Marketing Lecture Notes: The Art and Science of Satisfying Customers PDF

1 Marketing: The Art and Science of Satisfying Customers  Chapter 1 Marketing: The Art and Science of Satisfying Customers...

1 Marketing: The Art and Science of Satisfying Customers  Chapter 1 Marketing: The Art and Science of Satisfying Customers 2 A Definition of Marketing… ▪What is this thing we call Marketing? -A key organizational function and a set of processes designed to: ▪Create, communicate, and deliver value to customers ▪What does it mean to “create value”? ▪Managing customer relationships in ways that benefit the organization and its stakeholders ▪How do you do that as a marketer? © 2014 Cengage Learning. -It ALL starts with EXCELLENT Products All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 3 What activities are associated with Marketing?... ∎Communicating information about goods and services to prospective buyers ∎Making the products available when and where customers want them ∎Pricing merchandise and services ∎Providing after-sales service and following-up ∎Marketing is fun, exciting, rewarding, invaluable, and lucrative! © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 4 A company’s product Utility in Marketing is very important… ▪Utility - on exam -The want-satisfying power of a good or service ▪You and I, the end consumers, are looking for the satisfaction of needs ▪Marketing and Production create utility -If you want a great product (iphone) but it isn’t available (production constraints), there is no utility ▪Same thoughts surround Samsung -You want a great product but if it blows up in your ear, there is no utility!! More on this © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 5 Let’s talk about the 5 Eras of Marketing… © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 6 History of the Five Eras of Marketing… © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 7 The Production Era… ▪Stressed efficiency in producing a quality product -Prevailing attitude was “a good product will sell itself” ▪Business success was defined in terms of production success (Civil War through 1920’s) ▪Mass production ushered in lower consumer costs ▪Was this time in America prosperous? ▪Yes, Ford Model A, heavy metal industry, mass production ▪All was well until 1931, then what happened? ▪The Great Depression © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 8 The Sales Era… ▪Production techniques became more sophisticated from the 1920’s into the early 1950’s ▪Only personal selling and creative advertising will persuade customers to buy -Customers will resist purchasing non- essential items; they must be pushed to purchase ▪Companies began aggressive sales tactics to sell their products ▪The emphasis on effective sales forces to sell higher end products © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 9 The Marketing Era… ▪ Been a thing since the 1950’s ▪ Shift from a seller’s market to a buyer’s market -A strong buyer’s market (CHOICES) created the need for consumer orientation (advertising, consumer insights, consumer data, etc.) ▪ This sparked creation of Marketing / Advertising -All levels of the organization are focused on assessing and satisfying consumers needs ▪ Developed into the emergence of the © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 10 The Relationship Era… ▪The Relationship Era has always been in place throughout history -Without relationships there is NOTHING ! ▪Developing long-term, value-added relationships over time with customers and suppliers -Isn’t that just a fundamental, systemic foundation of everything?!!! ▪Strategic alliances and partnerships benefit everyone in the demand cycle -Manufacturers, Component Suppliers, and retailers © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 11 The Social Era… ▪Since 2000… ▪The fastest growing Era of marketing / sales -Speed at which consumers can educate themselves is instantaneous -Speed to do research on products, compare pricing in seconds is immediate ▪Characterized by the accessibility to the Internet and the creation of social media sites ▪Explosive use of social networking sites by companies to connect to consumers © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 12 All of this is great, but sometimes, even the greatest companies develop Marketing Myopia… © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 13 Okay, so what is it? … ▪Marketing myopia - Business laziness -Management’s failure to recognize the scope of its business (product focus vs customer focused) -Inability to continue to innovate – kiss of death (see Sony) ▪Overcoming marketing myopia -Organizations MUST develop broader marketing-oriented business ideas dedicated to customer needs -Always maintaining a “hunger” to keep the competitive edge ▪Your competitors are always trying to kill your company © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 14 So, lets look at some examples of Marketing Myopia…what do you think??? © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 15 Not-for-Profit Marketing… ▪Non-profit, or not-for-profit organizations: ▪Operate in both the public and private sector ▪Adopt marketing strategies to meet service objectives ▪Communicate their messages through advertisements relating to their goals ▪Form alliances with for-profit firms to promote each other’s causes -Also it gives the non-profit organizations credibility and strong support system © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 16 Not-for-profit Marketing… ▪Focus is to generate revenue to support the organization’s causes and not on the bottom line (Girl Scouts / Boy Scouts) ▪May market tangible goods and services but the focus is to support the cause ▪These companies markets to multiple audiences ▪Often possess some degree of monopoly power in a given geographic region ▪Who crushes it in Memphis, TN? © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 17 Let’s talk about Non- Traditional Marketing… © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 18 Non-traditional Marketing… ▪Person marketing -Efforts to cultivate the attention, interest, and preferences of a target market toward a person -Celebrity endorsements ▪Place marketing -Efforts to attract people and organizations to a particular geographic area -Tourism enhancements (states promoting vacation destinations, cities, countries, zoo’s) © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 19 Non-traditional Marketing… ▪Cause marketing -Identification and marketing of a social issue, cause or idea to selected target markets -Can you think of any? ▪Many profit-seeking firms link their products to social causes -Why do they do that? ▪Strong support among customers and employees for cause-related marketing -Empowers employees, engenders pride, © 2014 Cengage Learning. etc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 20 Non-traditional Marketing… ▪Event marketing -Marketing of sports, cultural, and charitable activities to selected target markets -Includes sponsorship of such events by organizations ▪Event sponsorships have gained effectiveness in increasing brand recognition, enhancing image, boosting purchase volume © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 21 Non-traditional Marketing… ▪Organization marketing – focused on marketing of the company’s prowess -Intended to persuade the public to: ▪Accept the organization’s goals ▪Receive its services ▪Contribute to the organization in some way ▪Adopted by highly technical organizations, service organizations, and government organizations ▪Boeing, USPS © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 22 There’s also Transaction- Based Marketing… ▪Buyer and seller exchanges characterized by limited communications -Limited ongoing relationships between the parties because of the nature of the business (ie: seasonal) -BUT, is the relationship still extremely important? ▪Marketers realize that consumers are becoming more and more sophisticated ▪All parties are understanding that ”face time” is important © 2014 Cengage Learning. -The All Rights eyes Reserved. are May not the copied be scanned, ”window tooryour or duplicated, posted to soul” a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 23 In most instances, you want STRONG Relationship Marketing… ▪Relationship marketing gives companies -Opportunities to gain a competitive edge -Ability to move customers to a loyal follower -Companies want loyal customers ▪It starts with determining what customers need and want -Then developing high-quality products to meet those needs ▪Product is King – if you don’t have great products, you will fail. Period.(Lock In on That)- Personally © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers Converting New Customers to Advocates… 24 Why is this so important? © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 25 Using Social Marketing to Build Relationships… ▪Mobile marketing -Marketing messages transmitted via wireless technology -Is this growing in the US? Globally? ▪Interactive marketing -Buyer–seller communications where the customer controls the amount and type of information received from a marketer -You can always click “unsubscribe” right? ▪I’ve hit “delete” on every one of my brothers at one point on social media © 2014 Cengage Learning. -Rednecks from Tennessee… All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 26 Using Social Marketing to Build Relationships… ▪Some of the best repeat customers are those who are also willing to spread the word ▪Buzz marketing -Word of mouth messaging that bridges the gap between a company and its products ▪What is, currently, the best vehicle for word-of- mouth advertising? ▪Facebook (Meta) by far… ▪What about Google (now a subsidiary of Alphabet)… Google now spans into a wide range of industries (robotics, life sciences, healthcare) © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 27 Developing Partnerships and Strategic Alliances… ▪Strategic alliances -Partnerships in which two or more companies -Combine resources and capital -To create competitive advantages in a new or existing market(s) ▪Relationship marketing extends to business-to- business relationships with suppliers, distributors, and other partners © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 28 Developing Partnerships and Strategic Alliances… ▪Forms of alliances ▪Product development partnerships ▪Vertical alliances (owned companies) ▪Not-for-profit organizations: -Often use strategic alliances -To raise awareness and funds for their causes -For profit businesses are much better / adept at raising funds than not-for-profit © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 29 Eight Universal Marketing Functions… © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 30 What about Ethics and Social Responsibility… ▪Ethics -Moral standards of behavior expected in a society (whether it’s you and I or a business entity) ▪Social responsibility -Marketing philosophies, policies, procedures, and actions that have the enhancement of society’s welfare as a primary objective ▪Most businesses follow ethical practices, although there certainly have been breaches © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible  Chapter 1 Marketing: The Art and Science of Satisfying Customers 31 Ethics and Social Responsibility… ▪Sustainable products -Products that can be produced, used, and disposed of with minimal impact on the environment ▪What’s another name for sustainability? Going…. ▪Socially responsible efforts produce such benefits as: ▪Improved customer relationships ▪Increased employee loyalty ▪Marketplace success ▪Improved financial performance © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible