Transcript LO 1-2 - McGraw-Hill Education

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LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:
LO 1-1
Define marketing and identify the
diverse factors influencing marketing
actions.
LO 1-2
Explain how marketing discovers and
satisfies consumer needs.
LO 1-3
Distinguish between marketing mix
factors and environmental forces.
1-2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:
LO 1-4
LO 1-5
Explain how organizations build strong
customer relationships and customer
value through marketing.
Describe how today’s customer
relationship era differs from prior eras.
1-3
LAUNCHING A NEW BILLION-DOLLAR
FOOD CATEGORY—IN JUST SEVEN YEARS!

Developing
Chobani’s Unique
Greek Yogurt

Reaching
Customers

Chobani Today

Chobani,
Marketing,
and You
1-4
LO 1-1

WHAT IS MARKETING?
You Are a Marketing Expert Already
• Involved in 1,000s of Buying Decisions
• Involved in Some Selling Decisions

Marketing is NOT Easy
1-5
FIGURE 1-1 The see-if-you’re-really-amarketing-expert test
1. True
2. True
3. (c) plastic bottles
1-6
LO 1-1

WHAT IS MARKETING?
Marketing and Your Career
• Goal is to “Do Marketing!”
• Small Businesses Offer Marketing Careers

You Too Could Start a Successful
Business While in College!
1-7
LO 1-1
WHAT IS MARKETING?
DELIVERING BENEFITS

Marketing Seeks to:
• Discover Needs and Wants of Customers
• Satisfy Them

Exchange
AMA Definition
of Marketing
1-8
WHAT IS MARKETING?
LO 1-1
DIVERSE ELEMENTS INFLUENCE MARKETING ACTIONS

The Organization Itself and
Its Departments

Society

Environmental Forces
1-9
FIGURE 1-2 A marketing department relates to
many people, organizations, and
environmental forces
1-10
LO 1-1
WHAT IS MARKETING?
REQUIREMENTS FOR MARKETING TO OCCUR

Two + Parties with
Unsatisfied Needs

A Desire and Ability
to be Satisfied

A Way for the Parties
to Communicate

Something
to Exchange
1-11
LO 1-2
HOW MARKETING
DISCOVERS CONSUMER NEEDS
THE CHALLENGE: NEW PRODUCTS

Consumers May Not Know or Cannot
Describe What They Need or Want

Most New Products Fail

The Challenge:
• “Focus on the Consumer Benefit”
• “Learn From Past Mistakes”
1-12
LO 1-2
Dr. Care Vanilla-Mint Aerosol Toothpaste
What “benefits” and what “showstoppers?”
1-13
LO 1-2
Terrafugia Transition
What “benefits” and what “showstoppers?”
1-14
LO 1-2
Pepsi Next
What “benefits” and what “showstoppers?”
1-15
LO 1-2
HOW MARKETING
DISCOVERS CONSUMER NEEDS
NEEDS VS. WANTS

Need

Does Marketing Persuade
People to Buy the
“Wrong” Things?

Market

Want
1-16
FIGURE 1-3 Marketing seeks to discover
consumer needs through research and then
satisfy them with a marketing program
1-17
LO 1-3
HOW MARKETING
SATISFIES CONSUMER NEEDS
THE FOUR Ps

Target Market

The 4 Ps: Controllable
Marketing Mix Factors
• Product
• Price
• Promotion
$499
• Place
1-18
LO 1-3
HOW MARKETING
DISCOVERS CONSUMER NEEDS
ENVIRONMENTAL FORCES

Customer Value Proposition

Uncontrollable Environmental Forces
• Social
• Competitive
• Economic
• Regulatory
• Technological
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LO 1-4
THE MARKETING PROGRAM
CUSTOMER VALUE

Customer Value

Value Strategies
• Best Price
• Best Service
• Best Product
1-20
LO 1-4
Target, Starbucks, and US Bank
What customer value strategy?
1-21
LO 1-4
THE MARKETING PROGRAM
RELATIONSHIP MARKETING

Relationship Marketing
• Easy to Understand
• Hard to Do

Marketing Program

Market Segments
1-22
LO 1-4
3M’S STRATEGY & MARKETING PROGRAM
DISCOVERING & STATISFYING STUDENT STUDY NEEDS
+
3M Post-it® Notes or
Post-it® Flags
=
Felt Tip Highlighters
3M product that
will combine
Post-it® Notes or
Post-it® Flags and
Highlighters
1-23
LO 1-4
3M’S STRATEGY & MARKETING PROGRAM
DISCOVERING & STATISFYING STUDENT STUDY NEEDS

Move from Ideas to
a Marketable
Highlighter Product

Add the Post-it®
Flag Pen

Develop a Marketing
Program for the
Post-it® Flag
Highlighter and Pen
1-24
FIGURE 1-4 Marketing programs for two new
3M Post-it® brand products targeted at college
students and office workers
1-25
LO 1-4
3M’S STRATEGY & MARKETING PROGRAM
DISCOVERING & STATISFYING STUDENT STUDY NEEDS

Developed Third
Generation Post-it®
Flag Highlighter

Appeared on
The Oprah
Winfrey Show
1-26
FIGURE 1-5 Four different orientations in the
history of American business
Production Era
Sales Era
Marketing Concept Era
Customer Relationship Era
• Market Orientation
1-27
LO 1-5
HOW MARKETING BECAME IMPORTANT
EVOLUTION OF THE MARKET ORIENTATION

Customer Relationship
Management (CRM)

Customer Experience
• What Firms Think They Offer Customers
• What Customers Say They Receive
1-28
LO 1-5
HOW MARKETING BECAME IMPORTANT
ETHICS AND SOCIAL RESPONSIBILITY

Ethics

Social Responsibility
• Societal Marketing Concept
1-29
LO 1-5
HOW MARKETING BECAME IMPORTANT
BREADTH AND DEPTH OF MARKETING

Who Markets?

What Is Marketed?
• Products
(Goods)
• Services
• Ideas
1-30
LO 1-5
HOW MARKETING BECAME IMPORTANT
BREADTH AND DEPTH OF MARKETING

Who Buys & Uses What Is Marketed?
• Ultimate Consumers
• Organizational Buyers

Who Benefits?

How Do Consumers Benefit?: Utility
• Form Utility
• Time Utility
• Place Utility
• Possession Utility
1-31
VIDEO CASE 1
CHOBANI: MAKING GREEK YOGURT
A HOUSEHOLD NAME
1-32