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Slide 1-1Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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Slide 1-2

Define marketing and identify thediverse factors influencing marketingactivities.

LO1

Explain how marketing discovers andsatisfies consumer needs.

Distinguish between marketing mixelements and environmental forces.O3

LO2

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:

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Slide 1-3

Explain how organizations build strongcustomer relationships and customervalue through marketing.

Describe how todays customerrelationship era differs from prior erasoriented to production and selling.

LO4

LO5

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:

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Slide 1-4

HOW DO COLLEGE STUDENTS STUDY?3Ms RESPONSE TO A NEW-PRODUCT CHALLENGE!

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Slide 1-5

HOW DO COLLEGE STUDENTS STUDY?DISCOVERING STUDENT STUDYING NEEDS

3M Post-it

Notes orPost-itFlags

+

Felt Tip Highlighters

=

3M product thatwill combine

Post-it Notes orPost-it Flags and

Highlighters

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Slide 1-6

HOW DO COLLEGE STUDENTS STUDY?SATISFYING STUDENT STUDYING NEEDS

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Marketing is NOT Easy

WHAT IS MARKETING ?O1

You Are a Marketing Expert Already Involved in 1,000s of Buying Decisions

May Be Involved in Selling Decisions

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1. True 2. True 3. (c) plastic bottles

FIGURE 1-1 The see-if-youre-really-a-marketing-expert test

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MARKETING MATTERSPayoff for the Joys (!) and Sleepless Nights (?)

of Starting Your Own Small Business: YouTube!!!!

LO1

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Marketing Seeks to:

Exchange

Discover Needs and Wants of Customers

Satisfy Them

WHAT IS MARKETING?DELIVERING BENEFITS

LO1

AMA Definition of Marketing

http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx

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WHAT IS MARKETING?DIVERSE FACTORS INFLUENCE MARKETING ACTIVITIES

LO1

The Organization Itself

Society

Environmental Forces

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FIGURE 1-2 A marketing department relatesto many people, organizations, andenvironmental forces

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HOW MARKETINGDISCOVERS CONSUMER NEEDS

THE CHALLENGE: NEW PRODUCTS

LO2

Consumers May Not Know or CannotDescribe What They Need or Want

Most New Products Fail

Focus on the Consumer Benefit

Learn From the Past

The Challenge:

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Dr. Care Vanilla-Mint Aerosol ToothpasteWhat benefits and what showstoppers?

LO2

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Hot Pockets Subs Microwaveable SnacksWhat benefits and what showstoppers?

LO2

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iRobot Scooba Robotic Floor WasherWhat benefits and what showstoppers?

LO2

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Coca Cola C2What benefits and what showstoppers?

LO2

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Need

Want

Does Marketing Persuade People toBuy the Wrong Things?

Market

HOW MARKETINGDISCOVERS CONSUMER NEEDS

NEEDS VS. WANTS

LO2

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FIGURE 1-3 Marketing seeks to discoverconsumer needs through research and thensatisfy them with a marketing program

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Slide 1-20

HOW MARKETINGSATISFIES CONSUMER NEEDS

LO3

Promotion

Place

Target Market

The 4 Ps: ControllableMarketing Mix Factors

Product

Price $399

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Slide 1-21

HOW MARKETINGSATISFIES CONSUMER NEEDS

LO3

Technological

Regulatory

Uncontrollable Environmental Forces

Social

Economic

Competitive

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Slide 1-22

THE MARKETING PROGRAMCUSTOMER VALUE AND RELATIONSHIPS

LO4

Best Price Best Service

Customer Value

Best Product

Value Strategies

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Slide 1-23

Costco and StarbucksWhat customer value strategy?

LO4

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Slide 1-24

THE MARKETING PROGRAMRELATIONSHIP MARKETING

LO4

Easy to Understand

Relationship Marketing

Hard to Do

Marketing Program

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Slide 1-25

3MS STRATEGY & MARKETING PROGRAMHELPING STUDENTS STUDY

LO4

Move from Ideas toa MarketableHighlighter Product

Extend the Product Line

Develop a MarketingProgram for thePost-itFlagHighlighter and Pen

FIGURE 1 4 M k ti f t

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Slide 1-26

FIGURE 1-4 Marketing programs for twonew 3M Post-itbrand products targeted attwo distinct customer segments: collegestudents and office workers

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Slide 1-27

3M STRATEGY & MARKETING PROGRAMMARKETPLACE SUCCESS?

LO4

Developed SecondGeneration Post-it

Flag Highlighter

Appeared onThe Oprah

Winfrey Show

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Slide 1-28

HOW MARKETING BECAME IMPORTANTEVOLUTION OF THE MARKET ORIENTATION

LO5

Production Era

Sales Era

Marketing Concept Era

Customer Relationship Era

Market Orientation

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Slide 1-29

HOW MARKETING BECAME IMPORTANTETHICS AND SOCIAL RESPONSIBILITY

LO5

Ethics

Social Responsibility

Societal Marketing Concept

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Slide 1-30

HOW MARKETING BECAME IMPORTANTBREADTH AND DEPTH OF MARKETING

LO6

Who Markets?

What Is Marketed?

Goods Services Ideas

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HOW MARKETING BECAME IMPORTANTBREADTH AND DEPTH OF MARKETING

LO5

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