1. Marketing Management 1. Market and Customer Orientation

2. What is Marketing? Marketing is the delivery of customer satisfaction at a profit (Kotler) The 4 “P”s of Marketing: Product – anything to be offered to a market Price – exchange value of a product Promotion – communicating with customers Place – placement or distribution, making the product available to customers

3. Marketing History Product-Orientation: consumers favor products that are available and affordable Henry Ford’s Model-T, 1900-1930s Sales-Orientation: consumers favor products that are promoted the most Agents, 1930s-1950s Market-Orientation: focus is on needs and wants of consumers and delivering satisfaction better than competitors General Electric, 1950s-today Now: Customer Orientation, Relationship Marketing

4. The Customer Is Everything Needs: state of felt deprivation for something I’m thirsty Wants: the form of needs shaped by culture and individual personality I want a Coke Demands: wants supported by buying power I have $2, so I can and will buy a Coke Value: benefits that customers gain from a product Satisfaction: perceived product performance compared to the customer’s expectations

5. Market-Orientation: A Winning Strategy in a Continuously Changing Environment Everything changes: 1. Customers Understanding customer needs Delivering customer satisfaction over the long-run 2. Competitors Competitive advantage Strategy, Positioning, and Marketing Tactics 3. Company: Speed (Flexibility), Talent, and Branding (John Chambers) 4. Context: analysis of other environmental forces

6. Building Market Orientation within a Company Develop marketing knowledge and intelligence Maintain employee satisfaction by creating a positive work environment (Andy Grove) Empower employees and reward even slight improvements in customer satisfaction Implement measures of performance related to customer satisfaction