WELCOME TO MBA 525

Professor Notarantonio
Spring, 2016

The single most important thing to remember about any enterprise is that there are no results inside its walls. The
result of a business is a satisfied customer.
Peter F. Drucker (19092005)
On the Profession of Management
Harvard Business Press

How do Marketers Satisfy

Needs?
understand consumers
analysis of consumer behavior
marketing research
segmentation and target market selection
marketing mix

Marketing Defined
Marketing is defined as an exchange
between a firm and its customers.

Marketing Management Framework

The 5Cs, STP and the 4Ps constitute
the marketing management
framework

What is Value?
Benefits minus Costs

Exhibit 2.2
The Value Equation

WHAT IS VALUE?

QUALITY/PRICE

Value Composition
Product
Services
Employees

Benefits

Image
Monetary
costs

Time
Psychic and
physic costs

Value
(gain/loss)
Costs
(sacrifices)

BUILDING Value

Creating NEW value

Method

Value DIFFERS

Value
The greatest value often lies outside the product
you are selling. The greatest value may be
intangibles such as the relationships the
customer has with the company, the ease of
buying a product or service, company reputation,
responsiveness of the organization, integrity or
trustworthiness
Or EVEN THE MARKETING ITSELF (marketing w/
meaning)

Power has shifted from Company to

Customer

The NEW power of Word-ofMouth

The Power of Buzz

UNITED BREAKS GUITARS

Over the past few years, we have

transitioned from a

Competitive, Dynamic
environment
To a

Hyper-competitive, Hyper-dynamic
environment
Where the Customer is KING

THE NEW MARKETPLACE

VALUE
SUSTAINABILITY
INNOVATION
HYPER-COMPETITION
HYPER-DYNAMIC
DESIGN
CUSTOMER-CENTRICITY

29

THE MARKETING CONCEPT

A philosophy..
A way of thinking

The Marketing Concept

THATS
EXACTLY WHAT
I WANTED

Satisfy Customer
Needs

The Marketing Concept

Focus on Profit not Volume

The Marketing Concept

Coordinated &
Integrated Set of
Activities

Marketing

Production Customer

Finance

IT

Evolution of Marketing
Sellers
Market

Production
Era

1850

Buyers
Marketing & Market Social

Sales
Era
1930

1908
Model T 1st Sold

1929
Great Depression

Consumer
Era

1950

Responsibility &
Relationship
Era
1980

1945
World War II Ends

Birth of Marketing
Concept

1980s
Global Competition

Whats Next??

WHAT IS MEANINGFUL MARKETING?

When your marketing is meaningful people
choose to engage with you in an exchange that
they perceive as valuable" but engagement is
only the beginning whatever your product or
service may be.
When your marketing is meaningful, the
marketing itself adds value to Peoples lives
whether or not they immediately buy what youre
selling.
The marketing itself is if of value to consumers
independent of the product or service
~excerpt from: The Next Evolution of Marketing

Turn customers into

raving fans!
Do whatever it takes to keep them satisfied
Always exceed expectations
Never assume you are meeting your customers
needs- ask questions-probe.
Surprise your customers with your gratitude!
Your customers need new ideas, even if they
dont ask for them- become their trusted advisor

How do Marketers Satisfy

Needs?
understand consumers
analysis of consumer behavior
marketing research

segmentation and target market

selection
marketing mix

Why Consumer Research?

Getting closer to consumers
Knowing how they perceive our product and
how they perceive our competitors products
Knowing their attitudes towards our brand
Knowing how they behave
KNOWING HOW THEY INTERACT WITH
PRODUCTS

Knowing our Consumers

segmentation and targeting

Finely-tuned
Segmentation
Strategies
Allow
Marketers to
Reach Only
Those
Consumers
Interested in
Buying Their

CUSTOMER-FOCUSED
ORGANIZATION

Senior Mgmt
Leadership
Employee Customer
Training
Customer
Involvement
Customer Experiences
Customer Solutions
Customer Complaints

Customer Satisfaction
Customer Retention
Customer Loyalty

Loyal customers have a long customer history, buy

at an above-average purchase amount, have a
high desire to repurchase, have strong product
preferences for the companys products and would
recommend the companys products to friends,
relatives, and co-workers.

Underwhelming Customers
UNDERWHELMING
CUSTOMERS

Little or no customer focus translates into an unfocused competitive position and minimal
customer satisfaction. The result is a vicious circle of poor performance.

CORE CURRICULUM

Service-Quality Model