1. Part 1 Marketing Strategy and Customer Relationships

2. 1: An Overview of Strategic Marketing
2: Planning, Implementing, and Controlling Marketing Strategies
© 2012 South-Western, a part of Cengage Learning

3. Learning Objectives
To be able to define marketing as focused on customers
To identify some important marketing terms, including target market, marketing mix, marketing exchanges, and marketing environment
To become aware of the marketing concept and market orientation
To understand the importance of building customer relationships
To learn about the process of marketing management
To recognize the role of marketing in our society
© 2012 South-Western, a part of Cengage Learning

4. Marketing Defined
The process of creating, distributing, promoting and pricing goods, services and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment
© 2012 South-Western, a part of Cengage Learning

5. Who is the Focus of Marketing?
Customers
The purchasers of organizations’ products
Are the focal point of all marketing activities
Target Market
A specific group of customers on whom an organization focuses its marketing efforts
© 2012 South-Western, a part of Cengage Learning

6. The Marketing Mix Variables
Marketers combine and balance four elements when determining how to satisfy customers’ needs for a product
Product
Price
Distribution
Promotion
© 2012 South-Western, a part of Cengage Learning

7. Product Variable A product can be a: Good Service Idea
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8. Price Variable
Relates to decisions and actions associated with establishing pricing objectives and policies
Relates to determining product prices
Determines the value of the exchange
© 2012 South-Western, a part of Cengage Learning

9. Distribution Variable
Make products available in quantities desired
Minimize costs:
Inventory
Transportation
Storage
Select/motivate intermediaries
Establish/maintain inventory control
Develop/manage transportation and storage systems
© 2012 South-Western, a part of Cengage Learning

10. Promotion Variable
Inform individuals or groups about the organization and its products/services
Advertising
Public relations
Personal selling
Promotions
Street teams
Viral marketing
© 2012 South-Western, a part of Cengage Learning

11. Relationships with Customers
Exchange
The provision or transfer of goods, services, or ideas in return for something of value
© 2012 South-Western, a part of Cengage Learning

12. Stakeholders
Constituents who have a “stake,” or claim, in some aspect of a company’s products, operations, markets, industry and outcomes
© 2012 South-Western, a part of Cengage Learning

13. Marketing Environment
The six forces that surround the customer and affect the marketing mix:
Economic forces
Political forces
Legal and regulatory forces
Technological forces
Socio-cultural forces
Competitive forces
The marketing environment is dynamic
Unlike marketing-mix variables, an organization has no control over these forces
© 2012 South-Western, a part of Cengage Learning

14. Marketing Environment
© 2012 South-Western, a part of Cengage Learning

15. The Marketing Concept
A management 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
Not a second definition of marketing or a philanthropic philosophy
A firm must satisfy its own objectives
© 2012 South-Western, a part of Cengage Learning

16. Production and Sales Orientations
Production Orientation
Industrial Revolution improved speed and efficiency
Large increases in available products
Sales Orientation
Many products with not enough demand
Businesses viewed sales and selling as the main means of increasing profits
© 2012 South-Western, a part of Cengage Learning

17. The Market Orientation
An organization-wide commitment to researching and responding to customer needs
Emerged in the mid-20th century
Determine what customers want and product those products
© 2012 South-Western, a part of Cengage Learning

18. Implementing the Marketing Concept
Establish an information system to discover customers’ real needs
Use the information to create satisfying products
Coordinate all activities
© 2012 South-Western, a part of Cengage Learning

19. Managing Customer Relationships
Relationship Marketing
Establishing long term mutually satisfying, buyer/seller relationships
Customer-Centric Marketing
Developing collaborative relationships with customers based on focusing on their individual needs and concerns
© 2012 South-Western, a part of Cengage Learning

20. Customer Relationship Marketing (CRM)
Using information about customers to create marketing strategies that develop and sustain desirable customer relationships
© 2012 South-Western, a part of Cengage Learning

21. Value-Driven Marketing
A customer’s subjective assessment of benefits relative to costs in determining the worth of a product
Value
Customer Benefits –
Customer Costs =
© 2012 South-Western, a part of Cengage Learning

22. Marketing Management
The process of planning, organizing, implementing and controlling marketing activities to facilitate exchanges effectively and efficiently
Effectiveness is the degree to which an exchange helps achieve organizational objectives
Efficiency involves maximizing the resources an organization must spend to achieve a specific level of desired exchanges
© 2012 South-Western, a part of Cengage Learning

23. The Importance of Marketing in Our Global Economy
Consumes Large Proportion of
Buyers’ Dollars
Is Used by Non-Profits
Is Important to Business
and the
Economy
Fuels the Global Economy
Enhances
Consumer
Awareness
Connects People
through Technology
Promotes Welfare of Consumers and Society
Creates Career Prospects
© 2012 South-Western, a part of Cengage Learning

24. Green Marketing
A strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting and enhancing the natural environment
A way to engage in socially responsible marketing
© 2012 South-Western, a part of Cengage Learning

25. Career Prospects All organizations engage in some kind of marketing
Even non-profits and government agencies
25-33 percent of non-government workers in the U.S. perform marketing activities
Marketing skills are valuable in every field
© 2012 South-Western, a part of Cengage Learning

26. Important Terms Marketing Marketing concept Customers
Marketing orientation
Marketing mix
Relationship marketing
Target market
Customer-centric marketing
Products
Customer relationship management (CRM)
Exchanges
Value
Stakeholders
Marketing management
Marketing environment
Green marketing
© 2012 South-Western, a part of Cengage Learning