Transcript (1)x
Chapter 2 Objectives When you finish this chapter, you should 1. Know what the marketing concept is—and how it should affect strategy planning in a firm or nonprofit organization. 2. Understand what customer value is and why it is important to customer satisfaction. 3. Understand what a marketing manager does. 4. Know what marketing strategy planning is—and why it is the focus of the book. 2-2 5. Understand target marketing. 6. Be familiar with the four Ps in a marketing mix. 7. Know the difference between a marketing strategy, a marketing plan, and a marketing program. 8. Understand the important new terms. Marketing’s Changing Role Simple Trade Era Production Era Sales Era Focus: Sell Surplus Focus: Increase Supply Focus: Beat Competition Marketing Department Era Focus : Coordinate and Control Marketing Company Era Focus : Long-Run Customer Satisfaction 2-3 The Marketing Concept Customer Satisfaction Total Company Effort The Marketing Concept Profit Exhibit 2-1 2-4 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 Customer Value Reflects Benefits and Costs Customer value concerns the difference between the benefits a customer sees from a firm’s market offering and the costs of obtaining those benefits Costs 2-6 Benefits The customer’s view of costs and benefits is not just limited to economic (or even rational) considerations--and a low price may NOT result in superior value... Customer Value Costs Benefits • One customer’s view of the benefits and costs of a firm’s market offering may vary from another customer’s view, so firm may not be able to satisfy everybody with the same offering. 2-7 • Customer value concept takes the customers point of view, but customers may not explicitly weigh costs and benefits and even if they do their view may not match some “objective” reality. Nonprofits Need Marketing, Too NonCustomer Support NonEconomic Measures Characteristics of Nonprofit Organizations Poorly Organized for Marketing 2-8 The Marketing Management Process Whole-Company Strategic Management Planning Adjust Plans As Needed Control Marketing Plan(s) and Program Exhibit 2-4 2-9 Marketing Planning Implement Marketing Plan(s) and Program Marketing Strategy Planning The Marketing Mix C Exhibit 2-5 2-10 The Four Ps of the Marketing Mix Product Place C Price Exhibit 2-7 2-11 Promotion Strategy Decision Areas Organized by the Four Ps Product Place Promotion Price Physical Goods Service Features Quality Level Accessories Installation Instructions Warranty Product Lines Packaging Branding Objectives Channel Type Market Exposure Kinds of Middleman Kinds and Locations of Stores How to Handle Transporting and Storing Service Levels Recruiting Middlemen Managing Channels Objectives Blend Salespeople Kind Number Selection Training Motivation Advertising Targets Kinds of Ads Media Type Copy Thrust Who Prepares? Sales Promotion Publicity Objectives Flexibility Level over PLC Geographic Terms Discounts Allowances Exhibit 2-8 2-12 Four Examples of Basic Channels of Distribution for Consumer Products Manufacturer or producer Citibank Nissan Del Monte Procter & Gamble Wholesaler Wholesaler Wholesaler Retailer Consumer Exhibit 2-9 2-13 Retailer Retailer Elements of the Marketing Program Target Market + Marketing Mix = Marketing Strategy + Time-Related Details = Marketing Plan + Other Marketing Plans Exhibit 2-11 2- = A Firm’s Marketing Program Distribution of Different Firms Based on Performance Death-wish marketing Best-practices marketing (Below average) (Well below average) 2% Total Failure Exhibit 2-12 2- 14% Poor 68% (Average Marketing Program) Fair (Above average) (Well above average) 14% Good 2% Exceptional Key Terms Simple Trade Era Production Era Sales Era Marketing Department Era Marketing Company Era Marketing Concept Production Orientation Marketing Orientation Customer Value 2- Nonprofit Organizations Social Responsibility Marketing Management Process Strategic (Management) Planning Marketing Strategy Target Market Marketing Mix Target Marketing Mass Marketing Channel of Distribution Personal Selling Mass Selling Advertising Publicity Sales Promotion Marketing Plan Implementation Operational Decisions Marketing Program