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Chapter 1 Marketing: The Art and Science of Satisfying Customers

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1 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. Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

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. Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

4 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 Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

5 American Marketing Association’s new official definition of marketing released August 2004:
Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

6 Core Concepts of Marketing (1 of 2)
Needs (a state of felt deprivation) Wants (needs shaped by culture and individual personality) Demands Marketing Offers (product, service, and experience) Value

7 Core Concepts of Marketing (2 of 2)
Satisfaction (customer expectations) Exchange Transaction Market (set of all actual and potential buyers of a product or service) Utility (want satisfying power of a good or service)

8 What is Marketing? Organizations must create utility to survive
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

9 Copyright © 2013 by South Western, a division of Cengage Learning
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

10 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 Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

11 Four Eras in the History of Marketing
The essence of marketing is the exchange process Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

12 Copyright © 2013 by South Western, a division of Cengage Learning
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

13 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 Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

14 Avoiding Marketing Myopia
Marketing myopia - Management’s failure to recognize the scope of its business Focusing on customer need satisfaction can overcome myopia Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

15 AVOIDING MARKETING MYOPIA
AVOIDING MARKETING MYOPIA • Marketing myopia Management’s failure to recognize the scope of its business.

16 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 Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

17 Copyright © 2013 by South Western, a division of Cengage Learning
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

18 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 Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

19 Copyright © 2013 by South Western, a division of Cengage Learning
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

20 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 Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.


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