Marketing

7th Canadian Edition

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

Marketing: Customer Value, Satisfaction, Customer Relationships, and Customer Experiences

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

Learning Objectives
After reading this chapter, you should be able to:

1.Define Marketing. 2.Know the basic requirements for successful marketing to occur. 3.Understand the breadth and depth of marketing. 4.Explain how marketing discovers and satisfies consumer needs and wants.

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

Learning Objectives
After reading this chapter, you should be able to:

5.Distinguish between marketing mix elements and environmental forces. 6.Describe how market orientation focuses on creating customer value, satisfaction, and customer relationships. 7.Explain why some organizations have transitioned from the market orientation era to the customer experience management era. 8.Understand the meaning of ethics and social responsibility and how they relate to the individual, organizations, and society.

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

WHAT DOES THE TERM MARKETING MEAN TO YOU?

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

WHAT MARKETING IS AND WHAT IT IS NOT

Marketing: Defined
An organizational function and a set of processes for
creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Marketing is not only advertising, sales, promotion. Marketing is not manipulation Marketing is not self-serving; it is mutually beneficial.

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

THE BREADTH AND DEPTH OF MARKETING

What is a Market? Who Markets? What is Marketed? Who Buys and Uses What is Marketed?
Customers
Organizational Buyers Individuals

Who Benefits?
Consumers Society

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDS

Discovering Consumer Needs
Consumer Needs and Consumer Wants

What is the difference between a Need and a Want?

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

FIGURE 1-2 Marketings first task: discovering consumer needs

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

FIGURE 1-3 Marketings second task: satisfying consumer needs

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

HOW MARKETING SATISFIES A SELECTION OF NEEDS

Target market
The Four Ps: Controllable Marketing Mix Factors

Product Price Promotion Place

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

EVOLUTION OF NORTH AMERICAN BUSINESS PHILOSOPHY

Production Era Sales Era Marketing Concept Era Market Orientation Era
Customer Value Customer Satisfaction Customer relationship management (CRM)
Customer lifetime value (CLV) eCRM Interactive marketing

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

FIGURE 1-5 Five different orientations in the history of North American business

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

ETHICS AND SOCIAL RESPONSIBILITY

Balancing the Interests of Different Groups
Ethics Social Responsibility
Societal marketing concept Macromarketing Micromarketing

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

STRATUS VINEYARDS: AN ECO-WINEMAKING SUCCESS STORY

Close to 500 wineries in Canada Sale of 1 Litre of Canadian wine provides over $4 in added

economic value to the Canadian economy. Wine sales in Canada are approaching $5 billion annually, and 40% of this total comes from Canadian brands. Stratus is a sustainable, innovative winery located in the heart of the Niagara wine country.

Eco-winery philosophy and assemblage approach have helped the

winery to produce quality wine and build a loyal customer base.

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

THE MARKETING PROGRAM

The Marketing Program A Marketing Program for Stratus Vineyards
to continue to be an eco-friendly, sustainable premium
winemaker that provides limited quantities of fine wine to discerning customers.

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

FIGURE 1-4 Marketing Program for Stratus Vineyards

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

VIDEO CASE
Stratus Vineyards: An Eco-winemaking Success Story

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

VIDEO CASE 1-1

Stratus Vineyards: An Eco-winemaking Success Story

What is Stratus Vineyards actually marketing? Is it just wine?

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

VIDEO CASE 1-2

Stratus Vineyards: An Eco-winemaking Success Story

Many Canadians say that they consider the environmentally friendliness of both the products they buy and the companies they buy them from.

Do you think this holds true for wines?

Why or why not?

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

VIDEO CASE 1-3

Stratus Vineyards: An Eco-winemaking Success Story

Stratus has very limited wine-producing capacity (10,000 cases per year). Do you think they should increase that capacity and produce more wine? Why or why not?

2008 McGraw-Hill Ryerson Ltd. All rights reserved.

VIDEO CASE 1-4

Stratus Vineyards: An Eco-winemaking Success Story

How should Stratus prepare and respond to the future driving forces in the industry as outlined and discussed in the case?

2008 McGraw-Hill Ryerson Ltd. All rights reserved.