Chapter 1 Marketing in a Changing World: Creating Customer Value and Satisfaction.
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1 Chapter 1Marketing in a Changing World: Creating Customer Value and Satisfaction
2 What is Marketing?Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.Simply put: Marketing is the delivery of customer satisfaction at a profit.
4 What are Consumer’s Needs, Wants and Demands? Needs - state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging. i.e. I am hungry.Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a hamburger, French fries, and a soft drink.Demands - human wants backed by buying power. i.e. I have money to buy this meal.
5 What Will Satisfy Consumer’s Needs and Wants? ProductsAnything that can be Offered to a Market to Satisfy a Need or WantExperiencesPersonsPlacesOrganizationsIdeasInformationServicesActivities or Benefits Offered for Sale That Are EssentiallyIntangible and Don’t Result in the Ownership of Anything
6 How Do Consumers Choose Choose Among Products and Services? Value Gained From Owning a Product and Costs of Obtaining the Product is Customer ValueProduct’s Perceived Performance in Delivering Value Relative to Buyer’s Expectations is Customer SatisfactionTotal Quality Management Involves Improving the Quality of Products, Services, and Marketing Processes
7 How Do Consumers Obtain Products and Services? ExchangesTransactionsRelationshipsBuilding a MarketingNetwork Consisting ofThe Company and AllIts SupportingStakeholders
8 Who Purchases Products and Services? People Who Exhibit NeedFactorsSituationalUnexpectedAttitudesofOthersEthicalPotential BuyersMarket – Buyers who share a particular need or want that can be satisfied through exchange or relationships.Actual BuyersResources to ExchangeWillingness to Exchange
9 Modern Marketing System (Fig. 1-3) SuppliersModern Marketing System (Fig. 1-3)CompetitorsCompany(Marketer)MarketingIntermediariesEnvironmentEnd UserMarketEnvironment
12 Marketing Management Philosophies Consumers favor products that areavailable and highly affordable.Improve production and distribution.Consumers favor products that offerthe most quality, performance, andinnovative features.Consumers will buy products only ifthe company promotes/ sells theseproducts.Focuses on needs/ wants of targetmarkets & delivering satisfactionbetter than competitors.markets & society’s welfare.Production ConceptProduct ConceptSelling ConceptMarketing ConceptSocietal Marketing Concept
16 Marketing Challenges in the New “Connected” Millennium Connections with CustomersConnecting more selectivelyConnecting for lifeConnecting DirectlyConnectingTechnologiesComputerInformationCommunicationTransportationConnections with the world around usGlobal ConnectionsConnections with values and responsibilitiesBroadened connectionsConnections with Marketing PartnersConnecting with other company departmentsConnecting with suppliers and distributorsConnecting through strategic alliancesText page 23
17 Technologies for Connecting Learn About &Track CustomersWith DatabasesCreate Products &Services Tailored toMeet Customer NeedsConnecting Technologies inComputers,Telecommunications,Information, & TransportationHelp To:Communicate WithCustomers in GroupsOr One-on-OneDistribute ProductsMore Efficiently &Effectively
18 The InternetThe Internet has been hailed as the technology behind a new model for doing business.New applications include:Internet – connecting with customers,Intranets – connecting with others in the company, andExtranets – connecting with strategic partners, suppliers, and dealers.Purchasing will be over $1.4 trillion in 2003.400,000 companies are now using the Internet to do business.
19 Connections With Customers Most marketers are targeting fewer, potentially more profitable customers.Asking:What value does the customer bring to the organization?Are they worth pursuing?Focus has shifted to:keeping current customers, andbuilding lasting relationships based on superior satisfaction and value.
20 Direct Connections With Customers Many companies use technologies to let them connect more directly with their customers.Products available via telephone, mail-order catalogs, kiosks and e-commerce.Some firms sell only via direct channels (i.e. Dell Computer, others use a combination.Direct marketing is redefining the buyer’s role in connecting with sellers.Buyers are active participants in shaping the marketing offer and process; some buyers design their own products online.
21 Connections With Marketing’s Partners Connecting Inside the CompanyEvery employee must be customer-focusedTeams coordinate efforts toward customersConnecting With Outside PartnersSupply Chain ManagementStrategic Alliances
22 Connections With the World Around Us GlobalConnectionsBroadeningConnectionsValuesConnectionsSocial ResponsibilityConnections
23 Review of Concept Connections Define what marketing is and discuss its core concepts.Explain the relationships between customer value, satisfaction, and quality.Define marketing management and examine how marketers manage demand and build profitable customer relationships.Compare the five marketing management philosophies.Analyze the major challenges facing marketers heading into the next millennium.