© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

DEVELOPING CUSTOMER

RELATIONSHIPS AND VALUE THROUGH

MARKETING

11CHAPTER

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Define marketing and explain the importance of (1) discovering and (2) satisfying consumer needs and wants.

• Distinguish between marketing mix elements and environmental factors.

AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Understand how organizations build strong customer relationships using current thinking about customer value and relationship marketing.

• Describe how today’s market orientation differs from prior eras oriented to production and selling.

AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Understand the meaning of ethics and social responsibility and how they relate to the individual, organizations, and society.

• Know what is required for marketing to occur and how it creates customer value and utilities for customers.

AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

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• FUSION, CORE, AND LIGHTNING! PHYSICS 101?• The Three-Century Old Innovation

• Understanding the Consumer

• What a Difference a Decade Makes

DEVELOPING CUSTOMER RELATIONSHIPS AND VALUE

THROUGH MARKETING

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• Rollerblade Skates, Marketing, and You

DEVELOPING CUSTOMER RELATIONSHIPS AND VALUE

THROUGH MARKETING

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Being a Marketing Expert: Good News-Bad News• The Good News: You Already Have

Marketing Experience

• The Bad News: Surprises About the Obvious

WHAT IS MARKETING?

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• Marketing: Using Exchanges to Satisfy Needs

• The Diverse Factors Influencing Marketing Activities

WHAT IS MARKETING?

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• Requirements for Marketing to Occur• Two or More Parties with Unsatisfied Needs

• Desire and Ability to Satisfy These Needs

• A Way for the Parties to Communicate

• Something to Exchange

WHAT IS MARKETING?

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Concept Check

1. What is marketing?

A: 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 objectives.

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2. Marketing focuses on __________ and ___________ consumer needs

Concept Check

discoveringsatisfying

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Concept Check

3. What four factors are needed for marketing to occur?

A: (1) Two or more parties with unsatisfied needs, (2) A desire and ability on their part be satisfied, (3) A way for the parties to communicate, and (4) Something to exchange.

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• Discovering Consumer Needs• The Challenge of Launching Winning

New Products

• Consumer Needs and Consumer Wants

HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDS

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• What a Market Is

• Satisfying Consumer Needs Target market

• The Four Ps: Controllable Marketing Mix Factors

• The Uncontrollable, Environmental Factors

HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDS

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• Global Competition, Customer Value, and Customer Relationships

• Relationship Marketing and the Marketing Program• Relationship Marketing: Easy to

Understand

• Relationship Marketing: Difficult to Implement

• The Marketing Program

THE MARKETING PROGRAM: HOW CUSTOMER RELATIONSHIPS ARE BUILT

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• A Marketing Program for Rollerblade• Expanding the Market for Rollerblade

Skates

• Exploiting Strengths in Technology

THE MARKETING PROGRAM: HOW CUSTOMER RELATIONSHIPS ARE BUILT

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• Staying Ahead of the Trends

THE MARKETING PROGRAM: HOW CUSTOMER RELATIONSHIPS ARE BUILT

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1. An organization can’t satisfy the needs of all consumers, so it must focus on one or more subgroups, which are its ____________.target markets

Concept Check

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Concept Check

2. What are the four marketing mix elements that make up the organization’s marketing program?

A: product, price, promotion, place

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Concept Check

3. What are uncontrollable variables?

A: Environmental factors the organization’s marketing department can’t control. These include social, economic, technological, competitive, and regulatory forces.

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• Evolution of Market Orientation• Production Era

• Sales Era

• The Marketing Concept Era

• The Market Orientation Era Customer relationship management

(CRM)

HOW MARKETING BECAME SO IMPORTANT

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• Ethics and Social Responsibility:Balancing the Interests of Different Groups• Ethics

• Social Responsibility Societal marketing concept Macromarketing Micromarketing

HOW MARKETING BECAME SO IMPORTANT

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• The Breadth and Depth of Marketing• Who Markets?

• What is Marketed?

• Who Buys and Uses What is Marketed? Ultimate consumers Organizational buyers

• Who Benefits?

• How Do Consumers Benefit Utility

HOW MARKETING BECAME SO IMPORTANT

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1. Like Pillsbury and General Electric, many firms have gone through four distinct orientations for their businesses: starting with the __________ era and ending with today’s ________________ era.

Concept Check

productionmarket orientation

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Concept Check

2. What are the two key characteristics of the marketing concept?

A: An organization should (1) Strive to satisfy the needs of consumers (2) While also trying to achieve the organization’s goals.

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Concept Check

3. In this book the term product refers to what three things?

A: Goods (physical products), services, and ideas