PrideFerrell Foundations of Marketing Third Edition Chapter 1

Part 1 Strategic Marketing and Its Environment Chapter 1 Customer-Driven Strategic Marketing Key Outline

Objectives 1. Define marketing. 2. Understand several important marketing terms, 3. 4. 5. 6.

Outline 1. Marketing Defined 2. Understanding the Marketing Concept 3. Managing Customer Relationships 4.

Key Terms customer relationship management (CRM) marketing environment relationship marketing customers marketing management stakeholders

1. WHAT IS MARKETING? The process of creating, distributing, promoting, and pricing goods, services,

Who is the Focus? Customers The purchasers of organizations’ products; the focal point of

Marketing Mix Figure 1. 1 Copyright © Houghton Mifflin Company. All rights reserved. Key

Product Variable A good, a service, or an idea. Key Outline Term Copyright ©

Product Example Is this advertisement for a good, service, or idea? © Used By

Price Variable Decisions and actions associated with establishing pricing objectives and policies and determining

Distribution Variable Make products available in quantities desired Minimize costs: ü Inventory ü Transportation

Promotion Variable Activities to inform individuals or groups about the organization and its products

Creating Awareness Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 1–

Relationships with Customers Exchange: The provision or transfer of goods, services, or ideas in

Customer as the Stakeholder Key Outline Term © Used By Permission. Copyright © Houghton

Relationships with other Stakeholders Constituents who have a stake or claim in some aspect

Forces of the Marketing Environment Competitive Sociocultural Economic Political Technological Regulatory Legal Key Outline

2. THE MARKETING CONCEPT A managerial philosophy that an organization should try to satisfy

Core Competency as Marketing Concept Key Outline Term Copyright © Houghton Mifflin Company. All

Evolution of the Marketing Concept © Used By Permission. Figure 1. 3 Copyright ©

Marketing Orientation An organization-wide commitment to researching and responding to customer needs. © Used

3. MANAGING CUSTOMER RELATIONSHIPS Establishing long-term, mutually satisfying buyer-seller relationships. ü Customer Relationship Management

Customer Relationships Relationship marketing deepens buyer's trust in the company Key Outline Term ©

4. VALUE-DRIVEN MARKETING Value = Customer Benefits minus Customer Costs © Used By Permission.

5. MARKETING MANAGEMENT The process of planning, organizing, implementing, and controlling marketing activities to

6. IMPORTANCE OF MARKETING IN OUR GLOBAL ECONOMY Costs consume sizable portion of buyers’

Nonprofit Organizations Marketing Employed by Nonprofit Organizations © Used By Permission. Copyright © Houghton

Why Study Finance, Marketing, HR, & Operations Research Key Outline Term Copyright © Houghton

After reviewing this chapter you should: Be able to define marketing. Know the meaning

Slides: 30

Download presentation

Pride/Ferrell Foundations of Marketing Third Edition Chapter 1: Customer-Driven Strategic Marketing Key Outline Term 1– 1

Objectives 1. Define marketing. 2. Understand several important marketing terms, 3. 4. 5. 6. including target market, marketing mix, marketing exchanges, and marketing environment. Be aware of the marketing concept and marketing orientation. Understand the importance of building customer relationships. Explain the major marketing functions that are part of the marketing management process. Understand the role of marketing in our society. Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 1– 3

Outline 1. Marketing Defined 2. Understanding the Marketing Concept 3. Managing Customer Relationships 4. Value-Driven Marketing 5. Marketing Management 6. The Importance of Marketing in Our Global Economy Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 1– 4

Key Terms customer relationship management (CRM) marketing environment relationship marketing customers marketing management stakeholders exchanges marketing mix target marketing orientation value marketing concept product Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 1– 5

1. WHAT IS MARKETING? The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchanges with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment. © Used By Permission. Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 1– 6

Who is the Focus? Customers The purchasers of organizations’ products; the focal point of all marketing activities. ü The Target Market § Hard Rock focuses on its target market to meet their needs © Used By Permission. Copyright © Houghton Mifflin Company. All rights reserved. 1– 7 Key Outline Term

Price Variable Decisions and actions associated with establishing pricing objectives and policies and determining product prices Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 1– 11

Distribution Variable Make products available in quantities desired Minimize costs: ü Inventory ü Transportation ü Storage Select/Motivate intermediaries Establish/Maintain inventory control Develop/Manage transportation & storage systems Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 1– 12

Promotion Variable Activities to inform individuals or groups about the organization and its products ü Increase awareness of the organization and new or existing products. Page 4 © Used By Permission. Copyright © Houghton Mifflin Company. All rights reserved. 1– 13 Key Outline Term

Relationships with Customers Exchange: The provision or transfer of goods, services, or ideas in return for something of value Figure 1. 2 Copyright © Houghton Mifflin Company. All rights reserved. Key Outline Term 1– 15

Relationships with other Stakeholders Constituents who have a stake or claim in some aspect of a company’s products, operations, markets, industry, and outcomes. Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 1– 17

2. THE MARKETING CONCEPT A managerial philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals. © Used By Permission. Copyright © Houghton Mifflin Company. All rights reserved. 1– 19 Key Outline Term

Marketing Orientation An organization-wide commitment to researching and responding to customer needs. © Used By Permission. Copyright © Houghton Mifflin Company. All rights reserved. 1– 22 Key Outline Term

3. MANAGING CUSTOMER RELATIONSHIPS Establishing long-term, mutually satisfying buyer-seller relationships. ü Customer Relationship Management (CRM) Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 1– 23

4. VALUE-DRIVEN MARKETING Value = Customer Benefits minus Customer Costs © Used By Permission. Rapala uses value to promote its products to fisherman around the world. Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 1– 25

5. MARKETING MANAGEMENT The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently. Effectiveness Efficiency Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 1– 26

6. IMPORTANCE OF MARKETING IN OUR GLOBAL ECONOMY Costs consume sizable portion of buyers’ dollars Used in nonprofit organizations Important to business and economy Fuels the global economy Knowledge enhances consumer awareness Connects people through technology Promotes welfare of customers and society Offers many exciting career prospects Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 1– 27

After reviewing this chapter you should: Be able to define marketing. Know the meaning of important marketing terms, including target market, marketing mix, marketing exchanges, and marketing environment. Be aware of the marketing concept and marketing orientation. Understand the importance of building customer relationships. Be able to explain the major marketing functions that are part of the marketing management process. Recognize the important role of marketing in our society. Key Outline Term Copyright © Houghton Mifflin Company. All rights reserved. 1– 30

Related presentations