principles of MARKETING Principles of Marketing, 5th Canadian Edition principles of MARKETING Chapter 1 Marketing in a Changing World: Creating Customer Value and Satisfaction © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Principles of Marketing, 5th Canadian Edition Chapter Objectives Define marketing and discuss core concepts Explain customer value, satisfaction, and quality Discuss and understand marketing management Compare the five marketing management philosophies Analyze major future challenges For further details about this topic see page 2 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Principles of Marketing, 5th Canadian Edition What is Marketing? A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others For further details about this topic see pages 4-6 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Defined: Core Marketing Concepts Principles of Marketing, 5th Canadian Edition Marketing Defined: Core Marketing Concepts Needs Wants Demands For further details about this topic see pages 6-7 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Defined: Core Marketing Concepts Principles of Marketing, 5th Canadian Edition Marketing Defined: Core Marketing Concepts Needs, wants, demands Markets Products and Services Exchange, transactions, relationships For further details about this topic see page 7 Value, satisfaction, and quality © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Defined: Core Marketing Concepts Principles of Marketing, 5th Canadian Edition Marketing Defined: Core Marketing Concepts Products Services For further details about this topic see pages 7-9 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Defined: Core Marketing Concepts Principles of Marketing, 5th Canadian Edition Marketing Defined: Core Marketing Concepts Value Satisfaction Quality For further details about this topic see pages 9-11 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Defined: Core Marketing Concepts Principles of Marketing, 5th Canadian Edition Marketing Defined: Core Marketing Concepts Exchange Transactions Relationships Markets Buyers Actual Potential For further details about this topic see pages 11-14 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Defined: Core Marketing Concepts Principles of Marketing, 5th Canadian Edition Marketing Defined: Core Marketing Concepts Communication Products/Services Industry: a collection of sellers Market: a collection of buyers For further details about this topic see page 13 Money Information © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Defined: Core Marketing Concepts Principles of Marketing, 5th Canadian Edition Marketing Defined: Core Marketing Concepts Company (marketer) Suppliers End user market Marketing intermediaries For further details about this topic see page 14 Competitors © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Management Defined Principles of Marketing, 5th Canadian Edition Marketing Management Defined The analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives For further details about this topic see page 14 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Principles of Marketing, 5th Canadian Edition Marketing Management Demand Management Level of demand Timing of demand Nature of demand Demarketing For further details about this topic see page 14 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Principles of Marketing, 5th Canadian Edition Marketing Management Building Profitable Customer Relationships Attract them Create transactions Retaining them Building lasting relationships Customer lifetime value For further details about this topic see pages 14-15 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Principles of Marketing, 5th Canadian Edition Marketing Management Entrepreneurial Marketing Formulated Marketing For further details about this topic see pages 15-17 Intrapreneurial Marketing © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Management Philosophies Principles of Marketing, 5th Canadian Edition Marketing Management Philosophies The Production Concept Management focus on production and distribution efficiency Consumers favour Readily available products Affordable products For further details about this topic see page 17 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Management Philosophies Principles of Marketing, 5th Canadian Edition Marketing Management Philosophies The Product Concept Consumers favour products offering Highest quality Best performance Most innovative features For further details about this topic see page 17 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Management Philosophies Principles of Marketing, 5th Canadian Edition Marketing Management Philosophies The Selling Concept Sell what you make Typically for unsought goods Focus on sales transactions Driven by excess capacity Assumes hard sell customers are satisfied For further details about this topic see page 18 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Management Philosophies Principles of Marketing, 5th Canadian Edition Marketing Management Philosophies The Marketing Concept Focus on customer wants and needs Delivering satisfaction More effectively than competition More efficiently than competition For further details about this topic see pages 18-20 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Management Philosophies Principles of Marketing, 5th Canadian Edition Marketing Management Philosophies The Marketing Concept Marketing Orientation Kohli and Jaworski Intelligence generation Intelligence dissemination Responsiveness Narver and Slater Customer orientation Competitor orientation Interfunctional coordination For further details about this topic see pages 18-20 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Management Philosophies Principles of Marketing, 5th Canadian Edition Marketing Management Philosophies Starting point Focus Means Ends Existing products Selling and promoting Profits through sales volume Factory The selling concept For further details about this topic see page 18 Customer needs Integrated marketing Profits through satisfaction Market The marketing concept © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Management Philosophies Principles of Marketing, 5th Canadian Edition Marketing Management Philosophies The Societal Marketing Concept Maintain or improve well-being of consumers and society Focus on customer wants and needs Delivering satisfaction More effectively than competition More efficiently than competition Maintains or improves consumers’ and society’s well-being For further details about this topic see pages 20-21 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Management Philosophies Principles of Marketing, 5th Canadian Edition Marketing Management Philosophies Society (human welfare) Societal marketing concept For further details about this topic see page 21 Consumers (want satisfaction) Company (profits) © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Future Marketing Challenges Principles of Marketing, 5th Canadian Edition Future Marketing Challenges Technology The Internet With Customers Selectiveness Lasting Relationships Direct Connectedness For further details about this topic see pages 21-28 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Future Marketing Challenges Principles of Marketing, 5th Canadian Edition Future Marketing Challenges With Marketing Partners Internal External Supply Chains Strategic Alliances With the World Global Connections With Values and Social Responsibilities Connectedness For further details about this topic see pages 28-32 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Future Marketing Challenges Principles of Marketing, 5th Canadian Edition Future Marketing Challenges Application to Different Kinds of Organizations Non-profit Public Sector For further details about this topic see pages 32-34 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Principles of Marketing, 5th Canadian Edition Chapter Review What is marketing and its core concepts? What is customer value, satisfaction, and quality? Discuss marketing management Identify and compare the five marketing management philosophies What are the major future challenges? For further details about this topic see pages 36-37 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.