Transcript Chapter 1
CHAPTER ONE Marketing’s Value to Consumers, Firms, and Society For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin www.mhhe.com/fourps 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 Marketing Is Important to You! Important to every consumer! Important to your job! Affects innovation and standard of living! What Is Marketing? Micro View Macro View • Set of activities • Social process • Performed by individual organizations and • Matches supply with demand Managerial (Micro) 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 Macro-Marketing Emphasis on Whole System Every Economy Needs It Key Characteristics Matches Producers and Consumers Universal Functions of Marketing Buying Market Information Selling Transporting Marketing Functions Risk Taking Financing Storing Standardization & Grading Who Performs Marketing Functions? Producers Wholesalers Transport Firms Retailers Ad Agencies ISP's Product Testing Firms Other Specialists Research Firms Consumers 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 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 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 Putting It All Together (Exhibit 1-6) Offer Superior Customer Value Total Company Effort to Satisfy Customers Attract New Customers Build Profitable Customer Relationships Satisfy Customers Retain Customers The Marketing Concept Applies in Nonprofit Organizations Support and “Satisfied Customers” Newcomers to Marketing Marketing Concept Provides Focus Characteristics of Nonprofit Organizations May Not Be Organized for Marketing The Bottom Line?