1. Copyright John Wiley & Sons 2007 Presentation prepared by Robin Roberts, Griffith University and Mike Spark, Swinburne University of Technology

2. Copyright John Wiley & Sons 2007 Chapter 1 Marketing’s role in business and society Marketing starts and ends with the consumer

3. Copyright John Wiley & Sons 2007 Chapter 1 Chapter Objectives 1.Define marketing 2.Understand several important marketing terms, including: Target market Marketing mix Marketing exchange Marketing environment 3.Be aware of the marketing concept and market orientation

4. Copyright John Wiley & Sons 2007 Chapter 1 4.Understand the importance of building customer relationships 5.Explain the major marketing functions that are part of the marketing management process 6.Understand the role of marketing in our society Chapter Objectives

5. Copyright John Wiley & Sons 2007 Chapter 1 Marketing defined Marketing is the process of creating, distributing, promoting and pricing goods, services and ideas to facilitate satisfying exchange relationships with customers in a dynamic environment

6. Copyright John Wiley & Sons 2007 Chapter 1 Marketing defined (cont'd) The marketing process starts with the customer. There are many different types of customers: –Individual consumers –Households or families –Businesses –Governments –Other organisations

7. Copyright John Wiley & Sons 2007 Chapter 1 Compare and contrast the responses on the following media slides

8. Copyright John Wiley & Sons 2007 Chapter 1 What are the major responsibilities of your role as Director of Marketing? Jason Haynes, Director of Marketing, Quiksilver Australasia Dial-UpBroadband

9. Copyright John Wiley & Sons 2007 Chapter 1 What are the major responsibilities of your role as Director of Sales and Marketing? Neil Paterson, Director of Sales and Marketing, Sofitel Hotel, Gold Coast Dial-UpBroadband

10. Copyright John Wiley & Sons 2007 Chapter 1 What are the major responsibilities of your role as Director of Sales and Marketing? Bruce White, Director of Sales and Marketing, Story Bridge Adventure Climb Dial-UpBroadband

11. Copyright John Wiley & Sons 2007 Chapter 1 The Strategic Marketing Process

12. Copyright John Wiley & Sons 2007 Chapter 1 Marketing basics Any organisation has to define its ‘product’ not as what it produces, but what they do to satisfy existing and potential customers’ needs and wants The essence of marketing is to develop satisfying exchanges from which both customers and marketers benefit (i.e. a ‘win-win’ situation)

13. Copyright John Wiley & Sons 2007 Chapter 1 Marketing focuses on developing and managing a product that will satisfy customer needs making the right product available in the right place at a price that is acceptable to buyers This requires communicating information (promotion) that helps customers determine whether the product will satisfy their needs Marketing and the 4 variables

14. Copyright John Wiley & Sons 2007 Chapter 1 Marketing and the 4 variables The primary goal of a marketer is to develop and maintain the right mix of these marketing elements in order to satisfy customer needs for a general product type They must collect up-to-date, in-depth data about customer needs to develop a marketing mix that satisfies a specific target market

15. Copyright John Wiley & Sons 2007 Chapter 1 This results from researching the changing buyer demands and needs, and designing a ‘product’ that satisfies them A ‘product’ in marketing terms is anything offered to a market: ‘a bundle of attributes that exists for the purpose of exchange to satisfy both customer and organisational objectives’ The Product variable

16. Copyright John Wiley & Sons 2007 Chapter 1 A product can be: a good or service an idea event or activity person or happening The Product variable (cont’d)

17. Copyright John Wiley & Sons 2007 Chapter 1 The Product variable (cont’d) The product variable also involves: creating or modifying brand names packaging warranty and repair services brand image, style and quality features

18. Copyright John Wiley & Sons 2007 Chapter 1 The Price variable This refers to the decisions and actions associated with: establishing pricing objectives setting policies determining product prices

19. Copyright John Wiley & Sons 2007 Chapter 1 The Distribution (Place) variable To satisfy the target customers, products must be available in: convenient locations at the right time in adequate quantities

20. Copyright John Wiley & Sons 2007 Chapter 1 Activities used to inform individuals or groups about the organisation and its products Can also: educate customers about product features urge people to take a stance on a political or social issue (persuade) remind purchasers that the product is still available The Promotion variable

21. Copyright John Wiley & Sons 2007 Chapter 1 The Marketing Exchange Process

22. Copyright John Wiley & Sons 2007 Chapter 1 Marketing Environment Competitive Economic Political Legal and regulatory Technological Socio-cultural

23. Copyright John Wiley & Sons 2007 Chapter 1 Understanding the Marketing Concept An organisation should try to provide products that satisfy customers’ needs through a coordinated set of activities that also allows the organisation to achieve its goals Major focal points Customer satisfaction Customer loyalty

24. Copyright John Wiley & Sons 2007 Chapter 1 The evolution of the Marketing Concept

25. Copyright John Wiley & Sons 2007 Chapter 1 Implementing the Marketing Concept Establish an information system, to Determine what buyers want, and Use that information to Develop need-satisfying products Continuously alter, adapt and develop products to keep pace with changing desires and preferences

26. Copyright John Wiley & Sons 2007 Chapter 1 Managing customer relationships They are the lifeblood of all businesses! Organisational achievement comes from: –Acquiring new customers, or –Enhancing profitable dealings with existing customers, or –Extending the duration of customer relationships The aim is to optimise the exchange relationship

27. Copyright John Wiley & Sons 2007 Chapter 1 ‘Long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges’ Relationship Marketing

28. Copyright John Wiley & Sons 2007 Chapter 1 Customer Relationship Management (CRM) Uses information about customers to create marketing strategies that develop and sustain desirable customer relationships By increasing perceived customer value over time, organisations try to retain their customer base, and increase long-term profitability through enhanced customer loyalty

29. Copyright John Wiley & Sons 2007 Chapter 1 How does CRM work? By identifying patterns of buyer behaviour Focusing efforts on satisfying the needs of the most promising and profitable customers Reducing administrative costs Making the promotional efforts more cost-effective

30. Copyright John Wiley & Sons 2007 Chapter 1 Value-driven Marketing Value is a customer’s subjective view or assessment of the benefits they receive relative to the costs they incur Customer benefits include anything a buyer receives in an exchange Customer costs include anything a buyer must give up to obtain the benefits the product provides

31. Copyright John Wiley & Sons 2007 Chapter 1 Marketing Management The process of planning, organising, implementing and controlling marketing activities to facilitate exchanges efficiently and effectively

32. Copyright John Wiley & Sons 2007 Chapter 1 The importance of marketing in our global economy Marketing costs consume a sizeable portion of buyers’ dollars Marketing is used in Not-for-profit organisations Marketing is important for business Marketing fuels our global economy

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34. Copyright John Wiley & Sons 2007 Chapter 1