second task: satisfying consumer needs

A Marketing Program for Rollerblade Expanding the Market for Rollerblade Skates Exploiting Strengths in Technology THE MARKETING PROGRAM: HOW CUSTOMER RELATIONSHIPS ARE BUILT

Rollerblade In-line Skate Segment: Women

Rollerblade In-line Skate Segment: Kids

FIGURE 1-6 FIGURE 1-6 Marketing programs for two of Rollerblade’s skates, targeted at two distinctly different customer segments: fast-growing kids and fitness skaters.

Evolution of Market Orientation Production Era Sales Era The Marketing Concept EraMarketing Concept The Market Orientation EraMarket Orientation  Customer relationship management (CRM) Customer relationship management (CRM) HOW MARKETING BECAME SO IMPORTANT

FIGURE 1-7 FIGURE 1-7 Four different orientations in the history of American business

Ethics and Social Responsibility: Balancing the Interests of Different Groups Ethics Social Responsibility  Societal marketing concept Societal marketing concept  Macromarketing Macromarketing  Micromarketing Micromarketing HOW MARKETING BECAME SO IMPORTANT

The Breadth and Depth of Marketing Who Markets? What is Marketed? HOW MARKETING BECAME SO IMPORTANT

Hermitage Museum Outside View

Hermitage Museum Statue

The Breadth and Depth of Marketing (cont) Who Buys and Uses What is Marketed?  Ultimate consumers Ultimate consumers  Organizational buyers Organizational buyers Who Benefits? How Do Consumers Benefit?  Utility Utility HOW MARKETING BECAME SO IMPORTANT