chapter 1 of marketing
DESCRIPTION
MarketingTRANSCRIPT
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Chapter 1- slide 1Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Part One
Defining Marketing and the Marketing Process
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Chapter 1- slide 2Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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Chapter 1- slide 3Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Chapter One
Creating and Capturing Customer Value
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Chapter 1- slide 4Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is Marketing?
Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers inreturn
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Chapter 1- slide 5Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What is a Market?
Market was traditionally described as a physical place where buyers and sellers gathered to buy and sell goods.
Market is the set of all actual and potential buyers of a product or service.
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Chapter 1- slide 6Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Modern Exchange EconomyThe Five Basic Markets
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Chapter 1- slide 7Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is Being Marketed?
• Goods• Services• Events• Experiences • Persons
• Places• Properties• Organization• Information• Ideas
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Chapter 1- slide 8Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Who Markets?
Marketer is someone who seeks a response- attention, a purchase, a vote, a donation- from another party called the prospect.
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Chapter 1- slide 9Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Simple Marketing System
Relationship Between Industry and Market
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Chapter 1- slide 10Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is Marketing?The Marketing Process
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Chapter 1- slide 11Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Understanding the Marketplaceand Customer NeedsCustomer Needs, Wants, and Demands
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Chapter 1- slide 12Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Understanding the Marketplaceand Customer Needs
5 Types of Needs
• Stated needs- customer wants an inexpensive car• Real needs- customer wants a car whose operating
cost not initial cost, is low• Unstated needs- customer expects good service from
the dealer• Delight needs- customer would like the dealer to
include an onboard GPS navigation system• Secret needs- customer wants friends to see him/her
as a savvy consumer
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Chapter 1- slide 13Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Understanding the Marketplaceand Customer Needs
8 Demand States
• Negative demand- consumers dislike the product and may even pay to avoid it
• Nonexistent demand- consumers may be unaware or uninterested in the product
• Latent demand- consumers may share a strong need that cannot be satisfied by an existing product
• Declining demand- consumers begin to buy the product less frequently or not at all
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Chapter 1- slide 14Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Understanding the Marketplaceand Customer Needs
8 Demand States
• Irregular demand- consumer purchase vary on a seasonal, monthly, weekly, daily or even hourly basis
• Full demand- consumers adequately buying all products put into the marketplace
• Overfull demand- more consumers would like to buy the product that can be satisfied
• Unwholesome demand- consumers may be attracted to products that have undesirable social consequences
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Chapter 1- slide 15Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Understanding the Marketplaceand Customer Needs
• Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want
• Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs
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Chapter 1- slide 16Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Understanding the Marketplaceand Customer Needs
Customer Value and SatisfactionExpectations
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Chapter 1- slide 17Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Exchange is the act of obtaining a desired object from someone by offering something in return
Understanding the Marketplaceand Customer Needs
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Chapter 1- slide 18Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Understanding the Marketplaceand Customer Needs
Markets are the set of actual and potential buyers of a product
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Chapter 1- slide 19Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Designing a Customer-Driven Marketing Strategy
Marketing Management is the art and science of choosing target markets and building profitable relationships with them.
Customer management + Demand management
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Chapter 1- slide 20Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Designing a Customer-Driven Marketing Strategy
Demarketing is marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it
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Chapter 1- slide 21Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Designing a Customer-Driven Marketing Strategy
Market segmentation is the process when company decides whom it will serve by dividing the market into segments of customers.
Selecting Customers to Serve
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Chapter 1- slide 22Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Designing a Customer-Driven Marketing Strategy
Target Marketing is the process of selecting which segments it will go after. ( Primary Target Market)
Selecting Customers to Serve
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Chapter 1- slide 23Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Designing a Customer-Driven Marketing Strategy
Value is a central marketing concept, primarily a combination of quality, service and price (qsp), called the customer value triad.
Value perceptions increases with quality and service but decrease with price
Choosing a Value Proposition
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Chapter 1- slide 24Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Designing a Customer-Driven Marketing Strategy
Value Proposition refers to set of benefits and values it promises to deliver to consumers to satisfy their needs.
Satisfaction reflects a person’s judgement of a product’s perceived performance in relationship to expectations.
Choosing a Value Proposition
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Chapter 1- slide 25Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Designing a Customer-Driven Marketing StrategyMarketing Management Orientations
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Chapter 1- slide 26Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Designing a Customer-Driven Marketing Strategy
Production concept is the idea that consumers will favor products that are available or highly affordable
Marketing Management Orientations
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Chapter 1- slide 27Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Designing a Customer-Driven Marketing Strategy
Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Organization should therefore devote its energy to making continuous product improvements.
Marketing Management Orientations
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Chapter 1- slide 28Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Designing a Customer-Driven Marketing Strategy
Selling concept is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort
Marketing Management Orientations
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Chapter 1- slide 29Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Designing a Customer-Driven Marketing Strategy
Marketing Management Orientations
Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do
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Chapter 1- slide 30Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Designing a Customer-Driven Marketing Strategy
Marketing Management Orientations
Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long-run interests
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Chapter 1- slide 31Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Designing a Customer-Driven Marketing Strategy
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Chapter 1- slide 32Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Designing a Customer-Driven Marketing Strategy
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Chapter 1- slide 33Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Building Customer Relationships
• The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
Customer Relationship Management (CRM)
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Chapter 1- slide 34Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Building Customer Relationships
• A marketing relationship in which customers, empowered by today’s digital technologies, interact with companies and with each other to shape their relationships with brands.
Customer Managed Relationship
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Chapter 1- slide 35Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Building Customer Relationships
• Brand exchanges created by consumers themselves- both invited and uninvited- by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers.
Consumer Generated Marketing
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Chapter 1- slide 36Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Building Customer Relationships
• Working closely with partners in other company departments and outside the company to jointly bring greater value to customers.
Partner Relationship Management
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Chapter 1- slide 37Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Building the Right Relationship with the Right Customers
Customer Relationship Groups
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Chapter 1- slide 38Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Building the Right Relationship with the Right Customers
Customer Relationship Groups
• True Friends– Both profitable and loyal– Strong fit between their needs and company’s
offerings– Company invests to delight, nurture, retain and
grow them– Company wants them to turn into true believers
who come back regularly and tell others about their experiences
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Chapter 1- slide 39Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Building the Right Relationship with the Right Customers
Customer Relationship Groups
• Butterflies– Potentially profitable but not loyal– Good fit between their needs and company’s
offerings– Company enjoy them for the moment, create
satisfying and profitable transactions.
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Chapter 1- slide 40Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Building the Right Relationship with the Right Customers
Customer Relationship Groups
• Barnacles– Highly loyal but not very profitable– Limited fit between their needs and company’s
offerings– Most problematic customers– Company might improve profitability by selling
them more, raising their fees or reducing service.
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Chapter 1- slide 41Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Building the Right Relationship with the Right Customers
Customer Relationship Groups
• Strangers– Little projected loyalty and low potential
profitability– little fit between their needs and company’s
offerings– Don’t invest anything in them!
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Chapter 1- slide 42Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
4 Ps of Marketing
Four Cs of MarketingFour Cs of Marketing
Customer solution (Product)Customer solution (Product) Customer cost (Price)Customer cost (Price) Convenience (Placement)Convenience (Placement) Communication (Promotion)Communication (Promotion)
4Pss Provide4Pss Provide
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Chapter 1- slide 43Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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Chapter 1- slide 44Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Expanded Model of the Marketing Process
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Chapter 1- slide 45Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Activity 1
• Group of customers plan to buy a burger.• Ask them to list down what kind of burger
they want ( ingredients, type of sauce, etc.)• Group will select what type of burger/s to
market, select their target consumers and provide a value proposition.
• Make sure you to acquire and retain your customer!
Buy ME a Burger!