Chapter 1 Marketing: The Art and Science of Satisfying Customers

Chapter 1Marketing: The Art and Science

of Satisfying Customers

CHAPTER 1 Marketing: The Art and Science of Satisfying Customers

Chapter Objectives

1. Define marketing, explain how it creates utility, and describe its role in the global marketplace.

2. Contrast marketing activities during the four eras in the history of marketing.

3. Explain the importance of avoiding marketing myopia.

4. Describe the characteristics of not-for-profit marketing.

Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.


Chapter Objectives

5. Identify and briefly explain each of the five types of nontraditional marketing.

6. Explain the shift from transaction-based marketing to relationship and social marketing.

7. Identify the universal functions of marketing.

8. Demonstrate the relationship between ethical business practices, social responsibility, sustainability and marketplace success.



o Marketing - An organizational function and a set of processes for:o Creating, communicating, and delivering

value to customers

o Managing customer relationships in ways that benefit the organization and its stakeholders

A Definition of Marketing



o American Marketing Association’sAmerican Marketing Association’s new official definition of marketing released August 2004:

o Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.


Core Concepts of Marketing(1 of 2)

o Needs (a state of felt deprivation)

o Wants (needs shaped by culture and individual personality)

o Demands

o Marketing Offers (product, service, and experience)

o Value


Core Concepts of Marketing(2 of 2)

o Satisfaction (customer expectations)

o Exchange

o Transaction

o Market (set of all actual and potential buyers of a product or service)

o Utility (want satisfying power of a good or service)


o Organizations must create utility to survive

What is Marketing?





o Factors that have extended economic viewso Increase in international trade agreements

o Growth of electronic business

o Interdependence of the world’s economies

Today’s Global Marketplace



o The essence of marketing is the exchange process

Four Eras in the History of Marketing





Characteristics of the Four Eras


Era in marketing Focus

Production Era Production orientation

Sales Era Sales orientation

Marketing Era Consumer orientation

Relationship Era Relationship marketing


o Marketing myopia - Management’s failure to recognize the scope of its business

o Focusing on customer need satisfaction can overcome myopia

Avoiding Marketing Myopia


AVOIDING MARKETING MYOPIA• Marketing myopia Management’s failure to recognize the scope of its business.


o Marketing in not-for-profit organizationso Marketing strategy is adopted to meet

service objectives

o Not-for-profit organizations form alliances with business firms for mutual benefit

o Characteristics of not-for-profit marketingo Does not focus on bottom line

o Markets to multiple audiences

Not-for-Profit Marketing





o Focus is on moving the customers up the loyalty ladder to increase their lifetime value

o Interactive marketing creates direct communication with customers, allows larger exchanges, and puts the customer in control

o It is increasingly taking place on social media sites like Facebook, Twitter, and blogs

Relationship Marketing





o Strategic alliances provide firms competitive advantage

o Forms of alliances o Product development partnerships

o Vertical alliances

o Not-for-profits often raise awareness and funds through strategic partnerships

Partnerships and Strategic Alliances


Documents

Chapter 1 Marketing: The Art and Science of Satisfying Customers