1 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Principles and Practice of Marketing David Jobber Chapter 1 Marketing in the Modern Firm

2 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Marketing Concept The achievement of corporate goals through meeting and exceeding customer needs better than the competition The Marketing Concept Customer orientation Corporate activities are focused upon providing customer satisfaction Integrated effort All staff accept the responsibility for creating customer satisfaction Goal achievement The belief that corporate goals can be achieved through customer satisfaction

3 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill The Marketing Concept Customer orientation Corporate activities are focused upon providing customer satisfaction Integrated effort All staff accept the responsibility for creating customer satisfaction Goal achievement The belief that corporate goals can be achieved through customer satisfaction Marketing concept The achievement of corporate goals through meeting and exceeding customer needs better than the competition

4 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Marketing Concept The achievement of corporate goals through meeting and exceeding customer needs better than the competition The Marketing Concept Integrated effort All staff accept the responsibility for creating customer satisfaction Goal achievement The belief that corporate goals can be achieved through customer satisfaction Customer orientation Corporate activities are focused upon providing customer satisfaction

5 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Marketing Concept The achievement of corporate goals through meeting and exceeding customer needs better than the competition The Marketing Concept Customer orientation Corporate activities are focused upon providing customer satisfaction Goal achievement The belief that corporate goals can be achieved through customer satisfaction Integrated effort All staff accept the responsibility for creating customer satisfaction

6 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Marketing Concept The achievement of corporate goals through meeting and exceeding customer needs better than the competition The Marketing Concept Customer orientation Corporate activities are focused upon providing customer satisfaction Integrated effort All staff accept the responsibility for creating customer satisfaction Goal achievement The belief that corporate goals can be achieved through customer satisfaction

7 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Production Orientation Customers Production capabilities Manufacture product Aggressive sales effort

8 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Marketing Orientation Customer needs Potential market opportunities Marketing products and services Customers

9 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Efficiency and Effectiveness

10 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Market-driven Management Shared values and beliefs Customer focus Market-led strategy Structure and systems Implementation Market intelligence

11 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Market-driven Management Customer focus Market-led strategy Structure and systems Implementation Market intelligence Shared values and beliefs l customer first

12 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Market-driven Management Shared values and beliefs Customer focus Market-led strategy Structure and systems Implementation Market intelligence Skills in understanding and responding to customers

13 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Market-driven Management Shared values and beliefs Customer focus Market-led strategy Implementation Market intelligence Structure and systems l structure based on strategy l team work

14 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Market-led strategy l Linking distinctive competencies to market opportunities l Competitive advantage the driving force Market-driven Management Shared values and beliefs Customer focus Structure and systems Implementation Market intelligence

15 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Implementation l people l incentives l communications l persuasion Market-driven Management Shared values and beliefs Customer focus Market-led strategy Structure and systems Market intelligence

16 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Creating Customer Value l Product benefits l Service benefits l Relational benefits l Image benefits l Monetary costs l Time costs l Energy costs l Psychological costs Customer value Perceived benefits Perceived sacrifice Positive Negative

17 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Creating Customer Satisfaction Delight Neutral Dissatisfaction AbsentFulfilled Presence of the characteristic Customer satisfaction ‘ Delighters ’ ‘ More is better ’ ‘ Must be ’

18 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill An Effective Marketing Mix Effective marketing mix Matches customer needs Creates a competitive advantage Well balanced Matches corporate resources

19 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Marketing Mix and Customer Needs Customer needs Key customer requirements Competitive advantage Marketing mix

20 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill l Product l Price l Promotion l Place Marketing mix Marketing Mix and Customer Needs Competitive advantage PsychologicalEconomic Customer needs l Performance l Availability l Reliability l Durability l Productivity l Self-image l Quiet life l Pleasure l Convenience l Risk reduction