1.

​ Attract new customers by promising superior

value.
Chapter 2
2.​ Keep and grow current customers by delivering​
satisfaction.
MARKETING AND MARKETING​
MANAGEMENT: CREATING CUSTOMER VALUE​
AND SATISFACTION Marketing Defined

• A social and managerial process by which individuals

REVIEWING PREVIOUS CHAPTER
and​
groups obtain what they need and want through
• We learned from Chapter 1 that from its mother creating​
science,​ and exchanging products and value with others.
economics, marketing has emerged as a distinct action​
discipline enriched by borrowings from related
OLD View of Marketing:​
disciplines such​
Making a Sale –​
as management, accounting, political science and the​
“Selling & Selling”
behavioral sciences.

NEW View of Marketing:​

• We also learned that history and stages of marketing
Satisfying Customer Needs
thought​
are surveyed to the point to the growth and
development of​
marketing.
Core Marketing Concepts
• To be successful in business, each company should
deal with​
customers on a daily basis, not only be
customer-driven, but be​ Marketing Defined
customer-obsessed. The best way to achieve this
objective is to​ Process by which individuals and groups​
develop a sound marketing function within the obtain what they need and want through
organization.
creating and exchanging products and​
CHAPTER OBJECTIVES value with others.

At the end of the chapter, you should be able to: What are Consumers’ Needs, Wants, and
Demands?
• Define what marketing is and discuss its core
concepts. Needs – state of felt deprivation​
including physical, social, and​
• Explain the relationships between customer value, individual needs i.e hunger
satisfaction,​
and quality. Wants – form that a human need​
takes as shaped by culture and​
• Define marketing management and understand how individual personality i.e. bread
marketers​
manage demand and build profitable customer Demands – human wants backed by​
relationships. buying power i.e. money

• Compare the five marketing management

philosophies.
What Will Satisfy Consumers’ Needs and Wants?
• Analyze the major challenges facing marketers
heading into the​
Products​
new “connected” millennium.
Anything that can be Offered to a Market to Satisfy a
Need or Want
What Is Marketing?
Experiences​
Simple Definition:​ Persons​
Marketing is managing profitable customer​ Places​
relationships. Organizations​
Ideas​
Goals: Activities
 Marketing​
Management
Services
Marketing Management Practice
Activity or Benefit Offered for Sale That is Essentially​
Intangible and Doesn’t Result in the Ownership of Stage 1. Entrepreneurial Marketing​
Anything Stage 2. Formulated Marketing​
Stage 3. Intrepreneurial Marketing
How Do Consumers Choose Among Products and
Services?

Total Quality Management Involves Improving the​ Marketing Management Philosophies

Quality of Products, Services, and​
Business Processes Production Concept​
Product Concept​
Product’s Perceived Performance in Delivering​ Selling Concept​
Value Relative to Buyer’s Expectations is​ Marketing Concept​
Customer Satisfaction Societal Marketing Concept

Value Gained From Owning a Product and​ Difference between Marketing and Sales Concepts
Costs of Obtaining the Product is​
Customer Value

Societal Marketing Concept

How Do Consumers Obtain Products and Services?

Exchanges​ The New Marketing Landscape

Transactions
Learn About &​
Relationships​ Track Customers​
Building a Marketing Network by Adding:​ With Databases
• Financial Benefits​
• Social Benefits​ Communicate With​
• Structural Ties​ Customers in Groups​
• Profitable Customers Or One-on-One

Create Products &​

Services Tailored to​
Meet Customer Needs
Modern Marketing System
Distribute Products​
More Efficiently &​
Marketing Management Effectively

Attracting new customers and​ Connecting Technologies in​

retaining and building​ Computers,​
relationships with current​ Telecommunications,​
customers Information, & Transportation​
Help To:
Profitable​
Customer​ The Internet
Relationships
• The Internet has been hailed as the technology behind
Finding and increasing demand, also​ a New​
changing or reducing demand such as​ Economy.
in Demarketing
• New applications include:​
Demand​ • “click-and-mortar” companies​
Management • “click-only” companies​
• Business-to-business e-commerce
Involves managing demand, which​
involves managing customer​
relationships
• Business-to-business transactions online are expected
to reach​
$3.6 trillion in 2003.
Connections With the World Around Us

• By 2005, 500,000 companies will use the Internet to

Global Connections​
do​
Value Connections​
business.
Social Responsibility Connections​
Broadening Connections

Connections With Customers

• Most marketers are targeting fewer,​

potentially more profitable​ FILE 2:
customers. PrinciplesofMarketing_02_MarketingFunction.pptx

• Asking:​
• What value does the customer bring​ Principles of Marketing​
to the organization?​ Module 2: Marketing Function
• Are they worth pursuing?

• Connecting for a customer’s lifetime.

Marketing Orientation

Companies with a marketing orientation focus on

Direct Connections With Customers identifying and understanding the customer’s needs and
wants and addressing them more effectively or
• Many companies use technologies to let them connect efficiently than one’s competitors
more​
directly with their customers.

• Products available via telephone, mail-order catalogs, Why Do Customers Matter in Marketing?
kiosks and​
e-commerce.
Marketing exists to help organizations understand,
reach, and deliver value to their customers​
• Some firms sell only via direct channels (i.e. Dell The customer is considered the cornerstone of
Computer,​ marketing
[Link] others use a combination.

• Direct marketing is redefining the buyer’s role in

connecting​
with sellers. Segmentation and Targeting

• Buyers are active participants in shaping the Segmentation is the process of dividing potential
marketing offer and​ customers into groups to better understand them​
process; some buyers design their own products online Targeting is determining which segments are most likely
such as at​ to become customers and directing marketing efforts to
[Link] best satisfy them

Connections With Marketing’s Partners Defining a Target Market

Connecting Inside the Company​ Identify the business need you address​
• Every employee must be customer-focused​ Segment your total market​
• Teams coordinate efforts toward customers Profile your target customer segment(s)​
Research and validate your market opportunity
Connecting With Outside Partners​
• Supply Chain Management​
• Strategic Alliances
Value for the Customer
Value = benefit – cost​ Promotion vs Communication
Price is only part of cost​
Customers will consider competitors and substitutes​ Communications can include advertising, public
Differentiation is how marketers optimize the elements relations, personal selling, viral advertising, and any
of a product that provide unique value to customers​ form of communication between the organization and
When a company can create greater value for the consumer.
customers than its competitors, it has a competitive
advantage

Place vs Convenience

Value Proposition
Marketers should know how the target market prefers to
buy, how to be there and be ubiquitous, in order to
A value proposition provides a very simple answer to the provide convenience of buying.​
question:​ With the rise of Internet and hybrid models of
Why should someone buy what you are offering? purchasing, “place” is becoming less relevant.​
Convenience takes into account the ease of buying the
The value proposition should be clear, compelling, and product, finding the product, and finding information
differentiating about the product.

The Marketing Mix Marketing Plan

4 Ps​ The marketing plan describes how the company will use
Product​ the marketing mix—product, promotion, place, and
Price​ price—to achieve its marketing objectives effectively
Promotion​ within the competitive market environment
Place

4 Cs​
Consumer solution​
The Marketing Planning Process
Cost​
Communication​
Convenience
Class Activity

Match the Marketing Mix Below to a Market

Product vs Customer Solution Segment

A company will only sell what the consumer specifically Marketing Mix:​
wants to buy.​ Exceptionally Soft Cashmere blankets $89.99​
So, marketers should study consumer wants and needs Buy in store or order online for two day free delivery​
to attract them. Free returns​
Excellent customer service​
Samples sent to lifestyle bloggers​
Ads in home magazines

Price vs Cost Market Segment:​

Parents of newborns​
Price is only a part of the total cost to satisfy a want or a Women aged 40–55​
need.​ Boys 14–17
The total cost might be the cost of time in acquiring a
good or a service, along with the cost of convenience in
consuming it.​
It reflects the total cost of ownership.​
Many factors affect cost, including but not limited to the Quick Review
customer’s cost to change or implement the new product
or service and the customer’s cost for not selecting a Why is the customer the cornerstone of marketing?​
competitor’s product or service. What are segmentation and targeting?​
What is the marketing mix?​
How do organizations use the marketing mix (often
called the four Ps) to market to their target customers?​
 What is the role of a marketing plan in guiding
marketing activities?

If you want the identification / true or false /

enumeration test next, say “Proceed to test” and
specify how many items per section.