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Define marketing and identify the diverse factors influencing marketing actions. Explain how marketing discovers and satisfies consumer needs. Distinguish between marketing mix factors and environmental forces. LO 1-3 LO 1-2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO: LO

LO 1-5 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO: LO 1-4 Explain how organizations build strong customer relationships and customer value through marketing. Describe how today’s customer relationship era differs from prior eras. 1-3

LAUNCHING A NEW BILLION-DOLLAR FOOD CATEGORY—IN JUST SEVEN YEARS!  Developing Chobani’s Unique Greek Yogurt  Reaching Customers  Chobani Today  Chobani, Marketing, and You 1-4

 Marketing is NOT Easy WHAT IS MARKETING?  You Are a Marketing Expert Already Involved in 1,000s of Buying Decisions Involved in Some Selling Decisions LO

1.True 2.True 3.(c) plastic bottles FIGURE 1-1 FIGURE 1-1 The see-if-you’re-really-a- marketing-expert test 1-6

 You Too Could Start a Successful Business While in College! WHAT IS MARKETING?  Marketing and Your Career Goal is to “Do Marketing!” Small Businesses Offer Marketing Careers LO

WHAT IS MARKETING? DELIVERING BENEFITS LO 1-1  Marketing Seeks to:  Exchange Discover Needs and Wants of Customers Satisfy Them AMA Definition of Marketing 1-8

WHAT IS MARKETING? DIVERSE ELEMENTS INFLUENCE MARKETING ACTIONS LO 1-1  The Organization Itself and Its Departments  Society  Environmental Forces 1-9

FIGURE 1-2 FIGURE 1-2 A marketing department relates to many people, organizations, and environmental forces 1-10

WHAT IS MARKETING? REQUIREMENTS FOR MARKETING TO OCCUR LO 1-1  Two + Parties with Unsatisfied Needs  A Desire and Ability to be Satisfied  A Way for the Parties to Communicate  Something to Exchange 1-11

HOW MARKETING DISCOVERS CONSUMER NEEDS THE CHALLENGE: NEW PRODUCTS LO 1-2  Consumers May Not Know or Cannot Describe What They Need or Want  Most New Products Fail “Focus on the Consumer Benefit” “Learn From Past Mistakes”  The Challenge: 1-12

Dr. Care Vanilla-Mint Aerosol Toothpaste What “benefits” and what “showstoppers?” LO

Terrafugia Transition What “benefits” and what “showstoppers?” LO

Pepsi Next What “benefits” and what “showstoppers?” LO

HOW MARKETING DISCOVERS CONSUMER NEEDS NEEDS VS. WANTS LO 1-2  Need  Want  Does Marketing Persuade People to Buy the “Wrong” Things?  Market 1-16

FIGURE 1-3 FIGURE 1-3 Marketing seeks to discover consumer needs through research and then satisfy them with a marketing program 1-17

HOW MARKETING SATISFIES CONSUMER NEEDS THE FOUR Ps LO 1-3 Promotion Place  Target Market  The 4 Ps: Controllable Marketing Mix Factors Product Price $

HOW MARKETING DISCOVERS CONSUMER NEEDS ENVIRONMENTAL FORCES LO 1-3 Technological Regulatory  Uncontrollable Environmental Forces Social Economic Competitive  Customer Value Proposition 1-19

THE MARKETING PROGRAM CUSTOMER VALUE LO 1-4 Best Price Best Service  Customer Value Best Product  Value Strategies 1-20

Target, Starbucks, and US Bank What customer value strategy? LO

THE MARKETING PROGRAM RELATIONSHIP MARKETING LO 1-4 Easy to Understand  Relationship Marketing Hard to Do  Marketing Program  Market Segments 1-22

3M’S STRATEGY & MARKETING PROGRAM DISCOVERING & STATISFYING STUDENT STUDY NEEDS LO Felt Tip Highlighters = 3M product that will combine Post-it ® Notes or Post-it ® Flags and Highlighters 3M Post-it ® Notes or Post-it ® Flags 1-23

3M’S STRATEGY & MARKETING PROGRAM DISCOVERING & STATISFYING STUDENT STUDY NEEDS LO 1-4  Move from Ideas to a Marketable Highlighter Product  Add the Post-it ® Flag Pen  Develop a Marketing Program for the Post-it ® Flag Highlighter and Pen 1-24

FIGURE 1-4 FIGURE 1-4 Marketing programs for two new 3M Post-it ® brand products targeted at college students and office workers 1-25

3M’S STRATEGY & MARKETING PROGRAM DISCOVERING & STATISFYING STUDENT STUDY NEEDS LO 1-4  Developed Third Generation Post-it ® Flag Highlighter  Appeared on The Oprah Winfrey Show 1-26

FIGURE 1-5 FIGURE 1-5 Four different orientations in the history of American business Production Era Sales Era Marketing Concept Era Customer Relationship Era Market Orientation 1-27

HOW MARKETING BECAME IMPORTANT EVOLUTION OF THE MARKET ORIENTATION LO 1-5  Customer Relationship Management (CRM)  Customer Experience What Firms Think They Offer Customers What Customers Say They Receive 1-28

HOW MARKETING BECAME IMPORTANT ETHICS AND SOCIAL RESPONSIBILITY LO 1-5  Ethics  Social Responsibility Societal Marketing Concept 1-29

HOW MARKETING BECAME IMPORTANT BREADTH AND DEPTH OF MARKETING LO 1-5  Who Markets?  What Is Marketed? Products (Goods) Services Ideas 1-30

HOW MARKETING BECAME IMPORTANT BREADTH AND DEPTH OF MARKETING LO 1-5  Who Benefits?  Who Buys & Uses What Is Marketed? Ultimate Consumers Organizational Buyers  How Do Consumers Benefit?: Utility Form Utility Place Utility Time Utility Possession Utility 1-31

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