Marketing in a Changing World: Creating Customer Value and Satisfaction

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What is Marketing?Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Simply put: Marketing is the delivery of customer satisfaction at a profit.2

Core Marketing ConceptsNeeds, wants, and demands Markets Products and services

Exchange, transactions, and relationships

Value, satisfaction, and quality3

What are Consumers Needs, Wants and Demands?

Needs - state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging. i.e. I am hungry. Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a hamburger, French fries, and a soft drink. Demands - human wants backed by buying power. i.e. I have money to buy this meal.

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What Will Satisfy Consumers Needs and Wants?Products

nything that can be Offered to a Market to Satisfy a Need or WantExperiences Experiences Persons Persons Places Places

Organizations Organizations

Information Information

Ideas Ideas

ServicesActivities or Benefits Offered for Sale That Are Essentially Intangible and Dont Result in the Ownership of Anything5

How Do Consumers Choose Among Products and Services?Value Gained From Owning a Product and Costs of Obtaining the Product is

Customer ValueProducts Perceived Performance in Delivering Value Relative to Buyers Expectations is

Customer Satisfaction Total Quality Management InvolvesImproving the Quality of Products, Services, and Marketing Processes6

How Do Consumers Obtain Products and Services?

Exchanges

Transactions Relationships

Building a Marketing Network Consisting of The Company and All Its Supporting Stakeholders7

Who Purchases Products and Services?People Who Exhibit Need

Resources to Exchange

Willingness to Exchange

Market Ethical Buyers who share a particular need or want that can be Attitudes satisfied of through Others exchange or relationships.p x e n U d e t c e t a u t i S l a n o i o t c a F s r

Actual Buyers

Potential Buyers

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Modern Marketing SystemSuppliers SuppliersCompetitors Competitors Company Company (Marketer) (Marketer)

Environment

Environment

Marketing Marketing Intermediaries Intermediaries End User End User Market Market

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Marketing ManagementMarketing ManagementImplementing programs to create exchanges with target buyers to achieve organizational goals

Demand ManagementFinding and increasing demand, also changing or reducing demand such as in Demarketing

Profitable Customer RelationshipsAttracting new customers and retaining and building relationships with current customers

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Marketing Management PhilosophiesProduction Concept Product Concept Selling Concept Marketing ConceptSocietal Marketing Concept

Consumers favor products that are

available and highly affordable. Improve production and distribution. Consumers favor products that offer the most quality, performance, and innovative features. Consumers will buy products only if the company promotes/ sells these products. Focuses on needs/ wants of target markets & delivering satisfaction better than competitors. Focuses on needs/ wants of target markets & delivering superior value. 11

Marketing and Sales Concepts ContrastedStartin g PointFactory

FocusExisting Products

MeansSelling and Promoting

EndsProfits through Volume

The Selling Concept The Selling Concept

Market

Customer Needs

Integrated Marketing

Profits through Satisfaction

The Marketing Concept The Marketing Concept12

Societal Marketing ConceptSociety(Human Welfare)

Societal Marketing Concept Consumers(Want Satisfaction)

Company(Profits)13

Marketing Challenges in the New Connected MillenniumConnecting TechnologiesComputer Information Communication Transportation

Connections with CustomersConnecting more selectively Connecting for life Connecting Directly

Connecting with other company departments Connecting with suppliers and distributors Connecting through strategic alliances

Connections with Marketing Partners

Connections with the world around usGlobal Connections Connections with values and responsibilities Broadened

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Technologies for ConnectingLearn About & Track Customers With Databases Create Products & Services Tailored to Meet Customer Needs

Connecting Technologies in Computers, Telecommunications, Information, & Transportation Help To:

Communicate With Customers in Groups Or One-on-One

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What aspects of the Internet make it a good forum for marketing? How do Web companies compete with brick and mortar companies?Click or press spacebar to return

Distribute Products More Efficiently & Effectively15

The Internet

The Internet has been hailed as the technology behind a new model for doing business. New applications include:

Internet connecting with customers, Intranets connecting with others in the company, and Extranets connecting with strategic partners, suppliers, and dealers.

Purchasing will be over $1.4 trillion in 2003. 400,000 companies are now using the Internet to do business.

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Connections With Customers

Most marketers are targeting fewer, potentially more profitable customers. Asking:

What value does the customer bring to the organization? Are they worth pursuing? keeping current customers, and building lasting relationships based on superior satisfaction and value.

Focus has shifted to:

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Direct Connections With Customers

Many companies use technologies to let them connect more directly with their customers.

Products available via telephone, mail-order catalogs, kiosks and e-commerce. Some firms sell only via direct channels (i.e. Dell Computer, www.Amazon.com), others use a combination.

Direct marketing is redefining the buyers role in connecting with sellers.

Buyers are active participants in shaping the marketing offer and process; some buyers design their own products online such as at www.LandsEnd.com.

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