Customer-Driven Strategic Marketing€¦ · 1. Define marketing 2. Understand several important...

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Chapter 1:

Customer-Driven

Strategic Marketing

Pride/Ferrell

Marketing Foundations

Fourth Edition

Prepared by Milton Pressley

University of New Orleans


Objectives

1. Define marketing

2. Understand several important marketing terms

including target market, marketing mix, marketing

exchanges, and marketing environment

3. Be aware of the marketing concept and marketing

orientation

4. Understand the importance of building customer

relationships

5. Explain the major marketing functions that are a

part of the marketing management process

6. Understand the role of marketing in our society



Marketing Defined

• Marketing is the process of creating,

distributing, promoting, and pricing goods,

services, and ideas, to facilitate satisfying

exchange relationships with customers and

develop and maintain favorable relationships

with stakeholders in a dynamic environment.


Fig. 1.1 Components of Strategic Marketing


Discussion Question

1. What do you think is the difference

between “marketing” and “selling”?

2. Why do you think the term “marketing” is

used interchangeably with “selling” by

many (most?) business people?


Who is the Focus of Marketing?

• Customers

The purchasers of organizations’ products;

the focal point of all marketing activities.

– The Target Market• Old Navy focuses on its target market to meet their needs

• Who is their target market?


Target Market

Target Market-is a specific

group of customers on

whom an organization

focuses its marketing

efforts.

Appealing to health-

conscious customers


Discussion Question

What do you think might be a good target

market for Michelin Tires? After

discussing this, click on the @ symbol below

to see the target markets defined by

Michelin.

http://www.michelin-us.com/


The Marketing Mix Variables

Marketers combine and balance four elements when determining how to satisfy customers’ needs for a product:

• Product

• Price

• Distribution

• Promotion


Product Variable

A product can be a:

–Good

–Service

–Idea

Product

Petzl’s ad focuses on the

quality, comfort, and

reliability of its climbing

helmet


Price Variable

• Relates to decisions and actions associated with

establishing pricing objectives and policies

• Relates to determining product prices

• Determines the value of the exchange

Price

The Mini Cooper is

promoted as being both

affordable to buy and

economical on fuel


Distribution Variable

• Make products available in quantities desired

• Minimize costs:

– Inventory

– Transportation

– Storage

• Select/motivate intermediaries

• Establish/maintain inventory control

• Develop/manage transportation and

storage systems


Promotion Variable

• Inform individuals or groups about the

organization and its products/services

– Advertising

– Public relations

– Personal selling

– Promotions

– Street teams

– Viral marketing


Discussion Question

Other than those discussed in the

book or by your instructor, give an

example of a:

- good

- service

- idea


Discussion Question

• Click on the Television below, watch the

commercial, and discuss whether the

promotional message is primarily about a

good, service or an idea.

http://www.youtube.com/watch?v=uqkJnn0S7_w


Relationships with Customers• Exchange - the provision or transfer of

goods, services, or ideas in return for

something of value


StakeholdersConstituents who have a “stake,” or claim,

in some aspect of a company’s products,

operations, markets, industry,

and outcomes.

The Customer as

a Stakeholder

Yoplait donates to

breast cancer

research.


Marketing Environment• The six types of forces that surround the

customer and affect the marketing mix:

– Economic forces

– Political forces

– Legal and regulatory forces

– Technological forces

– Socio-cultural forces

– Competitive forces

• Unlike marketing-mix variables, an organization has no control over these forces


Discussion QuestionPick a product that you want to market.

Discuss how each of the forces in the

marketing

environment will

effect your

marketing mix.


The Marketing Concept

• A managerial philosophy that

an organization should try to

provide products that satisfy

customers’ needs through a

coordinated set of activities

that also allows the

organization to achieve its

goals.

The Marketing Concept

SSI understands the importance

of a customer orientation by

listening to customers and

providing great service


The Evolution of the Marketing Concept

The marketing concept has changed over time:


Marketing Orientation

An organization-wide commitment to

researching and responding to

customer needs.


Implementing the Marketing Concept• First, establish an information system to discover customers’ real needs

• Use the information to create satisfying products

• Coordinate all activities


Managing Customer Relationships

• Relationship Marketing– Establishing long term mutually

satisfying, buyer/seller

relationships.


Customer Relationship Marketing (CRM)

• Using information about customers to

create marketing strategies that develop

and sustain desirable customer

relationships.


Value-Driven Marketing

• Value-a customer’s subjective assessment of

benefits relative to costs in determining the

worth of a product.

Customer

Benefits

Customer

CostsValue = –


Marketing Management

• The process of planning, organizing,

implementing, and controlling marketing

activities to facilitate exchanges effectively and

efficiently.


Why Marketing Plays An Important

Role in Our Global Economy

Creates

Career

Prospects

Promotes Welfare

of Consumers

and Society

Connects

People

through

Technology Enhances

Consumer

Awareness

Fuels

the Global

Economy

Is Important

to Business

and the

Economy

Is Used by

Non-Profits

Consumes Large

Proportion of

Buyers’ Dollars

Marketing


After Reviewing This Chapter

You Should:1. Be able to define marketing

2. Understand several important marketing terms including target market, marketing mix, marketing exchanges, and marketing environment

3. Be aware of the marketing concept and marketing orientation

4. Understand the importance of building customer relationships

5. Explain the major marketing functions that are a part of the marketing management process

6. Understand the role of marketing in our society


Key Concepts

• Marketing

• Customers

• Target market

• Marketing mix

• Products

• Exchanges

• Stakeholders

• Marketing environment

• Marketing concept

• Marketing orientation

• Relationship marketing

• Customer relationship

management (CRM)

• Value

• Marketing management

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