Principles of Marketing (19th Edition) PDF

Principles of Marketing Nineteenth Edition Chapter 1 Marketing: Creating Customer Value and Engagement Copyright © 2024, 2021, 2018 Pearson Education,...

Principles of Marketing Nineteenth Edition Chapter 1 Marketing: Creating Customer Value and Engagement Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Learning Objectives 1.1 Define marketing and outline the steps in the marketing process. 1.2 Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. 1.3 Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. 1.4 Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return. 1.5 Describe the major trends and forces that are changing the marketing landscape in this age of relationships. Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved First Stop: Amazon Amazon does much more than just sell goods online. It engages customers and creates satisfying customer experiences. “The thing that drives everything is creating genuine value for customers,” says Amazon founder Jeff Bezos. © 1996–2021, Amazon.com, Inc. or its affiliates Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Learning Objective 1 Define marketing and outline the steps in the marketing process. Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved What Is Marketing? Marketing is a process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved What Is Marketing? Marketing is all around you, in good old traditional forms and in a host of newer forms, from websites and mobile apps to online videos and social media. Cathy Yeulet/123 RF Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Figure 1.1 The Marketing Process: Creating and Capturing Customer Value Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Learning Objective 2 Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Understanding the Marketplace and Customer Needs Needs are states of felt deprivation. Wants are the form human needs take as they are shaped by culture and individual personality. Demands are human wants that are backed by buying power. Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Understanding the Marketplace and Customer Needs Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Marketing myopia—paying more attention to the specific products than to the benefits and experiences produced Marketing ideas and causes: The Ad Council’s “Texting and Driving Prevention” campaign addresses the disconnect between awareness and behavior by reminding drivers from 16 “Text and Whatever.” Pereira O’Dell for the to 34 that no one is special enough to National Highway Traffic Safety Administration and Ad Council’s Texting and message while driving. Driving Prevention campaign. Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Real Marketing 1.1: Mahali Mzuri: An Immersive Experience at the World’s Number-One Hotel Marketing experiences: When it comes to delivering unforgettable experiences, few travel and hospitality businesses can match Kenya’s Mahali Mzuri safari camp, recently named by Travel + Leisure magazine as the “#1 hotel in the world.” Adam Slama Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Understanding the Marketplace and Customer Needs Customers form expectations about the value and satisfaction of market offerings. – Satisfied customers buy again – Dissatisfied customers switch to competitors Exchange is the act of obtaining a desired object from someone by offering something in return. Marketing actions try to create, maintain, and grow desirable exchange relationships. Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Understanding the Marketplace and Customer Needs A market is the set of actual and potential buyers. Consumers market when they: search for products interact with companies to obtain information make purchases Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Understanding the Marketplace and Customer Needs Figure 1.2 A Modern Marketing System Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Learning Objective 3 Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Designing a Customer Value-Driven Marketing Strategy and Plan Marketing management is the art and science of choosing target markets and building profitable relationships with them. What customers will we serve (target market)? How can we best serve these customers (value proposition)? Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Designing a Customer Value-Driven Marketing Strategy and Plan Market segmentation refers to dividing the markets into segments of customers. Target marketing refers to which segments to go after. Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Designing a Customer Value-Driven Marketing Strategy and Plan Value propositions: A brand’s value proposition is the set of benefits or values it promises to deliver to customers to satisfy their needs. Value propositions: JetBlue promises “award-winning service from award- winningly nice humans.” “Just Alright Doesn’t Fly Here.” Courtesy of JetBlue Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Designing a Customer Value-Driven Marketing Strategy and Plan Figure 1.3 Selling and Marketing Concepts Contrasted Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Designing a Customer Value-Driven Marketing Strategy and Plan Production concept Product concept Selling concept Marketing concept Societal Marketing concept The societal marketing concept: Jeni’s Splendid Ice Creams, LLC Jeni’s Splendid Ice Creams does more than just make good ice cream. It makes “ice creams created in fellowship with growers, makers, and producers from around the world all for the love of you.” Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Designing a Customer Value-Driven Marketing Strategy and Plan Production concept: Consumers will favor products that are available and highly affordable Product concept: Consumers favor products that offer the most quality, performance, and features Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Designing a Customer Value-Driven Marketing Strategy and Plan Selling concept: Consumers will not buy enough of the firm’s products unless the firm undertakes a large- scale selling and promotion effort Marketing concept: Know the needs and wants of the target markets and deliver the desired satisfactions better than competitors Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Designing a Customer Value-Driven Marketing Strategy and Plan Societal marketing: The company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Designing a Customer Value-Driven Marketing Strategy and Plan Societal marketing: The company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests. Figure 1.4 Three Considerations Underlying the Societal Marketing Concept Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Designing a Customer Value-Driven Marketing Strategy and Plan The marketing mix is comprised of a set of tools known a the four Ps: Product Price Promotion Place The marketing mix is the set of tools (four Ps) the firm uses to implement its marketing strategy. This set includes product, price, promotion, and place Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Changing Marketing Landscape Social media provide exciting opportunities to extend customer engagement and get people talking about a brand. Mobile marketing: Using mobile channels to stimulate immediate buying, make shopping easier, and enrich the brand experience. Big Data and AI: Brands can use big data to gain deep customer insights, personalize marketing offers, and improve customer engagements and service. Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Changing Marketing Landscape Rapid Globalization: Managers around the world are taking both local and global views of the company’s – Industry – Competitors – Opportunities Sustainable Marketing: Corporate ethics and social responsibility have become important for every business. Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved