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Chapter 1- slide 1Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Getting a Marketing Perspective
Chapter 1- slide 2Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
• Finance- Capital- People
• Management
• Marketing
Components of a Business
Chapter 1- slide 3Copyright © 2010 Pearson Education, Inc.
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• To let people know you exist
• To let them be inform about your product or service
• To make goods and services available when it is needed and where it is need and in the right quantity
• To satisfy customers by delivering on what you promised in your marketing messages
Why is Marketing Important?
Chapter 1- slide 4Copyright © 2010 Pearson Education, Inc.
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1 - 4
Q: What are the factors
impacting marketing decisions
today?
Chapter 1- slide 5Copyright © 2010 Pearson Education, Inc.
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1 - 5
Factors Impacting Marketing Today
• Knowledgeable Customer
•Increased buying power
•Intense competition
• Greater variety of goods and services
• Increased information from a variety of sources
• Enhanced shopping convenience
Chapter 1- slide 6Copyright © 2010 Pearson Education, Inc.
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Factors Impacting Marketing
Today cont’d• New Technologies and platforms- Websites, Internet, intranet, social media, phones ect. can provide companies with powerful new information and sales channel
•Online software can facilitate purchase, training, recruiting
•Companies can collect scientific information about markets, customers, prospects and competitors from a variety of sources and be in a position to make comparisons and decisions
Chapter 1- slide 7Copyright © 2010 Pearson Education, Inc.
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Factors Impacting Marketing
Today
• Companies can send value- added and incentives eg. Coupons, samples, rebates, cash- back and information to targeted customers
• Companies can customize offerings and services to individual customers
Chapter 1- slide 8Copyright © 2010 Pearson Education, Inc.
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1 - 8
Factors Impacting Marketing
Today
•Greater distribution channel
•Variety in prices
Chapter 1- slide 9Copyright © 2010 Pearson Education, Inc.
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1 - 9
Myths Impacting Marketing
• Marketing is selling.
• Marketing is Public relations.
• The best product or service idea will win and be successful.
• You should cut back on your marketing and advertising expenditures in a recession.
• Anyone can be a successful marketer
Chapter 1- slide 10Copyright © 2010 Pearson Education, Inc.
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Myths of Marketing
Doing any marketing at all, is better than doing nothing.( shooting in the dark)
Great marketing is dreamed up by highly paid executives who make ads and brochures and websites and then let them loose in the marketplace.
Use short copy. People won't read long copy. (NB.People need information not clutter)
Chapter 1- slide 11Copyright © 2010 Pearson Education, Inc.
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Myths of Marketing
• Marketing should entertain and amuse
•Word-of-mouth marketing is all that a great business needs.
Once your business has a solid customer base, it can cease marketing.
•Repetition of a marketing message is boring.
Chapter 1- slide 12Copyright © 2010 Pearson Education, Inc.
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Marketing Overview
Marketing is part of all of our lives and touches us in some way every day. To be successful each company that deals with customers on a daily basis must not only be customer-driven, but customer-obsessed. The best way to achieve this objective is to develop a sound marketing function within the organization.
Chapter 1- slide 13Copyright © 2010 Pearson Education, Inc.
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• To build awareness, credibility and trust with your preferred prospect or customer
• To be ‘out there’, networking, writing articles that educate your preferred prospects, being active in social media circles, getting recommendations, testimonials and referrals, delivering what you promised, going above and beyond for your clients.
Purpose of Marketing
Chapter 1- slide 14Copyright © 2010 Pearson Education, Inc.
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– To facilitate the decision-making process of your preferred prospect or customer;
• The process is accomplished by providing valuable educational content so that your prospects have all the information they require to make a good decision when buying the service or product you sell.
Purpose of Marketing cont’d
Chapter 1- slide 15Copyright © 2010 Pearson Education, Inc.
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• Is to lower the risk for your preferred prospect or customer to purchase from your competitor
• Is to make the purchasing decision easy through: availability, trial, specials, brand identification and quality service
Purpose of Marketing cont’d
Chapter 1- slide 16Copyright © 2010 Pearson Education, Inc.
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Marketing Overview summary
Aside from the most important decisions of a company which are: Vision, mission and objectives , the first marketing strategy question a company needs to ask is, “What consumers will we serve?” This is market segmentation and targeting.
The second marketing strategy question is, “How can we best serve targeted customers?” This is differentiation, branding and positioning.
Chapter 1- slide 17Copyright © 2010 Pearson Education, Inc.
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Marketing Overview Summary
cont’d
With its marketing strategy decided, the company now constructs a marketing Program-consisting of the four marketing mix elements, the 4 Ps.
Perhaps the most important step in the marketing process involves building value-laden, profitable relationships with target customers.
Chapter 1- slide 18Copyright © 2010 Pearson Education, Inc.
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Chapter 1- slide 19Copyright © 2010 Pearson Education, Inc.
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The Holistic Marketing Concept
Holistic Marketing
Integrated
Marketing
Relationship
Marketing
Internal
Marketing
Social
Responsibility
Marketing
Ethics
Environment
Legal CommunityCustomers Channels Partners
Communications
Products &
Services
ChannelsMarketing
Dept. Senior
Mgt.
Other
Dept.
Chapter 1- slide 20Copyright © 2009 Pearson Education, Inc.
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Chapter One
Marketing: Creating and Capturing Customer Value
Chapter 1- slide 21Copyright © 2010 Pearson Education, Inc.
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Creating and Capturing Customer Value
• What Is Marketing?
• Understand the Marketplace and Customer Needs
• Designing a Customer-Driven Marketing Strategy
• Preparing an Integrated Marketing Plan and Program
• Building Customer Relationships
• Capturing Value from Customers
• The Changing Marketing Landscape
Topic Outline
Chapter 1- slide 22Copyright © 2010 Pearson Education, Inc.
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What Is Marketing?
Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers inreturn
Chapter 1- slide 23Copyright © 2010 Pearson Education, Inc.
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• Marketing is about managing profitable customer relationships
– Attracting new customers
– Retaining and growing current customers
What Is Marketing?
Chapter 1- slide 24Copyright © 2010 Pearson Education, Inc.
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What Is Marketing?The Marketing Process
Chapter 1- slide 25Copyright © 2010 Pearson Education, Inc.
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The ________ is the nation’s twenty-fourth largest advertiser with an annual budget of more than $1 billion.
1. Procter & Gamble Company
2. Boeing Company
3. Levi Strauss & Co.
4. U.S. Government
Chapter 1- slide 26Copyright © 2010 Pearson Education, Inc.
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Answer
• 4. U.S. Government
Chapter 1- slide 27Copyright © 2010 Pearson Education, Inc.
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Understanding the Marketplace and Customer Needs
You must understand:
• Customer needs, wants, and demands
• Market offerings
• Value and satisfaction
• Exchanges and relationships
• Markets
Core Concepts involved
Chapter 1- slide 28Copyright © 2010 Pearson Education, Inc.
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Understanding the Marketplaceand Customer Needs
• States of deprivation
• Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression
Needs
• Form that needs take as they are shaped by culture and individual personalityWants
• Wants backed by buying powerDemands
Customer Needs, Wants, and Demands
Chapter 1- slide 29Copyright © 2010 Pearson Education, Inc.
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Marketing is ___________.
1. the same as advertising and sales
2. not used by small corporations
3. about satisfying customer needs
4. making a profit
Chapter 1- slide 30Copyright © 2010 Pearson Education, Inc.
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Answer!
• 3. about satisfying customer needs
Chapter 1- slide 31Copyright © 2010 Pearson Education, Inc.
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Marketing is ________.
1. part of manufacturing
2. part of the finance department
3. managing customer relationships
4. sales promotion
Chapter 1- slide 32Copyright © 2010 Pearson Education, Inc.
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Answer!
• 3.managing customer relationships
Chapter 1- slide 33Copyright © 2010 Pearson Education, Inc.
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The most basic concept underlying marketing is that of satisfying ________.
1. profits
2. products
3.human needs
4. services
Chapter 1- slide 34Copyright © 2010 Pearson Education, Inc.
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3. HUMAN NEEDS
Chapter 1- slide 35Copyright © 2010 Pearson Education, Inc.
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Understanding the Marketplace
and Customer Needs
• Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want
• Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs
Chapter 1- slide 36Copyright © 2010 Pearson Education, Inc.
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Understanding the Marketplace
and Customer NeedsCustomer Value and Satisfaction
Expectations
Customers
• Value and satisfaction
Marketers
• Set the right level of expectations
• Not too high or low
Chapter 1- slide 37Copyright © 2010 Pearson Education, Inc.
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Value and Satisfaction
• Perceived Value
– The customers’ evaluation of the difference between benefits and costs.
– Customers often do not judge values and costs accurately or objectively.
• Customer Satisfaction
– Product’s perceived performance relative to customers’ expectations.
Chapter 1- slide 38Copyright © 2010 Pearson Education, Inc.
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Exchange is the act of obtaining a desired object from someone by offering something in return
Understanding the Marketplace
and Customer Needs
Chapter 1- slide 39Copyright © 2010 Pearson Education, Inc.
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Understanding the Marketplace
and Customer Needs
Markets are the set of actual and potential buyers of a product
Chapter 1- slide 40Copyright © 2010 Pearson Education, Inc.
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Designing a Customer-Driven
Marketing Strategy
Marketing management is the art and science of choosing target markets and building profitable relationships with them
– What customers will we serve?
– How can we best serve these customers?
Chapter 1- slide 41Copyright © 2010 Pearson Education, Inc.
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Selecting Customers and Creating
Value
• What customers will we serve?
– Marketers select customers that can be served profitably- target market
• How can we serve these customers best?
– By defining a value proposition
– Includes the set of benefits or values a company promises to deliver to consumers in order to satisfy their needs
Chapter 1- slide 42Copyright © 2010 Pearson Education, Inc.
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Designing a Customer-Driven Marketing 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
Chapter 1- slide 43Copyright © 2010 Pearson Education, Inc.
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Designing a Customer-Driven Marketing Strategy
Demarketing :Efforts aimed at discouraging (not destroying) the demand for a product which (1) a firmcannot supply in large-enough quantities, or (2) does not want to supply in a certain region where the highcosts of distribution or promotion allow only little profit margin.
Common demarketing strategies include higher prices, scaled-down advertising, and product redesign.
Selecting Customers to Serve
Chapter 1- slide 44Copyright © 2010 Pearson Education, Inc.
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Designing a Customer-Driven Marketing Strategy
Choosing a Value Proposition
The value proposition is the set of
benefits or values a company promises to
deliver to customers to satisfy their needs
Such value proposition differentiate one
brand from another
Chapter 1- slide 45Copyright © 2010 Pearson Education, Inc.
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Marketing Management orientations
• Marketing Management wants to design strategies that will build profitable relationships with target consumers. But what philosophy should guide these strategies?
Chapter 1- slide 46Copyright © 2010 Pearson Education, Inc.
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Designing a Customer-Driven Marketing Strategy
Production concept
Product concept
Selling concept
Marketing concept
Societal concept
Marketing Management Orientations
Chapter 1- slide 47Copyright © 2010 Pearson Education, Inc.
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Designing a Customer-Driven Marketing Strategy
Production concept is the idea that consumers will favor products that are available or highly affordable
Management should focus on improving production and distribution efficiency
Marketing Management Orientations
Chapter 1- slide 48Copyright © 2010 Pearson Education, Inc.
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Designing a Customer-Driven Marketing Strategy
Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Organization should therefore devote its energy to making continuous product improvements.
Marketing Management Orientations
Chapter 1- slide 49Copyright © 2010 Pearson Education, Inc.
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Designing a Customer-Driven Marketing Strategy
Selling concept is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort
This concept is typically practiced with unsought goods-those that buyers do not normally think of buying, such as insurance.
Marketing Management Orientations
Chapter 1- slide 50Copyright © 2010 Pearson Education, Inc.
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Designing a Customer-Driven Marketing Strategy
Marketing Management Orientations
Marketing concept is the
idea that achieving
organizational goals
depends on knowing the
needs and wants of the
target markets and
delivering the desired
satisfactions better than
competitors do
Chapter 1- slide 51Copyright © 2010 Pearson Education, Inc.
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Designing a Customer-Driven Marketing Strategy
Marketing Management Orientations
Societal marketing concept
is the idea that a company
should make good marketing
decisions by considering
consumers’ wants, the
company’s requirements,
consumers’ long-term
interests, and society’s long-
run interests
Chapter 1- slide 52Copyright © 2010 Pearson Education, Inc.
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Designing a Customer-Driven
Marketing Strategy
Chapter 1- slide 53Copyright © 2010 Pearson Education, Inc.
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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 communicates and delivers the intended value to chosen customers.
Preparing an Integrated Marketing
Plan and Program
Chapter 1- slide 54Copyright © 2010 Pearson Education, Inc.
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Building Customer Relationships
• The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
• It the most important concept of modern marketing
• It deals with acquiring, growing and keeping customers.
Customer Relationship Management (CRM)
Chapter 1- slide 55Copyright © 2010 Pearson Education, Inc.
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Building Customer RelationshipsRelationship Building Blocks: Customer Value
and Satisfaction
Customer-perceived value
• The difference between total customer value and total customer cost
Customer satisfaction
• The extent to which a product’s perceived performance matches a buyer’s expectations
Chapter 1- slide 56Copyright © 2010 Pearson Education, Inc.
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Building Customer RelationshipsCustomer Relationship Levels and Tools
Basic Relationships
Full Partnerships
Chapter 1- slide 57Copyright © 2010 Pearson Education, Inc.
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Building Customer Relationships
• Relating with more carefully selected customers uses selective relationship management to target fewer, more profitable customers
• Relating more deeply and interactively by incorporating more interactive two way relationships through blogs, Websites, online communities and social networks
The Changing Nature of Customer Relationships
Chapter 1- slide 58Copyright © 2010 Pearson Education, Inc.
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Partner relationship management involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers
Building Customer Relationships
Chapter 1- slide 59Copyright © 2010 Pearson Education, Inc.
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Building Customer Relationships
• 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
Chapter 1- slide 60Copyright © 2010 Pearson Education, Inc.
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Building Customer Relationships
• 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
Chapter 1- slide 61Copyright © 2010 Pearson Education, Inc.
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Capturing Value from Customers
• Customer lifetime value is the value of the entire stream of purchases that the customer wouldmake over a lifetime of patronage
Creating Customer Loyalty and Retention
Chapter 1- slide 62Copyright © 2010 Pearson Education, Inc.
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Capturing Value from Customers
Share of customer is the portion of the customer’s purchasing that a company gets in its product categories
Growing Share of Customer
Chapter 1- slide 63Copyright © 2010 Pearson Education, Inc.
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Capturing Value from
Customers
Customer equity is the total combined customer lifetime values of all of the company’s customers
Chapter 1- slide 64Copyright © 2010 Pearson Education, Inc.
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Capturing Value from Customers
• Building the right relationships with the right customers involves treating customers as assets that need to be managed and maximized
• Different types of customers require different relationship management strategies– Build the right relationship with the right
customers
Building Customer Equity
Chapter 1- slide 65Copyright © 2010 Pearson Education, Inc.
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The Changing Marketing Landscape
Digital ageRapid
globalization
Ethics and social
responsibility
Not-for-profit marketing
Major Developments
Chapter 1- slide 66Copyright © 2010 Pearson Education, Inc.
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So, What Is Marketing?
Pulling It All Together
Chapter 1- slide 67Copyright © 2010 Pearson Education, Inc.
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REVISION
Chapter 1- slide 68Copyright © 2010 Pearson Education, Inc.
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Which of the following reflects the
marketing concept?
• A) "The supplier is king."
• B) "Marketing should be viewed as hunting and not gardening."
• C) "This is what I make; won't you please buy it?"
• D) "This is what I want; won't you please make it?"
• E) "Customers need to be told where they want to go."
• Answer: D
• Reflective Thinking
• Skill: Application
Chapter 1- slide 69Copyright © 2010 Pearson Education, Inc.
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Some fast-food restaurants offer tasty and convenient food at
affordable prices, but in doing so they contribute to a national
obesity epidemic and environmental problems. These fast-food
restaurants overlook the ________ philosophy.
• A) marketing concept
• B) product concept
• C) production concept
• D) societal marketing concept
• E) selling concept
Chapter 1- slide 70Copyright © 2010 Pearson Education, Inc.
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• Reflective Thinking
Skill: Application
Answer: D
Chapter 1- slide 71Copyright © 2010 Pearson Education, Inc.
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Members of the sales team at Dekko International visit only
prospective customers who purchase a minimum of $50,000 of
insulated wire per year. Dekko is using ________.
• A) selective relationship management
• B) a frequency marketing program
• C) a club marketing program
• D) demarketing
• E) a value proposition
Chapter 1- slide 72Copyright © 2010 Pearson Education, Inc.
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• Reflective Thinking
• Application
Answer: A