world+ +creating+customer+value+and+satisfaction
TRANSCRIPT
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Chapter 1(Plus Section of Chapter 2)
Marketing in a Changing
World: Creating CustomerValue and Satisfaction
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What is Marketing? (pp. 5-
6)
The process by which individuals and groups
obtain what they need and want through
creating and exchanging products and value
with others. (p. 6)
Simply put:Marketing is the delivery of customer
satisfaction at a profit. (p. 5)
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TargetCustomers
Intended
Positioning
Product (Customer Solution)
Goods-and-servicecombination that acompany offers a
target market
Price (Customer Cost)
Amount of moneythat consumershave to pay to
obtain the product
Activities thatpersuade targetcustomers to buy
the product
romotion (Communication)
Company activitiesthat make the
product available
Place (Convenience)
“The 4 Ps,” TacticalTools
(“The 4 Cs”)
(Fig. 2.6, pp. 67-68)
AdvertisingPersonal SellingSales PromotionPublic Relations
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Core Marketing Concepts
(Fig. 1.1, pp. 6-13)
Needs, wants,and demands
Productsand services
Value,satisfaction,and quality
Exchange,transactions,
and relationships
Exchange,transactions,
and relationships
Markets
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NeedsNeeds - state of felt deprivation for basic itemssuch as food and clothing, and complex needssuch as for belonging. (i.e. I am hungry.)
WantsWants - form that a human need takes asshaped by culture and individual personality.(i.e. I want a hamburger, French fries, and a softdrink.)
DemandsDemands - human wants backed by buyingpower. (i.e. I have money to buy this meal.)
Needs, Wants and
Demands? (pp. 6-7)
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6Caution: Avoid “Marketing Myopia”Caution: Avoid “Marketing Myopia” (pp. 8,
Productsnything that can be offered to a market to satisfy a need or wan
Experiences
Experiences Persons
Persons Places
Places
Organizations
Organizations Ideas
IdeasInformation
Information
Consumer’s Needs and
Wants? (pp. 7-8)
ServicesActivities or benefits offered for sale that are essentiallyintangible and don’t result in the ownership of anything
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How Do Consumers ChooseChoose Among Products &
Services? (pp. 9-11)
Customer ValueCustomer Value – Value gained fromowning a product less the costs
Customer SatisfactionCustomer Satisfaction – Perceivedperformance in providing value, relativeto expectations
QualityQuality – Total quality management(TQM) -continuous improvement
• Caution: Avoid “Marketing Myopia”Caution: Avoid “Marketing Myopia”(pp. 8, 18)
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TransactionsTransactionsExchangesExchanges
TheThe core conceptcore conceptof marketingof marketing
RelationshipsRelationships
Building a marketingnetwork with supporting
stakeholders
Obtain Products and
Services? (p. 11)
(p. 14)
Relationship Marketing & Customer LifetimeRelationship Marketing & Customer Lifetime
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Who Purchases Products
and Services? (pp. 12-13)
Market
Actual and potentialbuyers who share
a particular need orwant that can be
satisfied through anexchange orrelationship.
Needsor wants
Resources toexchange
Willingness toexchange
Actualbuyers
Potentialbuyers
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Connections WithCustomers(p. 14)
Most marketers are targetingfewer, potentially moreprofitable customers.
Asking:
What value does the customerbring to the organization? Are they worth pursuing?
Focus has shifted to: keeping current customers, and building lasting relationships
based on superior satisfactionand value.
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MarketingManagement
Implementingprogramsto createexchanges
with targetbuyersto achieve
organizationalgoals
DemandManagement
Finding andincreasing
demand, alsochanging or
reducingdemand suchas in
“Demarketing”
ProfitableCustomer
Relationships
Attracting newcustomers andretaining and
buildingrelationshipswith currentcustomers
Marketing Management (p.
14)
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Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Mktg. Concept
•Consumers favor products that areavailable and highly affordable.
•Consumers favor products that offer
the most quality, performance, andinnovative features.
•Consumers will buy products only if the company aggressively promotes/sells these products.
•Focuses on needs & wants of targetmarkets & delivering satisfactionbetter than competitors.
•Focuses on needs & wants of targetmarkets & maintaining or improving
societal and customer well-being.
Marketing Management Philosophies(pp. 15-22)
Based on different assumptions about:- what customers want
- what marketers should do
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Production ConceptLate 1800s & Early 1900s
Demand > Supply; High Costs(Still appropriate under these limited circumstances)
(pp. 16-17)
Consumers Favor:
Widely available Highly affordable
Management’s Focus: “engineer” Improving production efficiency
Improving distribution efficiency
Fails to recognize customer needs/wants
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Product ConceptLate 1940s (Post World War II)
Demand < Supply(p. 18) Consumers Favor:
Quality, performance Innovative features
Management’s Focus: “inventor” Make superior products (“build a better mousetrap”) Make continuous improvements
Danger: “Marketing Myopia” Focus on physical products, not customer needs & wants “Fall in love” with the product, not the customer
o Customers don’t need or want (“just don’t care”)o Over-improveo New technology replaces
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Selling ConceptLate 1940s (Post World War II)
Demand < Supply(p. 18)
Consumers Favor: Not buying or not buying enough
Management’s Focus: “hard-sell salesman”
Large-scale selling and promotion efforts
Coaxing & pushing people to buy
Danger: “Sell what you can make”
(versus “Make what you can sell”)
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Marketing Concept1950s – Present
Demand < Supply
(pp. 18-20)
Consumers Favor: Products that satisfy their needs and wants
Management’s Focus: “customer oriented” Understanding the needs and wants of consumers Satisfying them more efficiently and more
effectively than competitors
(NOTE: Efficiency & effectiveness - keeps the best of theproduction & product concepts)
(Focuses on the underlying and latent needs as well as thestated needs)
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Marketing and SalesConcepts Contrasted (Fig. 1.4,
pp. 18-20)
Factory
Existing
Products
Sellingand
Promoting
Profits
throughVolume
The Selling Concept (“inside-out”)The Selling Concept (“inside-out”)
StartingPoint Focus Means Ends
MarketCustomer
Needs
IntegratedMarketing
Profitsthrough
Satisfaction
The Marketing Concept (“outside-in”)The Marketing Concept (“outside-in”)
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ConceptLate 20th Century – Still emerging
Recognizes potential conflict (pp. 20-22)
SocietalMarketingConcept
Company(Profits)
Consumers(Short-term wants)
Society(Societal & customer well-being)
Maintain & improve
long-term well-being
Social responsibility
Ethics
EnvironmentDo goodStop doing bad
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Chapter Review (pp. 36-37)
Define what marketing is and discuss itscore concepts.
Explain the relationships between customervalue, satisfaction, and quality.
Define marketing management andexamine how marketers manage demandand build profitable customer relationships.
Compare the five marketing managementphilosophies.