General Marketing Overview Chapter 1 & 3: Marketing Process, Societal
Implications, Customer Satisfaction and Value
What is marketing?
• ??????? What are your thoughts?• “Create long term and mutually
beneficial exchange relationships between an entity and the publics (individuals & organizations) in which it interacts”
• Create, sustain, maintain or add VALUE!
What is Marketing?
American Marketing Association Definition:
The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.
Evolving Views of Marketing’s Role
Evolving Views of Marketing’s Role
e. The customer as the controlling function and marketing as the integrative function
Customer
Marketing
Production
Hum
an
resources
Finance
The Marketing Process• People: Consumer Behavior,
Segmentation• Strategy: Planning, Competition,
Research• Performance: Satisfaction, profits,
sales, repeat sales, brand awareness, brand recognition, market share, market growth, brand equity
• 4Ps: Product, Price, Place, Promotion
Customer is KING!!The 4 Ps of Marketing
• Product – good, service or idea that offers a bundle of tangible and intangible attributes to satisfy the consumer
• Promotion – the communication of all other Ps
• Price – what the product is exchanged for
• Place – all aspects of getting products to the consumer in the right location at the right time.
What can you “market”?
• Products, Services• Experiences,
Events• People• Places, Properties• Organizations• Information, Ideas
• Categories of markets:– Consumer– Business– Global– Government &
Nonprofit
Elements of Exchange
Desire to Deal With Other PartyDesire to Deal
With Other Party
Freedom to Accept or Reject
Freedom to Accept or Reject
Something of Value
Something of Value
Ability to Communicate
Offer
Ability to Communicate
Offer
At Least Two Parties
At Least Two Parties
Necessary Conditions
for Exchange
Necessary Conditions
for Exchange
Tonight’s class
• Marketing: where are we? (Tipping Point/60 Minutes)
• Creating Value, Fostering Satisfaction and Loyalty
• Case analysis and presentation (Sorzal)
• Marketing Plan group formation and Project list distribution
Marketing Management Philosophies
PhilosophyPhilosophy Key Ideas
ProductionProduction
SalesSales
MarketMarket
SocietalSocietal
Focus on efficiency of internal operations
Focus on satisfying customer needs and wants
Focus on satisfying customer needs and wants while enhancing individual and societal well-being
Focus on aggressive techniques for overcoming customer resistance
Four Eras in the History of Marketing• Production EraProduction Era
– Prior to 1920s– Production orientation– Business success often defined solely in terms of
production victories
• Sales EraSales Era– Prior to 1950s– Customers resist nonessential goods and services– Personal selling and advertising’s task is to
convince them to buy
• Marketing EraMarketing Era– Since 1950s Marketing Concept Emerges– Shift from seller’s to buyer’s market– Consumer orientation
• Marketing ConceptMarketing Concept– Company–wide consumer orientation– Objective of achieving long–run success
The Marketing Concept • The idea that the social and
economic justification for an organization’s existence is the satisfaction of consumer wants and needs while meeting organizational objectives.– TM & customer needs: Focus to
distinguish from competitors– Integration: Integration of all activities
to satisfy customer wants/needs– Profits: Achieve long term goals by
satisfying customer wants/needs
• Relationship EraRelationship Era– Began in 1990s– Carried customer orientation even further– Focuses on establishing and maintaining
relationships with both customers and suppliers– Involves long–term, value–added relationships
DEBATE:
• Does Marketing CREATE or SATISFY NEEDS?
• Marketing has often been defined in terms of satisfying customers needs and wants. Critics, however, maintain that marketing does much more than that and creates needs and wants that did not exist before. According to these critics, marketers encourage consumers to spend more money than they should on goods and services they really don’t need.
Customer Value
• The ratio of benefits to sacrifice necessary to obtain benefits.– Offer products that perform– Give consumers more than they expect– Avoid unrealistic pricing– Give the buyer facts– Offer organization – wide commitment
in service and after sales support
What is Perceived Customer Value?
Product valueProduct value
Services valueServices value
Personnel valuePersonnel value
Image valueImage value
Totalcustomer
benefit
Totalcustomer
benefit
Monetary costMonetary cost
Time costTime cost
Energy costEnergy cost
Psychic costPsychic cost
Totalcustomer
cost
Totalcustomer
cost
Customerdelivered
value
Customerdelivered
value
Customer Satisfaction
• The feeling that a product has met or exceeded the customers’ expectation– Focus on delighting customers– Provide solutions to consumers’
problems– Measuring satisfaction: complaint and
suggestion systems, surveys, ghost shoppers, lost customer analysis
Satisfied Customers• Are loyal longer• Buy more (new products & upgrades)• Spread favorable word of mouth• Are more brand loyal (less price
sensitive)• Offer feedback• Reduce transaction costs• Is Satisfaction the same as LOYALTY?
“The Mismanagement of Customer Loyalty”
• How does your firm currently treat loyalty? Is it important? Do you currently measure it? How effective it is? What do you think needs to change?
• What companies can be considered “best practices” candidates for generating customer loyalty?
Avoiding Marketing Myopia
• Marketing Myopia is management’s failure to recognize the scope of its business.– To avoid marketing myopia, companies must
broadly define organizational goals toward consumer needs.
Critical Thinking and Creativity
• Challenges presented by today’s complex and technologically sophisticated marketing environment require critical-thinking skills and creativity from marketing professionals
• Critical Thinking refers to the process of determining the authenticity, accuracy, and worth of information, knowledge, claims and arguments
• Creativity helps to develop novel solutions to perceived marketing problems
Social Criticisms of Marketing – the consumer
interest• Causes prices to be higher• Deceptive practices in promotion,
packaging and price• High pressure selling• Shoddy or unsafe products• Poor service to disadvantaged
people