Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:

LO1

Define marketing and identify the diverse factors influencing marketing activities.

LO2

Explain how marketing discovers and satisfies consumer needs.

Distinguish between marketing mix elements and environmental forces.

LO3

Slide 1-2

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:

LO4

Explain how organizations build strong customer relationships and customer value through marketing. Describe how todays customer relationship era differs from prior eras oriented to production and selling.

LO5

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HOW DO COLLEGE STUDENTS STUDY?

3Ms RESPONSE TO A NEW-PRODUCT CHALLENGE!

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HOW DO COLLEGE STUDENTS STUDY?

DISCOVERING STUDENT STUDYING NEEDS

+
3M Post-it Notes or Post-it Flags Felt Tip Highlighters

=
3M product that will combine Post-it Notes or Post-it Flags and Highlighters

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HOW DO COLLEGE STUDENTS STUDY?

SATISFYING STUDENT STUDYING NEEDS

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LO1

WHAT IS MARKETING ?
You Are a Marketing Expert Already
Involved in 1,000s of Buying Decisions May Be Involved in Selling Decisions

Marketing is NOT Easy

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FIGURE 1-1 The see-if-youre-really-amarketing-expert test

1. True

2. True

3. (c) plastic bottles

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MARKETING MATTERS
LO1

Payoff for the Joys (!) and Sleepless Nights (?) of Starting Your Own Small Business: YouTube!!!!

Slide 1-9

LO1

WHAT IS MARKETING?
DELIVERING BENEFITS

Marketing Seeks to:

Discover Needs and Wants of Customers Satisfy Them

Exchange

AMA Definition of Marketing

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LO1

WHAT IS MARKETING?
DIVERSE FACTORS INFLUENCE MARKETING ACTIVITIES

The Organization Itself

Society Environmental Forces

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FIGURE 1-2 A marketing department relates to many people, organizations, and environmental forces

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LO2

HOW MARKETING DISCOVERS CONSUMER NEEDS

THE CHALLENGE: NEW PRODUCTS

Consumers May Not Know or Cannot Describe What They Need or Want
Most New Products Fail The Challenge:
Focus on the Consumer Benefit Learn From the Past
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LO2

Dr. Care Vanilla-Mint Aerosol Toothpaste

What benefits and what showstoppers?

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LO2

Hot Pockets Subs Microwaveable Snacks

What benefits and what showstoppers?

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LO2

iRobot Scooba Robotic Floor Washer

What benefits and what showstoppers?

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LO2

Coca Cola C2
What benefits and what showstoppers?

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LO2

HOW MARKETING DISCOVERS CONSUMER NEEDS

NEEDS VS. WANTS

Need Want Does Marketing Persuade People to Buy the Wrong Things? Market
Slide 1-18

FIGURE 1-3 Marketing seeks to discover consumer needs through research and then satisfy them with a marketing program

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LO3

HOW MARKETING SATISFIES CONSUMER NEEDS Target Market

The 4 Ps: Controllable Marketing Mix Factors
Product Promotion
$399

Price

Place
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LO3

HOW MARKETING SATISFIES CONSUMER NEEDS

Uncontrollable Environmental Forces
Social Economic Competitive Regulatory

Technological

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LO4

THE MARKETING PROGRAM

CUSTOMER VALUE AND RELATIONSHIPS

Customer Value

Value Strategies
Best Price Best Product Best Service

Slide 1-22

LO4

Costco and Starbucks

What customer value strategy?

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LO4

THE MARKETING PROGRAM

RELATIONSHIP MARKETING

Relationship Marketing
Easy to Understand

Hard to Do

Marketing Program

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LO4

3MS STRATEGY & MARKETING PROGRAM

HELPING STUDENTS STUDY

Move from Ideas to a Marketable Highlighter Product

Extend the Product Line

Develop a Marketing Program for the Post-it Flag Highlighter and Pen
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FIGURE 1-4 Marketing programs for two new 3M Post-it brand products targeted at two distinct customer segments: college students and office workers

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LO4

3M STRATEGY & MARKETING PROGRAM

MARKETPLACE SUCCESS?

Developed Second Generation Post-it Flag Highlighter

Appeared on The Oprah Winfrey Show

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LO5

HOW MARKETING BECAME IMPORTANT

EVOLUTION OF THE MARKET ORIENTATION

Production Era Sales Era Marketing Concept Era

Customer Relationship Era

Market Orientation

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LO5

HOW MARKETING BECAME IMPORTANT

ETHICS AND SOCIAL RESPONSIBILITY

Ethics

Social Responsibility
Societal Marketing Concept

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LO6

HOW MARKETING BECAME IMPORTANT

BREADTH AND DEPTH OF MARKETING

Who Markets? What Is Marketed?

Goods

Services

Ideas
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LO5

HOW MARKETING BECAME IMPORTANT

BREADTH AND DEPTH OF MARKETING

Who Buys & Uses What Is Marketed?

Ultimate Consumers Organizational Buyers

Who Benefits? How Do Consumers Benefit?

Utility
Form Utility Place Utility Time Utility Possession Utility
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