Chapter 1 Marketing: The Art and Science of Satisfying Customers
Chapter 1
Marketing: The Art and Science of
Satisfying Customers
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Objectives
1. Define marketing, explain how it creates
utility, and describe its role in the
marketplace.
2. Contrast marketing activities during the four
eras in the history of marketing.
3. Explain the importance of avoiding marketing
myopia.
4. Describe the characteristics of not-for-profit
marketing.
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Objectives
5. Identify and briefly explain each of the five
types of nontraditional marketing.
6. Explain the shift from transaction-based
marketing to relationship and social
marketing.
7. Identify the universal functions of marketing.
8. Demonstrate the relationship between
ethical business practices, social
responsibility, and marketplace success.
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
What is Marketing?
• Organizations must create utility to survive
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Table 1.1 - Four Types of Utility
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
A Definition of Marketing
• Marketing - An organizational function and a
set of processes for:
– Creating, communicating, and delivering value to
customers
– Managing customer relationships in ways that
benefit the organization and its stakeholders
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Today’s Global Marketplace
• Factors that have extended economic views
– Increase in international trade agreements
– Growth of electronic business
– Interdependence of the world’s economies
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Figure 1.1 - Five Eras of Marketing
History
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Characteristics of the Five Eras
Era in marketing
Focus
Production Era
Production orientation
Sales Era
Sales orientation
Marketing Era
Consumer orientation
Relationship Era
Relationship marketing
Social Era
Marketing via the Web
and social networking
sites
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Converting Needs to Wants
• Consumers acquire goods and services on a
continuing basis to fill certain needs
• To convert needs into wants, marketers:
– Focus on the benefits of goods and services
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Avoiding Marketing Myopia
• Marketing myopia - Management’s failure to
recognize the scope of its business
• Focusing on customer need satisfaction can
overcome myopia
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Not-for-Profit Marketing
• Marketing in not-for-profit organizations
– Marketing strategy is adopted to meet service
objectives
– Not-for-profit organizations form alliances with
business firms for mutual benefit
• Characteristics of not-for-profit marketing
– Does not focus on bottom line
– Markets to multiple audiences
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Table 1.3 - Categories of
Nontraditional Marketing
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
From Transaction-Based Marketing
to Relationship Marketing
• Transaction-based marketing - Buyer and
seller exchanges characterized by limited
communications and little or no ongoing
relationships between the parties
• Marketers realize that consumers are
becoming more and more sophisticated
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Using Social Marketing to Build
Relationships
• Focus is on moving the customers up the
loyalty ladder to increase their lifetime value
• Interactive marketing - Buyer–seller
communications in which the customer
controls the amount and type of information
received from a marketer
• It is increasingly taking place on social media
sites like Facebook, Twitter, and blogs
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Figure 1.2 - Converting New Customers
to Advocates
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Developing Partnerships and Strategic
Alliances
• Strategic alliances - Partnerships in which
companies combine resources and capital to
create competitive advantages in the market
• Forms of alliances
– Product development partnerships
– Vertical alliances
• Not-for-profit organizations often raise
awareness and funds through strategic
partnerships
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Figure 1.3 - Eight Universal Marketing
Functions
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Ethics and Social Responsibility
• Companies that promote ethics and social
responsibility produce increased employee
loyalty and customer growth
• Social responsibility programs are meant to
enhance a society’s welfare
– Help in improving public image of the firm
• Sustainable products and practices are goals
of socially responsible firms
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 1 Marketing: The Art and Science of Satisfying Customers
Strategic Implications of Marketing in
the 21st Century
• Advances and innovations in electronic
commerce and computer technologies have
allowed organizations to:
– Reach new markets
– Reduce selling and marketing costs
– Enhance their relationships with customers and
suppliers
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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