1. Chapter 1 Marketing: The Art and Science of Satisfying Customers

2. Chapter Objectives
Define marketing, explain how it creates utility, and describe its role in the marketplace.
Contrast marketing activities during the four eras in the history of marketing.
Explain the importance of avoiding marketing myopia.
Describe the characteristics of not-for-profit marketing.
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3. Chapter Objectives
Identify and briefly explain each of the five types of nontraditional marketing.
Explain the shift from transaction-based marketing to relationship marketing.
Identify the universal functions of marketing.
Demonstrate the relationship between ethical business practices, social responsibility, and marketplace success.
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4. What is Marketing? Production and marketing together create utility
Utility - The want-satisfying power of a good or service
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6. What is Marketing?
Organizations must create utility and customers to survive
Activities marketers perform to create customers:
Identifying customer needs
Designing products to meet those needs
Communicating information
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7. What is Marketing?
Making the products available when and where customers want them
Pricing merchandise and services
Providing service and following-up
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8. A Definition of Marketing
Marketing - An organizational function and a set of processes for:
Creating, communicating, and delivering value to customers
Managing customer relationships in ways that benefit the organization and its stakeholders
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9. Today’s Global Marketplace
Factors that have extended economic views
Increase in international trade agreements
Growth of electronic business
Interdependence of the world’s economies
Companies seek the most efficient manufacturing sites and most lucrative markets worldwide
Companies are tailoring their marketing efforts to the needs and preferences of local markets
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10. Four Eras in the History of Marketing
Exchange process - Activity in which two or more parties give something of value to each other to satisfy perceived need
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12. The Production Era
Production orientation - Stressing efficiency in producing a quality product, with the attitude toward marketing that “a good product will sell itself”
Characterized by production shortages and intense consumer demand
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13. The Sales Era
Sales orientation - Customers will resist purchasing nonessential items
Task of personal selling and creative advertising is to persuade them to buy
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14. The Marketing Era Emergence of the marketing concept
Shift from a seller’s market to a buyer’s market
A strong buyer’s market created the need for consumer orientation
Marketing concept - A companywide consumer orientation to achieve long-run success
A strong market orientation improves market success and overall performance
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15. The Relationship Era
Relationship marketing - Developing long-term, value- added relationships over time with customers and suppliers
Strategic alliances and partnerships benefit everyone
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16. Converting Needs to Wants
Consumers acquire goods and services on a continuing basis to fill certain needs
To convert needs into wants, marketers:
Focus on the benefits of goods and services
Require skill
Should listen to consumer needs
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17. Avoiding Marketing Myopia
Marketing myopia - Management’s failure to recognize the scope of its business
Focusing on customer need satisfaction can overcome myopia
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19. 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 by appearing in advertisements relating to their goals
Form alliances with for-profit firms to promote each other’s causes
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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
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22. Nontraditional Marketing
Person marketing
Focus on marketing of fictional characters, celebrities, and political candidates
Place marketing
Focus on marketing places as tourist attractions, business locations
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23. 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
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24. Event Marketing
Marketing of sporting, cultural, and charitable activities to selected target markets
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25. Organization Marketing
Organization marketing - Attempts to influence others to:
Accept the organization’s goals
Receive its services
Contribute in some way
Includes mutual-benefit organizations, service and cultural organizations, and government agencies
Used to raise funds by selling licensed merchandise
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26. From Transaction-Based Marketing to Relationship Marketing
Transaction-based marketing - Buyer and seller exchanges characterized by limited communications and little or no ongoing relationships between the parties
Marketers realize that consumers are becoming more and more sophisticated
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27. From Transaction-Based Marketing to Relationship Marketing
Relationship marketing gives a company new opportunities to gain a competitive edge by moving customers up a loyalty ladder
It starts with determining what customers need and want, then developing high-quality products to meet those needs
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29. Using Interactive and 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
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30. Using Interactive and Social Marketing to Build Relationships
Social marketing - The use of online social media as a communications channel for marketing messages
Buzz marketing - Word of mouth messages that bridge the gap between a company and its products

31. Partnerships and Strategic Alliances
Relationship marketing extends to business-to-business relationships with suppliers, distributors, and other partners
Strategic alliances provide firms competitive advantage
Forms of alliances
Product development partnerships
Vertical alliances
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33. 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 whose primary objective is to enhance society
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34. Ethics and Social Responsibility
Sustainable products - Products that can be produced, used, and disposed of with minimal impact on the environment
Firms stand to gain needed credibility from their efforts to protect the environment
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35. Watch Marketing: Satisfying
Video
Watch Marketing: Satisfying
Customers at Flight 001
How important are Flight 001’s strategic alliances to their marketing?
What other companies or industries would be a good fit with Flight 001?
What role does the design of the store play in marketing Flight 001?
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