MARKETING: CREATING

SATISFACTION THROUGH CUSTOMER

RELATIONSHIPS

Introduction to MarketingChapter 1

CUSTOMER LOYALTY What is it? Why is it so important?

WHAT IS MARKETING?

Production Marketing

Together they create:

UTILITY

The want satisfying power of a product or service.

ProductionForm Utility

MarketingTime UtilityPlace UtilityOwnership (Possession) Utility

MARKETING Textbook Definition:

Organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

DEFINITION OF MARKETING PARAPHRASED Marketing is planning and making the

product, idea or service. It’s also pricing, promoting, and distributing it.

TODAY’S GLOBAL MARKETPLACE

Expanding US markets gives access to 6 billion international customers

US market is attractive to foreign companies

ERAS OF MARKETING Production Era

Manufacturers produced a quality product then looked for someone to buy it

“A good product will sell itself.”

Sales EraAssumption that a good sales force and

advertising would convince customers to buy

Marketing Era• Establish customer needs before production

• “Find a need and fill it.”

• Marketing Concept Emergence• Everyone involved with customers &

suppliers

Relationship EraEstablish relation-ships with customers & suppliers

MARKETING MYOPIA Managements failure to realize

competition Product oriented instead of customer

oriented Nearsightedness Set way of thinking Boundaries No Imagination or creativity

EXTENDING TRADITIONAL MARKETING BOUNDARIES

Not-for-Profit Organizations Distribution between profit & not-for-

profit is the bottom line (profitability) Market tangible products, special exhibits

and educational classes. Difficult to set marketing objectives

because of the lack of revenue and sales figures.

Possible partnerships with profit organizations.

NONTRADITIONAL MARKETING

Person MarketingAuthority Figures

Political Candidates Celebrities

Fictional Characters Place Marketing

Tourism Cause Marketing

Social Issues

(continued)

NON-TRADITIONAL MARKETING

Event MarketingConcert, Olympics

OrganizationMutual BenefitsService OrganizationsGovernment

TECHNOLOGY REVOLUTION

Computer networks Video Conferencing Online Services Internet Interactive kiosks CD-ROM catalogs PDA’s Zoned Advertising

INTERACTIVE MARKETING The customer controls the amount and type

of information received from a marketer

RSS Feeds for personalized news, weather, infoTransmit info over cell phone to office

Future for Mobile MarketingOnline banking and bill payingOnline entertainment, local moviesOnline auctions IPTVBlogsText MessagingGamingSocial Networking

Twitter, Facebook, etc.

COSTS & FUNCTIONS OF MARKETING

Approximately one-half of the cost of a product is due to marketing

Buying Selling Standardizing

& Grading Transporting

Storing Financing Risk Taking Securing

Marketing Info