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2. Define marketing and identify the diverse factors influencing marketing actions. Explain how marketing discovers and satisfies consumer needs. Distinguish between marketing mix factors and environmental forces. LO 1-3 LO 1-2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO: LO 1-1 1-2

3. LO 1-5 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO: LO 1-4 Explain how organizations build strong customer relationships and customer value through marketing. Describe how today’s customer relationship era differs from prior eras. 1-3

4. LAUNCHING A NEW BILLION-DOLLAR FOOD CATEGORY—IN JUST SEVEN YEARS!  Developing Chobani’s Unique Greek Yogurt  Reaching Customers  Chobani Today  Chobani, Marketing, and You 1-4

5.  Marketing is NOT Easy WHAT IS MARKETING?  You Are a Marketing Expert Already Involved in 1,000s of Buying Decisions Involved in Some Selling Decisions LO 1-1 1-5

6. 1.True 2.True 3.(c) plastic bottles FIGURE 1-1 FIGURE 1-1 The see-if-you’re-really-a- marketing-expert test 1-6

7.  You Too Could Start a Successful Business While in College! WHAT IS MARKETING?  Marketing and Your Career Goal is to “Do Marketing!” Small Businesses Offer Marketing Careers LO 1-1 1-7

8. WHAT IS MARKETING? DELIVERING BENEFITS LO 1-1  Marketing Seeks to:  Exchange Discover Needs and Wants of Customers Satisfy Them AMA Definition of Marketing 1-8

9. WHAT IS MARKETING? DIVERSE ELEMENTS INFLUENCE MARKETING ACTIONS LO 1-1  The Organization Itself and Its Departments  Society  Environmental Forces 1-9

10. FIGURE 1-2 FIGURE 1-2 A marketing department relates to many people, organizations, and environmental forces 1-10

11. WHAT IS MARKETING? REQUIREMENTS FOR MARKETING TO OCCUR LO 1-1  Two + Parties with Unsatisfied Needs  A Desire and Ability to be Satisfied  A Way for the Parties to Communicate  Something to Exchange 1-11

12. HOW MARKETING DISCOVERS CONSUMER NEEDS THE CHALLENGE: NEW PRODUCTS LO 1-2  Consumers May Not Know or Cannot Describe What They Need or Want  Most New Products Fail “Focus on the Consumer Benefit” “Learn From Past Mistakes”  The Challenge: 1-12

13. Dr. Care Vanilla-Mint Aerosol Toothpaste What “benefits” and what “showstoppers?” LO 1-2 1-13

14. Terrafugia Transition What “benefits” and what “showstoppers?” LO 1-2 1-14

15. Pepsi Next What “benefits” and what “showstoppers?” LO 1-2 1-15

16. HOW MARKETING DISCOVERS CONSUMER NEEDS NEEDS VS. WANTS LO 1-2  Need  Want  Does Marketing Persuade People to Buy the “Wrong” Things?  Market 1-16

17. FIGURE 1-3 FIGURE 1-3 Marketing seeks to discover consumer needs through research and then satisfy them with a marketing program 1-17

18. HOW MARKETING SATISFIES CONSUMER NEEDS THE FOUR Ps LO 1-3 Promotion Place  Target Market  The 4 Ps: Controllable Marketing Mix Factors Product Price $499 1-18

19. HOW MARKETING DISCOVERS CONSUMER NEEDS ENVIRONMENTAL FORCES LO 1-3 Technological Regulatory  Uncontrollable Environmental Forces Social Economic Competitive  Customer Value Proposition 1-19

20. THE MARKETING PROGRAM CUSTOMER VALUE LO 1-4 Best Price Best Service  Customer Value Best Product  Value Strategies 1-20

21. Target, Starbucks, and US Bank What customer value strategy? LO 1-4 1-21

22. THE MARKETING PROGRAM RELATIONSHIP MARKETING LO 1-4 Easy to Understand  Relationship Marketing Hard to Do  Marketing Program  Market Segments 1-22

23. 3M’S STRATEGY & MARKETING PROGRAM DISCOVERING & STATISFYING STUDENT STUDY NEEDS LO 1-4 + Felt Tip Highlighters = 3M product that will combine Post-it ® Notes or Post-it ® Flags and Highlighters 3M Post-it ® Notes or Post-it ® Flags 1-23

24. 3M’S STRATEGY & MARKETING PROGRAM DISCOVERING & STATISFYING STUDENT STUDY NEEDS LO 1-4  Move from Ideas to a Marketable Highlighter Product  Add the Post-it ® Flag Pen  Develop a Marketing Program for the Post-it ® Flag Highlighter and Pen 1-24

25. FIGURE 1-4 FIGURE 1-4 Marketing programs for two new 3M Post-it ® brand products targeted at college students and office workers 1-25

26. 3M’S STRATEGY & MARKETING PROGRAM DISCOVERING & STATISFYING STUDENT STUDY NEEDS LO 1-4  Developed Third Generation Post-it ® Flag Highlighter  Appeared on The Oprah Winfrey Show 1-26

27. FIGURE 1-5 FIGURE 1-5 Four different orientations in the history of American business Production Era Sales Era Marketing Concept Era Customer Relationship Era Market Orientation 1-27

28. HOW MARKETING BECAME IMPORTANT EVOLUTION OF THE MARKET ORIENTATION LO 1-5  Customer Relationship Management (CRM)  Customer Experience What Firms Think They Offer Customers What Customers Say They Receive 1-28

29. HOW MARKETING BECAME IMPORTANT ETHICS AND SOCIAL RESPONSIBILITY LO 1-5  Ethics  Social Responsibility Societal Marketing Concept 1-29

30. HOW MARKETING BECAME IMPORTANT BREADTH AND DEPTH OF MARKETING LO 1-5  Who Markets?  What Is Marketed? Products (Goods) Services Ideas 1-30

31. HOW MARKETING BECAME IMPORTANT BREADTH AND DEPTH OF MARKETING LO 1-5  Who Benefits?  Who Buys & Uses What Is Marketed? Ultimate Consumers Organizational Buyers  How Do Consumers Benefit?: Utility Form Utility Place Utility Time Utility Possession Utility 1-31

32. CHOBANI: MAKING GREEK YOGURT A HOUSEHOLD NAME VIDEO CASE 1 1-32