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6thCanadianEditionMarketing

6thCanadianEditionMarketing:CustomerValue,Satisfaction,andCustomerRelationships1Marketing:CustomerValue,SatDefineMarketing.Knowthebasicrequirementsforsuccessfulmarketingtooccur.Understandthebreadthanddepthofmarketing.Explainhowmarketingdiscoversandsatisfiesconsumerneedsandwants.LearningObjectivesAfterreadingthischapter,youshouldbeableto:DefineMarketing.LearningObjeDistinguishbetweenmarketingmixelementsandenvironmentalfactors.Describehowmarketorientationinthepresenterafocusesoncreatingcustomervalue,satisfaction,andcustomerrelationships.Understandthemeaningofethicsandsocialresponsibilityandhowtheyrelatetotheindividual,organizations,andsociety.LearningObjectivesAfterreadingthischapter,youshouldbeableto:Distinguishbetweenmarketing

Marketingisnot:advertisingsellingcommonsensehucksterismmanipulatingWHATMARKETINGISANDWHATITISNOTMarketingisnot:WHATMARKETIMarketingis:anorganizationalfunctionasetofprocessesforcreating,communicating,anddeliveringvaluetocustomersmanagingcustomerrelationshipsinwaysthatbenefittheorganizationanditsstakeholdersWHATMARKETINGISANDWHATITISNOTMarketingis:WHATMARKETINGISRequirementsforMarketingtoOccurTwoorMorePartieswithUnsatisfiedNeedsDesireandAbilitytoSatisfyTheseNeedsAWayforthePartiestoCommunicateSomethingtoExchangeWHATMARKETINGISANDWHATITISNOTRequirementsforMarketingtoTheBreadthandDepthofMarketingWhatisaMarket?WhoMarkets?WhatisMarketed?SocialMarketingWHATMARKETINGISANDWHATITISNOTTheBreadthandDepthofMarkeTheBreadthandDepthofMarketing(cont.)WhoBuysandUsesWhatisMarketed?UltimateCustomersOrganizationalBuyersWhoBenefits?WHATMARKETINGISANDWHATITISNOTTheBreadthandDepthofMarkeTheDiverseFactorsInfluencingMarketingActivitiesWHATMARKETINGISANDWHATITISNOTTheDiverseFactorsInfluencin?2006McGraw-HillRyersonLtd.Allrightsreserved.FIGURE1-1Anorganization’smarketingdepartmentrelatestomanypeople,groups,andforces?2006McGraw-HillRyersonLtd

ConceptCheckWhatismarketing?Answer:AccordingtotheAmericanMarketingAssociation,"marketingisanorganizationalfunctionandasetofprocessesforcreating,communicating,anddeliveringvaluetocustomersandformanagingcustomerrelationshipsinwaysthatbenefittheorganizationanditsstakeholders." ConceptCheckWhatismarkeConceptCheckMarketingfocuseson__________and___________prospectivecustomers’needsandwants.discoveringsatisfyingConceptCheckMarketingfocuses

ConceptCheckWhatfourfactorsareneededformarketingtooccur?Answer:(1)Twoormorepartieswithunsatisfiedneeds,(2)adesireandabilityontheirpartbesatisfied,(3)awayforthepartiestocommunicate,and(4)somethingtoexchange. ConceptCheckWhatfourfacDiscoveringConsumerNeedsConsumerNeedsandConsumerWantsHOWMARKETINGDISCOVERSANDSATISFIESCONSUMERNEEDSDiscoveringConsumerNeedsHOW?2006McGraw-HillRyersonLtd.Allrightsreserved.FIGURE1-2

Marketing’sfirsttask:discoveringconsumerneeds?2006McGraw-HillRyersonLtdSatisfyingConsumerNeedsTargetmarketTheFourPs:ControllableMarketingMixFactorsProductPricePromotionPlaceTheUncontrollable,EnvironmentalFactorsHOWMARKETINGDISCOVERSANDSATISFIESCONSUMERNEEDSSatisfyingConsumerNeedsHOWMTheMarketingProgramTHEMARKETINGPROGRAMTheMarketingProgramTHEMARKE?2006McGraw-HillRyersonLtd.Allrightsreserved.FIGURE1-3

Marketing’ssecondtask:satisfyingconsumerneeds?2006McGraw-HillRyersonLtd?2006McGraw-HillRyersonLtd.Allrightsreserved.FIGURE1-4

MarketingProgramforCurves?2006McGraw-HillRyersonLtdConceptCheckAnorganizationcan’tsatisfytheneedsofallconsumers,soitmustfocusononeormoresubgroups,whichareits________________.targetmarketsConceptCheckAnorganizationc

ConceptCheckWhatarethefourmarketingmixelementsthatmakeuptheorganization’smarketingprogram?Answer:Thefourmarketingmixelementsthatmakeuptheorganization'smarketingprogramareproduct,price,promotion,andplace,orotherwiseknownasthe4P's.Thisportionofthemarketingprogramiscontrollablebythemarketingdepartmentsanditsorganization. ConceptCheckWhatarethe

ConceptCheckWhatareuncontrollablevariables?Answer:Uncontrollablefactorsarelargelybeyondthecontrolofthemarketingdepartmentanditsorganization.Thesearetheenvironmentalfactorsinamarketingdecisioninvolvingsocial,economic,technological,competitive,andregulatoryforces. ConceptCheckWhatareuncoEvolutionofMarketOrientationProductionEraSalesEraTheMarketingConceptEraMarketingconceptHOWMARKETING

BECAMESOIMPORTANTEvolutionofMarketOrientatioEvolutionofMarketOrientation(cont.)TheMarketOrientationEraCustomerValueCustomerSatisfactionCustomerrelationshipmanagement(CRM)Customerlifetimevalue(CLV)eCRMHOWMARKETING

BECAMESOIMPORTANTEvolutionofMarketOrientatio?2006McGraw-HillRyersonLtd.Allrightsreserved.FIGURE1-5FourdifferentorientationsinthehistoryofNorthAmericanbusiness?2006McGraw-HillRyersonLtd?2006McGraw-HillRyersonLtd.Allrightsreserved.WhattypeofvaluedoesStarbucksoffertheircustomers??2006McGraw-HillRyersonLtdEthicsandSocialResponsibility:

BalancingtheInterestsofDifferentGroupsEthicsSocialResponsibilitySocietalmarketingconceptMacromarketingMicromarketingHOWMARKETING

BECAMESOIMPORTANTEthicsandSocialResponsibiliConceptCheckManyfirmshavegonethroughfourdistinctorientationsfortheirbusinesses:startingwiththe__________eraandendingwithtoday’s________________era.productionmarketorientationConceptCheckManyfirmshaveg

ConceptCheckAnorganizationthathasamarketingorientationfocusesitseffortsonwhat3things?Answer:(1)continuouslycollectinginformationaboutcustomers’needsandcompetitors’capabilities,(2)sharingthisinformationthroughouttheorganization,and(3)usingtheinformationtocreatevalue,ensurecustomersatisfaction,anddevelopcustomerrelationships. ConceptCheckAnorganizati

ConceptCheckTheprocessofbuildinganddevelopinglong-termrelationshipswithcustomersbydeliveringcustomervalueandsatisfactioniscalled________________.Answer:Customerrelationshipmanagement(CRM) ConceptCheckTheprocessoMarketingistheprocessofplanningandexecutingtheconception,pricing,promotion,anddistributionofideas,goods,andservicestocreateexchangesthatsatisfyindividualandorganizationalobjectives.MarketingMarketingistheprocessofplAmarketispeoplewiththedesireandwiththeabilitytobuyaspecificproduct.MarketAmarketispeoplewiththedeEnvironmentalfactorsaretheuncontrollablefactorsinvolvingsocial,economic,technological,competitive,andregulatoryforces.EnvironmentalFactorsEnvironmentalfactorsaretheOneormorespecificgroupsofpotentialcustomerstowardwhichanorganizationdirectsitsmarketingprogram.TargetMarketOneormorespecificgroupsofThemarketingmixisproduct,price,promotion,andplace.MarketingMixThemarketingmixisproduct,Customervalueistheuniquecombinationofbenefitsreceivedbytargetedbuyersthatincludesquality,price,convenience,on-timerdeliveryandbothbefore-saleandafter-saleservice.CustomerValueCustomervalueistheuniquecThemarketingprogramisaplanthatintegratesthemarketingmixtoprovideagood,service,orideatoprospectivebuyers.MarketingProgramThemarketingprogramisaplaThemarketingconceptistheideathatanorganizationshouldstrivetosatisfytheneedsofconsumers,whilealsotryingtoachievetheorganization’sgoals.MarketingConceptThemarketingconceptistheiAnorganizationthathasamarketorientationfocusesitseffortsoncontinuouslycollectinginformationaboutcustomers’needsandcompetitorscapabilities,sharingthisinformationacrossdepartments,andusingtheinformationtocreatecustomervalue.MarketOrientationAnorganizationthathasamarCustomerrelationshipmanagementistheprocessofidentifyingprospectivebuyers,understandingthemintimately,anddevelopinglong-termperceptionsoftheorganizationanditsofferingsothatbuyerswillchoosetheminthemarketplace.CustomerRelationshipManagement(CRM)CustomerrelationshipmanagemeThesocietalmarketingconceptistheviewthatanorganizationshoulddiscoverandsatisfytheneedsofitsconsumerinawaythatalsoprovidesforsociety’swell-being.SocietalMarketingConceptThesocietalmarketingconceptMacromarketinglooksathowtheaggregateflowofanation’sgoodsandservicesbenefitssociety.MacromarketingMacromarketinglooksathowthMicromarketingishowanindividualorganizationdirectsitsmarketingactivitiesandallocatesitsresourcestobenefititscustomers.MicromarketingMicromarketingishowanindivUltimateconsumersarethepeoplewhousethegoodsandservicespurchasedforahousehold.UltimateConsumerUltimateconsumersarethepeoOrganizationalbuyersareunitssuchasmanufacturers,retailers,orgovernment