Chapter 1: Marketing in a Changing World PDF

Chapter 1 Marketing in a Changing World: Creating Customer Value and Satisfaction What is Marketing? Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. More simply: Marketing is...

Chapter 1 Marketing in a Changing World: Creating Customer Value and Satisfaction What is Marketing? Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. More simply: Marketing is the delivery of customer satisfaction at a profit. Let’s break it down: “Marketing” Core Marketing Concepts Product Needs, s and wants, Services and demands Core Marketing Concepts Market s Value, satisfaction, and quality Exchange, transactions, and relationships What Motivates a Consumer to Take Action? Needs - state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging. i.e. I am thirsty Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a Coca-Cola. Demands - human wants backed by buying power. i.e. I have money to buy a Coca-Cola. What Will Satisfy Consumer’s Needs and Wants? Products - anything Services - activities or that can be offered to a benefits offered for market for attention, sale that are acquisition, use or essentially intangible consumption and that and don’t result in the might satisfy a need or ownership of anything. want. Examples: banking, Examples: persons, airlines, haircuts, and places, organizations, hotels. activities, and ideas. How Do Consumers Choose Choose Among Products and Services? Customer Value - benefit that the customer gains from owning and using a product compared to the cost of obtaining the product. 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 - act of obtaining a desired object from someone by offering something in return. Transactions - trade of values between parties. Usually involves money and a response. Relationships - building long-term relationships with consumers, distributors, dealers, and suppliers. Who Purchases Products and Services? Actual Market - buyers Buyers who share a particular need or want that can be satisfied by a company’s products Potential or services. Buyers Modern Marketing System Suppliers Company Competitors (Marketer) Environment Environment Marketing Intermediaries 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, also changing or reducing demand Profitable Customer Relationships Attracting new customers and retaining current customers Marketing Management Philosophies Consumers favor products that are Production Concept available and highly affordable Improve production and distribution Consumers favor products that offer Product Concept the most quality, performance, and innovative features Consumers will buy products only if Selling Concept the company promotes/ sells these product Focuses on needs/ wants of target Marketing Concept markets & delivering satisfaction better than competitors Focuses on needs/ wants of target Societal Marketing Concept markets & delivering superior value Society’s well-being Marketing & Sales Concepts Contrasted Starting Focus Means Ends Point Selling Profits Existing Factory and through Products Promoting Volume The Selling Concept Profits Customer Integrated Market through Needs Marketing Satisfaction The Marketing Concept Societal Marketing Concept Society (Human Welfare) Societal Marketing Concept Consumers Company (Wants) (Profits) New Marketing Challenges New Marketing Landscape & Information Nonprofit Technology Marketing Emerging Ethical Concerns Challenges Globalizatio n Changing World Economy