Copyright © 2005 Pearson Education Inc. Marketing: Managing Profitable Customer Relationships Chapter 1 Powerpoint slides Express version Instructor name Course name School name Date Principles of Marketing: 6th Canadian Edition
Copyright © 2005 Pearson Education Inc. Principles of Marketing: 6th Canadian Edition 1.2 Learning Objectives After studying this chapter, you should be able to: –Define what marketing is and discuss its core concepts –Define marketing management and compare the five marketing management orientations –Discuss customer relationship management and strategies for building lasting customer relationships –Analyze the major challenges facing marketers heading into the new “connected” millennium
Copyright © 2005 Pearson Education Inc. Principles of Marketing: 6th Canadian Edition 1.3 Needs, Wants, and Demands Marketing: –The managing of profitable relationships –Satisfying customer needs Needs: –Felt deprivation Wants: –Form of needs shaped by culture and personality Demands: –Wants backed by buying power Figure 1.1
Copyright © 2005 Pearson Education Inc. Principles of Marketing: 6th Canadian Edition 1.4 Value and Satisfaction Value: –Benefits gained versus costs of obtaining product Satisfaction: –Degree of meeting consumer’s expectations Exchange: –Trade of value between parties Transaction: –Two things of value –Agreed-upon conditions –Time/place of agreement
Copyright © 2005 Pearson Education Inc. Principles of Marketing: 6th Canadian Edition 1.5 Marketing Management Market: –Set of actual or potential buyers Marketing management: –Choosing target markets –Building profitable relationships with them Demarketing: –Reduce, not destroy demand –Temporarily or permanently Figure 1.2
Copyright © 2005 Pearson Education Inc. Principles of Marketing: 6th Canadian Edition 1.6 Marketing Management Orientations Production concept Product concept Selling concept Marketing concept Figure 1.3
Copyright © 2005 Pearson Education Inc. Principles of Marketing: 6th Canadian Edition 1.7 Societal Marketing Concept Societal marketing concept: –Determine needs/wants of target markets –Deliver desired satisfactions –More efficiently and effectively –Maintain or improve consumer’s and society’s well-being Figure 1.4
Copyright © 2005 Pearson Education Inc. Principles of Marketing: 6th Canadian Edition 1.8 Customer Satisfaction and Loyalty Customer __________ –Relationship management –Lifetime value –Perceived value –Satisfaction –Loyalty and retention –Equity Figure 1.5
Copyright © 2005 Pearson Education Inc. Principles of Marketing: 6th Canadian Edition 1.9 Today’s Marketing Connections The Internet One to one marketing Selective relationship management Increase share of customer Partner relationship management Supply chain management Strategic alliances Figure 1.6
Copyright © 2005 Pearson Education Inc. Principles of Marketing: 6th Canadian Edition 1.10 Marketing Connections in Transition Old marketing thinking: Sales/product centered… Practice mass marketing… Focus on product/sales… Make sales to customers… Get new customers… Grow share of market… Serve any customer… Use mass media… Standardized products… Sales/marketing responsible for customer satisfaction/value… Go it alone… Market locally… Profit responsibility… Corporations… Use marketplaces… New marketing thinking: Market/customer centered Selected market segments Focus on customer satisfaction/value Develop customer relationships Keep old customers Grow share of customer Serve profitable customers Connect with customers directly Customized products Enlist all departments to deliver customer satisfaction/value Partner with others Market locally and globally Social/environmental responsibility Non-profits Use marketspaces
Copyright © 2005 Pearson Education Inc. Principles of Marketing: 6th Canadian Edition 1.11 In Conclusion… The learning objectives for this chapter were: –Define what marketing is and discuss its core concepts –Define marketing management and compare the five marketing management orientations –Discuss customer relationship management and strategies for building lasting customer relationships –Analyze the major challenges facing marketers heading into the new “connected” millennium