one Marketing now PART Chapter 1: Marketing Chapter 2: Sustainable marketing Chapter 3: Strategic marketing one PART

Video Case: Land Rover (1) What is the company doing in response to the challenges of globalisation and environmental sustainability? What is the company’s strategy to remain successful and to compete with the global, volume car manufacturers and the numerous new competitors in the SUV segment originally pioneered by Land Rover? Principles of Marketing 5e, © Pearson Education 2008

Video Case: Land Rover (1) Principles of Marketing 5e, © Pearson Education 2008

Video Case: Land Rover (2) How and why does the company position the Land Rover brand across global markets such as North America, Africa and emerging countries like China? Principles of Marketing 5e, © Pearson Education 2008

Video Case: Land Rover (2) Principles of Marketing 5e, © Pearson Education 2008

CHAPTER one Marketing

Previewing concepts (1) Define marketing and outline the steps in the marketing process Explain the importance of understanding customers and the marketplace and identify the core marketplace concepts Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy Principles of Marketing 5e, © Pearson Education 2008

Previewing concepts (2) Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return Describe sustainable marketing and the major trends and forces that are changing the marketing landscape Principles of Marketing 5e, © Pearson Education 2008

Prelude case: Ryanair Principles of Marketing 5e, © Pearson Education 2008

What is marketing? Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Principles of Marketing 5e, © Pearson Education 2008

Figure 1.1 A simple model of the marketing process Understand the marketplace and customer needs Design customer-driven marketing strategy Construct an integrated marketing programme Build profitable relationships and create customer delight Capture value from customers to create profits and customer equity Principles of Marketing 5e, © Pearson Education 2008

Core concepts: Understanding the marketplace and customer needs Needs, wants and demands Market offering Value, satisfaction and quality Exchanges, transactions and relationships Markets and the marketing system Principles of Marketing 5e, © Pearson Education 2008

Market offerings are not limited to physical products Principles of Marketing 5e, © Pearson Education 2008

What is customer value? Customer value is the consumer’s assessment of the product’s overall capacity to satisfy his or her needs. Principles of Marketing 5e, © Pearson Education 2008

What is customer satisfaction? Customer satisfaction is the extent to which a product’s perceived performance matches expectations. If the product’s performance falls short of expectations, the buyer is dissatisfied, but if performance matches or exceeds expectations, the buyer is satisfied. Principles of Marketing 5e, © Pearson Education 2008

Figure 1.2 Elements of a modern marketing system Principles of Marketing 5e, © Pearson Education 2008

What is marketing management? Marketing management is the art and science of choosing target markets and building profitable relationships with them. Principles of Marketing 5e, © Pearson Education 2008

Selecting a target market Principles of Marketing 5e, © Pearson Education 2008

Value propositions Principles of Marketing 5e, © Pearson Education 2008

Marketing management orientations Production concept Product concept Selling concept Marketing concept Societal marketing concept Sustainable marketing concept Principles of Marketing 5e, © Pearson Education 2008

Figure 1.3 Selling and marketing concepts Principles of Marketing 5e, © Pearson Education 2008

Figure 1.4 The societal marketing concept Principles of Marketing 5e, © Pearson Education 2008

Figure 1.5 The sustainable marketing concept Principles of Marketing 5e, © Pearson Education 2008

Components of an integrated marketing plan Determine target customers Create value Plan marketing mix Product Price Place Promotion Principles of Marketing 5e, © Pearson Education 2008

What is customer relationship management? Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Principles of Marketing 5e, © Pearson Education 2008

Prius creates customer value Principles of Marketing 5e, © Pearson Education 2008

Outcomes of creating customer value Customer loyalty and retention Share of market Share of customer Customer equity Principles of Marketing 5e, © Pearson Education 2008

Figure 1.4 Customer relationship groups Principles of Marketing 5e, © Pearson Education 2008

The new marketing landscape Sustainability Not-for-profit marketing The electronic marketplace The global marketplace Principles of Marketing 5e, © Pearson Education 2008

The steps in the marketing process (1) analysing marketing opportunities (2) selecting target markets (3) developing the marketing mix (4) managing the marketing effort Principles of Marketing 5e, © Pearson Education 2008

What’s to come Part 1 Part 2 Part 3 Parts 4-7 Marketing Sustainable market Strategic marketing Part 2 The environment Markets Marketing research Part 3 Relationship marketing Segmentation and positioning Competitive strategy Parts 4-7 The marketing mix Principles of Marketing 5e, © Pearson Education 2008

Figure 1.7 Influences on marketing strategy Principles of Marketing 5e, © Pearson Education 2008

Market leader strategies Market challenger Market follower Market nicher Principles of Marketing 5e, © Pearson Education 2008

Figure 1.8 The four Ps Principles of Marketing 5e, © Pearson Education 2008

Four Ps or Four Cs Product Price Promotion Place Customer needs/wants Cost to the customer Communication Convenience Principles of Marketing 5e, © Pearson Education 2008

Figure 1.9 An expanded model of the marketing process Principles of Marketing 5e, © Pearson Education 2008

Discussing the concepts Why should we study marketing? What role does marketing play in satisfying human desires? What are the differences between the marketing management orientations? What key challenges face businesses today? Is the societal marketing concept good for society? Principles of Marketing 5e, © Pearson Education 2008