1. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Marketing Is Important! Marketing impacts all of us in our lives as consumers Gives us choices Stimulates innovation and economic growth There are many good job opportunities in marketing Regardless of what career path you take, no firm (or non-profit organization) survives for long if it can’t satisfy some group of customers. 1-5

2. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Customer Satisfaction Customer Satisfaction – the extent to which a firm fulfills a customer’s needs, desires, and expectations. Customer Satisfaction Alone is NOT the goal of marketing Firms Have a Goal of Generating Profits, Not Making People Happy

3. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Marketing Defined Micro-marketing The performance of activities that seek to accomplish an organization’s objectives by anticipating customer or client needs and directing a flow of need- satisfying goods and services from producer to consumer or client. Macro-marketing A social process that directs an economy’s flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society. 1-3

4. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Implications of the Definition of Micro- Marketing Applies to profit and nonprofit organizations. NOT just persuading customers to buy. Begins with customer needs and focuses on customer satisfaction. Marketing activities --but it is a philosophy that guides the whole business. Seeks to builds a relationship with the customer. 1-4

5. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Economic Systems Marketing-Directed Economic Systems Command Economic Systems Consumer choices are the invisible hand that guides the economy Government planners decide what consumers should get

6. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Micro-Macro Dilemma Micro-macro dilemma: what is "good" for some firms and consumers may not be good for society as a whole. Examples: some consumers want handguns, but guns can be dangerous all terrain vehicles are fun for some people, but may result in injuries or damage to wilderness areas non-returnable soft drink bottles are convenient, but sometimes result in litter and dangerous broken glass along highways. repairing an old air-conditioning system might save the owner money, but might require continued use of ozone depleting fluorocarbons (used as coolant)

7. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill The Marketing Concept Exhibit 2-1 Profit Customer Satisfaction Customer Satisfaction Total Company Effort Total Company Effort The Marketing Concept 2-4

8. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Marketing Orientation Trying to carry out the marketing concept Maintaining a customer orientation All departments work together guided by customer needs Focus on profit objective (or other overall objective) NOT just trying to "unload" what the firm has produced

9. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Marketing Orientation Sounds Easy,Isn’t Even the “best” firms sometimes backslide into a production orientation In today’s highly competitive markets it is often difficult to keep up with changing customer needs beat aggressive competitors to the punch find the right focus -- one that matches the firm’s objectives and resources to market opportunities offer customers superior value 2-5

10. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Social Responsibility Social Responsibility – a firm’s obligation to improve its positive effects on society and reduce its negative effects (pg 23). Abernethy – Social responsibility is not the responsibility of a firm. A business should follow the law and make a profit. Part of the class is learning the laws applying to marketing.

11. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Customer Value Customer Value – Difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits (pg 19). Only when the customer sees benefits > costs will they be satisfied (and buy long term). - It is the customers point of view that is important – not objective reality.