Slide 1-1Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
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Define marketing and identify the requirements for marketing to occur.LO1
Explain how marketing discovers and satisfies consumer needs.
Distinguish between marketing mix elements and environmental forces.LO3
LO2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:
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Explain how organizations build strong customer relationships and customer value through marketing.
Describe how today’s customer relationship era differs from prior eras oriented to production and selling.
LO4
LO5
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:
Explain how marketing creates utilities for consumers.LO6
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HOW DO COLLEGE STUDENTS STUDY?A NEW PRODUCT CHALLENGE FOR 3M!
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HOW DO COLLEGE STUDENTS STUDY?DISCOVERING STUDENT STUDYING NEEDS
3M Post-it® Notes or Post-it® Flags
+Felt Tip Highlighters
=3M product that
will combinePost-it® Notes or
Post-it® Flags andHighlighters
Click Sound Icon to Play
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HOW DO COLLEGE STUDENTS STUDY?SATISFYING STUDENT STUDYING NEEDS
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Marketing
• Is NOT Easy
• Affects ALL Individuals, Organizations,Industries, and Countries
WHAT IS MARKETING ?LO1
You Are a Marketing Expert Already
• Involved in 1,000s ofBuying Decisions
• Some Involved in Selling Decisions
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1. True
2. (c) 30%
3. True
4. (c) plastic bottles
FIGURE 1-1FIGURE 1-1 The see-if-you’re-really-a-marketing-expert test
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MARKETING MATTERSPayoff for the Joys (!) and Sleepless Nights (?)
of Starting Your Own Small Business: YouTube!!!!
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Marketing Seeks to:
Exchange
• Discover Needs and Wants of Customers
• Satisfy Them
WHAT IS MARKETING?DELIVERING BENEFITS
LO1
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WHAT IS MARKETING?DIVERSE FACTORS INFLUENCE MARKETING ACTIVITIES
LO1
Organization Itself
Society
Environmental Forces
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FIGURE 1-2FIGURE 1-2 A marketing department relates to many people, organizations, and environmental forces
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Parties With Unsatisfied Needs
WHAT IS MARKETING?REQUIREMENTS FOR IT TO OCCUR
LO1
A Desire & Ability to be Satisfied
A Way for the Parties to Communicate
Something to Exchange
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HOW MARKETINGDISCOVERS CONSUMER NEEDS
THE CHALLENGE: NEW PRODUCTS
LO2
Consumers May Not Know or Cannot Describe 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”?
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Hot Pockets Subs Microwaveable SnacksWhat “benefits” and what “showstoppers”?
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iRobot Scooba Robotic Floor WasherWhat “benefits” and what “showstoppers”?
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Coca Cola C2What “benefits” and what “showstoppers”?
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Need
Want
Does Marketing Persuade People to Buy the “Wrong” Things?
Market
HOW MARKETINGDISCOVERS CONSUMER NEEDS
NEEDS VS. WANTS
LO2
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MAKING RESPONSIBLE DECISIONSStudent Credit Cards—What is the Real Price?
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FIGURE 1-3FIGURE 1-3 Marketing seeks to discover then satisfy consumer needs through research and a marketing program
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HOW MARKETING SATISFIESCONSUMER NEEDS
LO3
• Promotion
• Place
Target Market
The 4 P’s: Controllable Marketing Mix Factors
• Product
• Price $399
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HOW MARKETING SATISFIESCONSUMER NEEDS
LO3
• Technological
• Regulatory
Uncontrollable Environmental Forces
• Social
• Economic
• Competitive
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MARKETING PROGRAMCUSTOMER VALUE AND RELATIONSHIPS
LO4
• Best Price
• Best Service
Customer Value
• Best Product
Value Strategies
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Costco and StarbucksWhat customer value strategy?
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MARKETING PROGRAMRELATIONSHIP MARKETING
LO4
• Easy to Understand
Relationship Marketing
• Hard to Do
Marketing Program
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3M PRODUCT & MARKETING PROGRAMHELPING STUDENTS STUDY
LO4
Move from Ideas to a Marketable Highlighter Product
Extend the Product Line
Develop a Marketing Program for thePost-it® Flag Highlighter and Pen
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FIGURE 1-4FIGURE 1-4 Marketing programs for two new 3M Post-it® brand products targeted at two distinct customer segments: college students and office workers
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HOW MARKETING BECAME IMPORTANTEVOLUTION OF THE MARKET ORIENTATION
LO5
Production Era
Sales Era
Marketing Concept Era
Customer Relationship Era
• Market Orientation
• Customer Relationship Management (CRM)
• Customer Experience
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FIGURE 1-5FIGURE 1-5 Four different market orientations in the history of American business
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HOW MARKETING BECAME IMPORTANTETHICS AND SOCIAL RESPONSIBILITY
LO5
Ethics
Social Responsibility
• Societal Marketing Concept
• Macromarketing
• Micromarketing
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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
LO6
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
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3M’S POST-IT® FLAG HIGHLIGHTER: EXTENDING THE CONCEPT!
VIDEO CASE 1
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VIDEO CASE 13M’s Post-it® Flag Highlighter
1. (a) How did 3M’s David Windorski get ideas from college students to help him in designing the final commercial version of the Post-it® Flag Highlighter?(b) How were these ideas important to the success of the products?
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2. What (a) special advantages and (b) potential problems did 3M have in introducing a new highlighter-with-flags product for college students in 2004?
VIDEO CASE 13M’s Post-it® Flag Highlighter
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3. Visit your college bookstore before you answer. (a) Where would you display the Post-it® Flag Highlighter in a college bookstore and (b) How can the display increase student awareness of the product?
VIDEO CASE 13M’s Post-it® Flag Highlighter
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4. In what ways might 3M try to promote its Post-it® Flag Highlighter and make students more aware of the product?
VIDEO CASE 13M’s Post-it® Flag Highlighter
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5. What are (a) the special opportunities and (b) potential challenges for 3M in taking its Post-it® Flag Highlighter into international markets? (c) On which countries should 3M focus its marketing efforts?
VIDEO CASE 13M’s Post-it® Flag Highlighter
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DO MARKETERS PERSUADE CUSTOMERS TO BUY THE
“WRONG” PRODUCTS?
SUPPLEMENTALLECTURE NOTE 1-1
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DESIGNING A CANDY BAR
IN-CLASS ACTIVITY 1-1
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Ghirardelli Milk Chocolate SquaresWhat Candy Have You Recently Bought and Why?
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WHAT MAKES ABETTER MOUSETRAP?
IN-CLASS ACTIVITY 1-2
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If a man (woman) makes a better
mousetrap,the world will beat a path to
his (her) door.”~ Ralph Waldo
Emerson
A Victorious Mouse
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Marketing
Marketing is the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders,and society at large.
Slide 1-49
Exchange
Exchange is the trade of thingsof value between buyer and seller so that each is better off after the trade.
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Market
A market consists of people with both the desire and the ability to buy a specific product.
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Target Market
A target market consists ofone or more specific groups of potential consumers towardwhich an organization directs its marketing program.
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Marketing Mix
The marketing mix consists of the marketing manager’s controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem.
Slide 1-53
Environmental Forces
Environmental forces consist of the uncontrollable factors in a marketing decision involving social, economic, technological, competitive, and regulatory forces.
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Customer Value
Customer value is the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-saleand after-sale service at aspecific price.
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Relationship Marketing
Relationship marketing linksthe organization to its individual customers, employees, suppliers, and other partners for theirmutual long-term benefits.
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Marketing Program
A marketing program is a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.
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Marketing Concept
A marketing concept is theidea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals.
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Market Orientation
A market orientation in an organization focuses its effortson (1) continuously collecting information about customers’ needs, (2) sharing this information across departments, and (3) using it to create customer value.
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Customer RelationshipManagement (CRM)
Customer relationship management (CRM) is the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.
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Customer Experience
Customer experience is the internal response that customers have to all aspects of an organization and its offerings.
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Societal Marketing Concept
Societal marketing concept is the view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being.
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Ultimate Consumers
Ultimate consumers consist of the people who use the goodsand services purchased for a household. Also called consumers, buyers, or customers.
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Organizational Buyers
Organizational buyers arethose manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.
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Utility
Utility consists of the benefits or customer value received by users of the product.