1. Chapter 1 Marketing: The Art and Science of Satisfying Customers
Principles of
Contemporary Marketing
Kurtz & Boone
Chapter 1 Marketing: The Art and Science of Satisfying Customers

2. Chapter Objectives
Define marketing, explain how it creates utility, and describe its role in the global marketplace.
Contrast marketing activities during the four eras in the history of marketing.
Explain the importance of avoiding marketing myopia.
Describe the characteristics of not-for-profit marketing.
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3. Chapter Objectives
Identify and briefly explain each of the five types of nontraditional marketing.
Explain the shift from transaction-based marketing to relationship and social marketing.
Identify the universal functions of marketing.
Demonstrate the relationship between ethical business practices, social responsibility, sustainability and marketplace success.
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4. What is Marketing? Organizations must create utility to survive
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6. A Definition of Marketing
Marketing - An organizational function and a set of processes for:
Creating, communicating, and delivering value to customers
Managing customer relationships in ways that benefit the organization and its stakeholders
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7. Today’s Global Marketplace
Factors that have extended economic views
Increase in international trade agreements
Growth of electronic business
Interdependence of the world’s economies
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8. Four Eras in the History of Marketing
The essence of marketing is the exchange process
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10. Characteristics of the Four Eras
Era in marketing
Focus
Production Era
Production orientation
Sales Era
Sales orientation
Marketing Era
Consumer orientation
Relationship Era
Relationship marketing
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11. Avoiding Marketing Myopia
Marketing myopia - Management’s failure to recognize the scope of its business
Focusing on customer need satisfaction can overcome myopia
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12. Not-for-Profit Marketing
Marketing in not-for-profit organizations
Marketing strategy is adopted to meet service objectives
Not-for-profit organizations form alliances with business firms for mutual benefit
Characteristics of not-for-profit marketing
Does not focus on bottom line
Markets to multiple audiences
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14. Relationship Marketing
Focus is on moving the customers up the loyalty ladder to increase their lifetime value
Interactive marketing creates direct communication with customers, allows larger exchanges, and puts the customer in control
It is increasingly taking place on social media sites like Facebook, Twitter, and blogs
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16. Partnerships and Strategic Alliances
Strategic alliances provide firms competitive advantage
Forms of alliances
Product development partnerships
Vertical alliances
Not-for-profits often raise awareness and funds through strategic partnerships
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17. Costs and Functions of Marketing
Firms spend money (thereby incurring costs) to create utility
Functions of marketing
Exchange functions - Buying and selling
Physical distribution functions - Transporting and storing
Facilitating functions - Standardizing and grading, financing, risk taking, and securing marketing information
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19. Ethics and Social Responsibility
Companies that promote ethics and social responsibility produce increased employee loyalty and customer growth
Social responsibility programs are meant to enhance the society but help in improving public image of the firm
Sustainable products and practices are goals of socially responsible firms
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