chapter 1 marketing: the art and science of satisfying customers

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1 Marketing: The Art and Science of Satisfying Customers

1

Chapter 1Marketing: The Art and Science of

Satisfying Customers



2

Objectives

1. Define marketing, explain how it creates utility, and describe its role in the marketplace.

2. Contrast marketing activities during the four eras in the history of marketing.

3. Explain the importance of avoiding marketing myopia.

4. Describe the characteristics of not-for-profit marketing.



3

Objectives

5. Identify and briefly explain each of the five types of nontraditional marketing.

6. Explain the shift from transaction-based marketing to relationship and social marketing.

7. Identify the universal functions of marketing.8. Demonstrate the relationship between ethical

business practices, social responsibility, and marketplace success.



4

What is Marketing?

• Organizations must create utility to survive



5

Table 1.1 - Four Types of Utility



6

A Definition of Marketing

• Marketing - An organizational function and a set of processes for:– Creating, communicating, and delivering value to

customers– Managing customer relationships in ways that

benefit the organization and its stakeholders



7

Today’s Global Marketplace

• Factors that have extended economic views– Increase in international trade agreements– Growth of electronic business– Interdependence of the world’s economies



8

Figure 1.1 - Five Eras of Marketing History



9

Characteristics of the Five Eras

Era in marketing Focus

Production Era Production orientation

Sales Era Sales orientation

Marketing Era Consumer orientation

Relationship Era Relationship marketing

Social Era Marketing via the Web and social networking

sites



10

Converting Needs to Wants

• Consumers acquire goods and services on a continuing basis to fill certain needs

• To convert needs into wants, marketers:– Focus on the benefits of goods and services



11

Avoiding Marketing Myopia

• Marketing myopia - Management’s failure to recognize the scope of its business

• Focusing on customer need satisfaction can overcome myopia



12

Not-for-Profit Marketing

• Marketing in not-for-profit organizations– Marketing strategy is adopted to meet service

objectives– Not-for-profit organizations form alliances with

business firms for mutual benefit• Characteristics of not-for-profit marketing– Does not focus on bottom line– Markets to multiple audiences



13

Table 1.3 - Categories of Nontraditional Marketing



14

From Transaction-Based Marketingto Relationship Marketing

• Transaction-based marketing - Buyer and seller exchanges characterized by limited communications and little or no ongoing relationships between the parties

• Marketers realize that consumers are becoming more and more sophisticated



15

Using Social Marketing to Build Relationships

• Focus is on moving the customers up the loyalty ladder to increase their lifetime value

• Interactive marketing - Buyer–seller communications in which the customer controls the amount and type of information received from a marketer

• It is increasingly taking place on social media sites like Facebook, Twitter, and blogs



16

Figure 1.2 - Converting New Customers to Advocates



17

Developing Partnerships and Strategic Alliances

• Strategic alliances - Partnerships in which companies combine resources and capital to create competitive advantages in the market

• Forms of alliances – Product development partnerships– Vertical alliances

• Not-for-profit organizations often raise awareness and funds through strategic partnerships



18

Figure 1.3 - Eight Universal Marketing Functions



19

Ethics and Social Responsibility

• Companies that promote ethics and social responsibility produce increased employee loyalty and customer growth

• Social responsibility programs are meant to enhance a society’s welfare– Help in improving public image of the firm

• Sustainable products and practices are goals of socially responsible firms



20

Strategic Implications of Marketing in the 21st Century

• Advances and innovations in electronic commerce and computer technologies have allowed organizations to:– Reach new markets– Reduce selling and marketing costs– Enhance their relationships with customers and

suppliers

chapter 1 marketing: the art and science of satisfying customers

Documents

social marketing

marketing myopia

history of marketing

cengage learning

accessible website

eras of marketing history8

transactionbased marketing

contrast marketing activities