The Marketing Concept

Evolving Perspectives

What Is Marketing?
Simple Definition: Marketing is managing profitable customer relationships. Goals: 1. Attract new customers by promising superior value. 2. Keep and grow current customers by delivering satisfaction.

Marketing Management Philosophies

Societal Marketing Concept

Marketing Concept
Selling Concept Product Concept Production Concept

The Production Concept

The Product Concept

Marketing and Sales Concepts Contrasted

Societal Marketing Concept

This Is a Need
Needs - state of felt deprivation including physical, social, and individual needs.

Maslows Hierarchy of Needs

This Is a Want
Wants - form that a human need takes, as shaped by culture and individual personality.

Need / Want Fulfillment

Needs and Wants Fulfilled through a Marketing Offer :

Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

What Satisfies Consumers Needs and Wants?

Anything that can be Offered to a Market to Satisfy a Need or Want

Products

Persons

Places

Organizations

Information

Ideas

Activity or Benefit Offered for Sale That is Essentially Intangible and Does Not Result in the Ownership of Anything

Services

Marketing Myopia

Sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products. They focus on the wants and lose sight of the needs.

This Is Demand
Wants Buying Power

Demand

What is a Market?

The set of actual and potential buyers of a product.

These people share a need or want that can be satisfied through exchange relationships.

Segmentation and Target Marketing

#1
Market Segmentation:
Divide the market into segments of customers

#2

Target Marketing:
Select the segment to cultivate

Customer Satisfaction

Dependent on the products perceived performance relative to a buyers expectations.

Value and Satisfaction

Expectation
8

Performance
10

Expectation
10

Performance
8

If performance is lower than expectations, satisfaction is low. If performance is higher than expectations, satisfaction is high.

Customer Perceived Value

Customers evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Customer Relationship Levels

Basic Relationship

Continuum

Full Partnership

Loyalty and Retention

Financial Benefits Social Benefits

Structural Ties

Customer Relationship Management

The process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Customer Loyalty & Retention

Customer Lifetime Value

The entire stream of purchases that the customer would make over a lifetime of patronage.

Share of Customer

The share a company gets of the customers purchasing in their product categories.