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TheUniversityofReginaprovidesadynamic,innovativeandsupportivelearningexperiencewithagrowingnationalreputationforexcellenceinteachingandresearch.TheUniversity’scomprehensiveservicesandprogramspreparestudentstoexcelinlocalandglobalcommunitiesanditsresearchopportunitiesattractthebestandbrightestminds.Location:
MainCampus
3737WascanaParkway,Regina,Saskatchewan,CanadaTheUniversityofReginaproviMarketing
6thCanadianEditionMarketing
6thCanadianEditionMarketing:CustomerValue,Satisfaction,andCustomerRelationships1Marketing:CustomerValue,SatDefineMarketing.Knowthebasicrequirementsforsuccessfulmarketingtooccur.Understandthebreadthanddepthofmarketing.Explainhowmarketingdiscoversandsatisfiesconsumerneedsandwants.LearningObjectivesAfterreadingthischapter,youshouldbeableto:DefineMarketing.LearningObjeDistinguishbetweenmarketingmixelementsandenvironmentalfactors.Describehowmarketorientationinthepresenterafocusesoncreatingcustomervalue,satisfaction,andcustomerrelationships.Understandthemeaningofethicsandsocialresponsibilityandhowtheyrelatetotheindividual,organizations,andsociety.LearningObjectivesAfterreadingthischapter,youshouldbeableto:Distinguishbetweenmarketing
Marketingisnot:advertisingsellingcommonsensehucksterismmanipulatingWHATMARKETINGISANDWHATITISNOTMarketingisnot:WHATMARKETIMarketingis:anorganizationalfunctionasetofprocessesforcreating,communicating,anddeliveringvaluetocustomersmanagingcustomerrelationshipsinwaysthatbenefittheorganizationanditsstakeholdersWHATMARKETINGISANDWHATITISNOTMarketingis:WHATMARKETINGISRequirementsforMarketingtoOccurTwoorMorePartieswithUnsatisfiedNeedsDesireandAbilitytoSatisfyTheseNeedsAWayforthePartiestoCommunicateSomethingtoExchangeWHATMARKETINGISANDWHATITISNOTRequirementsforMarketingtoTheBreadthandDepthofMarketingWhatisaMarket?WhoMarkets?WhatisMarketed?SocialMarketingWHATMARKETINGISANDWHATITISNOTTheBreadthandDepthofMarkeTheBreadthandDepthofMarketing(cont.)WhoBuysandUsesWhatisMarketed?UltimateCustomersOrganizationalBuyersWhoBenefits?WHATMARKETINGISANDWHATITISNOTTheBreadthandDepthofMarkeTheDiverseFactorsInfluencingMarketingActivitiesWHATMARKETINGISANDWHATITISNOTTheDiverseFactorsInfluencin©2006McGraw-HillRyersonLtd.Allrightsreserved.FIGURE1-1Anorganization’smarketingdepartmentrelatestomanypeople,groups,andforces©2006McGraw-HillRyersonLtd
ConceptCheckWhatismarketing?Answer:AccordingtotheAmericanMarketingAssociation,"marketingisanorganizationalfunctionandasetofprocessesforcreating,communicating,anddeliveringvaluetocustomersandformanagingcustomerrelationshipsinwaysthatbenefittheorganizationanditsstakeholders." ConceptCheckWhatismarkeConceptCheckMarketingfocuseson__________and___________prospectivecustomers’needsandwants.discoveringsatisfyingConceptCheckMarketingfocuses
ConceptCheckWhatfourfactorsareneededformarketingtooccur?Answer:(1)Twoormorepartieswithunsatisfiedneeds,(2)adesireandabilityontheirpartbesatisfied,(3)awayforthepartiestocommunicate,and(4)somethingtoexchange. ConceptCheckWhatfourfacDiscoveringConsumerNeedsConsumerNeedsandConsumerWantsHOWMARKETINGDISCOVERSANDSATISFIESCONSUMERNEEDSDiscoveringConsumerNeedsHOW©2006McGraw-HillRyersonLtd.Allrightsreserved.FIGURE1-2
Marketing’sfirsttask:discoveringconsumerneeds©2006McGraw-HillRyersonLtdSatisfyingConsumerNeedsTargetmarketTheFourPs:ControllableMarketingMixFactorsProductPricePromotionPlaceTheUncontrollable,EnvironmentalFactorsHOWMARKETINGDISCOVERSANDSATISFIESCONSUMERNEEDSSatisfyingConsumerNeedsHOWMTheMarketingProgramTHEMARKETINGPROGRAMTheMarketingProgramTHEMARKE©2006McGraw-HillRyersonLtd.Allrightsreserved.FIGURE1-3
Marketing’ssecondtask:satisfyingconsumerneeds©2006McGraw-HillRyersonLtd©2006McGraw-HillRyersonLtd.Allrightsreserved.FIGURE1-4
MarketingProgramforCurves©2006McGraw-HillRyersonLtdConceptCheckAnorganizationcan’tsatisfytheneedsofallconsumers,soitmustfocusononeormoresubgroups,whichareits________________.targetmarketsConceptCheckAnorganizationc
ConceptCheckWhatarethefourmarketingmixelementsthatmakeuptheorganization’smarketingprogram?Answer:Thefourmarketingmixelementsthatmakeuptheorganization'smarketingprogramareproduct,price,promotion,andplace,orotherwiseknownasthe4P's.Thisportionofthemarketingprogramiscontrollablebythemarketingdepartmentsanditsorganization. ConceptCheckWhatarethe
ConceptCheckWhatareuncontrollablevariables?Answer:Uncontrollablefactorsarelargelybeyondthecontrolofthemarketingdepartmentanditsorganization.Thesearetheenvironmentalfactorsinamarketingdecisioninvolvingsocial,economic,technological,competitive,andregulatoryforces. ConceptCheckWhatareuncoEvolutionofMarketOrientationProductionEraSalesEraTheMarketingConceptEraMarketingconceptHOWMARKETING
BECAMESOIMPORTANTEvolutionofMarketOrientatioEvolutionofMarketOrientation(cont.)TheMarketOrientationEraCustomerValueCustomerSatisfactionCustomerrelationshipmanagement(CRM)Customerlifetimevalue(CLV)eCRMHOWMARKETING
BECAMESOIMPORTANTEvolutionofMarketOrientatio©2006McGraw-HillRyersonLtd.Allrightsreserved.FIGURE1-5FourdifferentorientationsinthehistoryofNorthAmericanbusiness©2006McGraw-HillRyersonLtd©2006McGraw-HillRyersonLtd.Allrightsreserved.WhattypeofvaluedoesStarbucksoffertheircustomers?©2006McGraw-HillRyersonLtdEthicsandSocialResponsibility:
BalancingtheInterestsofDifferentGroupsEthicsSocialResponsibilitySocietalmarketingconceptMacromarketingMicromarketingHOWMARKETING
BECAMESOIMPORTANTEthicsandSocialResponsibiliConceptCheckManyfirmshavegonethroughfourdistinctorientationsfortheirbusinesses:startingwiththe__________eraandendingwithtoday’s________________era.productionmarketorientationConceptCheckManyfirmshaveg
ConceptCheckAnorganizationthathasamarketingorientationfocusesitseffortsonwhat3things?Answer:(1)continuouslycollectinginformationaboutcustomers’needsandcompetitors’capabilities,(2)sharingthisinformationthroughouttheorganization,and(3)usingtheinformationtocreatevalue,ensurecustomersatisfaction,anddevelopcustomerrelationships. ConceptCheckAnorganizati
ConceptCheckTheprocessofbuildinganddevelopinglong-termrelationshipswithcustomersbydeliveringcustomervalueandsatisfactioniscalled________________.Answer:Customerrelationshipmanagement(CRM) ConceptCheckTheprocessoMarketingistheprocessofplanningandexecutingtheconception,pricing,promotion,anddistributionofideas,goods,andservicestocreateexchangesthatsatisfyindividualandorganizationalobjectives.MarketingMarketingistheprocessofplAmarketispeoplewiththedesireandwiththeabilitytobuyaspecificproduct.MarketAmarketispeoplewiththedeEnvironmentalfactorsaretheuncontrollablefactorsinvolvingsocial,economic,technological,competitive,andregulatoryforces.EnvironmentalFactorsEnvironmentalfactorsaretheOneormorespecificgroupsofpotentialcustomerstowardwhichanorganizationdirectsitsmarketingprogram.TargetMarketOneormorespecificgroupsofThemarketingmixisproduct,price,promotion,andplace.MarketingMixThemarketingmixisproduct,Customervalueistheuniquecombinationofbenefitsreceivedbytargetedbuyersthatincludesquality,price,convenience,on-timerdeliveryandbothbefore-saleandafter-saleservice.CustomerValueCustomervalueistheuniquecThemarketingprogramisaplanthatintegratesthemarketingmixtoprovideagood,service,orideatoprospectivebuyers.MarketingProgramThemarketingprogramisaplaThemarketingconceptistheideathatanorganizationshouldstrivetosatisfytheneedsofconsumers,whilealsotryingtoachievetheorganization’sgoals.MarketingConceptThemarketingconceptistheiAnorganizationthathasamarketorientationfocusesitseffortsoncontinuouslycollectinginformationaboutcustomers’needsandcompetitorscapabilities,sharingthisinformationacrossdepartments,andusingtheinformationtocreatecustomervalue.MarketOrientationAnorganizationthathasamarCustomerrelationshipmanagementistheprocessofidentifyingprospectivebuyers,understandingthemintimately,anddevelopinglong-termperceptionsoftheorganizationanditsofferingsothatbuyerswillchoosetheminthemarketplace.CustomerRelationshipManagement(CRM)CustomerrelationshipmanagemeThesocietalmarketingconceptistheviewthatanorganizationshoulddiscoverandsatisfytheneedsofitsconsumerinawaythatalsoprovidesforsociety’swell-being.SocietalMarketingConceptThesocietalmarketingconceptMacromarketinglooksathowtheaggregateflowofanation’sgoodsandservicesbenefitssociety.MacromarketingMacromarketinglooksathowthMicromarketingishowanindividualorganizationdirectsitsmarketingactivitiesandallocatesitsresourcestobenefititscustomers.MicromarketingMicromarketingishowanindivUltimateconsumersarethepeoplewhousethegoodsandservicespurchasedforahousehold.UltimateConsumerUltimateconsumersarethepeoOrganizationalbuyersareunitssuchasmanufacturers,retailers,orgovernment
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