{ Marketing Principles Chapter 1

the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large Marketing…

1 – to discover the needs and wants of prospective customers 2 – to satisfy them Ultimately making an exchange – trading things of value between buyer and seller so that each is better off after the trade Goals of marketing…

Market Research – listening to customers needs and ideas to direct product development and marketing plans – data, data, data! Produce what customers need and want…it’s that simple. Examples – Dr. Care Toothpaste Avoid showstoppers – factors that doom the product Discovering Consumer Needs

Satisfy consumer needs and wants What are needs and wants – examples? Marketing shapes your wants – how? Discovering Consumer Needs

Understanding consumers = knowing your target market Market = people with desire and ability to buy a specific offering Knowing want/need + the ability to buy (authority, time, money) Discovering Consumer Needs

Can a company satisfy the needs of an entire market? Target Market = specific groups of potential consumers toward which an organization directs its marketing program Satisfying Consumer Needs

Marketing Mix – the marketing manger’s controllable factors that can be used to solve a marketing problem Product – A good, service, or idea to satisfy the consumer’s needs Price – What is exchanged for the product Promotion – A means of communication between the seller and buyer Place – A means of getting the product to the consumer Satisfying Consumer Needs

Uncontrollable social, economic, technological, competitive, and regularly forces = environmental forces Can allow for expansion or restriction of marketing opportunities Satisfying Consumer Needs

Due to intense global competition, US firms focus on “customer value” Buyers benefits including quality, convenience, on-time delivery, and before-and after-sale service at a specific price What is your perceived value of certain products? How Relationships are Built

Perceived Value = Loyalty Kleenex example How Relationships are Built

Companies cannot be all things to all people. Must build long-term customers to provide that perceived value to their target markets. Three value strategies – best price, best product, or best service Examples? How Relationships are Built

Relationship Marketing – Linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit. What type of jobs require relationship marketing? Building a computer – Online shopping How Relationships are Built

Understanding how to satisfy needs and wants will lead to a marketing program. A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers. How Relationships are Built

1960s Marketing Concept Era dawned – marketing was the focus Marketing Concept = the idea that an organization should (1) strive to satisfy the needs of consumers and (2) while also trying to achieve the organization’s goals. Marketing Orientation = focusing organizational efforts to collect and use information about customers’ needs to create customer value. Today is the Customer Relationship Era when firms seek continuously to satisfy the high expectations of customers How Marketing Became Important

Marketing has shifted from producer’s interests to consumer’s interests. Companies have developed codes of ethics to assist in efforts. Should info about a firm’s customers be sold to other organizations? Should consumers be on their own to assess the safety of a product? Ethics

Individuals and organizations are accountable to a larger society. Societal marketing concept = view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being. Examples… Social Responsibility

Who Markets? – Everyone markets. Manufacturing, retailing, services, nonprofits, special causes, colleges, places, individuals What is Marketed? – Goods, services, and ideas. Who Buys and Uses What is Marketed? – Individuals and organizations. Ultimate Consumers = people who use the goods and services purchased for a household and organizational buyers = manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale Depth of Marketing

Who Benefits? – Consumers who buy, organizations that sell, and society as a whole. Best products, lowest prices, or exceptional service will prevail How Do Consumers Benefit? – Marketing creates utility = the benefits or customer value received by users of the product. Utility can be form, place, time, and possession Depth of Marketing