Principles and Practice of Marketing

David Jobber

Chapter 1
Marketing in the Modern Firm

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 1

 The Marketing Concept

Marketing Concept
The achievement of corporate
goals through meeting and
exceeding customer needs
better than the competition

Customer orientation Integrated effort Goal achievement

Corporate activities are All staff accept the The belief that corporate
focused upon providing responsibility for creating goals can be achieved
customer satisfaction customer satisfaction through customer
satisfaction

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 2

 The Marketing Concept
Marketing concept
The achievement of corporate
goals through meeting and
exceeding customer needs
better than the competition

Customer orientation Integrated effort Goal achievement

Corporate activities are All staff accept the The belief that corporate
focused upon providing responsibility for creating goals can be achieved
customer satisfaction customer satisfaction through customer
satisfaction

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 3

 The Marketing Concept

Marketing Concept
The achievement of corporate
goals through meeting and
exceeding customer needs
better than the competition

Customer
orientation Integrated effort Goal achievement
All staff accept the The belief that corporate
Corporate activities responsibility for creating goals can be achieved
are focused upon customer satisfaction through customer
satisfaction
providing customer
satisfaction

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 4

 The Marketing Concept

Marketing Concept
The achievement of corporate
goals through meeting and
exceeding customer needs
better than the competition

Integrated
Customer orientation effort Goal achievement
Corporate activities are All staff accept the The belief that corporate
focused upon providing goals can be achieved
customer satisfaction responsibility for through customer
creating customer satisfaction

satisfaction

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 5

 The Marketing Concept

Marketing Concept
The achievement of corporate
goals through meeting and
exceeding customer needs
better than the competition

Goal
Customer orientation Integrated effort achievement
Corporate activities are All staff accept the The belief that
focused upon providing responsibility for creating
customer satisfaction customer satisfaction corporate goals can
be achieved through
customer satisfaction

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 6

 Production Orientation

Production
capabilities

Manufacture
product

Aggressive
sales effort

Customers

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 7

 Marketing Orientation

Customer
needs

Potential
market
opportunities

Marketing
products
and services

Customers

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 8

 Efficiency and Effectiveness

Ineffective Effective

Goes out of
Inefficient business quickly
Survives

Does well
Efficient Dies slowly
Thrives

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 9

 Market-driven Management

Shared Market
values and intelligence
beliefs

Customer
focus

Market-led
strategy Implementation

Structure
and
systems

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 10

 Market-driven Management

Shared values Market

and beliefs intelligence
● customer first

Customer
focus

Market-led
strategy Implementation

Structure
and
systems

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 11

 Market-driven Management
Market
intelligence
Shared
values and Skills in
beliefs understanding and
responding to
customers
Customer
focus

Market-led
strategy Implementation

Structure
and
systems

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 12

 Market-driven Management

Shared Market
values and intelligence
beliefs

Customer
focus

Market-led
Implementation
strategy Structure and
systems
● structure based on
strategy
● team work

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 13

 Market-driven Management

Shared Market
values and intelligence
beliefs

Customer
focus
Market-led
strategy
● Linking distinctive Implementation
competencies to
market opportunities
● Competitive advantage
Structure
the driving force
and
systems

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 14

 Market-driven Management

Shared Market
values and intelligence
beliefs

Customer
focus

Implementation
Market-led
strategy ● people
● incentives
● communications
Structure ● persuasion
and
systems

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 15

 Creating Customer Value
Positive Customer Negative
value

Perceived Perceived
benefits sacrifice

● Product benefits ● Monetary costs

● Service benefits ● Time costs
● Relational benefits ● Energy costs
● Image benefits ● Psychological costs

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 16

 Creating Customer Satisfaction
Delight

‘Delighters’
Customer satisfaction

‘More is better’
Neutral

‘Must be’

Dissatisfaction
Absent Fulfilled
Presence of the characteristic

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 17

 An Effective Marketing Mix
Matches
customer needs

Creates a Effective
competitive marketing Well
advantage balanced
mix

Matches corporate
resources

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 18

 Marketing Mix and Customer Needs

Key customer
Customer Competitive Marketing
requirements
needs advantage mix

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 19

 Marketing Mix and Customer Needs

Customer needs
Marketing
Economic Psychological
mix
● Performance ● Self-image
Competitive
● Availability ● Quiet life advantage ● Product
● Reliability ● Pleasure ● Price
● Durability ● Convenience ● Promotion
● Productivity ● Risk reduction ● Place

D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 20