General Marketing

Chapter 1 & Overview

3: Marketing Process, Societal

Implications, Customer Satisfaction and Value

What is marketing?
??????? What are your thoughts?
Create long term and mutually
beneficial exchange relationships
between an entity and the publics
(individuals & organizations) in
which it interacts
Create, sustain, maintain or add
VALUE!

What is Marketing?
American Marketing Association
Definition:
The process of planning and
executing the conception, pricing,
promotion and distribution of ideas,
goods and services to create
exchanges that satisfy individual
and organizational goals.

Evolving Views of
Marketings Role
Production
Marketing
n
ma ces
Hu ur
so
re

Customer

a
n
Fi

e
c
n

e. The customer as the controlling function and

marketing as the integrative function

The Marketing Process

People: Consumer Behavior,
Segmentation
Strategy: Planning, Competition,
Research
Performance: Satisfaction, profits,
sales, repeat sales, brand awareness,
brand recognition, market share,
market growth, brand equity
4Ps: Product, Price, Place, Promotion

Customer is KING!!
The 4 Ps of Marketing
Product good,
service or idea that
offers a bundle of
tangible and
intangible attributes
to satisfy the
consumer
Promotion the
communication of all
other Ps

Price what the

product is
exchanged for
Place all aspects
of getting
products to the
consumer in the
right location at
the right time.

What can you market?

Products, Services
Experiences,
Events
People
Places, Properties
Organizations
Information, Ideas

Categories of
markets:

Consumer
Business
Global
Government &
Nonprofit

Elements of Exchange
At
At Least
Least Two
Two
Parties
Parties

Necessary
Necessary
Conditions
Conditions
for
for Exchange
Exchange

Desire
Desire to
to Deal
Deal
With
With Other
Other Party
Party

Something
Something of
of
Value
Value
Ability
Ability to
to
Communicate
Communicate
Offer
Offer
Freedom
Freedom to
to
Accept
Accept or
or Reject
Reject

Tonights class
Marketing: where are we? (Tipping
Point/60 Minutes)
Creating Value, Fostering Satisfaction and
Loyalty
Case analysis and presentation (Sorzal)
Marketing Plan group formation and Project
list distribution

Marketing Management
Philosophies
Philosophy
Philosophy
Production
Production
Sales
Sales
Market
Market
Societal
Societal

Key Ideas
Focus on efficiency of internal operations
Focus on aggressive techniques for
overcoming customer resistance
Focus on satisfying customer needs and wants
Focus on satisfying customer needs and
wants while enhancing individual and
societal well-being

Four Eras in the History of Marketing

Production Era
Prior to 1920s
Production orientation
Business success often defined solely in terms of
production victories

Sales Era
Prior to 1950s
Customers resist nonessential goods and services
Personal selling and advertisings task is to
convince them to buy

 Marketing Era
Since 1950s Marketing Concept Emerges
Shift from sellers to buyers market
Consumer orientation

Marketing Concept
Companywide consumer orientation
Objective of achieving longrun success

The Marketing Concept

The idea that the social and economic
justification for an organizations
existence is the satisfaction of
consumer wants and needs while
meeting organizational objectives.
TM & customer needs: Focus to
distinguish from competitors
Integration: Integration of all activities to
satisfy customer wants/needs
Profits: Achieve long term goals by
satisfying customer wants/needs

 Relationship Era
Began in 1990s
Carried customer orientation even further
Focuses on establishing and maintaining
relationships with both customers and suppliers
Involves longterm, valueadded relationships

DEBATE:
Does Marketing
CREATE or SATISFY NEEDS?
Marketing has often been defined in terms of
satisfying customers needs and wants. Critics,
however, maintain that marketing does much
more than that and creates needs and wants
that did not exist before. According to these
critics, marketers encourage consumers to
spend more money than they should on goods
and services they really dont need.

Customer Value
The ratio of benefits to sacrifice
necessary to obtain benefits.

Offer products that perform

Give consumers more than they expect
Avoid unrealistic pricing
Give the buyer facts
Offer organization wide commitment
in service and after sales support

What is Perceived Customer

Value?
Product
Product value
value
Services
Services value
value
Personnel
Personnel value
value

Total
Total
customer
customer
benefit
benefit

Image
Image value
value
Monetary
Monetary cost
cost
Time
Time cost
cost
Energy
Energy cost
cost

Psychic
Psychic cost
cost

Total
Total
customer
customer
cost
cost

Customer
Customer
delivered
delivered
value
value

Customer Satisfaction
The feeling that a product has met or
exceeded the customers expectation
Focus on delighting customers
Provide solutions to consumers
problems
Measuring satisfaction: complaint and
suggestion systems, surveys, ghost
shoppers, lost customer analysis

Satisfied Customers
Are loyal longer
Buy more (new products & upgrades)
Spread favorable word of mouth
Are more brand loyal (less price
sensitive)
Offer feedback
Reduce transaction costs
Is Satisfaction the same as LOYALTY?

The Mismanagement of
Customer Loyalty
How does your firm currently treat
loyalty? Is it important? Do you
currently measure it? How effective it
is? What do you think needs to change?
What companies can be considered
best practices candidates for
generating customer loyalty?

Avoiding Marketing Myopia

Marketing Myopia is managements failure
to recognize the scope of its business.
To avoid marketing myopia, companies must
broadly define organizational goals toward
consumer needs.

Critical Thinking and Creativity

Challenges presented by todays complex and
technologically sophisticated marketing
environment require critical-thinking skills and
creativity from marketing professionals
Critical Thinking refers to the process of
determining the authenticity, accuracy, and worth
of information, knowledge, claims and arguments
Creativity helps to develop novel solutions to
perceived marketing problems

Where has marketing been

criticized?

Social Criticisms of
Marketing the consumer
interest
Causes prices to be higher
Deceptive practices in promotion,
packaging and price
High pressure selling
Shoddy or unsafe products
Poor service to disadvantaged
people

Other Social Criticisms of

Marketing
Impact on society

Materialism
Too few social goods
Cultural pollution
Too much political power

Impact on other business

Acquisitions, entry barriers