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ONE
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Define marketing and explain the importance of (1) discovering and (2) satisfying consumer needs and wants. Distinguish between marketing mix elements and environmental factors. Understand how organizations build strong customer relationships using current thinking about customer value and relationship marketing.
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2000 McGraw-Hill Ryerson Limited
Describe how todays market orientation era differs from prior eras oriented to production and selling. Understand the meaning of ethics and social responsibility and how they relate to the individual, organizations, and society. Know what is required for marketing to occur and how it creates customer value and utilities for consumers.
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2000 McGraw-Hill Ryerson Limited
Rollerblade Skates
Conversations with in-line skaters indicated that using Rollerblade skates: was incredible fun was a great aerobic workout and made the skater stronger and healthier was quite different from traditional skating, which was practiced alone, mostly inside, and by young girls would have great appeal to people other than just off-season ice hockey skaters and skiers.
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2000 McGraw-Hill Ryerson Limited
Number Numberof of in-line skaters in-line skaters passes passes10,000,000 10,000,000 Two Twobrothers brothers reinvent reinvent in-line in-lineskates skates
Rollerblades guerilla marketing launches in-line skate industry
First FirstExtreme Extreme Games Gamesfeatures features in-line skating in-line skating competition competition
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29.1 27.5
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0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
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1.In a magazine article, a well-known actress said she often Rollerbladed for fun and exercise. What was Rollerblade, Inc.s reaction? (a) delighted, (b) upset, or (c) somewhere in between. Why? 2.What is Polavision? (a) a new breathable contact lens, (b) a TV network that competes with Home Box Office, (c) special bifocal glasses, (d) instant movies, or (e) a political newspaper.
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2000 McGraw-Hill Ryerson Limited
Definition of Marketing
Marketing Marketing is is .. .. .. ..
the the process process of of planning planning and and executing executing the the conception, conception, pricing, pricing, promotion, promotion, and and distribution distribution of of ideas, ideas, goods, goods, and and services services to to create create exchanges exchanges that that satisfy satisfy individual individual and and organizational organizational objectives. objectives.
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2000 McGraw-Hill Ryerson Limited
(2)sharing (2)sharing this this information information across across departments, departments, and and (3) (3)using using the the information information to tocreate create customer customer value. value.
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2000 McGraw-Hill Ryerson Limited
Definition of Exchange
Exchange Exchange is is .. .. .. ..
the the trade trade of of things things of of value value between between buyer buyer and and seller seller so so that that each each is is better better of of after after the the trade. trade.
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2000 McGraw-Hill Ryerson Limited
PP1-3 An organizations marketing department relates to many people, groups, and forces The Organization Society Society
Alliances Other Organizations Research and Development Human Resources Ownership Shareholders (owners)
Management
Finance
Marketing
Customers
Environmental
Social
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Forces
Competitive Regulatory
Economic
Technological
Concept Check
1. 2.
3.
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What is a Market?
Potential consumers make up a market, which is: 1. 2. 3. People with the desire and with the ability to buy a specific product.
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2000 McGraw-Hill Ryerson Limited
Social Factors Economic Factors Technological Factors Competitive Factors Regulatory Factors
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2000 McGraw-Hill Ryerson Limited
Ec
on
m Co
ti e p
om
Marketing program
ic
for
ce
Prom
Prod
uct
otion
Technological forces
Environmental forces
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2000 McGraw-Hill Ryerson Limited
Soci
Pr
ice
ac l P
al fo
rces
Consumer
Customer Value
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Relationship Marketing
Relationship marketing is linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits. Mutual long-term benefits between the organization and its customers require links to other vital stakeholders-including suppliers, employees, and partners such as wholesalers or retailers in a manufacturers channel of distribution.
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2000 McGraw-Hill Ryerson Limited
Mass Customization Mass Customization is tailoring goods or services to the tastes of individual customers in high volumes at a relatively low cost.
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2000 McGraw-Hill Ryerson Limited
Satisfy consumer needs Find the right combination of: Product Price Promotion Place
PP1-6a Marketing Program for two of Rollerblade, Inc.s skates, targeted at two distinctly different segments
Marketing Program Activity to Reach Marketing Mix Element Product Fast-Growing Kids Segment Offer the Xten-plus skate for children that extends so that it changes four shoe sizes as the children grow Rationale for Rough-Road Marketing Program Segment Activity Offer the Outback Use new-product X skate with research, the latest trapped air filled technology, and wheels & a fullextensive testing to suspension frame offer high-quality that cushions the skates that satisfy ride on rough the wants & needs roads & cracked of carefully defined pavement customer segments
2000 McGraw-Hill Ryerson Limited
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PP1-6b Marketing Program for two of Rollerblade, Inc.s skates, targeted at two distinctly different segments
Marketing Program Activity to Reach Marketing Mix Element Price Fast-Growing Kids Segment Price @ $99/pair Rationale for Rough-Road Marketing Program Segment Activity Price @ $199/pair Attempt to set prices that provide genuine value to the customer segment that is targeted
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PP1-6c Marketing Program for two of Rollerblade, Inc.s skates, targeted at two distinctly different segments
Marketing Program Activity to Reach Marketing Mix Element Promotion Rationale for Fast-Growing Rough-Road Marketing Program Kids Segment Segment Activity Use demo vans & blade- Feature Rblade Continue to increase mobiles to introduce brand in ESPN awareness of in-line children to in-line in-line sports skating to those new skating while working competitions & to the sport while with Rblade dealers magazines such offering specific to place ads in local as Shape, Fitness, skate designs for newspapers Mademoiselle, and more advanced inline & local segments want them newspapers
2000 McGraw-Hill Ryerson Limited
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PP1-6d Marketing Program for two of Rollerblade, Inc.s skates, targeted at two distinctly different segments
Marketing Program Activity to Reach Marketing Mix Element Place Fast-Growing Kids Segment Distribute the Xtenplus through sporting goods stores Rough-Road Segment Distribute the Outback X through specially in-line sporting goods stores Rationale for Marketing Program Activity Make it easy for buyers in the segment to buy at an outlet that is convenient and where they feel comfortable
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How Rollerblade, Inc.s marketing mix actions today differ from those in 1986
BASIS OF COMPARISON
Number of competitors Main Rollerblade marketing objective Main marketing mix actions Product Price Promotion Place Place
SITUATION IN 1986
Almost none Inform/educate potential buyers; gain awareness Only a few models Relatively high, narrow range Guerilla marketing promotions on tiny budget to gain product exposure Sporting Sportinggoods goodsstores stores
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Concept Check
1. An organization cant satisfy the needs of all consumers, so it must focus on one or more subgroups, which are its ______________. What are the four marketing mix elements that make up the organizations marketing program? What are uncontrollable variables?
2000 McGraw-Hill Ryerson Limited
2.
3.
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Production era
Ultimate Consumers
Organizational Buyers
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2000 McGraw-Hill Ryerson Limited
Examples Examples of ofMarketing Marketing Actions Actions that thatCreate CreateUtility Utility Product Productdesign, design, packaging packaging Distribution, Distribution, store storelocation location Inventory Inventory management, management, warehouses, warehouses, delivery delivery Transactions, Transactions, transfer transfer of ofownership ownership
2000 McGraw-Hill Ryerson Limited
Concept Check
1. Like Pillsbury, many firms have gone through four distinct orientations for their business: starting with the _______ era and ending with todays _______ era. What are the two key characteristics of the marketing concept? In this book the term product refers to what three things?
2000 McGraw-Hill Ryerson Limited
2. 3.
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