1a Marketing Concept, Role of Marketing in Corporate & Society

7/30/2019 1a Marketing Concept, Role of Marketing in Corporate & Society

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Chapter 1- slide 1

Chapter 1a: Marketing Concept,

Role of Marketing in Corporate & Society


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Chapter 1- slide 2Copyright 2010 Pearson Education, Inc.

Publishing as Prentice Hall

What Is Marketing?

Marketing is a process by which

companies create value for customers and

build strong customer relationships to

capture value from customers in return


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Publishing as Prentice Hall1 - 3

Marketing Process

A model of marketing process

Understandcustomer

needs and wants

Design customeroriented

marketing strategy

Constructmarketing program

that deliverssuperior value

Buildprofitable relationships

and create

customer delight

Capturecustomer value

from customer tocreate profits

andcustomer quality


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Understanding the Marketplace

Needs, wants, and

demands Marketing offers: including

products, services and

experiences

Value and satisfaction

Exchange, transactions and

relationships

Markets

Need

State of felt deprivation

Example: Need food

Wants

The form of needs as shaped

by culture and the individual

Example: Want a Big Mac

Demands Wants which are backed by

buying power

Core Concepts


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Needs, wants, and



experiences



relationships

Markets

Core Concepts Marketing offer Combination of products,

services, information or

experiences that satisfy aneed or want

Offer may include services,

activities, people, places,

information or ideas


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Needs, wants, and



experiences



relationships

Markets

Value

Customers form expectations

regarding value

Marketers must deliver valueto consumers

Satisfaction

A satisfied customer will buy

again and tell others about

their good experience

Core Concepts


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Copyright 2010 Pearson Education, Inc.



Needs, wants, and



experiences



relationships

Markets

Exchange

The act of obtaining a desired

object from someone by

offering something in return One exchange is not the goal,

relationships with several

exchanges are the goal

Relationships are built through

delivering value andsatisfaction

Core Concepts


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Needs, wants, and



experiences



relationships

Markets

Market

Set of actual and potential

buyers of a product

Marketers seek buyers thatare profitable

Core Concepts


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Chapter 1- slide 9Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall

Designing a Customer-Driven

Marketing Strategy

Marketing management is the art and

science of choosing target markets andbuilding profitable relationships with them

What customers will we serve?

How can we best serve these customers?


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Designing a Customer-DrivenMarketing Strategy

Market segmentation refers to dividing the

markets into segments of customers

Target marketing refers to which segments

to go after

Selecting Customers to Serve


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Demarketing is marketing to reduce demand

temporarily or permanently; the aim is notto destroy demand but to reduce or shift it

Selecting Customers to Serve


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Choosing a Value Proposition

The value proposition is the set of

benefits or values a company promises todeliver to customers to satisfy their needs


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Productionconcept

Productconcept

Sellingconcept

Marketingconcept

Societalconcept

Marketing Management Orientations


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Production concept is the idea that

consumers will favor products that areavailable or highly affordable



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Product concept is the idea that consumers

will favor products that offer the mostquality, performance, and features.

Organization should therefore devote its

energy to making continuous productimprovements.



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Selling concept is the idea that consumers

will not buy enough of the firms productsunless it undertakes a large scale selling

and promotion effort



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Marketing concept is the idea thatachieving organizational goals

depends on knowing the needs and

wants of the target markets and

delivering the desired satisfactions

better than competitors do


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Societal marketing concept is the idea that acompany should make good marketing

decisions by considering consumers wants,the companys requirements, consumers

long-term interests, and societys long-run

interests


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The marketing mix is the set of tools (four Ps)

the firm uses to implement its marketing

strategy. It includes product, price,promotion, and place.

Integrated marketing program is a

comprehensive plan that communicatesand delivers the intended value to chosen

customers.

Preparing an Integrated Marketing

Plan and Program


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Major Marketing Functions

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Major Marketing Functions (contd)

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The ability of a good or service to satisfy a human need

Form utility- Created by converting production inputs into

finished products

Place utility- Created by making a product available at a location

where customers wish to purchase it

Time utility- Created by making a product available when

customers wish to purchase it

Possession utility- Created by transferring title (ownership) of aproduct to buyer

Utility: The Value Added by Marketing

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Market

A group of individuals or organizations, or both, that need productsin a given category and that have the ability, willingness, and

authority to purchase such products

Consumer markets

Purchasers and/or households members who intend to consume or

benefit from the purchased products and who do not buy products

to make a profit

Business-to-business (industrial) markets Producer, reseller, governmental, and institutional customers that

purchase specific kinds of products for use in making other products

for resale or for day-to-day operations

Markets and Their Classification

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Marketing strategy

A plan that will enable an organization to make

the best use of its resources and advantages to

meet its objectives

Consists of

The selection and analysis of a target market

The creation and maintenance of an appropriate

marketing mix (a combination of product, price,

distribution, and promotion developed to satisfy a

particular target market)

Developing Marketing Strategies

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Target market selection and evaluation

Target market

A group of individuals, organizations, or both, for which a firm

develops and maintains a marketing mix suitable for the specific needs

and preferences of that group

Market segment A group of individuals or organizations within a market that share one

or more common characteristics

Market segmentation

The process of dividing a market into segments and directing amarketing mix at a particular segment or segments rather than at the

total market

Developing Marketing Strategies (contd)

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Role of Marketing in Corporate &Society

26


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Chapter 1- slide 271-27

The Importance of Marketing in Our GlobalEconomy

Marketing

ConsumesLarge

Proportion of

BuyersDollars

Is Used byNon-Profits

Is Importantto Business

and theEconomy

Fuelsthe GlobalEconomy

EnhancesConsumerAwareness

ConnectsPeoplethrough

Technology

PromotesWelfare

ofConsumersand Society

CreatesCareer

Prospects


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Enlightened Marketing

Business Actions Toward Socially

Responsible Marketing

Consumer-Oriented

Marketing

Innovative Marketing

Value Marketing

Societal Marketing

Sense-of-Mission

Marketing


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Business Actions Toward SociallyResponsible Marketing

Enlightened Marketing Customer-Oriented Marketing:

Companies view and organize their marketing

activities from the consumers point of view. Innovative Marketing:

Companies seek real product and marketing

improvements.


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Enlightened Marketing Value Marketing:

Companies put most of their resources into

value-building marketing investments.

Sense-of-Mission Marketing:

Companies define their mission in broad social

terms rather than in narrow product terms.


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Societal Marketing:

Companies make marketing decisions

by considering consumers wants, thecompanys requirements, consumers

long-run interests, and societyslong-run interests.


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Societal Classification of Products

Deficient products

Pleasing products

Salutary products

Desirable products


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Marketing Ethics

Corporate Marketing Ethics Policies

Guiding Principle in Policy Determination

Free market and legal system Individual companies and managers

International Ethical Policies are a SpecialChallenge


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Building Customer Relationships

The overall process of building and maintaining

profitable customer relationships by delivering

superior customer value and satisfaction

Customer Relationship Management (CRM)


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Building Customer RelationshipsRelationship Building Blocks: Customer Value

and Satisfaction

Customer-perceived value

The differencebetween totalcustomer valueand totalcustomer cost

Customersatisfaction

The extent towhich aproductsperceivedperformancematches abuyersexpectations


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Customer Relationship Levels and Tools

BasicRelationships

Full

Partnerships


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Relating with more carefully selected

customers uses selective relationshipmanagement to target fewer, more profitablecustomers

Relating more deeply and interactively by

incorporating more interactive two wayrelationships through blogs, Websites, onlinecommunities and social networks

The Changing Nature of CustomerRelationships


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Partner relationship management involves

working closely with partners in other

company departments and outside thecompany to jointly bring greater value to

customers



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Partners inside the company is every

function area interacting with customers

Electronically Cross-functional teams

Partners outside the company is how

marketers connect with their suppliers,channel partners, and competitors by

developing partnerships

Partner Relationship Management


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Supply chain is a channel that stretches

from raw materials to components to final

products to final buyers Supply management

Strategic partners

Strategic alliances

Partner Relationship Management


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Capturing Value from Customers

Customer Loyaltyand Retention

Share of

Customer

Customer Equity

Customer delight

leads to emotional

relationships andloyalty

Customer Lifetime

Value shows trueworth of a customer

Key Concepts


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Share of Customer

Customer Equity

Share of customers

purchase in a product

category. Achieved through

offering greater

variety, cross-sell andup-sell strategies.

Key Concepts


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Share of Customer

Customer Equity

The combined customer

lifetime values of all current

and potential customers.

Measures a firmsperformance, but in a

manner that looks to the

future.

Choosing the bestcustomers is key

Key Concepts


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Marketing Landscape

Growth of the Internet

Advances in

telecommunications,information,transportation Customer research and

tracking

Product development

Distribution

New advertising tools

24/7 marketing through theInternet

Challenges

Digital age

Globalization

Ethics and social

responsibility

Not-for-profit

marketing

Marketing

relationships


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Marketing Landscape

Digital age

Globalization

Ethics and social

responsibility

Not-for-profit

marketing

Marketing

relationships

Geographical and

cultural distances have

shrunk Greater market coverage

More options for purchasing

and manufacturing

Increased competition fromforeign competitors

Challenges


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Marketing Landscape

Digital age

Globalization

Ethics and social

responsibility

Not-for-profit

marketing

Marketing

relationships

Marketers need to

take great

responsibility for theimpact of their actions Caring capitalism is a way to

differentiate your company

Challenges


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Marketing Landscape

Digital age

Globalization

Ethics and social

responsibility

Not-for-profit

marketing

Marketing

relationships

Many organizations are

realizing the

importance of strategicmarketing Performing arts

Government agencies

Colleges Hospitals

Churches

Challenges


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Marketing Landscape

Digital age

Globalization

Ethics and social

responsibility

Not-for-profit

marketing

Marketing

Profits through

managing long-term

customer equity Improve customer

knowledge

Target profitable customers

Keep profitable customers

Challenges

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1a Marketing Concept, Role of Marketing in Corporate & Society