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2 Chapter 1 The Nature of Marketing

3 The Marketing Concept Marketing concept The achievement of corporate goals through meeting and exceeding customer needs better than the competition Customer orientation Corporate activities are focused upon providing customer satisfaction Integrated effort All staff accept the responsibility for creating customer satisfaction Goal achievement The belief that corporate goals can be achieved through customer satisfaction

4 Creating Customer Value Product benefits Service benefits Relational benefits Image benefits Monetary costs Time costs Energy costs Psychological costs Positive Negative Customer value Perceived sacrifice Perceived benefits

5 L’Oreal Elvive Presents favourable benefits

6 Creating Customer Satisfaction Delight Neutral Dissatisfaction AbsentFulfilled Presence of the characteristic Customer satisfaction ‘ Delighters ’ ‘ More is better ’ ‘ Must be ’

7 Production Orientation Production capabilities Manufacture product Customers

8 Customer Orientation Customer needs Customers Marketing Products and services Potential Market Opportunities

9 Market Versus Internally Driven Businesses Market driven businesses Customer concern throughout business Know customer choice criteria and match with marketing mix Segment by customer differences Invest in market research and track market changes Welcome change Try to understand competition Marketing spend regarded as an investment Innovation rewarded Search for latent markets Being fast Strive for competitive advantage Internally orientated businesses Convenience comes first Assume price and product performance are the key to most sales Segment by product Rely on anecdotes and received wisdom Cherish the status quo Ignore competition Marketing spend regarded as luxury Innovation punished Stick with the same Why rush? Happy to be me-too

© The McGraw-Hill Companies, Efficiency and Effectiveness Goes out of business quickly Survives Dies Slowly Does well Thrives Inefficient Ineffective Effective Efficient

11 The Marketing Mix Product The Marketing Mix Price Place Promotion

12 An Effective Marketing Mix Effective marketing mix Matches customer needs Creates a competitive advantage Well balanced Matches corporate resources Effective marketing mix

13 Marketing and Business Performance: Does Marketing work? Market Orientation Improved business performance

14 The Scope of Marketing Marketing activity is used in various fields such as not –for profit, Sport and music

15 The Marketing Planning Process Stages in the planning process: Business Mission Marketing audit SWOT analysis Marketing objectives Strategic thrust Core strategy Target markets Marketing mix decisions Organisations and implementation Control Strategic objectives Competitive advantage

16 Chapter Summary The marketing concept and market orientation is a business philosophy that puts the customer at the centre of things. Customer value is the difference between perceived benefits and perceived sacrifices involved in consuming a product or service. Customer value is delivered through the marketing mix. There is a strong relationship between the marketing philosophy and business performance. The scope of marketing is broad, involving business and non- business contexts. Marketing planning is an important activity which ensures marketing effectiveness.