Transcript Basic Marketing, 13th edition

Marketing Is Important!
• Marketing impacts all of us in our lives as
consumers
• Gives us choices
• Stimulates innovation and economic growth
• There are many good job opportunities in
marketing
• Regardless of what career path you take, no
firm (or non-profit organization) survives
for long if it can’t satisfy some group of
customers.
1-5
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Customer Satisfaction
• Customer Satisfaction – the extent to which
a firm fulfills a customer’s needs, desires,
and expectations.
• Customer Satisfaction Alone is NOT the
goal of marketing
• Firms Have a Goal of Generating Profits,
Not Making People Happy
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Marketing Defined
1-3
Micro-marketing
Macro-marketing
The performance of
activities that seek to
accomplish an
organization’s objectives
by anticipating customer
or client needs and
directing a flow of needsatisfying goods and
services from producer to
consumer or client.
A social process that
directs an economy’s flow
of goods and services
from producers to
consumers in a way that
effectively matches
supply and demand and
accomplishes the
objectives of society.
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Implications of the Definition of MicroMarketing
• Applies to profit and nonprofit
organizations.
• NOT just persuading customers to buy.
• Begins with customer needs and focuses on
customer satisfaction.
• Marketing activities --but it is a philosophy
that guides the whole business.
• Seeks to builds a relationship with the
customer.
1-4
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Economic Systems
Marketing-Directed
Economic Systems
Consumer choices are
the invisible hand that
guides the economy
Command
Economic Systems
Government planners
decide what consumers
should get
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Micro-Macro Dilemma
• Micro-macro dilemma: what is "good" for some firms and
consumers may not be good for society as a whole.
• Examples:
• some consumers want handguns, but guns can be
dangerous
• all terrain vehicles are fun for some people, but may
result in injuries or damage to wilderness areas
• non-returnable soft drink bottles are convenient, but
sometimes result in litter and dangerous broken glass
along highways.
• repairing an old air-conditioning system might save the
owner money, but might require continued use of ozone
depleting fluorocarbons (used as coolant)
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
The Marketing Concept
Customer
Satisfaction
Total Company
Effort
The
Marketing
Concept
Profit
Exhibit 2-1
2-4
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Marketing Orientation
• Trying to carry out the marketing
concept
• Maintaining a customer orientation
• All departments work together
guided by customer needs
• Focus on profit objective (or other
overall objective)
• NOT just trying to "unload" what the
firm has produced
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Marketing Orientation Sounds Easy,Isn’t
• Even the “best” firms sometimes backslide into a
production orientation
• In today’s highly competitive markets it is often
difficult to
• keep up with changing customer needs
• beat aggressive competitors to the punch
• find the right focus -- one that matches the firm’s
objectives and resources to market opportunities
• offer customers superior value
2-5
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Social Responsibility
• Social Responsibility – a firm’s obligation
to improve its positive effects on society
and reduce its negative effects (pg 23).
• Abernethy – Social responsibility is not the
responsibility of a firm. A business should
follow the law and make a profit.
• Part of the class is learning the laws
applying to marketing.
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Customer Value
• Customer Value – Difference between the
benefits a customer sees from a market
offering and the costs of obtaining those
benefits (pg 19).
• Only when the customer sees benefits >
costs will they be satisfied (and buy long
term).
- It is the customers point of view that is
important – not objective reality.
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill