1. What Is Marketing?
Simple Definition: Marketing is managing profitable customer relationships.
Goals:
Attract new customers by promising superior value.
Keep and grow current customers by delivering satisfaction.
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2. Marketing Defined
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.
OLD View of Marketing: Making a Sale – “Telling & Selling”
New View of Marketing:
Satisfying customer needs
NEW View of Marketing: Satisfying Customer Needs
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3. The Marketing Process A simple model of the marketing process:
Understand the marketplace and customer needs and wants.
Design a customer-driven marketing strategy.
Construct a marketing program that delivers superior value.
Build profitable relationships and create customer delight.
Capture value from customers to create profits and customer quality.
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4. Needs, Wants, & Demands
Need: State of felt deprivation including physical, social, and individual needs.
Physical needs:
Food, clothing, shelter, safety
Social needs:
Belonging, affection
Individual needs:
Learning, knowledge, self-expression
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5. Needs, Wants, & Demands
Wants: Form that a human need takes, as shaped by culture and individual personality.
Wants + Buying Power = Demand
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6. Need / Want Fulfillment
Needs and wants are fulfilled through a Marketing Offer:
Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
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7. Need / Want Satisfiers Products: Services Brand Experiences: Persons
Places
Organizations
Information
Ideas
Services
Activity or benefit offered for sale that is essentially intangible and does not result in ownership.
Brand Experiences:
“. . . dazzle their senses, touch their hearts, stimulate their minds.”
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8. Marketing Myopia
Marketing myopia occurs when sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products.
They focus on the “wants” and lose sight of the “needs.”
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9. Value & Satisfaction Care must be taken when setting expectations:
If performance is lower than expectations, satisfaction is low.
If performance is higher than expectations, satisfaction is high.
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10. Exchange vs. Transaction
Act of obtaining a desired object from someone by offering something in return.
Transaction:
A trade of values between two parties.
One party gives X to another party and gets Y in return. Can include cash, credit, or check.
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11. What Is a Market? The set of actual and potential buyers of a product.
These people share a need or want that can be satisfied through exchange relationships.
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12. Modern Marketing Systems
Main elements in a modern marketing system include:
Suppliers
Company (marketer)
Competitors
Marketing intermediaries
Final users
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13. Marketing Management
The art and science of choosing target markets and building profitable relationships with them.
Requires that consumers and the marketplace be fully understood
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14. Marketing Management
Designing a winning marketing strategy requires answers to the following questions:
1. What customers will we serve?
What is our target market?
2. How can we best serve these customers?
What is our value proposition?
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15. Segmentation & Target Marketing
Market Segmentation:
Divide the market into segments of customers
Target Marketing:
Select the segment to cultivate
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16. Marketing Management Demand Management Demarketing
Finding and increasing demand, also changing or reducing demand, as in demarketing.
Demarketing
Temporarily or permanently reducing the number of customers or shifting their demand.
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17. Value Proposition
The set of benefits or values a company promises to deliver to consumers to satisfy their needs.
Value propositions dictate how firms will differentiate and position their brands in the marketplace.
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18. Marketing Management Philosophies
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
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19. The Marketing Plan Transforms the marketing strategy into action
Includes the marketing mix and 4 P’s of marketing:
Product
Price
Place (Distribution)
Promotion
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20. Customer Relationship Management
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
Acquiring customers
Keeping customers
Growing customers
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21. Customer Perceived Value
Customer’s evaluation of the difference between all of the benefits and all of the costs of a marketing offer relative to those of competing offers.

22. Customer Satisfaction
11/15/2018
Customer Satisfaction
Dependent on the product’s perceived performance relative to a buyer’s expectations.
Customer satisfaction often leads to consumer loyalty.
Some firms seek to DELIGHT customers by exceeding expectations.
Copyright 2005 Brainy Betty, Inc.

23. Customer Relationships
Loyalty and retention programs build relationships and may feature:
Financial Benefits
EX: Frequency marketing programs
Social Benefits
EX: Club marketing programs
Structural Ties
Focus is on relating directly to profitable customers, for the longterm.

24. Partner Relationship Marketing
Marketing partners help create customer value and assist in building customer relationships.
Partners inside the firm:
All employees customer focused
Teams coordinate efforts toward customers
Partners outside the firm:
Supply chain management
Strategic alliances
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25. Customer Loyalty & Retention
Customer Lifetime Value
The entire stream of purchases that the customer would make over a lifetime of patronage.
Share of Customer
The share a company gets of the customers purchasing in their product categories.
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26. Customer Equity
The combined discounted customer lifetime values of all the company’s current and potential customers.
Classify customers by loyalty and potential profitability
Manage accordingly
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27. The New Digital Age
Technology impacts the ways firms bring value to their customers.
Greater connectivity means greater access to information, faster travel and communication.
The Internet allows anytime, anywhere connections between firms and customers.
“Click-and-mortar” companies
“Click-only” companies
Business-to-business e-commerce
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28. New Marketing Landscape
Rapid Globalization
Ethics and Social Responsibility
Not-for-Profit Marketing
New World of Marketing Relationships
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29. Define marketing and the marketing process.
Explain the importance of understanding customers and identify the five core marketplace concepts.
Identify the elements of a customer-driven marketing strategy and discuss the marketing management orientations.
Discuss customer relationship management and creating value for and capturing value from customers.
Describe the major trends and forces changing the marketing landscape.
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