Transcript Chapter 1 - BHSMARKETING

Essentials of Marketing
For use only with
Perreault/Cannon/
McCarthy texts, © 2010
McGraw-Hill
Companies, Inc.
McGraw-Hill/Irwin
McGraw-Hill/Irwin
William D. Perreault, Jr.
Joseph P. Cannon
E. Jerome McCarthy
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 1
Marketing’s Value to
Consumers, Firms, and Society
For use only with
Perreault/Cannon/
McCarthy texts, © 2010
McGraw-Hill
Companies, Inc.
McGraw-Hill/Irwin
www.mhhe.com/fourps
1-2
At the end of this presentation, you should be
able to:
1.
2.
3.
4.
Know what marketing is and why you should
learn about it.
Understand the difference between marketing
and macro-marketing.
Know the marketing functions and why
marketing specialists—including
intermediaries and collaborators—develop to
perform them.
Understand what a market-driven economy is
and how it adjusts the macro-marketing
system.
1-3
At the end of this presentation, you should be
able to:
5.
6.
7.
Know what the marketing concept is—and
how it should guide a firm or nonprofit
organization.
Understand what customer value is and why it
is important to customer satisfaction.
Know how social responsibility and marketing
ethics relate to the marketing concept.
1-4
Marketing—What’s It All About?
More than Selling or Advertising
More than Selling
All Those
and Advertising
Bicycles!
1-5
Things a Firm Should Do in Producing a Bike
Analyze Needs
Predict Wants
Estimate Demand
Predict When
Determine Where
Estimate Price
Decide Promotion
Estimate Competition
Provide Service
1-6
Production vs. Marketing
Marketing
Makes sure right goods &
services are produced
Production
• Making Goods
• Performing
Services
Creates Customer Satisfaction
1-7
Marketing Is Important to You!
Important to every consumer!
Important to your job!
Affects innovation and
standard of living
1-8
Marketing
Stimulates
New Ideas
If anyone should have
a better doggie bag it’s
dogs.
1-9
What Is Marketing?
Micro View
Macro View
• Set of activities
• Social process
• Performed by
individual
organizations
and
• Matches supply
with demand
1-10
Marketing
Profit and
Nonprofit
Focus of Your
Text
Builds
Relationships
More than
Persuasion
Key
Characteristics
Involves
Exchanges
Begins with
Needs
Doesn’t Go It
Alone
1-11
Building
Customer
Relationships
It’s not just a laptop.
It’s knowing each
pilot’s aircraft is fit to fly
before an urgent
mission.
1-12
Macro-Marketing
Emphasis on
Whole System
Every Economy
Needs It
Key
Characteristics
Matches
Producers and
Consumers
1-13
Can Mass Production Satisfy a Society’s
Consumption Needs?
Economies of Scale Lower Cost
Cost
$
Output
Marketing Bridges the Gap!
Producers
Marketing
Functions
Consumers
1-14
Overcoming Spatial Separation
1-15
Universal Functions of Marketing
Buying
Market
Information
Selling
Transporting
Marketing
Functions
Risk Taking
Financing
Storing
Standardization
& Grading
1-16
Who Performs Marketing Functions?
Producers
Wholesalers
Transport
Firms
Retailers
Ad Agencies
ISP's
Product
Testing
Firms
Other
Specialists
Research
Firms
Consumers
1-17
How Decisions are Made in an Economic System
Command
Economy
• Government
officials decide
• May work well if:
• Simple
economy
• Little Variety
• Adverse
Conditions
Market-Directed
Economy
• Adjusts itself
OR
• Price is value
measure
• Freedom of
choice
• Government’s
role limited
1-18
Marketing’s Role Has Changed Over Time
Simple Trade Era
Focus:
Sell Surplus
Production Era
Focus:
Increase Supply
Sales Era
Focus:
Beat Competition
Marketing Department
Era
Focus:
Coordinate and Control
Marketing Company Era
Focus: Long-Run
Customer Satisfaction
1-19
The Marketing Concept (Exhibit 1-3)
Total
company
effort
Customer
satisfaction
The
Marketing
Concept
Profit (or another measure
of long-term success) as
an objective
1-20
Creating
Customer
Satisfaction
1-21
Checking Your Knowledge
A store that is popular with newlyweds runs a wedding gift registry.
Five minutes before closing time on a Sunday, a young couple enters
the store and wants to register—a process that usually takes 30
minutes or more. A sales associate advises the couple to come back
when they have more time, even though a recent memo from the
store’s regional manager specifically instructed store personnel to stay
after closing time to help such customers. Which key element of the
marketing concept is the main problem area in this situation?
A.
B.
C.
D.
E.
Customer need
Total company effort
Customer satisfaction
Marketing orientation
Product orientation
1-22
Adopting The
Marketing
Concept
Now Flying To
More Places In
Europe.
1-23
The Marketing Concept and Customer Value
Take Customer’s
Point of View
Customer May
Not Dwell On
Value
Costs
Benefits
Where Does
Competition Fit?
Customer Value
Builds
Relationships
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Checking Your Knowledge
Which of the following statements, made by marketing
managers, illustrates an understanding of the concept of
customer value?
A. “It’s more important to acquire new customers than to
retain old ones.”
B. “The only time it’s really necessary to demonstrate
superior customer value is right before the actual
sale.”
C. “My main concern is with meeting this month’s sales
quota—I’ll worry about relationship building later.”
D. “I might think my product is a good value, but what
really counts is if the customer thinks it’s a good
value.”
E. “Customer value really boils down to which product is
the least expensive.”
1-25
Checking Your Knowledge
A computer manufacturer is attempting to increase the
customer value associated with purchases of its products.
Which of the following might be a way to achieve this
increase in value?
A.
B.
C.
D.
E.
Reduce price.
Increase technical support for customers.
Increase warranty coverage.
Offer free shipping.
Any of the above, depending on the needs of the target
market.
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Putting It All Together (Exhibit 1-6)
Total Company
Effort to Satisfy
Customers
Build Profitable
Customer
Relationships
Offer Superior
Customer Value
Increase Sales to
Customers
Attract
Customers
Retain Customers
Satisfy
Customers
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The Marketing Concept Applies in Nonprofit
Organizations
Support and
“Satisfied
Customers”
Newcomers
to Marketing
Marketing
Concept
Provides
Focus
Characteristics
of Nonprofit
Organizations
The Bottom
Line ?
May Not Be
Organized
for
Marketing
1-28
Government
Marketing
1-29
The Marketing Concept, Social Responsibility,
and Marketing Ethics
Group Needs
Social
Responsibility
Micro - Macro
Dilemma
Should All
Needs Be
Satisfied?
Individual Needs
What if Profits
Suffer?
The Marketing Concept Guides Ethics
1-30
The MicroMacro
Dilemma
How can you help
protect the prairie and
the penguin?
1-31
You should now be able to:
1.
2.
3.
4.
Know what marketing is and why you should
learn about it.
Understand the difference between marketing
and macro-marketing.
Know the marketing functions and why
marketing specialists—including
intermediaries and collaborators—develop to
perform them.
Understand what a market-driven economy is
and how it adjusts the macro-marketing
system.
1-32
You should now be able to:
5.
6.
7.
Know what the marketing concept is—and
how it should guide a firm or nonprofit
organization.
Understand what customer value is and why it
is important to customer satisfaction.
Know how social responsibility and marketing
ethics relate to the marketing concept.
1-33
Key Terms
•
•
•
•
•
•
•
•
Production
Customer
satisfaction
Innovation
Marketing
Pure subsistence
economy
Macro-marketing
Economies of
scale
Universal functions
of marketing
• Buying
• Selling
• Transporting
• Storing
• Standardization and
•
•
•
•
grading
Financing
Risk-taking
Market information
Intermediary
1-34
Key Terms
• Collaborators
• E-commerce
• Economic system
• Command
•
•
•
•
•
economy
Market-directed
economy
Simple trade era
Production era
Sales era
Marketing
department era
• Marketing company era
• Marketing concept
• Production orientation
• Marketing orientation
• Customer value
• Micro-macro dilemma
• Social responsibility
• Marketing ethics
1-35