General Marketing Overview Chapter 1 & 3: Marketing Process, Societal Implications, Customer Satisfaction and Value

What is marketing???????? What are your thoughts?Create long term and mutually beneficial exchange relationships between an entity and the publics (individuals & organizations) in which it interactsCreate, sustain, maintain or add VALUE!

What is Marketing?American Marketing Association Definition: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.

Evolving Views of Marketings Rolee. The customer as the controlling function and marketing as the integrative functionCustomerMarketingProductionHumanresourcesFinance

The Marketing ProcessPeople: Consumer Behavior, SegmentationStrategy: Planning, Competition, ResearchPerformance: Satisfaction, profits, sales, repeat sales, brand awareness, brand recognition, market share, market growth, brand equity4Ps: Product, Price, Place, Promotion

Customer is KING!!The 4 Ps of MarketingProduct good, service or idea that offers a bundle of tangible and intangible attributes to satisfy the consumerPromotion the communication of all other PsPrice what the product is exchanged forPlace all aspects of getting products to the consumer in the right location at the right time.

What can you market?Products, ServicesExperiences, EventsPeoplePlaces, PropertiesOrganizationsInformation, IdeasCategories of markets:ConsumerBusinessGlobalGovernment & Nonprofit

Elements of Exchange

Tonights classMarketing: where are we? (Tipping Point/60 Minutes)Creating Value, Fostering Satisfaction and LoyaltyCase analysis and presentation (Sorzal)Marketing Plan group formation and Project list distribution

Marketing Management Philosophies

Four Eras in the History of MarketingProduction EraPrior to 1920sProduction orientationBusiness success often defined solely in terms of production victoriesSales EraPrior to 1950sCustomers resist nonessential goods and servicesPersonal selling and advertisings task is to convince them to buy

Marketing EraSince 1950s Marketing Concept EmergesShift from sellers to buyers marketConsumer orientationMarketing ConceptCompanywide consumer orientationObjective of achieving longrun success

The Marketing Concept The idea that the social and economic justification for an organizations existence is the satisfaction of consumer wants and needs while meeting organizational objectives.TM & customer needs: Focus to distinguish from competitorsIntegration: Integration of all activities to satisfy customer wants/needsProfits: Achieve long term goals by satisfying customer wants/needs

Relationship EraBegan in 1990sCarried customer orientation even furtherFocuses on establishing and maintaining relationships with both customers and suppliersInvolves longterm, valueadded relationships

DEBATE:Does Marketing CREATE or SATISFY NEEDS? Marketing has often been defined in terms of satisfying customers needs and wants. Critics, however, maintain that marketing does much more than that and creates needs and wants that did not exist before. According to these critics, marketers encourage consumers to spend more money than they should on goods and services they really dont need.

Customer ValueThe ratio of benefits to sacrifice necessary to obtain benefits.Offer products that performGive consumers more than they expectAvoid unrealistic pricingGive the buyer factsOffer organization wide commitment in service and after sales support

What is Perceived Customer Value?

Customer SatisfactionThe feeling that a product has met or exceeded the customers expectationFocus on delighting customersProvide solutions to consumers problemsMeasuring satisfaction: complaint and suggestion systems, surveys, ghost shoppers, lost customer analysis

Satisfied CustomersAre loyal longerBuy more (new products & upgrades)Spread favorable word of mouthAre more brand loyal (less price sensitive)Offer feedbackReduce transaction costsIs Satisfaction the same as LOYALTY?

The Mismanagement of Customer LoyaltyHow does your firm currently treat loyalty? Is it important? Do you currently measure it? How effective it is? What do you think needs to change?What companies can be considered best practices candidates for generating customer loyalty?

Avoiding Marketing MyopiaMarketing Myopia is managements failure to recognize the scope of its business.To avoid marketing myopia, companies must broadly define organizational goals toward consumer needs.

Critical Thinking and CreativityChallenges presented by todays complex and technologically sophisticated marketing environment require critical-thinking skills and creativity from marketing professionalsCritical Thinking refers to the process of determining the authenticity, accuracy, and worth of information, knowledge, claims and argumentsCreativity helps to develop novel solutions to perceived marketing problems

Where has marketing been criticized?

Social Criticisms of Marketing the consumer interestCauses prices to be higherDeceptive practices in promotion, packaging and priceHigh pressure sellingShoddy or unsafe productsPoor service to disadvantaged people

Other Social Criticisms of MarketingImpact on societyMaterialismToo few social goodsCultural pollutionToo much political powerImpact on other businessAcquisitions, entry barriers

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