CREATING

CUSTOMER
RELATIONSHIP
S AND VALUE
THROUGH
MARKETING
CHAPTER
A Philosophy
An Attitude
A Perspective
A Management
Orientation
A Set of Activities,
including:
Products
Pricing
Promotion
Distribution
WHAT IS MARKETING?
WHAT IS MARKETING?
Marketing = Using Exchanges to Satisfy Needs
American Marketing Association Definition
Marketing is the process of planning and
executing the conception, pricing, promotion,
and distribution of ideas, goods, and services
to create exchanges that satisfy individual and
organizational goals.
The Concept of Exchange
The idea that people give up
something to receive something
they would rather have.

Both buyer and seller are better
off after the trade.

Market All people with both the desire and ability
to buy a specific product



Target Market One or more subgroups I can satisfy
WHO DO I AIM AT?
THE CONTROLLABLE MARKETING FORCES
Price
Promotion
Place
Product
The Four Ps
-the arrow
Social
Natural
Economic
Technologic
Political and Legal
Competitive
External
Environmental
Factors

THE UNCONTROLLABLE MARKETING
FORCES
Helps identify market opportunities
FIGURE 1-A Summary of factors that affect
an organizations marketing program
FIGURE 1-4 Marketings task: satisfying
consumer needs
HOW MARKETING BECAME
SO IMPORTANT
Evolution of the Market Orientation
Production Era
Societal Era
Sales Era
Marketing Concept Era
Orientation
Key Ideas
Production
Sales
Market
Societal
Focus on efficiency of internal operations
if we make it, they will buy it
Focus on satisfying customer needs and wants
while meeting objectives - if they will buy it, we
will make it

Focus on satisfying customer needs and
wants while enhancing individual and
societal well-being. I.e.-mfg using recyclables

Focus on aggressive sales techniques and
believe that high sales result in high profits
MARKETING MANAGEMENT
PHILISOPHIES
FIGURE 1-B Four different orientations in
the history of American business
Societal

Who Buys and Uses What Is Marketed?
Ultimate Consumers

Organizational Buyers
THE BREADTH & DEPTH OF MARKETING
What Is Marketed?
Goods Services Ideas
HOW DO CONSUMERS BENEFIT
Utility the benefits or customer value received
by users of the product
Offer products that perform
Give consumers more than they expect
Avoid unrealistic pricing
Give the buyer facts
Offer organization-wide commitment in service
and after-sales support
Customer value-benefits received by targeted buyers
that include quality, price, convenience, on-time
delivery, and both before-sale and after-sale service.

HOW TO DELIVER VALUE
Meet or exceed customers expectations
Provide solutions to customers problems
Cultivate relationships,
NOT one-time transactions

KEEPING THE CUSTOMER SATISFIED

1. What is marketing?
A: Marketing is an organizational
function and a set of processes for
creating, communicating, and
delivering value to customers and for
managing customer relationships in
ways that benefit the organization
and its stakeholders.
Concept Check

Concept Check
1. An organization cant satisfy the
needs of all consumers, so it must
focus on one or more subgroups,
which are its ____________. target markets

Concept Check
2. What are the four marketing mix
elements that make up the
organizations marketing program?
A: product, price, promotion, place

Concept Check
3. What are environmental forces?
A: Environmental forces are those that
the organizations marketing
department cant control. These
include social, economic,
technological, competitive, and
regulatory forces.

Concept Check
1. What are the two key characteristics
of the marketing concept?
A: (1) strive to satisfy the needs of
consumers (2) while also trying to
achieve the organizations goals.

Concept Check
2. What is the difference between goods
and services?
A: Goods are physical objects whereas
services are complex intangible
items, such as legal advice, a college
education, or airline travel.
Exchange is the trade of things of value
between buyer and seller so that each is
better off after the trade.
Exchange
A market consists of people with both the
desire and ability to buy a specific
product.
Market
Customer value is the unique
combination of benefits received
by targeted buyers that includes quality,
price, convenience, on-time delivery, and
both before-sale and after-sale service.
Customer Value
The marketing concept is the idea that
an organization should (1) strive to satisfy
the needs of consumers (2) while also
trying to achieve the organizations goals.
Marketing Concept
An organization that has a market
orientation focuses its efforts on
(1) continuously collecting information
about customers needs, (2) sharing this
information across departments, and
(3) using it to create customer value.
Market Orientation
The societal marketing concept is the
view that an organization should satisfy
the needs of consumers in a way that
provides for societys well-being.
Societal Marketing Concept
Organizational buyers are those
manufacturers, wholesalers, retailers,
and government agencies that buy goods
and services for their own use or for
resale.
Organizational Buyers
Utility is the benefits or customer value
received by users of the product.
Utility