Understanding And Managing

Marketing Strategies
Chapter 1
An Overview of
Strategic Marketing
Objectives
Define marketing as focused on customers
Identify important marketing terms
Become aware of the marketing concept and
marketing orientation
Understand importance of building customer
relationships
Learn the process of marketing management
Recognize role of marketing in society
Marketing
The process of creating, distributing,
promoting, and pricing goods, services,
and ideas to facilitate satisfying
exchanges with customers and develop
and maintain favorable relationships with
stakeholders in a dynamic environment.
Customers
The purchasers of organizations products;
the focal point of all marketing activities.
Components of
Strategic Marketing
Target Market
A specific group of customers on whom an
organization focuses its marketing efforts.
Marketing Mix
Product
Distribution
Promotion
Pricing
Product Variable
A good, a service, or an idea.
Distribution Variable
Make products available in quantities desired
Costs:
Inventory
Transportation
Storage
Select/Motivate intermediaries
Establish/Maintain inventory control
Develop/Manage transportation &
storage systems
Promotion Variable
Activities to inform individuals or groups
about the organization and its products
aim is to increase awareness of the
organization and new or existing products.
Price Variable
Decisions and actions associated with
establishing pricing objectives and policies
and determining product prices
Exchange
The provision or transfer of goods, services,
or ideas in return for something of value
Exchange Between
Buyer and Seller
Stakeholders
Constituents who have a stake or claim in
some aspect of a companys products,
operations, markets, industry, and outcomes.
Conditions of Exchange
1) Two or more must participate and possess
something of value other party desires
2) Exchange should provide
benefit/satisfaction to both parties
3) Party have confidence in promise of
something of value held by the other
4) Parties must meet expectations
Marketing Concept
A philosophy that an organization should try
to provide products that satisfy customers
needs through a coordinated set of activities
that also allows the organization to achieve
its goals.
Evolution of the
Marketing Concept
Marketing Orientation
An organization-wide commitment
to researching and responding to
customer needs.
Relationship Marketing
Establishing long-term, mutually satisfying
buyer-seller relationships.
Relationship Development
Acquire new customers
Enhance profitability of existing customers
Extend duration of customer relationship
Customer
Relationship Management
Using information about customers to create
marketing strategies that develop and
sustain desirable customer relationships.
Marketing Management
The process of planning, organizing,
implementing, and controlling marketing
activities to facilitate exchanges effectively
and efficiently.
Importance of Marketing in the
Global Economy (Pt.1)
Costs consume sizable portion of
buyers dollars
Used in nonprofit organizations
Important to business and economy
Fuels the global economy
Importance of Marketing in the
Global Economy (Pt. 2)
Knowledge enhances consumer awareness
Connects people through technology
Promotes welfare of customers and society
Offers many exciting career prospects