Transcript General Marketing Concepts

General Marketing Overview
Chapter 1 & 3: Marketing Process, Societal Implications,
Customer Satisfaction and Value
What is marketing?
• ??????? What are your thoughts?
• “Create long term and mutually
beneficial exchange relationships
between an entity and the publics
(individuals & organizations) in which it
interacts”
• Create, sustain, maintain or add VALUE!
What is Marketing?
American Marketing Association
Definition:
The process of planning and executing
the conception, pricing, promotion and
distribution of ideas, goods and services
to create exchanges that satisfy
individual and organizational goals.
Evolving Views of
Marketing’s Role
Production
Marketing
Customer
e. The customer as the controlling function and
marketing as the integrative function
The Marketing Process
• People: Consumer Behavior,
Segmentation
• Strategy: Planning, Competition,
Research
• Performance: Satisfaction, profits, sales,
repeat sales, brand awareness, brand
recognition, market share, market
growth, brand equity
• 4Ps: Product, Price, Place, Promotion
Customer is KING!!
The 4 Ps of Marketing
• Product – good, service
or idea that offers a
bundle of tangible and
intangible attributes to
satisfy the consumer
• Promotion – the
communication of all
other Ps
• Price – what the
product is
exchanged for
• Place – all aspects of
getting products to
the consumer in the
right location at the
right time.
What can you “market”?
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Products, Services
Experiences, Events
People
Places, Properties
Organizations
Information, Ideas
• Categories of
markets:
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Consumer
Business
Global
Government &
Nonprofit
Elements of Exchange
At Least Two
Parties
Necessary
Conditions
for Exchange
Something of
Value
Ability to
Communicate
Offer
Freedom to
Accept or Reject
Desire to Deal
With Other Party
Tonight’s class
• Marketing: where are we? (Tipping Point/60
Minutes)
• Creating Value, Fostering Satisfaction and
Loyalty
• Case analysis and presentation (Sorzal)
• Marketing Plan group formation and Project
list distribution
Marketing Management
Philosophies
Philosophy
Production
Sales
Market
Societal
Key Ideas
Focus on efficiency of internal operations
Focus on aggressive techniques for
overcoming customer resistance
Focus on satisfying customer needs and wants
Focus on satisfying customer needs and
wants while enhancing individual and
societal well-being
Four Eras in the History of Marketing
• Production Era
– Prior to 1920s
– Production orientation
– Business success often defined solely in terms of
production victories
• Sales Era
– Prior to 1950s
– Customers resist nonessential goods and services
– Personal selling and advertising’s task is to
convince them to buy
• Marketing Era
– Since 1950s Marketing Concept Emerges
– Shift from seller’s to buyer’s market
– Consumer orientation
• Marketing Concept
– Company–wide consumer orientation
– Objective of achieving long–run success
The Marketing Concept
• The idea that the social and economic
justification for an organization’s
existence is the satisfaction of
consumer wants and needs while
meeting organizational objectives.
– TM & customer needs: Focus to distinguish
from competitors
– Integration: Integration of all activities to
satisfy customer wants/needs
– Profits: Achieve long term goals by
satisfying customer wants/needs
• Relationship Era
– Began in 1990s
– Carried customer orientation even further
– Focuses on establishing and maintaining
relationships with both customers and suppliers
– Involves long–term, value–added relationships
DEBATE:
• Does Marketing
CREATE or SATISFY NEEDS?
• Marketing has often been defined in terms of
satisfying customers needs and wants. Critics,
however, maintain that marketing does much more
than that and creates needs and wants that did not
exist before. According to these critics, marketers
encourage consumers to spend more money than
they should on goods and services they really don’t
need.
Customer Value
• The ratio of benefits to sacrifice
necessary to obtain benefits.
– Offer products that perform
– Give consumers more than they expect
– Avoid unrealistic pricing
– Give the buyer facts
– Offer organization – wide commitment
in service and after sales support
What is Perceived Customer
Value?
Product value
Services value
Personnel value
Total
customer
benefit
Customer
delivered
value
Image value
Monetary cost
Time cost
Energy cost
Psychic cost
Total
customer
cost
Customer Satisfaction
• The feeling that a product has met or
exceeded the customers’ expectation
– Focus on delighting customers
– Provide solutions to consumers’ problems
– Measuring satisfaction: complaint and
suggestion systems, surveys, ghost
shoppers, lost customer analysis
Satisfied Customers
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Are loyal longer
Buy more (new products & upgrades)
Spread favorable word of mouth
Are more brand loyal (less price
sensitive)
• Offer feedback
• Reduce transaction costs
• Is Satisfaction the same as LOYALTY?
“The Mismanagement of
Customer Loyalty”
• How does your firm currently treat loyalty? Is
it important? Do you currently measure it?
How effective it is? What do you think needs
to change?
• What companies can be considered “best
practices” candidates for generating customer
loyalty?
Avoiding Marketing Myopia
• Marketing Myopia is management’s failure
to recognize the scope of its business.
– To avoid marketing myopia, companies must
broadly define organizational goals toward
consumer needs.
Critical Thinking and Creativity
• Challenges presented by today’s complex
and technologically sophisticated marketing
environment require critical-thinking skills
and creativity from marketing professionals
• Critical Thinking refers to the process of
determining the authenticity, accuracy, and
worth of information, knowledge, claims
and arguments
• Creativity helps to develop novel solutions
to perceived marketing problems
Where has marketing been
criticized?
Social Criticisms of Marketing
– the consumer interest
• Causes prices to be higher
• Deceptive practices in promotion,
packaging and price
• High pressure selling
• Shoddy or unsafe products
• Poor service to disadvantaged people
Other Social Criticisms of
Marketing
• Impact on society
– Materialism
– Too few social goods
– Cultural pollution
– Too much political power
• Impact on other business
– Acquisitions, entry barriers