Marketing Chapter 1: Changing World Concepts

Chapter 1: Marketing in a Changing World

• Marketing is the process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
• Marketing is more simply the delivery of customer satisfaction at a profit.
• Marketing involves companies providing solutions in the form of products, services, and experiences to solve customer problems—satisfying needs, wants, and demands—and customers paying back financially. Relationships are built in the process.
• Marketing is putting the right product in the right place, at the right price, at the right time.

Core Marketing Concepts

• Market: Includes individuals, needs, and wants and demands.
• Core Marketing Concept: The core ideas of value, satisfaction, quality, exchange transactions, and relationships.
• Product and Services are central to marketing concepts

What Motivates a Consumer to Take Action?

• Needs: State of felt deprivation for basic items like food, clothing, and complex needs like belonging.
• Wants: The form that a human need takes, shaped by culture and individual personality.
• Demands: Human wants backed by buying power.

What Will Satisfy Consumer Needs and Wants?

• Products: Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want. Examples include people, places, organizations, activities, and ideas.
• Services: Activities or benefits offered for sale that are intangible and don't result in ownership of anything. Examples include banking, airlines, haircuts, and hotels.

How Do Consumers Choose Among Products and Services?

• Customer Value: The benefit a customer gains from owning and using a product compared to the cost of obtaining it.
• Customer Satisfaction: Depends on the product's perceived performance in delivering value relative to a buyer's expectations; linked to Quality and Total Quality Management (TQM).

How Do Consumers Obtain Products and Services?

• Exchanges: The act of obtaining a desired object from someone by giving something in return.
• Transactions: The trade of values between parties, usually involving money and a response.
• Relationships: Building long-term relationships with consumers, distributors, dealers, and suppliers.

Who Purchases Products and Services?

• Market: Buyers who share a particular need or want that can be satisfied by a company's products or services.
• Actual Buyers: Consumers who have executed the purchase.
• Potential Buyers: Consumers who are interested in purchasing but haven't yet.

Modern Marketing System

• A model depicting the relationships between suppliers, competitors, the company (marketer), marketing intermediaries, and the end-user market.

Marketing Management

• Marketing Management: Implementing programs to create exchanges with target buyers to achieve organizational goals.
• Demand Management: Finding and increasing demand, and changing or reducing demand.
• Profitable Customer Relationships: Attracting new customers and retaining existing ones.

Marketing Management Philosophies

• Production Concept: Consumers favor products available and affordable.
• Product Concept: Consumers favor products offering quality, performance, and innovative features.
• Selling Concept: Consumers will only buy products if the company promotes them heavily.
• Marketing Concept: Focuses on needs and wants of target markets and delivering superior customer satisfaction., exceeding competitors.
• Societal Marketing Concept: Focuses on needs and wants of target markets to deliver superior value while considering society's well-being.

Selling vs. Marketing Concepts

• Selling Concept: Focuses on the selling of existing products to maximize profit.
• Marketing Concept: Focuses on the needs of a customer to offer value & satisfaction.

Societal Marketing Concept

• Emphasizes the needs of consumers and the well-being of society along with the company's profits.

New Marketing Challenges

• New Marketing Landscape & Information Technology: The changing digital environment.
• Ethical Concerns: Ethical implications of marketing practices.
• Nonprofit Marketing: Marketing for non-profit organizations.
• Globalization: Global marketing challenges & opportunities.
• Changing World Economy: Global economic shifts impacting marketing strategy.

Explore the foundational concepts of marketing as outlined in Chapter 1. This quiz delves into the processes of meeting customer needs, the importance of relationships, and the core marketing concepts such as value, satisfaction, and quality. Test your understanding of how marketing adapts to a changing world.