Dr. Saleh Alqahtani
Dr. Saleh Alqahtani
Chapter 1 Chapter 1 Defining Marketing for the 21Defining Marketing for the 21stst CenturyCenturybyby
Chapter 1 Chapter 1 Defining Marketing for the 21Defining Marketing for the 21stst CenturyCenturybyby
Dr. Saleh Alqahtani
ObjectivesObjectives
Course OrganizationCourse Organization Tasks of MarketingTasks of Marketing Major Concepts & Tools of MarketingMajor Concepts & Tools of Marketing Marketplace OrientationsMarketplace Orientations Marketing’s Responses to New Marketing’s Responses to New
ChallengesChallenges
Dr. Saleh Alqahtani
Course/Text OrganizationCourse/Text Organization
Part I - Understanding Marketing Part I - Understanding Marketing ManagementManagement
Part II - Analyzing Marketing Part II - Analyzing Marketing OpportunitiesOpportunities
Part III - Developing Marketing Part III - Developing Marketing StrategiesStrategies
Part IV - Shaping the Market OfferingPart IV - Shaping the Market Offering Part V - Managing & Delivering Part V - Managing & Delivering
Marketing ProgramsMarketing Programs
Dr. Saleh Alqahtani
The New EconomyThe New Economy
Substantial increase in buying powerSubstantial increase in buying power A greater variety of goods and servicesA greater variety of goods and services A greater amount of information about practically anythingA greater amount of information about practically anything A greater ease in interacting and placing and receiving ordersA greater ease in interacting and placing and receiving orders An ability to compare notes on products and servicesAn ability to compare notes on products and services Websites can provide companies with powerful new information and Websites can provide companies with powerful new information and
sales channelssales channels
Dr. Saleh Alqahtani
The New EconomyThe New Economy
Companies can customize offerings and Companies can customize offerings and services to individual customers.services to individual customers.
Companies can collect fuller and richer Companies can collect fuller and richer information about markets, customers, information about markets, customers, prospects and competitors.prospects and competitors.
Companies can facilitate and speed up Companies can facilitate and speed up communications among employees.communications among employees.
Companies can have 2-way Companies can have 2-way communication with customers and communication with customers and prospectsprospects
Dr. Saleh Alqahtani
The New EconomyThe New Economy
Companies can send ads, coupons, Companies can send ads, coupons, samples, information to targeted samples, information to targeted customers.customers.
The Internet can be used as a The Internet can be used as a communication channel for purchasing, communication channel for purchasing, training, and recruiting.training, and recruiting.
Companies can improve logistics and Companies can improve logistics and operations for cost savings while operations for cost savings while improving accuracy and service quality.improving accuracy and service quality.
Dr. Saleh Alqahtani
Defining MarketingDefining Marketing
Marketing is a societal process Marketing is a societal process by which individuals and groups by which individuals and groups obtain what they obtain what they needneed and and wantwant through creating, offering, and through creating, offering, and freely freely exchangingexchanging products and products and services of value with others.services of value with others.
Dr. Saleh Alqahtani
Core Concepts of MarketingCore Concepts of Marketing
Product or Offering Product or Offering
Value and Satisfaction Value and Satisfaction
Needs, Wants, and DemandsNeeds, Wants, and Demands
Exchange and Transactions Exchange and Transactions
Relationships and Networks Relationships and Networks
Target Markets & Segmentation Target Markets & Segmentation
Marketing Channels Marketing Channels
Supply Chain Supply Chain
Competition Competition
Marketing Environment Marketing Environment
Dr. Saleh Alqahtani
Simple Marketing SystemSimple Marketing System
Industry(a collection
of sellers)
Market(a collection
of Buyers)
Goods/services
Money
Communication
Information
Dr. Saleh Alqahtani
The Four PsThe Four PsThe Four PsThe Four Ps
MarketingMix
Product
Price Promotion
Place
The Four CsThe Four Cs
CustomerSolution
CustomerCost
Communication
Convenience
Dr. Saleh Alqahtani
Production ConceptProduction Concept
Product ConceptProduct Concept
Selling ConceptSelling Concept
Marketing ConceptMarketing Concept
Consumers prefer products that are widely available and inexpensive
Consumers favor products that offer the most quality, performance,
or innovative features
Consumers will buy products only ifthe company aggressively
promotes/sells these products
Focuses on needs/ wants of target markets & delivering value
better than competitors
Company Orientations Towards the Marketplace
Company Orientations Towards the Marketplace
Dr. Saleh Alqahtani
MarketIntegratedmarketing
Profits throughcustomer
satisfactionCustomer
needs
(b) The marketing concept
FactoryExistingproducts
Selling andpromotion
Profits throughsales volume
Startingpoint Focus Means Ends
(a) The selling concept
Customer Delivered ValueCustomer Delivered Value
Dr. Saleh Alqahtani
Customers
Front-line people
Middle Management
TopManagement
Traditional Organization ChartTraditional Organization Chart
Dr. Saleh Alqahtani
Customer-Oriented Organization ChartCustomer-Oriented Organization Chart
Customers
Front-line people
Middle management
Topmanage-
ment
Customers Cus
tom
ers
Dr. Saleh Alqahtani
Evolving Views of Marketing’s Role
Evolving Views of Marketing’s Role
a. Marketing as anequal function
FinanceProduction
Marketing Humanresources
b. Marketing as a moreimportant function
Finance
Humanresources
Marketing
Production
Dr. Saleh Alqahtani
Evolving Views of Marketing’s Role
Evolving Views of Marketing’s Role
c. Marketing as themajor function
Marketing
Finance
Hum
an
resources
Production
d. The customer as thecontrolling factor
Customer
Human
reso
urces
FinanceProductio
n
Marketing
Dr. Saleh Alqahtani
Evolving Views of Marketing’s Role
Evolving Views of Marketing’s Role
e. The customer as the controllingfunction and marketing as the
integrative function
Customer
Marketing
Production
Hum
an
resources
Finance
Dr. Saleh Alqahtani
Chapter 3Chapter 3
Building Customer Building Customer Satisfaction, Value, and Satisfaction, Value, and
RetentionRetention
Chapter 3Chapter 3
Building Customer Building Customer Satisfaction, Value, and Satisfaction, Value, and
RetentionRetention
Dr. Saleh Alqahtani
Determinants of Customer Delivered Value
Determinants of Customer Delivered Value
Image valueImage value
Personnel valuePersonnel value
Services valueServices value
Product valueProduct value
Totalcustomer
value
Totalcustomer
value
Monetary costMonetary cost
Time costTime cost
Energy costEnergy cost
Psychic costPsychic cost
Totalcustomer
cost
Totalcustomer
cost
Customerdelivered
value
Customerdelivered
value
Dr. Saleh Alqahtani
Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.
Satisfaction
Dr. Saleh Alqahtani
Premier Dell.com is a special business-oriented part of the Premier Dell.com is a special business-oriented part of the Dell Web site that allows customers to interact with Dell and Dell Web site that allows customers to interact with Dell and
customize all phases of doing business with Dell.customize all phases of doing business with Dell.
Dr. Saleh Alqahtani
Satisfied Customers:Satisfied Customers:
Are loyal longerAre loyal longer Buy more (new products & upgrades)Buy more (new products & upgrades) Spread favorable word-of-mouthSpread favorable word-of-mouth Are more brand loyal (less price Are more brand loyal (less price
sensitive)sensitive) Offer feedbackOffer feedback Reduce transaction costsReduce transaction costs
Dr. Saleh Alqahtani
Inactive orex-customers
Customer DevelopmentCustomer Development
PartnersAdvocatesClientsRepeat
customersFirst-timecustomers
Suspects
Prospects
Disqualifiedprospects
Dr. Saleh Alqahtani
Figure 3-8: Allocating marketing investment according to customer value
Figure 3-8: Allocating marketing investment according to customer value
Dr. Saleh Alqahtani
QualityQuality
QualityQuality is the is the totality of features totality of features and characteristics and characteristics of a product or of a product or service that bear service that bear on its ability to on its ability to satisfy stated or satisfy stated or implied needs.implied needs.
#1
Dr. Saleh Alqahtani
ReviewReview
Define value & satisfaction - understand Define value & satisfaction - understand how to deliver themhow to deliver them
The nature of high-performance The nature of high-performance businessesbusinesses
How to attract & retain customersHow to attract & retain customers Improving customer profitabilityImproving customer profitability Total quality managementTotal quality management