Transcript MR1100+slides+for+Chapter+1

Customer Value, Satisfaction, Customer Relationships
and Customer Experiences.
Chapter 1
In this section we will:
 Define Marketing.
 Discover the basic requirements for marketing to occur.
 Understand the Role of Marketing in our Society
 Distinguish between the controllable marketing mix
elements and uncontrollable environmental marketing
elements.
 Develop an understanding of how marketing has evolved
over time.
 Understand how ethical issues can creep into marketing
decisions.
A Marketing Expert
 Unlike many other business subjects, Marketing is
something that we are exposed to each and every day - as a result we are marketing experts.
Definition of Marketing
 Marketing is:
 A Process of Planning and Doing…
 The Conception (Product), the Pricing, The Promotion
and the Distribution (Place)…
 Of an Idea, Good or Service…
 To create and Exchange..
 To satisfy Individual or Organizational Objectives.
Marketing Discovers needs & wants and attempts to
satisfy them.
For Marketing to Occur there
needs to be:
 Two or more parties (a Buyer & a Seller) that have
needs that each other can fulfil.
 A Desire, and an Ability to satisfy these needs. (A
Market)
 A way to Communicate this desire to the other party.
 Something of value to Exchange.
Key Questions of Marketing
 Who Markets - Profit and Not-for-profit, government
and individuals.
 What is marketed - Goods, Services and Ideas.
 Who Buys what is marketed - Individuals and
Organizations.
 Who Benefits - Individuals and Organizations
Finding a need
 Sometimes satisfying a need proves to be a difficult
task.
 To narrow in on the needs of a diverse group of
potential customers, companies often group people by
their needs. These groups are known as Target
Markets.
 Target Markets will respond similarly to a given set of
marketing actions.
Value
 The combination of benefits offered to the customer
relative to the price paid.
 Quality = increased customer value.
The Marketing Mix
“The 4 P’s”
 These are the controllable factors that a
company/organization can adjust in order to satisfy
customer needs.
 They include:
 The Product ( The Good, Service or Idea sold)
 The Promotion ( How the product is communicated to the
potential buyer)
 The Price (The rate of exchange)
 The Place ( How the product is distributed to the customer)
Influences on Marketing
 Certain aspects of marketing are controllable: Product,
Price, Place & Promotion.
 Other aspects of the environment in which marketing
occurs must be dealt with, but cannot be changed:
Social Forces, Economic Forces, Technological Forces,
Competitive Forces and Regulatory Forces.
Environmental Influences
 These are factors external to the
company/organization that it has no direct control
over. These factors must be dealt with.
 These include:
 Social Factors - Aspects of Demographic Change and
Cultural Change.
 Economic Factors - People’s income and inflation
Environmental Influences cont...
 Technological Factors - Changes in technology and the
effects of this change.
 Competitive Factors - What competitors are doing.
 Regulatory Factors - Government and Industry
regulation and how it impacts on the business.
Eras of Marketing
 Production Era - 1800’s - 1920’s - Customers would buy
all that was produced because they simply could not buy
these newly-invented items before. The Focus in this era
was on developing the production process (e.g. Assembly
lines), not on satisfying customer needs. Henry Ford’s
philosophy of “you can have any colour you want; provided
its black” was the prevailing tone of manufacturers.
Customers had little choice but accept this.
Mid - 1800’s
Industrial
Revolution
1930’s
The Great Depression
1960’s
Baby Boomers come
of age
Mid -1980’s
The Computer age
Now
Eras of Marketing cont...
 Sales era -- 1930’s - 1960’s - During this time the world
went through a depression and a war. Production capacity
was well developed however the buying public had less
money to buy these new products and competition among
specific manufactures was stiff. The focus was on the hard
sell. “We’ve built it, so you better buy it” was the prevailing
philosophy. Again the interests the customer were
secondary compared to the interests of manufacturers.
Mid - 1800’s
Industrial
Revolution
1930’s
The Great Depression
1960’s
Baby Boomers come
of age
Mid -1980’s
The Computer age
Now
Eras of Marketing cont...
 Marketing Concept Era -- 1960’s - 1980’s - The emergence
of Japanese competition in the late 60’s and 70’s and the
increased activism of customers who demanded better
quality products force manufactures to finally consider the
customer when developing and marketing products.
 Customers were better educated, better aware and
demanded “value”.
Mid - 1800’s
Industrial
Revolution
1930’s
The Great Depression
1960’s
Baby Boomers come
of age
Mid -1980’s
The Computer age
Now
Eras of Marketing cont...
 Market Orientation Era / Customer Experience Era1990’s - The advent of computers and massive data
gathering allow companies to better determine customer
needs. Product lives are shorter and competition is stiff to
please the customer and build long-term relationships.
 Customer Value
 Customer Satisfaction
 Customer Relationship Management
 Customer Lifetime Value
 Interactive Marketing
Mid - 1800’s
Industrial
Revolution
1930’s
The Great Depression
1960’s
Baby Boomers come
of age
Mid -1980’s
The Computer age
Now
Eras of Marketing cont...
 Social Media: Market Orientation Era / Customer
Experience Era- NOW – Social Media is made up of user
friendly internet based website that allow three way
communication – between buyer and seller, seller and buyer
and buyer and buyer. The content is largely CONSUMER
based.
Mid - 1800’s
Industrial
Revolution
1930’s
The Great Depression
1960’s
Baby Boomers come
of age
Mid -1980’s
The Computer age
Now
Social Responsibility
 The Societal Marketing Concept -- Many large
corporations have found that it is good business to be
responsible for the society in which they operate.
Micro/Macro Marketing
 Micromarketing - looks at how the individual
corporation markets.
 Macromarketing - Looks at the impact of marketing,
as a whole, on society.