Lecture Marketing: The core (5/e): Chapter 1 – Kerin, Hartley, Rudelius

Chapter 1: Creating customer relationships and value through marketing. After reading this chapter you should be able to: Define marketing and identify the diverse factors influencing marketing activities, explain how marketing discovers and satisfies consumer needs, distinguish between marketing mix factors and environmental forces,...

Define marketing and identify the diverse factors influencing marketing activities.

Explain how marketing discovers and satisfies consumer needs.

Distinguish between marketing mix factors and environmental forces.

LO3

LO2

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:

LO1

Explain how organizations build strong customer relationships and customer value through marketing.

Describe how today’s customer relationship era differs from prior eras.

LO4

LO5

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:

DISCOVERING HOW COLLEGE STUDENTS STUDY

HELPS LAUNCH A NEW PRODUCT AT 3M

 Satisfying

Student

Student Study Needs

 Marketing is NOT Easy

WHAT IS MARKETING?

LO1

• Involved in 1,000s of Buying Decisions

• May Be Involved in Selling Decisions

1 True 2 True 3. (c) plastic bottles

see-if-you’re-really-a-marketing-expert test

 Marketing Seeks to:

FIGURE 1-2 A marketing department relates

to many people, organizations, and

environmental forces

HOW MARKETING DISCOVERS CONSUMER NEEDS

THE CHALLENGE: NEW PRODUCTS

LO2

Describe What They Need or Want

• “Focus on the Consumer Benefit”

• “Learn From the Past”

Dr Care Vanilla-Mint Aerosol Toothpaste

What “benefits” and what “showstoppers?”

LO2

Terrafugia Transition

What “benefits” and what “showstoppers?”

LO2

Pepsi Next

What “benefits” and what “showstoppers?”

LO2

 Need  Want

People to Buy the

“Wrong” Things?

 Market

HOW MARKETING DISCOVERS CONSUMER NEEDS

NEEDS VS WANTS

LO2

FIGURE 1-3 Marketing seeks to discover

consumer needs through research and then

satisfy them with a marketing program

HOW MARKETING SATISFIES CONSUMER NEEDS

HOW MARKETING SATISFIES CONSUMER NEEDS

THE MARKETING PROGRAM

CUSTOMER VALUE AND RELATIONSHIPS

Southwest Airlines, Starbucks, and Home Depot

What customer value strategy?

LO4

THE MARKETING PROGRAM

3M’S STRATEGY & MARKETING PROGRAM

HELPING STUDENTS STUDY

FIGURE 1-4 Marketing programs for two

new 3M Post-it ® brand products targeted at

two distinct customer segments: college

students and office workers

3M STRATEGY & MARKETING PROGRAM

FIGURE 1-A Four different orientations in

the history of American business

Production Era

Sales Era

Customer Relationship Era

HOW MARKETING BECAME IMPORTANT

EVOLUTION OF THE MARKET ORIENTATION

LO5

Management (CRM)

• Direct Contacts: Buying the Service

• Indirect Contacts: Word-of-Mouth

HOW MARKETING BECAME IMPORTANT

ETHICS AND SOCIAL RESPONSIBILITY

HOW MARKETING BECAME IMPORTANT

BREADTH AND DEPTH OF MARKETING

HOW MARKETING BECAME IMPORTANT

BREADTH AND DEPTH OF MARKETING

• Time Utility Possession Utility