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Unformatted text preview: Chapter: 1 Creating Customer Relationships and Value through Marketing Marketing AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: Define marketing. Distinguish between marketing mix Distinguish elements and environmental factors. elements AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: Discuss the importance of customer Discuss relationships. Describe how today’s market Describe orientation differs from prior eras oriented to production and selling. oriented WHAT IS MARKETING? Being a Marketing Expert: Being Good News-Bad News Good The Good News: You Already Have The Marketing Experience Marketing Tropicana Package $35MM Blunder Blunder Current Graphics vs. 6 mos. ago You as the Expert – Shop/Compare/Communication You Manager/Graphic Artist/Branding Expert Manager/Graphic Pros/Cons Key Differences you can see Key You as the Tropicana Marketer – Key Differences You are
Measuring Measuring Sales (Trial), Repeat (Cannibalization), Brand Equity Measurements Sales (Positioning/Competition, Possible Pricing Implications, Needed Advertising, Cost for Changes/P&L…just to name a few) Advertising, This course and now the book will encourage to think like a This marketing expert. Tropicana Packaging – consumers fight for old packaging packaging WHAT IS MARKETING? “Marketing” define by “Marketing 9th Edition” by Kerin. Edition” “Marketing is the activity for creating, Marketing communicating, delivering and exchanging offerings that benefit the organization, its shareholders and society at large” shareholders FIGURE 1-3 An organization’s marketing department FIGURE relates to many people, groups, and forces relates WHAT IS MARKETING? Requirements for Marketing to Occur Two or More Parties with Unsatisfied Two Needs Needs Desire and Ability to Satisfy These Needs A Way for the Parties to Communicate Something to Exchange FIGURE 1-4 FIGURE Marketing’s first task: discovering consumer needs consumer How Discover Consumer Needs/Wants Needs/Wants Research – Typical Ways (Qualitative – Research Focus Groups: Peryam & Kroll, Plano – Focus Quantitative – surveys) Non-Traditional Ways (Observation, Non-Traditional Journals, any creative way you can think of) of) What happened with Tropicana? HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDS What is a Market? Potential consumers make up a market – people What with the desire and ability to buy. with Marketing Program – A plan that integrates the marketing mix to Marketing provide a good, service or idea to prospective buyers. provide Target Market – one or more specific groups of potential consumers toward Target which an organization directs its marketing program. which The controllable Marketing Mix Factors The Factors The Uncontrollable, The Environmental Factors Environmental THE MARKETING PROGRAM: HOW CUSTOMER RELATIONSHIPS ARE BUILT Customer Value Relationship Marketing – building LongTerm relationships CRM – identifying prospective buyers, CRM understanding them intimately and developing favorable L-T perceptions of the organization and its offerings so that buyers will choose them in the marketplace. marketplace. FIGURE 1-5 Marketing’s second task: FIGURE satisfying consumer needs satisfying FIGURE 1-7 Four different orientations in FIGURE the history of American business the Marketing Orientation Marketing Focuses its efforts on 1) continuously Focuses collecting information about customers’ needs and 2) sharing this information across departments and 3) using it to create customer value create The result is “customer relationship era” Shifts of Interest From Producers’ Interest to Consumers’ From Interest to Society’s Interests Interest Focus on Ethics and Social Focus Responsibility: Responsibility: Balancing the Interests of Different Balancing Groups Groups Ethics Social Responsibility Societal marketing concept HOW MARKETING BECAME SO IMPORTANT The Breadth and Depth of Marketing The (cont) (cont) Who Buys and Uses What is Marketed? Ultimate consumers Organizational buyers Who Benefits? Concept Check 1. Like Pillsbury and General Electric, many firms have gone through four distinct orientations for their businesses: starting production with the __________ era and ending with today’s ________________ era. market orientation Concept Check 2. What are the two key characteristics of the marketing concept? A: An organization should (1) A: strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals. goals. Concept Check 3. In this book the term product refers to what three things? A: Goods (physical products), A: services, and ideas services, ...
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- Spring '08