I.
Chapter One: Creating Customer Relationships and Value through Marketing
A. Marketing: Using Exchanges to Satisfy Needs
1. marketing: provides value to customers through close relationships with them to benefit the organization and those closely related to it 2. the definition of marketing stresses the importance of delivering genuine value goods, services, and ideas marketed to customers 3. to serve both buyers and sellers, marketing seeks: a.) to discover the needs and wants of prospective customers b.) satisfy them 4. the key to achieving these two objectives is the idea of EXCHANGE: a. exchange: trade of things of value between buyer and seller so that each is better off
B. The Diverse Forces Influencing Marketing Activities
1. chart (page 8) 2. an organization's marketing department relates to many people, groups, and forces 3. at the center of the chart is the organization which consists of: a.) MANAGEMENT (is the core) who is responsible for establishing the marketing goals; they are surrounded by: b.)Human resources c.) Information Systems d.) Marketing e.) Finance f.) Manufacturing g.) Research and development 4. the marketing department works closely with a network of other departments and employees to help provide the customer satisfying products required for the organization to survive and prosper
II. How Marketing Discovers and Satisfies Needs
A. Discovering Consumer Needs 1. it's not always easy because consumers may not always know or be able to describe what they need and want 2. effective marketing research B. The Challenge of Meeting Consumer Needs with New Products 1. suggestions on helping products succeed: a.) focus on what the customer benefit is b.) learn from the past 2. first find out what consumers NEED and WANT. 3. second, product what they need and want and don't produce what they
don't need and want. 4. Firms spend billions annual on marketing and technical research that significantly reduces, but doesn't eliminate, new-product failure. So meeting the changing needs of consumers is a continuing challenge for firms around the world. C. Consumer Needs and Consumer Wants 1. need: occurs when a person feels deprived of basic necessities such as food, clothing, and shelter 2. want: is a need that shaped by a person's knowledge, culture, and personality 3. effective marketing, in the form of creating an awareness of good products at convenient locations, can clearly shape a person's wants E. What a market is 1. market: people with desire and ability to buy a specific product F. Satisfying Consumer Needs 1. target market: specific group of potential consumers toward which an organization directs its marketing program G. The Four Ps: Controllable Marketing Mix Factors 1. after selecting a target market of consumers, the firm must take steps to satisfy their needs--someone in the organization, often the marketing manager must a complete marketing program to reach consumers by using the four tools: a.) Product: a good, service, or idea to satisfy the consumers' needs b.) Price: what is exchanged for the product c.) Promotion: a means of communication between the seller and buyer d.) Place: a means of getting the product to the consumer 2. marketing mix: the marketing manager's controllable factors--product, price, promotion, and place that can be used to solve a marketing problem H. The Uncontrollable, Environmental Forces 1. environmental forces: uncontrollable marketing factors such as social, economic, technological, competitive, and regulatory forces
III. The Marketing Program: How Customer Relationships Are Built
1. a firm's marketing program connects the firm to its customers A. Customer Value and Customer Relationships 1. customer value: buyers' benefits including quality, price, convenience, on-time delivery, and before-and after-sale service 2. firms cannot be all things to all people; instead firms must find ways to build long-term customer relationships to provide unique value that they alone can deliver to targeted markets B. Relationship Marketing and Marketing Program 1. a firm achieve meaningful customer relationships by creating
connections with its customers through careful coordination of the product, its price, the way it's promoted and how it's placed C. Relationship Marketing: Easy to Understand, Hard to Do 1. relationship marketing: linking the organization to its individual customers, employees, suppliers, and other partners for their mutual longterm benefit 2. in terms of selling a product, relationship marketing involves a personal, ongoing relationship between the organization and its individual customers that begins before and continues after the sale D. The Marketing Program 1. effective relationship marketing strategies help marketing managers discover what prospective customers need. They must translate this information into concepts for products the firm might develop to satisfy these needs. 2. marketing program: plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers
IV. How Marketing Became So Important
1. To understand why marketing is a driving force in the modern global economy, let us look at the (1) evolution of the market orientation, (2) ethics and social responsibility in marketing, and (3) breadth and depth of marketing activities A. Evolution of the Market Orientation 1. stages of the life of American firms: a. Stage 1: production era (the early years of the U.S. to the 1920's) good were scarce and buyers were willing to accept virtually any goods that were available and make do with them b. Stage 2: sales era (1920s-1960s): manufacturers found that they could produce more goods than buyers could consume and competition grew as a result c. Stage 3: marketing concept era--1960's and marketing became a motivating force among many American firms: i.) marketing concept: idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals d. customer era: today's era in which firms seek continuously to satisfy the high expectations of customers i.) market orientation: focusing organizational efforts to collect and use information about customers' needs to create customer value ii.) customer relationship management (CRM): the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace
B. Ethics and Social Responsibility: Balancing Interests 1.) many companies, industries, and professional associations have developed codes of ethics to assist managers 2.) societal marketing concept: view that organizations should satisfy the needs of consumers in a way that provides for society's well-being C. The Breadth and Depth of Marketing. i. Marketing affects every person and organization. To understand this, let's analyze (1) who markets, (2) what they market, (2) who buys and uses waht is marketed, (4) who benefits from these marketing activities, and (5) how they benefit D. Who Markets? 1. every organization markets. E. What is Marketed? 1. goods, services, and even ideas. 2. goods: physical objects such as iron ore, apples, or a computer 3. services: intangible items such as airline trips, financial advice, or telephone calls 4. ideas are intangibles involving thoughts about actions or causes F. Who buys and uses what is marketed? 1. ultimate consumers: people who use the goods and services purchased for a household 2. organizational buyers: manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale G. Who Benefits? 1. three specific groups that benefit from marketing: a.) consumers who buy b.) organizations that sell c.) society as a whole 2. effective marketing benefits society by enhancing competition, which in turn, both improves the quality of products and services and lowers their prices. This makes countries more competitive in world markets and provides jobs and a higher standard of living for their citizens G. How Do Consumers Benefit? 1. utility: benefits or customers value received by users of the product a.) form utility: the production of the good or service b.) place utility: means having the offering available where consumers need it c.) time utility: having it available when needed d.) possession utility: value of making an item easy to purchase through the provision of credit cards or financial arrangements