Section 1: Marketing and its Process

People can obtain products in one of four ways.
1. self-production
2. coercion
3. begging
4. exchange
Exchange is
the act of obtaining a desired
product form someone by offering something in return
Market:
• Buyers of a product
• Common wants and needs satisfied
through exchange
What is marketing?
Discovering and satisfying needs profitably.

i.e how to turn a private or social need into a
profitable business opportunity.

Marketing and Marketing Process
– definitions
– goals
Definitions:
• Managing profitable customer relationships
• Creating value for customers and building strong relationships to capture value from customers in return
• Discovering and satisfying needs

Goals:
• Attracting new customers
• Keeping and growing current customer base

Marketing:
the task of creating, promoting
and delivering goods and services to
consumers and businesses.

• It is the art and science of choosing target
markets and getting, keeping, and growing
customers through creating, delivering and
communicating superior customer value

Core Concept 1:
Customer Needs, Wants, and Demands
Demand – Sum of wants and backed by buying power

Wants – Needs influenced by culture and personality

Needs – states of felt deprivation (physical, social, individual basics)

Core Concept 2: Market Offerings
• Products, Services, Info., Experiences
• Marketing Myopia
Core Concept 3:
Customer Value and Satisfaction
arrow away from needs wants demands
The Role of Marketing in Org. (5 ways)
( 1 ) Marketing as an equal function
(2) Marketing as a more important function.
(3) Marketing as the major function.
4) The customer as the controlling function
(5) The customer as the controlling function and mk as the integrative function.
The Scope of Marketing (10)
Products
• Services
• Experiences
• Events
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas
Basic Questions for marketers? (4)
1. Who are our customers? Where are they?
2. What are their needs/wants/demands?
3. What can we do for them?
4. What benefits for customers/us?
Company Orientations Toward
the Marketplace(5)
• Production Concept
• Product Concept
• Selling Concept
• Marketing Concept
• Societal Marketing Concept
• Marketing Mix:
Product
Price
Place
Promotion
4C’s
Customer Solution
Customer Cost
Convenience
Communication
• Societal Marketing Concept:
• Considers society’s long-run interests
• Results in sustainable marketing, socially and environmentally responsible marketing that meets present needs while considering future interests
Function 2) Marketing Plan
• Executive Summary
• Current Marketing Situation
SWOT
• Objectives and Issues
• Marketing Strategy
• Action Programs
• Budgets
• Controls
Function 3: Implementation:
Plans converted to actions by assigning:
Who
Where
When
How
Function 4:
Operating Control:
Strategic Control:
Evaluates performance against the annual plan and takes corrective action

Evaluates whether strategies match opportunities

Marketing Management Functions: (4)
Function 1) SWOT
Function 2) Marketing Plan
Function 3) Implementation
Function 4) Operating & Strategic Control
Profitable Customer
Relationships:
• Building and maintaining profitable
customer relationships by
delivering superior customer value
and satisfaction
• Deals with all aspects of acquiring,
keeping, and increasing customers
Customer Relationship Groups
HIGH PROF/SHORT TERM CUST: Butterflies
LOW PROF /SHORT TERM CUST: Strangers
HIGH PROF/LONG TERM CUST: True Friends
LOW PROF/LONG TERM CUST: Barnacles
Butterflies
HIGH PROF/SHORT TERM CUST

good fit between company offerings and consumers needs.

Strangers
LOW PROF /SHORT TERM CUST
*Lowest profit potential

little fit between company offerings and consumers needs.

True friends
HIGH PROF/LONG TERM CUST
*Highest profit potential

good fit between company offerings and consumers needs.

Barnacles
LOW PROF/LONG TERM CUST

limited fit between company offerings and consumers needs.

Customer-Perceived Value:
• Customer’s evaluation of the
difference between all benefits and
costs of a marketing offer relative to
those of the competitors
Customer Satisfaction:
• Extent to which the product’s perceived
performance matches a buyer’s
expectations

Meets Expectations = Loyalty
Exceeds Expectations = Advocacy

Firms build relationships at different levels
Strategies: Loyalty & Retention
Tactics: Frequency & Club programs