Chapter 1
MARKETING:
THE ART AND
SCIENCE OF
SATISFYING
CUSTOMERS
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All Rights
Reserved.
May not be copied, scanned, or
duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain
product or service or otherwise on a passwordprotected website for classroom use.
1
Chapter 1 Marketing: The Art and Science of Satisfying Customers
1. Define Marketing
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
▮American Marketing Association’s new
official definition of marketing released August
2004:
• Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering
and exchanging offerings that have values for
customers, clients, partners, and society at large.
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product or service or otherwise on a password-protected website for classroom use.
Chapter 1 Marketing: The Art and Science of Satisfying Customers
2. What is the ultimate goal of marketing?
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Ultimate Goal of Marketing
▮The passion to understand and satisfy the
needs of customers in well-defined target
markets.
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
Chapter 1 Marketing: The Art and Science of Satisfying Customers
3. What are the core marketing concepts?
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.
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product or service or otherwise on a password-protected website for classroom use.
Chapter 1 Marketing: The Art and Science of Satisfying Customers
Core Concepts of Marketing
(1 of 2)
▮Needs (a state of felt deprivation)
▮Wants (needs shaped by culture and individual
personality)
▮Demands
▮Marketing Offers (product, service, and
experience)
▮Value
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product or service or otherwise on a password-protected website for classroom use.
Chapter 1 Marketing: The Art and Science of Satisfying Customers
Core Concepts of Marketing
(2 of 2)
▮Satisfaction (customer expectations)
▮Exchange
▮Transaction
▮Market (set of all actual and potential buyers
of a product or service)
▮Utility (want satisfying power of a good or
service)
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product or service or otherwise on a password-protected website for classroom use.
Chapter 1 Marketing: The Art and Science of Satisfying Customers
Utility
▮Production and marketing together create
utility
▮Utility - The want-satisfying power of a good
or service
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product or service or otherwise on a password-protected website for classroom use.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
TABLE 1.1
Four Types of Utility
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product or service or otherwise on a password-protected website for classroom use.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
4. What are the six eras in the history of
marketing?
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
Six Eras of Marketing
PRODUCT
PRODUCTION
SALES
MARKETING
SOCIETY
RELATIONSHIP
Chapter 1 Marketing: The Art and Science of Satisfying Customers
5. What is Marketing Myopia?
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.
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product or service or otherwise on a password-protected website for classroom use.
Chapter 1 Marketing: The Art and Science of Satisfying Customers
Marketing Myopia
▮Marketing myopia - Management’s failure to
recognize the scope of its business
▮Overcoming marketing myopia
• Developing broader marketing-oriented business
ideas focusing on customer need satisfaction
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product or service or otherwise on a password-protected website for classroom use.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
TABLE 1.2
Avoiding Marketing Myopia
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product or service or otherwise on a password-protected website for classroom use.
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AVOIDING MARKETING MYOPIA
Broad vs. Narrow
▮ Narrow Definition
• Wrought-iron lawn
furniture
▮ Broad Definition
• Furniture
• Long-distance telephone
service
• Telecommunications
• Soft drinks
• Beverages
• Overnight package
delivery
• Global mail delivery
• Caribbean cruises
• Travel & tourism
Chapter 1 Marketing: The Art and Science of Satisfying Customers
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 through
advertisements relating to their goals
• Form alliances with for-profit firms to promote
each other’s causes
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product or service or otherwise on a password-protected website for classroom use.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
6. What are the characteristics of not-for-profit
marketing?
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
Chapter 1 Marketing: The Art and Science of Satisfying Customers
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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product or service or otherwise on a password-protected website for classroom use.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
7. What are the five types of non-traditional
marketing?
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product or service or otherwise on a password-protected website for classroom use.
Chapter 1 Marketing: The Art and Science of Satisfying Customers
TABLE 1.3
Categories of Nontraditional Marketing
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product or service or otherwise on a password-protected website for classroom use.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Nontraditional Marketing
▮Person marketing – Efforts to cultivate the
attention, interest, and preferences of a target
market toward a person
• Celebrity endorsements
▮Place marketing - Efforts to attract people
and organizations to a particular geographic
area
• Tourism enhancements
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product or service or otherwise on a password-protected website for classroom use.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Nontraditional Marketing
▮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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product or service or otherwise on a password-protected website for classroom use.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Nontraditional Marketing
▮Event marketing - Marketing of sporting,
cultural, and charitable activities to selected
target markets
• Also, includes sponsorship of such events by firms
▮Event sponsorships have gained effectiveness
in increasing brand recognition, enhancing
image, boosting purchase volume
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Non-Traditional Marketing
▮A two-page magazine ad with a photograph
of the beach in Barbados
▮A poster informing music lovers of an
upcoming Toby Mac concert
▮A recruitment ad for the Coast Guard
▮A radio ad advising teenagers not to drink
▮The mayor’s efforts to attract enough voters
to be re-elected
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product or service or otherwise on a password-protected website for classroom use.
Chapter 1 Marketing: The Art and Science of Satisfying Customers
Developing Partnerships and Strategic
Alliances
▮Relationship marketing extends to business-tobusiness relationships with suppliers,
distributors, and other partners
▮Strategic alliances - Partnerships in which
two or more companies combine resources and
capital to create competitive advantages in a
new market
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product or service or otherwise on a password-protected website for classroom use.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Nontraditional Marketing
▮Organization marketing - Intended to
persuade others to:
• Accept the organization’s goals
• Receive its services
• Contribute to the organization in some way
▮Adopted by mutual-benefit organizations,
service organizations, and government
organizations
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product or service or otherwise on a password-protected website for classroom use.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
FIGURE
1.2
Converting New Customers to Advocates
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product or service or otherwise on a password-protected website for classroom use.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Using 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
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Using Social Marketing to
Build Relationships
▮Social marketing - The use of online social
media as a communications channel for
marketing messages
• Electronic conversations can establish innovative
relationships between users and the business
▮By converting indifferent customers into loyal
ones, companies generate repeat sales
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product or service or otherwise on a password-protected website for classroom use.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
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
that have the enhancement of society’s welfare
as a primary objective
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
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