Chapter 1 Marketing: The Art and Science of Satisfying Customers
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1 Chapter 1 Marketing: The Art and Science of Satisfying Customers
2 Chapter Objectives 1. Define marketing, explain how it creates utility, and describe its role in the global marketplace. 2. Contrast marketing activities during the four eras in the history of marketing. 3. Explain the importance of avoiding marketing myopia. 4. Describe the characteristics of not-for-profit marketing.
3 Chapter Objectives 5. Identify and briefly explain each of the five types of nontraditional marketing. 6. Explain the shift from transaction-based marketing to relationship and social marketing. 7. Identify the universal functions of marketing. 8. Demonstrate the relationship between ethical business practices, social responsibility, sustainability and marketplace success.
4 What is Marketing? o Organizations must create utility to survive
5 CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
6 A Definition of Marketing o Marketing - An organizational function and a set of processes for: o Creating, communicating, and delivering value to customers o Managing customer relationships in ways that benefit the organization and its stakeholders
7 Today s Global Marketplace o Factors that have extended economic views o Increase in international trade agreements o Growth of electronic business o Interdependence of the world s economies
8 Four Eras in the History of Marketing o The essence of marketing is the exchange process
9 CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
10 Characteristics of the Four Eras Era in marketing Production Era Sales Era Marketing Era Relationship Era Focus Production orientation Sales orientation Consumer orientation Relationship marketing
11 Avoiding Marketing Myopia o Marketing myopia - Management s failure to recognize the scope of its business o Focusing on customer need satisfaction can overcome myopia
12 Not-for-Profit Marketing o Marketing in not-for-profit organizations o Marketing strategy is adopted to meet service objectives o Not-for-profit organizations form alliances with business firms for mutual benefit o Characteristics of not-for-profit marketing o Does not focus on bottom line o Markets to multiple audiences
13 CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
14 Relationship Marketing o Focus is on moving the customers up the loyalty ladder to increase their lifetime value o Interactive marketing creates direct communication with customers, allows larger exchanges, and puts the customer in control o It is increasingly taking place on social media sites like Facebook, Twitter, and blogs
15 CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
16 Partnerships and Strategic Alliances o Strategic alliances provide firms competitive advantage o Forms of alliances o Product development partnerships o Vertical alliances o Not-for-profits often raise awareness and funds through strategic partnerships
17 Costs and Functions of Marketing o Firms spend money (thereby incurring costs) to create utility o Functions of marketing o Exchange functions - Buying and selling o Physical distribution functions - Transporting and storing o Facilitating functions - Standardizing and grading, financing, risk taking, and securing marketing information
18 CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
19 Ethics and Social Responsibility o Companies that promote ethics and social responsibility produce increased employee loyalty and customer growth o Social responsibility programs are meant to enhance the society but help in improving public image of the firm o Sustainable products and practices are goals of socially responsible firms
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