chapter 1 marketing: the art and science of satisfying

Chapter1Marketing:TheArtandScience

ofSatisfyingCustomersCopyright©2013byNelsonEducationLimited

CHAPTER1Marketing:TheArtandScienceofSatisfyingCustomers

1. Define marketing, explain how it creates utility, and describe its role in the marketplace.

2. Contrast marketing activities during the four eras in the history of marketing.

3. Identify and briefly explain each of the five types of nontraditional marketing.

Chapter Objectives

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4. Understand the differences between Sales and Marketing focused orgs.

5. Explain the shift from traditional or transaction-based marketing to relationship marketing.

6. Demonstrate the relationship between ethical business practices, social responsibility, and marketplace success.


o Production and marketing together create utility.

o Utility – Want-satisfying power of a good or service

o Time and Place utility – getting what you want, when you want it where you want it

o Vending machines are the ultimate Time and Place utility

What Is Marketing?



• Organizations will survive by creating and then managing profitable customer relationships • Activities marketers perform to create customers:

ØIdentifying customer needs

ØDesigning products to meet those needs

Communicating information ØMaking the products available when and where customers

want them

ØPricing merchandise and services

ØProviding service and follow-up

What Is Marketing?



• An organizational function and a set of processes for:

• Creating, communicating, and delivering value to customers

• Managing customer relationships in ways that benefit the organization and its stakeholders

• Requires decisions based on the 4Ps: Product, Price Place and Promotion Decisions

What is Marketing?



• Consumers acquire goods and services on a continuing basis to fill certain needs.ØNeed to eat

ØDesire for a burger

Ø Desire for a Harvey’s hamburger

• To convert needs into wants, marketers:• Focus on the benefits of goods and services

• Require skill

• Should listen to consumer needs

Converting Needs to Wants



Four Eras in the History of Marketing



• Personnel look inward – I sell what the Org makes

Air Canada

• Defines its business in terms of goods and services

Sales Focused vs Marketing Focused Orientations

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• Personnel look to the customer wants/needs

Jet Blue “You’re not flying planes, you’re flying people” “You above all else”. No meals but first rate snacks. Wireless capability

• Defines its business in terms of the benefits its customers seek

SalesOrientation MarketingOrientation


• Targets their product to ‘everybody’

• Profitability through sales volumes – make the sale!

• Generate sales volume through intensive personal selling and advertising

Sales Focused vs Marketing Focused Orientations


• Targets their offering to specific diversity of customers

• Profitability by developing repeat buyers

• Selling through a careful analysis of the 4-Ps

SalesOrientation MarketingOrientation


• Buyer and seller exchanges characterized by limited communications and little relationships between the parties

• Customers

From Traditional Marketing to Relationship Marketing


• Marketers realized that consumers are becoming sophisticated.

• Marketers listen

• Advocates

Traditionalmarketing Relationshipmarketing


Build Relationship

Relationship Marketing


MARKET SHARE =

•Attract new customers

•Increase business with current customers

•Retain current customers


• Globalization

• International Trade agreements

• Electronic capabilities are borderless

• Companies seek the most efficient manufacturing sites and most lucrative markets worldwide.

• Companies are tailoring their marketing efforts to the needs and preferences of local markets.

Today’s Global Marketplace



Sales Orientation

Marketing Orientation

Organizations focus Inward Outward

Firm’s business Selling goods andservices

Satisfying wants and needs

For whom? Everybody Specific groups of people

Primary profit goal? Maximum sales volume Customer satisfaction

Tools usedPromote!!! Product, price, place,

promotion

To Summarize



• Not for Profit Marketing

• Person Marketing

• Place Marketing

• Cause Marketing

• Event Marketing

• Organization Marketing

Marketing something other than a product or service



• Ethics – Moral standards of behaviour expected in a society• Most businesses follow ethical practices, although there

have been breaches at times.• Social responsibility – Marketing philosophies, policies,

procedures, and actions whose primary objective is to enhance society• Sustainable products – Products that can be produced,

used, and disposed of with minimal impact on the environment• Firms stand to gain needed credibility from their efforts

to protect the environment.

Ethics and Social Responsibility: Doing Well by Doing Good


chapter 1 marketing: the art and science of satisfying

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