1. Marketing: The Art and Science of Satisfying Customers

2. 1. Define Marketing
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

3. American Marketing Association’s new official definition of marketing released August 2004:
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have values for customers, clients, partners, and society at large.

4. 2. What is the ultimate goal of marketing?
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

5. Ultimate Goal of Marketing
The passion to understand and satisfy the needs of customers in well-defined target markets.
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

6. 3. What are the core marketing concepts?
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

7. Core Concepts of Marketing (1 of 2)
Needs (a state of felt deprivation)
Wants (needs shaped by culture and individual personality)
Demands
Marketing Offers (product, service, and experience)
Value

8. Core Concepts of Marketing (2 of 2)
Satisfaction (customer expectations)
Exchange
Transaction
Market (set of all actual and potential buyers of a product or service)
Utility (want satisfying power of a good or service)

9. Utility Production and marketing together create utility
Utility - The want-satisfying power of a good or service

10. TABLE 1.1
Four Types of Utility

11. 4. What are the six eras in the history of marketing?
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

12. Six Eras of Marketing PRODUCT PRODUCTION SALES MARKETING SOCIETY
RELATIONSHIP

13. 5. What is Marketing Myopia?
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

14. Marketing Myopia
Marketing myopia - Management’s failure to recognize the scope of its business
Overcoming marketing myopia
Developing broader marketing-oriented business ideas focusing on customer need satisfaction

15. Avoiding Marketing Myopia
TABLE 1.2
Avoiding Marketing Myopia

16. AVOIDING MARKETING MYOPIA

17. Broad vs. Narrow Narrow Definition Wrought-iron lawn furniture
Long-distance telephone service
Soft drinks
Overnight package delivery
Caribbean cruises
Broad Definition
Furniture
Telecommunications
Beverages
Global mail delivery
Travel & tourism

18. Not-for-Profit Marketing
Marketing in not-for-profit organizations
Operate in both the public and private sector
Adopt marketing strategies to meet service objectives
Communicate their messages through advertisements relating to their goals
Form alliances with for-profit firms to promote each other’s causes

19. 6. What are the characteristics of not-for-profit marketing?
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

20. Characteristics of Not-for-profit Marketing
Focus is to generate revenue to support their causes and not on the bottom line
May market tangible goods and services
Markets to multiple audiences
Often possess some degree of monopoly power in a given geographic region
Service users have less control over the firm’s future

21. 7. What are the five types of non-traditional marketing?
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

22. Categories of Nontraditional Marketing
TABLE 1.3
Categories of Nontraditional Marketing

23. Nontraditional Marketing
Person marketing – Efforts to cultivate the attention, interest, and preferences of a target market toward a person
Celebrity endorsements
Place marketing - Efforts to attract people and organizations to a particular geographic area
Tourism enhancements

24. Nontraditional Marketing
Cause marketing - Identification and marketing of a social issue, cause or idea to selected target markets
Many profit-seeking firms link their products to social causes
Strong support among customers and employees for cause-related marketing

25. Nontraditional Marketing
Event marketing - Marketing of sporting, cultural, and charitable activities to selected target markets
Also, includes sponsorship of such events by firms
Event sponsorships have gained effectiveness in increasing brand recognition, enhancing image, boosting purchase volume

26. Non-Traditional Marketing
A two-page magazine ad with a photograph of the beach in Barbados
A poster informing music lovers of an upcoming Toby Mac concert
A recruitment ad for the Coast Guard
A radio ad advising teenagers not to drink
The mayor’s efforts to attract enough voters to be re-elected

27. Developing Partnerships and Strategic Alliances
Relationship marketing extends to business-to-business relationships with suppliers, distributors, and other partners
Strategic alliances - Partnerships in which two or more companies combine resources and capital to create competitive advantages in a new market

28. Nontraditional Marketing
Organization marketing - Intended to persuade others to:
Accept the organization’s goals
Receive its services
Contribute to the organization in some way
Adopted by mutual-benefit organizations, service organizations, and government organizations

29. Converting New Customers to Advocates
FIGURE 1.2
Converting New Customers to Advocates

30. Using Social Marketing to Build Relationships
Mobile marketing - Marketing messages transmitted via wireless technology
Interactive marketing - Buyer–seller communications in which the customer controls the amount and type of information received from a marketer

31. Using Social Marketing to Build Relationships
Social marketing - The use of online social media as a communications channel for marketing messages
Electronic conversations can establish innovative relationships between users and the business
By converting indifferent customers into loyal ones, companies generate repeat sales

32. Ethics and Social Responsibility
Ethics - Moral standards of behavior expected in a society
Most businesses follow ethical practices, although there have been breaches at times
Social responsibility - Marketing philosophies, policies, procedures, and actions that have the enhancement of society’s welfare as a primary objective