general overview of marketing chapter 1 & 3addendum

8/13/2019 General Overview of marketing Chapter 1 & 3addendum

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General Marketing OverviewChapter 1 & 3: Marketing Process, Societal Implications,

Customer Satisfaction and Value


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What is marketing?

??????? What are your thoughts?

Create long term and mutually

beneficial exchange relationshipsbetween an entity and the publics(individuals & organizations) in which it

interacts Create, sustain, maintain or add VALUE!


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What is Marketing?

American Marketing AssociationDefinition:

The process of planning and executingthe conception, pricing, promotion anddistribution of ideas, goods and services

to create exchanges that satisfyindividual and organizational goals.


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Evolving Views of

Marketings Role

e. The customer as the controlling function and

marketing as the integrative function

Customer

Marketing

Production


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The Marketing Process

People: Consumer Behavior,Segmentation

Strategy: Planning, Competition,Research

Performance: Satisfaction, profits, sales,

repeat sales, brand awareness, brandrecognition, market share, marketgrowth, brand equity

4Ps: Product, Price, Place, Promotion


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Customer is KING!!

The 4 Ps of Marketing Productgood, service

or idea that offers abundle of tangible and

intangible attributes tosatisfy the consumer

Promotionthecommunication of all

other Ps

Pricewhat theproduct is

exchanged for Placeall aspects of

getting products tothe consumer in the

right location at theright time.


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What can you market?

Products, Services

Experiences, Events

People Places, Properties

Organizations

Information, Ideas

Categories ofmarkets:

Consumer Business

Global

Government &

Nonprofit


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Elements of Exchange

Desire to DealWith Other Party

Freedom toAccept or Reject

Something ofValue

Ability toCommunicate

Offer

At Least TwoParties

NecessaryConditions

for Exchange


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Tonights class

Marketing: where are we? (Tipping

Point/60 Minutes)

Creating Value, Fostering Satisfaction and

Loyalty

Case analysis and presentation (Sorzal)

Marketing Plan group formation and Project

list distribution


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Marketing Management

PhilosophiesPhilosophy Key Ideas

Production

Sales

Market

Societal

Focus on efficiency of internal operations

Focus on satisfying customer needs and wants

Focus on satisfying customer needs andwants while enhancing individual and

societal well-being

Focus on aggressive techniques for

overcoming customer resistance


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Four Eras in the History of Marketing

Production Era

Prior to 1920s

Production orientation

Business success often defined solely in terms ofproduction victories

Sales Era

Prior to 1950s

Customers resist nonessential goods and services

Personal selling and advertisings task is toconvince them to buy


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Marketing Era

Since 1950s Marketing Concept Emerges

Shift from sellers to buyers market

Consumer orientation

Marketing Concept

Companywide consumer orientation

Objective of achieving longrun success


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The Marketing Concept The idea that the social and economicjustification for an organizationsexistence is the satisfaction of

consumer wants and needs whilemeeting organizational objectives. TM & customer needs: Focus to distinguish

from competitors

Integration: Integration of all activities tosatisfy customer wants/needs

Profits: Achieve long term goals bysatisfying customer wants/needs


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Relationship Era

Began in 1990s

Carried customer orientation even further

Focuses on establishing and maintaining

relationships with both customers and suppliers

Involves longterm, valueadded relationships


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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 morethan that and creates needs and wants that did not

exist before. According to these critics, marketersencourage consumers to spend more money thanthey should on goods and services they really dontneed.


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Customer Value

The ratio of benefits to sacrificenecessary to obtain benefits.

Offer products that perform

Give consumers more than they expect

Avoid unrealistic pricing

Give the buyer facts

Offer organizationwide commitmentin service and after sales support


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What is Perceived Customer

Value?Product valueServices value

Personnel value

Image value

Totalcustomer

benefit

Monetary cost

Time cost

Energy cost

Psychic cost

Totalcustomer

cost

Customerdelivered

value


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Customer Satisfaction

The feeling that a product has met orexceeded the customers expectation

Focus on delighting customers

Provide solutions to consumers problems

Measuring satisfaction: complaint and

suggestion systems, surveys, ghostshoppers, lost customer analysis


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Satisfied Customers

Are loyal longer

Buy more (new products & upgrades)

Spread favorable word of mouthAre more brand loyal (less price

sensitive)

Offer feedback Reduce transaction costs

Is Satisfaction the same as LOYALTY?


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The Mismanagement of

Customer Loyalty How does your firm currently treat loyalty? Is

it important? Do you currently measure it?

How effective it is? What do you think needsto change?

What companies can be considered bestpractices candidates for generating customer

loyalty?


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Avoiding Marketing Myopia

Marketing Myopiais managements failure

to recognize the scope of its business.

To avoid marketing myopia, companies must

broadly define organizational goals towardconsumer needs.


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Critical Thinking and Creativity

Challenges presented by todays complexand technologically sophisticated marketing

environment require critical-thinking skillsand creativity from marketing professionals

Critical Thinking refers to the process ofdetermining the authenticity, accuracy, and

worth of information, knowledge, claimsand arguments

Creativity helps to develop novel solutions

to perceived marketing problems


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Where has marketing been

criticized?


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Social Criticisms of Marketing

the consumer interest Causes prices to be higher

Deceptive practices in promotion,packaging and price

High pressure selling

Shoddy or unsafe products Poor service to disadvantaged people


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Other Social Criticisms of

Marketing Impact on society

Materialism

Too few social goods

Cultural pollution

Too much political power

Impact on other businessAcquisitions, entry barriers

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