Transcript Market-Based Management

Marketing Management
1.
Market and Customer
Orientation
What is Marketing?
Marketing is the delivery of customer
satisfaction at a profit (Kotler)
The 4 “P”s of Marketing:
 Product – anything to be offered to a market
 Price – exchange value of a product
 Promotion – communicating with customers
 Place – placement or distribution, making the
product available to customers
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Marketing History
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Product-Orientation: consumers favor products that
are available and affordable
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Sales-Orientation: consumers favor products that
are promoted the most
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Henry Ford’s Model-T, 1900-1930s
Agents, 1930s-1950s
Market-Orientation: focus is on needs and wants of
consumers and delivering satisfaction better than
competitors
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General Electric, 1950s-today
Now: Customer Orientation, Relationship Marketing
The Customer Is Everything
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Needs: state of felt deprivation for something
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Wants: the form of needs shaped by culture and
individual personality
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I want a Coke
Demands: wants supported by buying power
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I’m thirsty
I have $2, so I can and will buy a Coke
Value: benefits that customers gain from a product
Satisfaction: perceived product performance
compared to the customer’s expectations
Market-Orientation: A Winning Strategy in a
Continuously Changing Environment
Everything changes:
1.
Customers
Understanding customer needs
Delivering customer satisfaction over the long-run
2.
Competitors
Competitive advantage
Strategy, Positioning, and Marketing Tactics
3.
Company: Speed (Flexibility), Talent, and Branding
(John Chambers)
4.
Context: analysis of other environmental forces
Building Market Orientation
within a Company
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Develop marketing knowledge and
intelligence
Maintain employee satisfaction by creating
a positive work environment (Andy Grove)
Empower employees and reward even
slight improvements in customer satisfaction
Implement measures of performance
related to customer satisfaction