Marketing in A Changing World: Creating Customer Value and Satisfaction
Marketing in A Changing World: Creating Customer Value and Satisfaction
Marketing in A Changing World: Creating Customer Value and Satisfaction
Marketing in a Changing
World: Creating Customer
Value and Satisfaction
1
What is Marketing?
Process by which individuals and
groups obtain what they need and
want through creating and
exchanging products and value
with others.
2
Core Marketing Concepts
(Fig. 1-1)
Needs, wants,
and demands
Markets Products
and services
Exchange, Value,
transactions, satisfaction,
and relationships and quality
3
What are Consumer’s
Needs, Wants and
Demands?
Needs - state of felt deprivation for basic items
such as food and clothing and complex needs
such as for belonging. i.e. I am hungry.
Wants - form that a human need takes as
shaped by culture and individual personality.
i.e. I want a hamburger, French fries, and a soft
drink.
Demands - human wants backed by buying
power. i.e. I have money to buy this meal.
4
What Will Satisfy
Consumer’s Needs and
Wants?
Products
nything that can be Offered to a Market to Satisfy a Need or Want
Experiences
Experiences Persons
Persons Places
Places
Organizations
Organizations Information
Information Ideas
Ideas
Services
Activities or Benefits Offered for Sale That Are Essentially
Intangible and Don’t Result in the Ownership of Anything
5
How Do Consumers Choose
Choose Among Products and
Services?
Value Gained From Owning a Product and
Costs of Obtaining the Product is
Customer Value
6
How Do Consumers
Obtain Products and
Services?
Exchanges Transactions
Relationships
Building a Marketing
Network Consisting of
The Company and All
Its Supporting
Stakeholders
7
Who Purchases Products
and Services?
People Who
Exhibit Need Market – Actual
Ethical
Buyers who
to
F
rs
c
a
Buyers
share a
S n
o
itu
a l
U
td
p
n
x
ec
Resources to particular
Exchange need or want
that can be
Attitudes
satisfied
of Potential
through
Others Buyers
Willingness to exchange or
Exchange relationships.
8
Modern Marketing System
(Fig. 1-3)
Suppliers
Suppliers
Company
Company
Competitors
Competitors (Marketer)
(Marketer)
Environment
Environment
Marketing
Marketing
Intermediaries
Intermediaries
End
End User
User
Market
Market
9
Discussion
Connections
In your own words, what is marketing?
What does marketing mean to you?
Form small groups, and select a brand of
athletic shoes that a group member has
purchased recently.
What Customer Value did the group member
expect?
Did the member experience Customer
Satisfaction? Why or why not?
Marketing Management
Marketing Demand Profitable
Management Management Customer
Relationships
Implementing Finding and
programs increasing Attracting new
to create demand, also customers and
exchanges changing or retaining and
with target reducing building
buyers demand such relationships
to achieve as in with current
organizational Demarketing customers
goals
11
Marketing Management
Practice
12
Marketing Management
Philosophies
Production Concept •Consumers favor products that are
available and highly affordable.
•Improve production and distribution.
The
The Selling
Selling Concept
Concept
Profits
Customer Integrated
Market through
Needs Marketing
Satisfaction
The
The Marketing
Marketing Concept
Concept
14
Societal Marketing
Concept
Society
(Human Welfare)
Societal
Marketing
Concept
Consumers Company
(Want Satisfaction) (Profits)
15
Marketing Challenges in
the New “Connected”
Millennium
Connections with Customers
Connecting Connecting more selectively
Technologies Connecting for life
Computer Connecting Directly
Information
Communication
Transportation Connections
with the
Connections with world around
Marketing Partners us
•Connecting with other •Global
company departments Connections
•Connecting with •Connections
suppliers and distributors with values and
•Connecting through responsibilities
Text page 23 16
strategic alliances •Broadened
Technologies for
Connecting
Learn About & Create Products &
Track Customers Services Tailored to
With Databases Meet Customer Needs
Connecting Technologies in
Computers,
Telecommunications,
Information, & Transportation
Help To:
Or One-on-One Effectively
marketing?
How do Web
companies
compete with
brick and mortar
companies?
17
The Internet
The Internet has been hailed as the technology
behind a new model for doing business.
New applications include:
Internet – connecting with customers,
Intranets – connecting with others in the company, and
Extranets – connecting with strategic partners, suppliers,
and dealers.
Purchasing will be over $1.4 trillion in 2003.
400,000 companies are now using the Internet to
do business.
18
Connections With
Customers
Most marketers are targeting
fewer, potentially more
profitable customers.
Asking:
What value does the customer
bring to the organization?
Are they worth pursuing?
Focus has shifted to:
keeping current customers, and
building lasting relationships
based on superior satisfaction
and value.
19
Direct Connections With
Customers
Many companies use technologies to let them
connect more directly with their customers.
Products available via telephone, mail-order catalogs, kiosks
and e-commerce.
Some firms sell only via direct channels (i.e. Dell Computer,
www.Amazon.com), others use a combination.
Direct marketing is redefining the buyer’s role in
connecting with sellers.
Buyers are active participants in shaping the marketing offer
and process; some buyers design their own products online
such as at www.LandsEnd.com.
20
Connections With
Marketing’s Partners
Connecting Inside the Connecting With
Company Outside Partners
Every employee must Supply Chain
be customer-focused Management
Teams coordinate Strategic Alliances
efforts toward
customers
21
Connections With the
World Around Us
Global
Connections
Broadening Values
Connections Connections
Social Responsibility
Connections
22
Review of Concept
Connections
Define what marketing is and discuss its core
concepts.
Explain the relationships between customer
value, satisfaction, and quality.
Define marketing management and examine
how marketers manage demand and build
profitable customer relationships.
Compare the five marketing management
philosophies.
Analyze the major challenges facing
marketers heading into the next millennium.
23