McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc All Rights LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO: LO1 Define marketing and identify the requirements for marketing to occur LO2 Explain how marketing discovers and satisfies consumer needs LO3 Distinguish between marketing mix elements and environmental forces 1-2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO: LO4 Explain how organizations build strong customer relationships and customer value through marketing LO5 Describe how today’s customer relationship era differs from prior eras oriented to production and selling LO6 Explain how marketing creates utilities for consumers 1-3 LO1  WHAT IS MARKETING ? You Are a Marketing Expert Already • Involved in 1,000s of Buying Decisions • Some Involved in Selling Decisions  Marketing • Is NOT Easy • Affects ALL Individuals, Organizations, Industries, and Countries 1-7 FIGURE 1-1 The see-if-you’re-really-amarketing-expert test True (c) 30% True (c) plastic bottles 1-8 LO1  WHAT IS MARKETING? DELIVERING BENEFITS Marketing Seeks to: • Discover Needs and Wants of Customers • Satisfy Them  Exchange AMA Definition of Marketing 1-10 WHAT IS MARKETING? LO1 AMA Definition of Marketing  Marketing: the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders and society at large 1-11 LO1 WHAT IS MARKETING? DIVERSE FACTORS INFLUENCE MARKETING ACTIVITIES  Organization Itself  Society  Environmental Forces 1-12 FIGURE 1-2 A marketing department relates to many people, organizations, and environmental forces 1-13 LO1 WHAT IS MARKETING? REQUIREMENTS FOR IT TO OCCUR  Parties with Unsatisfied Needs  A Desire and Ability to be Satisfied  A Way for the Parties to Communicate  Something to Exchange 1-14 LO2 HOW MARKETING DISCOVERS CONSUMER NEEDS THE CHALLENGE: NEW PRODUCTS  Consumers May Not Know or Cannot Describe What They Need or Want  Most New Products Fail  The Challenge: • “Focus on the Consumer Benefit” • “Learn From the Past” 1-15 LO2 HOW MARKETING DISCOVERS CONSUMER NEEDS NEEDS VS WANTS  Need  Want  Does Marketing Persuade People to Buy the “Wrong” Things?  Market 1-20 LO3 HOW MARKETING SATISFIES CONSUMER NEEDS  Target Market  The P’s: Controllable Marketing Mix Factors • Place • Product • Price $399 • Promotion 1-22 FIGURE 1-3 Marketing seeks to discover then satisfy consumer needs through research and a marketing program 1-23 LO3  HOW MARKETING SATISFIES CONSUMER NEEDS Uncontrollable Environmental Forces • Social • Economic • Technological • Competitive • Regulatory 1-24 LO4 MARKETING PROGRAM CUSTOMER VALUE AND RELATIONSHIPS  Customer Value  Value Strategies • Best Price • Best Product • Best Service 1-25 LO4  MARKETING PROGRAM RELATIONSHIP MARKETING Relationship Marketing • Easy to Understand • Hard to Do  Marketing Program 1-27 LO4 3M PRODUCT & MARKETING PROGRAM HELPING STUDENTS STUDY  Move from Ideas to a Marketable Highlighter Product  Extend the Product Line  Develop a Marketing Program for the Post-it® Flag Highlighter and Pen 1-28 FIGURE 1-4 Marketing programs for two new 3M Post-it® brand products targeted at two distinct customer segments: college students and office workers 1-29 LO5 HOW MARKETING BECAME IMPORTANT EVOLUTION OF THE MARKET ORIENTATION  Production Era  Sales Era  Marketing Concept Era  Customer Relationship Era • Market Orientation • Customer Relationship Management (CRM) • Customer Experience 1-30 FIGURE 1-5 Four different market orientations in the history of American business 1-31 LO5 HOW MARKETING BECAME IMPORTANT ETHICS AND SOCIAL RESPONSIBILITY  Ethics  Social Responsibility 1-32 LO6 HOW MARKETING BECAME IMPORTANT BREADTH AND DEPTH OF MARKETING  Who Markets?  What Is Marketed? • Goods • Services • Ideas 1-33 LO6 HOW MARKETING BECAME IMPORTANT BREADTH AND DEPTH OF MARKETING  Who Benefits?  Who Buys & Uses What Is Marketed? • Ultimate Consumers • Organizational Buyers  How Do Consumers Benefit? • Utility  Form Utility  Place Utility  Time Utility  Possession Utility 1-34 ... Customers • Satisfy Them  Exchange AMA Definition of Marketing 1-10 WHAT IS MARKETING? LO1 AMA Definition of Marketing  Marketing: the activity for creating, communicating, delivering, and exchanging...  Customer Value  Value Strategies • Best Price • Best Product • Best Service 1-25 LO4  MARKETING PROGRAM RELATIONSHIP MARKETING Relationship Marketing • Easy to Understand • Hard to Do  Marketing. .. relationships and customer value through marketing LO5 Describe how today’s customer relationship era differs from prior eras oriented to production and selling LO6 Explain how marketing creates