Transcript Ch1MktingPPoint

An Overview of Strategic Marketing
.
Chapter 1 Objectives…..
To define marketing
 To understand the marketing concept and
marketing orientation
 To understand the importance of building
customer relationships
 To learn about the process of marketing
management
 To recognize the role of marketing in our
society

Copyright © Houghton Mifflin Company.
All rights reserved.
1 |
2

Marketing
◦ The process of creating, distributing,
promoting, and pricing goods, services,
and ideas to facilitate satisfying exchange
relationships with customers in a dynamic
environment

Customers
◦ The purchasers of organizations’
products; the focal point of all marketing
activities
Copyright © Houghton Mifflin Company.
All rights reserved.
1 |
3
FIGURE 1.1
Copyright © Houghton Mifflin Company.
All rights reserved.
1 |
4

Target Market
◦ A specific group of customers on whom
an organization focuses its marketing
efforts




Large or small customer groups
Single or multiple product markets
Single or multiple products
Local to global markets
Copyright © Houghton Mifflin Company.
All rights reserved.
1 |
5

The Marketing Mix
◦ Four marketing activities—product,
distribution, promotion, and pricing—
that a firm can control to meet the needs
of customers within its target market
Product
Distribution
Promotion
Target
Market
Pricing
Copyright © Houghton Mifflin Company.
All rights reserved.
1 |
6
Product
Distribution
Goods, services, or ideas that satisfy
customer needs
The ready, convenient, and timely
availability of products
Promotion
Activities that inform customers about
the organization and its products
Pricing
Decisions and actions that establish
pricing objectives and policies and set
product prices
Copyright © Houghton Mifflin Company.
All rights reserved.
1 |
7

Marketing Concept (Orientation)
◦ A philosophy that an organization should try
to satisfy customers’ needs through a
coordinated set of activities that also allows
the organization to achieve its goals.
◦ How to implement the concept: Customer
satisfaction!!!
 Analysis of customers’ current and long-term
needs
 Analysis of competitors’ capabilities
 Integration of firm’s resources
Copyright © Houghton Mifflin Company.
All rights reserved.
1 |
8

Relationship Marketing
◦ Establishing long-term, mutually
satisfying buyer-seller relationships
allowing for cooperation and mutual
dependency
 Increased value of customer (loyalty) over time
results in increased profitability.
Copyright © Houghton Mifflin Company.
All rights reserved.
1 |
9

Customer Relationship Management
(CRM)
◦ Using information about customers to
create marketing strategies that sustain
relationships.
 Identifying buying-behavior
patterns of customers
 Using behavioral
information to focus on
the most profitable
customers
Copyright © Houghton Mifflin Company.
All rights reserved.
1 |
10

Value
◦ The way a customers views benefits of a
product relative to the costs of product in
determining the worth of a product…….
 Customer value = customer benefits – customer
costs
**A good marketing plan always tries to increase
value in the mind of their customers.
Copyright © Houghton Mifflin Company.
All rights reserved.
1 |
11

Marketing Management
◦ The process of:
planning, organizing, implementing, and
controlling marketing activities to
facilitate purchases effectively and
efficiently for customers.
Copyright © Houghton Mifflin Company.
All rights reserved.
1 |
12

1. Planning
◦ Assessing opportunities and resources to
market a product
◦ Determining marketing objectives
◦ Developing a marketing strategy and plans
for implementation
2. Organizing
Creates a structure for directing marketing
activities.
Copyright © Houghton Mifflin Company.
All rights reserved.
1 |
13

3. Implementation
◦ Coordinating marketing activities
◦ Motivating marketing personnel

4. Control
◦ Establishing performance standards (sales
plan)
◦ Comparing actual performance to
established standards (what you sold vs.
what you hoped to sell)
Copyright © Houghton Mifflin Company.
All rights reserved.
1 |
14
Globally – more choices, more
competition
 Enhances Consumer Awareness –
understanding marketing can make you
a better consumer!
 Social Responsibility Marketing – many
companies donate to charities.
 Marketing Careers – 25 – 33% of all
workers in the U.S. perform marketing
activities:

◦ Sales, Advertising, Retail, Storage, Packing,
Transportation. Non Profit Promotions too!
Copyright © Houghton Mifflin Company.
All rights reserved.
1 |
15