Evolving Perspectives The Marketing Concept Evolving Perspectives

What Is Marketing? Simple Definition: Marketing is managing profitable customer relationships. Goals: Attract new customers by promising superior value. Keep and grow current customers by delivering satisfaction.

Marketing Management Philosophies Customer-Driven Societal Marketing Concept Marketing Concept Selling Concept Product Concept Production Concept

The Production Concept

The Product Concept

Marketing and Sales Concepts Contrasted

Societal Marketing Concept

This Is a Need Needs - state of felt deprivation including physical, social, and individual needs.

Maslow’s Hierarchy of Needs

This Is a Want Wants - form that a human need takes, as shaped by culture and individual personality.

Need / Want Fulfillment Needs and Wants Fulfilled through a Marketing Offer : Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

What Satisfies Consumers’ Needs and Wants? Products Anything that can be Offered to a Market to Satisfy a Need or Want Persons Places Organizations Information Ideas The combination of tangible products, particular people, and certain activities in a particular place creates an experience (e.g., Disneyland) We are moving toward being a less manufacturing-based society and a more service-oriented society. Services Activity or Benefit Offered for Sale That is Essentially Intangible and Does Not Result in the Ownership of Anything

Marketing Myopia Sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products. They focus on the “wants” and lose sight of the “needs.”

This Is Demand Wants Buying Power “Demand”

What is a Market? The set of actual and potential buyers of a product. These people share a need or want that can be satisfied through exchange relationships.

Segmentation and Target Marketing #1 #2 Market Segmentation: Divide the market into segments of customers Target Marketing: Select the segment to cultivate

Customer Satisfaction Dependent on the product’s perceived performance relative to a buyer’s expectations.

Value and Satisfaction Expectation Performance 10 8 Expectation Performance 8 10 If performance is lower than expectations, satisfaction is low. If performance is higher than expectations, satisfaction is high.

Customer Perceived Value Customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Customer Relationship Levels Full Partnership Basic Relationship Continuum

Customer Relationship Management The process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.