key term outline 1–11–1 pride/ferrell foundations of marketing third edition chapter 1:...
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Pride/Ferrell
Foundations of MarketingThird Edition
Chapter 1:Customer-Driven Strategic Marketing
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Part 1Strategic Marketing and Its Environment
Chapter 1 Customer-Driven Strategic Marketing
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Objectives
1. Define marketing.2. Understand several important marketing terms,
including target market, marketing mix, marketing exchanges, and marketing environment.
3. Be aware of the marketing concept and marketing orientation.
4. Understand the importance of building customer relationships.
5. Explain the major marketing functions that are part of the marketing management process.
6. Understand the role of marketing in our society.
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Outline
1. Marketing Defined
2. Understanding the Marketing Concept
3. Managing Customer Relationships
4. Value-Driven Marketing
5. Marketing Management
6. The Importance of Marketing in Our Global Economy
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customer relationship management (CRM)
marketing environment
relationship marketing
customersmarketing
managementstakeholders
exchanges marketing mix target market
marketingmarketing orientation
value
marketing concept
product
Key Terms
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1. WHAT IS MARKETING?
The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchanges with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment.
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Who is the Focus?
CustomersThe purchasers of organizations’ products; the focal point of all marketing activities.The Target Market
Hard Rock focuses on its target market to meet their needs
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Marketing Mix
Figure 1.1
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Product Variable
A good, a service, or an idea.
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© Used By Permission.
Product Example
Is this advertisement for a good, service, or idea?
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Price Variable
Decisions and actions associated with establishing pricing objectives and policies and determining product prices
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Distribution Variable
Make products available in quantities desired
Minimize costs: Inventory
Transportation
Storage
Select/Motivate intermediaries
Establish/Maintain inventory control
Develop/Manage transportation &storage systems
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Promotion Variable
Activities to inform individuals or groups about the organization and its products Increase awareness of
the organization and new or existing products.
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Relationships with Customers
Exchange: The provision or transfer of goods, services, or ideas in return for something of value
Figure 1.2
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Customer as the Stakeholder
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Relationships with other Stakeholders
Constituents who have a stake or claim in some aspect of a company’s products, operations, markets, industry, and outcomes.
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Forces of the Marketing Environment
CompetitiveCompetitive
SocioculturalSociocultural
TechnologicalTechnological
EconomicEconomic
PoliticalPolitical
LegalLegalRegulatoryRegulatory
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2. THE MARKETING CONCEPT
A managerial philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals.
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Core Competency as Marketing Concept
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Evolution of the Marketing Concept
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Figure 1.3
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Marketing Orientation
An organization-wide commitment to researching and responding to customer needs.
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3. MANAGING CUSTOMER RELATIONSHIPS
Establishing long-term, mutually satisfying buyer-seller relationships.Customer Relationship Management (CRM)
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Customer Relationships
Relationship marketing deepens buyer's trust in the company
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4. VALUE-DRIVEN MARKETING
Value = Customer Benefits minus Customer Costs
Rapala uses value to promote its products to fisherman around the world.
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5. MARKETING MANAGEMENT
The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently.
EffectivenessEffectiveness EfficiencyEfficiency
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6. IMPORTANCE OF MARKETING IN OUR GLOBAL ECONOMY
Costs consume sizable portion of buyers’ dollars
Used in nonprofit organizations
Important to business and economy
Fuels the global economy
Knowledge enhances consumer awareness
Connects people through technology
Promotes welfare of customers and society
Offers many exciting career prospects
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© Used By Permission.
Nonprofit Organizations
Marketing Employed by Nonprofit Organizations
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Why Study Finance, Marketing, HR, & Operations Research
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After reviewing this chapter you should:
Be able to define marketing.Know the meaning of important marketing terms, including target market, marketing mix, marketing exchanges, and marketing environment.Be aware of the marketing concept and marketing orientation.Understand the importance of building customer relationships.Be able to explain the major marketing functions that are part of the marketing management process.Recognize the important role of marketing in our society.