1 | 2Copyright © Houghton Mifflin Company. All rights reserved. Part One Understanding And Managing Marketing Strategies

Chapter 1 An Overview of Strategic Marketing

1 | 4Copyright © Houghton Mifflin Company. All rights reserved. Objectives Define marketing as focused on customers Identify important marketing terms Become aware of the marketing concept and marketing orientation Understand importance of building customer relationships Learn the process of marketing management Recognize role of marketing in society

1 | 5Copyright © Houghton Mifflin Company. All rights reserved. Marketing The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchanges with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment.

1 | 6Copyright © Houghton Mifflin Company. All rights reserved. Customers The purchasers of organizations’ products; the focal point of all marketing activities.

1 | 7Copyright © Houghton Mifflin Company. All rights reserved. Components of Strategic Marketing

1 | 8Copyright © Houghton Mifflin Company. All rights reserved. Target Market A specific group of customers on whom an organization focuses its marketing efforts.

1 | 9Copyright © Houghton Mifflin Company. All rights reserved. Marketing Mix  Product  Distribution  Promotion  Pricing

1 | 10Copyright © Houghton Mifflin Company. All rights reserved. Product Variable A good, a service, or an idea.

1 | 11Copyright © Houghton Mifflin Company. All rights reserved. Distribution Variable  Make products available in quantities desired  Costs:  Inventory  Transportation  Storage  Select/Motivate intermediaries  Establish/Maintain inventory control  Develop/Manage transportation & storage systems

1 | 12Copyright © Houghton Mifflin Company. All rights reserved. Promotion Variable Activities to inform individuals or groups about the organization and its products –aim is to increase awareness of the organization and new or existing products.

1 | 13Copyright © Houghton Mifflin Company. All rights reserved. Price Variable Decisions and actions associated with establishing pricing objectives and policies and determining product prices

1 | 14Copyright © Houghton Mifflin Company. All rights reserved. Exchange The provision or transfer of goods, services, or ideas in return for something of value

1 | 15Copyright © Houghton Mifflin Company. All rights reserved. Exchange Between Buyer and Seller

1 | 16Copyright © Houghton Mifflin Company. All rights reserved. Stakeholders Constituents who have a stake or claim in some aspect of a company’s products, operations, markets, industry, and outcomes.

1 | 17Copyright © Houghton Mifflin Company. All rights reserved. Conditions of Exchange 1)Two or more must participate and possess something of value other party desires 2)Exchange should provide benefit/satisfaction to both parties 3)Party have confidence in promise of “something of value” held by the other 4)Parties must meet expectations

1 | 18Copyright © Houghton Mifflin Company. All rights reserved. Marketing Concept A philosophy that an organization should try to provide products that satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals.

1 | 19Copyright © Houghton Mifflin Company. All rights reserved. Evolution of the Marketing Concept

1 | 20Copyright © Houghton Mifflin Company. All rights reserved. Marketing Orientation An organization-wide commitment to researching and responding to customer needs.

1 | 21Copyright © Houghton Mifflin Company. All rights reserved. Relationship Marketing Establishing long-term, mutually satisfying buyer-seller relationships.

1 | 22Copyright © Houghton Mifflin Company. All rights reserved. Relationship Development  Acquire new customers  Enhance profitability of existing customers  Extend duration of customer relationship

1 | 23Copyright © Houghton Mifflin Company. All rights reserved. Customer Relationship Management Using information about customers to create marketing strategies that develop and sustain desirable customer relationships.

1 | 24Copyright © Houghton Mifflin Company. All rights reserved. Marketing Management The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently.

1 | 25Copyright © Houghton Mifflin Company. All rights reserved. Importance of Marketing in the Global Economy (Pt.1)  Costs consume sizable portion of buyers’ dollars  Used in nonprofit organizations  Important to business and economy  Fuels the global economy

1 | 26Copyright © Houghton Mifflin Company. All rights reserved. Importance of Marketing in the Global Economy (Pt. 2)  Knowledge enhances consumer awareness  Connects people through technology  Promotes welfare of customers and society  Offers many exciting career prospects