You are on page 1of 35

Basic Marketing

A Marketing Strategy Planning Approach


William D. Perreault Jr. Joseph P. Cannon E. Jerome McCarthy

For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts.

2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

CHAPTER ONE

Marketings Value to Consumers, Firms, and Society

For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

www.mhhe.com/fourps

When we finish this lecture you should

1.

2.
3.

4.

Know what marketing is and why you should learn about it. Understand the difference between marketing and macro-marketing. Know the marketing functions and why marketing specialistsincluding middlemen intermediaries and marketing collaborators develop to perform them. Understand what a market-driven economy is and how it adjusts the macro-marketing system.

When we finish this lecture you should

5. 6. 7.

Know what the marketing concept isand how it should guide a firm or nonprofit organization. Understand what customer value is and why it is important to customer satisfaction. Know how social responsibility and marketing ethics relate to the marketing concept.

MarketingWhats It All About? More than Selling or Advertising

All Those More than Selling and Advertising Bicycles!

Things a Firm Should Do in Producing a Bike


Analyze Needs

Predict Wants
Estimate Demand Predict When Determine Where Estimate Price

Decide Promotion
Estimate Competition Provide Service

Production vs. Marketing Marketing


Makes sure right goods & services are produced

Production
Making Goods
Performing Services

Creates Customer Satisfaction

Marketing Is Important to You!

Important to every consumer!

Important to your job!

Affects innovation and standard of living!

Marketing Stimulates New Ideas

What Is Marketing?

Micro View
Set of activities
Performed by individual organizations and

Macro View
Social process
Matches supply with demand

Marketing

Profit and Nonprofit

More than Persuasion

Focus of Your Text

Key Characteristics

Begins with Needs

Builds Relationships

Involves Exchanges

Doesnt Go It Alone

Building Customer Relationships

Macro-Marketing

Emphasis on Whole System

Every Economy Needs It

Key Characteristics

Matches Producers and Consumers

Can Mass Production Satisfy a Societys Consumption Needs?


Economies of Scale Lower Cost

Cost $ Output Marketing Bridges the Gap! Producers Marketing Functions Consumers

Overcoming Spatial Separation

Universal Functions of Marketing

Buying Market Information Risk Taking

Selling

Transporting

Marketing Functions
Storing Standardization & Grading

Financing

Who Performs Marketing Functions?

Producers

Wholesalers

Other Specialists

Transport Firms ISP's Product Testing Firms

Retailers Ad Agencies

Research Firms

Consumers

How Decisions are Made in an Economic System


Command Economy Market-Directed Economy

Government officials decide May work well if: Simple economy Little Variety Adverse Conditions

Adjusts itself

OR

Price is value measure Freedom of choice

Governments role limited

Marketings Role Has Changed Over Time

Simple Trade Era

Focus: Sell Surplus Focus: Increase Supply

Production Era

Sales Era Marketing Department Era Marketing Company Era

Focus: Beat Competition


Focus: Coordinate and Control Focus: Long-Run Customer Satisfaction

The Marketing Concept (Exhibit 1-3)

Customer Satisfaction

Total Company Effort

The Marketing Concept

Profit

Creating Title here Customer Satisfaction

Checking your knowledge

A store that is popular with newlyweds runs a wedding gift registry. Five minutes before closing time on a Sunday, a young couple enters the store and wants to registera process that usually takes 30 minutes or more. A sales associate advises the couple to come back when they have more time, even though a recent memo from the stores regional manager specifically instructed store personnel to stay after closing time to help such customers. Which key element of the marketing concept is the main problem area in this situation? A. Customer need B. Total company effort C. Customer satisfaction D. Marketing orientation E. Product orientation

Adopting the Concept of Marketing

The Marketing Concept and Customer Value

Take Customers Point of View Customer May Not Dwell On Value

Costs

Benefits

Where Does Competition Fit? Customer Value Builds Relationships

Checking your knowledge

Which of the following statements, made by marketing managers, illustrates an understanding of the concept of customer value? A. Its more important to acquire new customers than to retain old ones. B. The only time its really necessary to demonstrate superior customer value is right before the actual sale. C. My main concern is with meeting this months sales quotaIll worry about relationship building later. D. I might think my product is a good value, but what really counts is if the customer thinks its a good value. E. Customer value really boils down to which product is the least expensive.

Checking your knowledge

A computer manufacturer is attempting to increase the customer value associated with purchases of its products. Which of the following might be a way to achieve this increase in value? A. Reduce price. B. Increase technical support for customers. C. Increase warranty coverage. D. Offer free shipping. E. Any of the above, depending on the needs of the target market.

Putting It All Together (Exhibit 1-6)

Offer Superior Customer Value Total Company Effort to Satisfy Customers Attract New Customers

Build Profitable Customer Relationships Retain Customers

Satisfy Customers

The Marketing Concept Applies in Nonprofit Organizations

Newcomers to Marketing Characteristics of Nonprofit Organizations

Support and Satisfied Customers

Marketing Concept Provides Focus

The Bottom Line?

May Not Be Organized for Marketing

Government Marketing

The Marketing Concept, Social Responsibility, and Marketing Ethics


Micro - Macro Dilemma

Group Needs

Individual Needs

Social Responsibility

Should All Needs Be Satisfied?

What if Profits Suffer?

The Marketing Concept Guides Ethics

The Micro-Macro Dilemma Title here

You now

1.

2.
3.

4.

Know what marketing is and why you should learn about it. Understand the difference between marketing and macro-marketing. Know the marketing functions and why marketing specialistsincluding middlemen intermediaries and marketing collaborators develop to perform them. Understand what a market-driven economy is and how it adjusts the macro-marketing system.

You now

5. 6. 7.

Know what the marketing concept isand how it should guide a firm or nonprofit organization. Understand what customer value is and why it is important to customer satisfaction. Know how social responsibility and marketing ethics relate to the marketing concept.

Key Terms

Production Customer satisfaction Innovation Marketing Pure subsistence economy Macro-marketing Economies of scale Universal functions of marketing

Buying Selling Transporting Storing Standardization and


grading Financing Risk-taking Market information Intermediary (or middleman)

Key Terms

Collaborators E-commerce Economic system Command


economy Market-directed economy Simple trade era Production era Sales era Marketing department era

Marketing company era Marketing concept Production orientation Marketing orientation Customer value Micro-macro dilemma Social responsibility Marketing ethics

You might also like