1. Chapter 1: Customer-Driven Strategic Marketing
Pride/Ferrell
Foundations of Marketing
Fourth Edition
Prepared by Milton Pressley
University of New Orleans

2. Objectives Define marketing
Understand several important marketing terms including target market, marketing mix, marketing exchanges, and marketing environment
Be aware of the marketing concept and marketing orientation
Understand the importance of building customer relationships
Explain the major marketing functions that are a part of the marketing management process
Understand the role of marketing in our society

3. Marketing Defined
Marketing is 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.

4. Fig. 1.1 Components of Strategic Marketing

5. Discussion Question
What do you think is the difference between “marketing” and “selling”?
Why do you think the term “marketing” is used interchangeably with “selling” by many (most?) business people?

6. Who is the Focus of Marketing?
Customers The purchasers of organizations’ products; the focal point of all marketing activities.
The Target Market
Old Navy focuses on its target market to meet their needs
Who is their target market?

7. Target Market
Target Market-is a specific group of customers on whom an organization focuses its marketing efforts.
Appealing to health-conscious customers

8. Discussion Question
What do you think might be a good target market for Michelin Tires? After discussing this, click on symbol below to see the target markets defined by Michelin. @

9. The Marketing Mix Variables
Marketers combine and balance four elements when determining how to satisfy customers’ needs for a product:
Product
Price
Distribution
Promotion

10. Product Variable A product can be a: Good Service Idea Product
Petzl’s ad focuses on the quality, comfort, and reliability of its climbing helmet

11. 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
Price
The Mini Cooper is promoted as being both affordable to buy and economical on fuel

12. 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

13. Promotion Variable
Inform individuals or groups about the organization and its products/services
Advertising
Public relations
Personal selling
Promotions
Street teams
Viral marketing

14. Discussion Question
Other than those discussed in the book or by your instructor, give an example of a:
- good
- service
- idea

15. Discussion Question
Click on the Television below, watch the commercial, and discuss whether the promotional message is primarily about a good, service or an idea.

16. Relationships with Customers
Exchange - the provision or transfer of goods, services, or ideas in return for something of value

17. Stakeholders
Constituents who have a “stake,” or claim, in some aspect of a company’s products, operations, markets, industry, and outcomes.
The Customer as
a Stakeholder
Yoplait donates to
breast cancer
research.

18. Marketing Environment
The six types of 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
Unlike marketing-mix variables, an organization has no control over these forces

19. Discussion Question
Pick a product that you want to market. Discuss how each of the forces in the marketing environment will effect your marketing mix.

20. The Marketing Concept
A managerial 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.
The Marketing Concept
SSI understands the importance of a customer orientation by listening to customers and providing great service

21. The Evolution of the Marketing Concept
The marketing concept has changed over time:

22. Marketing Orientation
An organization-wide commitment to researching and responding to customer needs.

23. Implementing the Marketing Concept
First, establish an information system to discover customers’ real needs
Use the information to create satisfying products
Coordinate all activities

24. Managing Customer Relationships
Relationship Marketing
Establishing long term mutually
satisfying, buyer/seller
relationships.

25. Customer Relationship Marketing (CRM)
Using information about customers to create marketing strategies that develop and sustain desirable customer relationships.

26. Value-Driven Marketing
Value-a customer’s subjective assessment of benefits relative to costs in determining the worth of a product.
Value
Customer Benefits
Customer Costs = –

27. Marketing Management
The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently.

28. Why Marketing Plays An Important Role in Our Global Economy

29. After Reviewing This Chapter You Should:
Be able to define marketing
Understand several important marketing terms including target market, marketing mix, marketing exchanges, and marketing environment
Be aware of the marketing concept and marketing orientation
Understand the importance of building customer relationships
Explain the major marketing functions that are a part of the marketing management process
Understand the role of marketing in our society

30. Key Concepts Marketing Customers Target market Marketing mix Products
Exchanges
Stakeholders
Marketing environment
Marketing concept
Marketing orientation
Relationship marketing
Customer relationship management (CRM)
Value
Marketing management