Dr. Saleh Alqahtani
Chapter 1 Defining Marketing for the 21 st Century by
Dr. Saleh Alqahtani Objectives ä Course Organization ä Tasks of Marketing ä Major Concepts & Tools of Marketing ä Marketplace Orientations ä Marketing’s Responses to New Challenges
Dr. Saleh Alqahtani Course/Text Organization ä Part I - Understanding Marketing Management ä Part II - Analyzing Marketing Opportunities ä Part III - Developing Marketing Strategies ä Part IV - Shaping the Market Offering ä Part V - Managing & Delivering Marketing Programs
Dr. Saleh Alqahtani The New Economy ä Substantial increase in buying power ä A greater variety of goods and services ä A greater amount of information about practically anything ä A greater ease in interacting and placing and receiving orders ä An ability to compare notes on products and services ä Websites can provide companies with powerful new information and sales channels
Dr. Saleh Alqahtani The New Economy ä Companies can customize offerings and services to individual customers. Companies can collect fuller and richer information about markets, customers, prospects and competitors. ä Companies can facilitate and speed up communications among employees. ä Companies can have 2-way communication with customers and prospects
Dr. Saleh Alqahtani The New Economy ä Companies can send ads, coupons, samples, information to targeted customers. ä The Internet can be used as a communication channel for purchasing, training, and recruiting. ä Companies can improve logistics and operations for cost savings while improving accuracy and service quality.
Dr. Saleh Alqahtani Defining Marketing Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.
Dr. Saleh Alqahtani Core Concepts of Marketing Product or Offering Value and Satisfaction Needs, Wants, and Demands Exchange and Transactions Relationships and Networks Target Markets & Segmentation Marketing Channels Supply Chain Competition Marketing Environment
Dr. Saleh Alqahtani Simple Marketing System Industry (a collection of sellers) Market (a collection of Buyers) Goods/services Money Communication Information
Dr. Saleh Alqahtani The Four Ps Marketing Mix Product Price Promotion Place The Four Cs Customer Solution Customer Cost Communication Convenience
Dr. Saleh Alqahtani Production Concept Product Concept Selling Concept Marketing Concept Consumers prefer products that are widely available and inexpensive Consumers favor products that offer the most quality, performance, or innovative features Consumers will buy products only if the company aggressively promotes/sells these products Focuses on needs/ wants of target markets & delivering value better than competitors Company Orientations Towards the Marketplace
Dr. Saleh Alqahtani Market Integrated marketing Profits through customer satisfaction Customer needs (b) The marketing concept Factory Existing products Selling and promotion Profits through sales volume Starting point FocusMeansEnds (a) The selling concept Customer Delivered Value
Dr. Saleh Alqahtani Customers Front-line people Middle Management Top Management Traditional Organization Chart
Dr. Saleh Alqahtani Customer-Oriented Organization Chart Customers Front-line people Middle management Top manage- ment Customers
Dr. Saleh Alqahtani Evolving Views of Marketing’s Role a. Marketing as an equal function Finance Production Marketing Human resources b. Marketing as a more important function Finance Human resources Marketing Production
Dr. Saleh Alqahtani Evolving Views of Marketing’s Role c. Marketing as the major function Marketing Finance Human resources Production d. The customer as the controlling factor Customer Human resources Finance Production Marketing
Dr. Saleh Alqahtani Evolving Views of Marketing’s Role e. The customer as the controlling function and marketing as the integrative function Customer Marketing Production Human resources Finance
Dr. Saleh Alqahtani Chapter 3 Building Customer Satisfaction, Value, and Retention
Dr. Saleh Alqahtani Determinants of Customer Delivered Value Image value Personnel value Services value Product value Total customer value Total customer value Monetary cost Time cost Energy cost Psychic cost Total customer cost Total customer cost Customer delivered value Customer delivered value
Dr. Saleh Alqahtani Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations. Satisfaction
Dr. Saleh Alqahtani Premier Dell.com is a special business-oriented part of the Dell Web site that allows customers to interact with Dell and customize all phases of doing business with Dell.
Dr. Saleh Alqahtani Satisfied Customers: ä Are loyal longer ä Buy more (new products & upgrades) ä Spread favorable word-of-mouth ä Are more brand loyal (less price sensitive) ä Offer feedback ä Reduce transaction costs
Dr. Saleh Alqahtani Inactive or ex-customers Customer Development PartnersAdvocatesClients Repeat customers First-time customers Suspects Prospects Disqualified prospects
Dr. Saleh Alqahtani Figure 3-8: Allocating marketing investment according to customer value
Dr. Saleh Alqahtani Quality äQäQuality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. #1
Dr. Saleh Alqahtani Review ä Define value & satisfaction - understand how to deliver them ä The nature of high-performance businesses ä How to attract & retain customers ä Improving customer profitability ä Total quality management