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

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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