1. Chapter 1 An Overview of Marketing

2. What is Marketing? A Philosophy An Attitude A Perspective A Management Orientation A Set of Activities, including: Products Pricing Promotion Distribution

3. What is Marketing? American Marketing Association Definition Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

4. Marketing Management Philosophies Philosophy Key Ideas Production Sales Market Societal Focus on efficiency of internal operations Focus on satisfying customer needs and wants Focus on satisfying customer needs and wants while enhancing individual and societal well-being Focus on aggressive techniques for overcoming customer resistance

5. The Marketing Concept  Focuses on customer wants and needs to distinguish products from competition  Integrates all organization’s activities to satisfy customer wants and needs  Achieves organization’s long-term goals by satisfying customer wants and needs

6. http://acsi.asqc.org

7. Customer Satisfaction is Key How satisfied are your customers? How do you know? What causes different levels of satisfaction?

8. What Customers Like - Q1/2000 American Satisfaction Index Results http://acsi.asq.org/) Top: Nondurables - How can you screw up ketchup? Middle: Durables - More complexity means more can go wrong Bottom: Services - Stressed frontline workers/low wages Most recent Results Example IndustrySatisfaction Score Last Change Beverage84+ 1.2% Apparel79 NC Autos78- 1.3% Police (suburban)78+ 9.8% Commercial Banks68- 2.9 National News64+ 3.2% Internal Revenue51- 3.8%

9. The American Customer Satisfaction Index Overall Customer Satisfaction (ACSI) Perceived Value Perceived Quality Customer Expectations Customer Loyalty + - + + + + + + Customer Complaints Customization & ReliabilityQuality Relative to the Price Paid Past Experiences, Word-of-Mouth Future Predictions Ultimate Dependent Variable (proxy for profitability)

10. Satisfaction/Retention Metrics “Putting the Service-Profit Chain to Work,” James L. Heskett, et al, Harvard Business Review, March-April, 1994, PP 164-174. Extremely Somewhat Slightly Satisfied Very Dissatisfied Dissatisfied Dissatisfied Satisfied Retention Retention Terrorists zone of affection zone of indifference zone of defection 0 20 40 60 80 100% Apostles Satisfaction

11. The Profit Chain Internal Service Quality Employee Satisfaction Workplace design Job design Employee Selection Employee development Employee rewards Employee recognition Tools for serving customers Employee Retention Employee Productivity Customer Satisfaction External Service Value Customer Loyalty Revenue Growth & Profitability Operations designed and delivered to meet customer needs Retention Repeat business Referral Relationship Marketing

12. Sales vs. Market Orientations Organization’s Focus Firm’s Business For Whom? Primary Profit Goal? Tools to Achieve Selling goods and services Everybody Maximum sales volume Primarily promotion Inward Sales Orientation Market Orientation OutwardCoordinated use of all marketing activities Customer satisfaction Specific groups of people Satisfying wants and needs

13. The Organization’s Focus Create Customer Value Create Customer Value Build Long-Term Relationships Maintain Customer Satisfaction Maintain Customer Satisfaction Key Issues in Developing Competitive Advantage

14. Defining a Firm’s Business “Benefits” instead of “goods/services”  Ensures a customer focus  Encourages innovation  Stimulates an awareness of customer change

15. Marketing Process Activities Understand the organization’s mission Set marketing objectives Gather, analyze, interpret “SWOT” information Develop a marketing strategy Implement the marketing strategy Design performance measures Evaluate marketing efforts--change if needed