Define marketing and the marketing process. Explain the importance of understanding Identify the elements of a customer-driven Discuss customer relationship management Describe the major trends and forces Attract new customers by promising Keep and grow c

Prentice Hall, Inc. Copyright 2007 1-2 Roadmap: Previewing the Concepts

1. Define marketing and the marketing process.

2. Explain the importance of understanding

customers and identify the five core marketplace concepts.

3. Identify the elements of a customer-driven

marketing strategy and discuss the marketing management orientations.

4. Discuss customer relationship management

and creating value for and capturing value from customers.

5. Describe the major trends and forces

changing the marketing landscape. Prentice Hall, Inc. Copyr ight 2007 1-3 Creating Value  NASCAR sells the experience – in-car cameras, wholesome family orientation.  NASCAR.com engages fans via content.  Success has been achieved by creating lasting customer relationships. NASCAR – What is its secret? NASCAR – What is its secret? Case Study Case Study Capturing Value  NASCAR is the 2nd highest rated sport on TV.  Fans are young, affluent, and family oriented, spending nearly 700 annually on NASCAR merchandise.  Fans are loyal to sport and NASCAR fans are 3 times as likely to seek out sponsors’ products than are nonfans. Prentice Hall, Inc. Copyr ight 2007 1-4 What Is Marketing? Simple Definition: Marketing is managing profitable customer relationships. Goals:

1. Attract new customers by promising

superior value.

2. Keep and grow current customers by

delivering satisfaction. Prentice Hall, Inc. Copyr ight 2007 1-5 Marketing Defined  A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. OLD View of Marketing: Making a Sale – “Telling Selling” New View of Marketing: Satisfying customer needs NEW View of Marketing: Satisfying Customer Needs Prentice Hall, Inc. Copyr ight 2007 1-6 The Marketing Process  A simple model of the marketing process: – Understand the marketplace and customer needs and wants. – Design a customer-driven marketing strategy. – Construct a marketing program that delivers superior value. – Build profitable relationships and create customer delight. – Capture value from customers to create profits and customer quality. Prentice Hall, Inc. Copyr ight 2007 1-7 Needs, Wants, Demands  Need: State of felt deprivation including physical, social, and individual needs. – Physical needs: • Food, clothing, shelter, safety – Social needs: • Belonging, affection – Individual needs: • Learning, knowledge, self-expression Prentice Hall, Inc. Copyr ight 2007 1-8 Needs, Wants, Demands  Wants: Form that a human need takes, as shaped by culture and individual personality.  Wants + Buying Power = Demand Prentice Hall, Inc. Copyr ight 2007 1-9 Need Want Fulfillment  Needs and wants are fulfilled through a Marketing Offer: – Some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Prentice Hall, Inc. Copyr ight 2007 1-10 Need Want Satisfiers  Products: – Persons – Places – Organizations – Information – Ideas  Services – Activity or benefit offered for sale that is essentially intangible and does not result in ownership.  Brand Experiences: “. . . dazzle their senses, touch their hearts, stimulate their minds.” Prentice Hall, Inc. Copyr ight 2007 1-11 Marketing Myopia  Marketing myopia occurs when sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products.  They focus on the “wants” and lose sight of the “needs.” Prentice Hall, Inc. Copyr ight 2007 1-12 Value Satisfaction  Care must be taken when setting expectations: – If performance is lower than expectations, satisfaction is low. – If performance is higher than expectations, satisfaction is high. Prentice Hall, Inc. Copyr ight 2007 1-13 Exchange vs. Transaction  Exchange: – Act of obtaining a desired object from someone by offering something in return.  Transaction: – A trade of values between two parties. – One party gives X to another party and gets Y in return. Can include cash, credit, or check. Prentice Hall, Inc. Copyr ight 2007 1-14 What Is a Market?  The set of actual and potential buyers of a product.  These people share a need or want that can be satisfied through exchange relationships. Prentice Hall, Inc. Copyr ight 2007 1-15 Modern Marketing Systems  Main elements in a modern marketing system include: – Suppliers – Company marketer – Competitors – Marketing intermediaries – Final users Prentice Hall, Inc. Copyr ight 2007 1-16 Marketing Management  The art and science of choosing target markets and building profitable relationships with them. – Requires that consumers and the marketplace be fully understood Prentice Hall, Inc. Copyr ight 2007 1-17 Marketing Management  Designing a winning marketing strategy requires answers to the following questions: 1. What customers will we serve?