Marketing in a Changing World Chapter One Lecture Slides Express Version Course Professor Date

Looking Ahead After studying this chapter, you should be able to: Define marketing and discuss its core concepts Explain the relationships among customer value, satisfaction, and quality Define marketing management and understand how marketers manage demand and build profitable customer relationships Compare the five marketing management philosophies Analyze the major challenges facing marketers in the new “connected” world ©Copyright 2004, Pearson Education Canada Inc.

Marketing Defined Marketing: a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others. Needs Physical Social Individual Wants Demands Products Services ©Copyright 2004, Pearson Education Canada Inc.

Customer Value, Satisfaction, and Quality Customer value: the difference between the values the customer gains from owning and using a product and the costs of obtaining the product. Customer satisfaction: the extent to which a product’s perceived performance in delivering value matches a buyer’s expectations. Quality: the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs. ©Copyright 2004, Pearson Education Canada Inc.

Exchange, Transactions, and Relationships Exchange: the act of obtaining a desired object from someone by offering something in return. Transaction: a trade between two parties that involves: two things of value agreed upon conditions time of agreement place of agreement Relationship marketing: the process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders. ©Copyright 2004, Pearson Education Canada Inc.

Marketing Management Demand management: 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. Demand management: Increasing demand Changing sales Demarketing Building profitable customer relationships: Attract new customers Create transactions with them Retain current customers Build lasting customer relationships ©Copyright 2004, Pearson Education Canada Inc.

Marketing Management Practice Entrepreneurial marketing: Businesses started by individuals Creativity, drive, and perseverance are keys to success The origins of “guerilla” marketing Formulated marketing: Professional, disciplined approach Achieving a market orientation Intrepreneurial marketing: Encouraging initiative at the local level Putting creativity and passion back into the marketing effort ©Copyright 2004, Pearson Education Canada Inc.

Marketing Management Philosophies Production: consumers will favor products that are available and highly affordable Product: consumers favor products that offer the most in quality, performance, and innovative features Selling: consumers will not buy unless it undertakes a large-scale selling and promotional effort Marketing: determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently then the competitors Societal marketing: generating customer satisfaction and long-run societal well-being are the keys to both achieving the company’s goals and fulfilling its responsibilities ©Copyright 2004, Pearson Education Canada Inc.

Selling versus Marketing Concept Starting Point Focus Means Ends The Selling Concept Factory Existing products Selling and promoting Profits through sales volume The Marketing Concept Market Customer needs Integrated marketing Profits from satisfied customers Figure 1.3 ©Copyright 2004, Pearson Education Canada Inc.

Marketing in the Connected World Connections with customers More selectively For life Directly Connecting Technologies Computer Information Communication Transportation Connections with Marketing Partners With other company departments With suppliers and distributors Through strategic alliances Connections with the World Around Us Global connections With values and responsibilities Broadened connections Figure 1.5 ©Copyright 2004, Pearson Education Canada Inc.

Looking Back Marketing core concepts Customer value, satisfaction, and quality Marketing management Marketing management philosophies Major challenges in the connected world ©Copyright 2004, Pearson Education Canada Inc.