Ims Sem1 South Lecture 2 Chapter 1

8/3/2019 Ims Sem1 South Lecture 2 Chapter 1

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Chapter 1

Marketing inthe Modern

Organization

1



The Marketing Concept

Marketing Concept

The achievement of corporate

goals through meeting and

exceeding customer needs

better than the competition

Customer orientation

Corporate activities are

focused upon providingcustomer satisfaction

Integrated effort

All staff accept the

responsibility for creatingcustomer satisfaction

Goal achievement

The belief that corporate

goals can be achievedthrough customer

satisfaction

Marketing concept

The achievement of corporate goals

through meeting and exceeding

customer needs and expectations

better than the competition

Customer

orientation

Corporate activitiesare focused upon

providing customer

satisfaction

Integrated effort

All staff accept the

responsibility for creating customer

satisfaction

Goal achievement

The belief that

corporate goals canbe achieved

through customer

satisfaction

2



Marketing

Orientation

Integrated

customer

focus

Long run profits

through customer

satisfaction

Sales

Orientation

Push! Push!

Sell! Sell!

by promotion

Short term

gains in profit

via sales increases

Evolution of the Marketing Concept

Production

OrientationProduction &assembly line

refinement

Profits through

production controls

3



Production Orientation

Customer s

Production

capabilities

Manuf actureproduct

Aggressive

sale

seff

ort

4



Marketing Orientation

Customer

needs

Potentialmarketopportunities

Marketingproducts and

services

Customer s

5



Toyota

Toyota¶s Optimal

Drive technology

provides customer benef its of

enhanced

per f ormance, lower

emissions and

better fuel

economy.

6



Marketing Orientated Businesses

7



Market Drive or Internally Oriented ?

Welcome Change ?

Being Fast ?

Cherish Status Quo ?

Stick with the same ?

Efficient and Effective ?Customer is main focus ?

Segment by product ?

8

Class Activity



Efficiency and Effectiveness

Ineffective

Goes out of

business quickly

Dies Slowly

Survives

Does wellThrives

Effective

Efficient

Inefficient

9



Limitations of the Marketing Concept

1. The marketing concept as an ideology.

There are other valid considerations (e.g. Economies of

scale) apart from giving customers exactly what they want.

2. Marketing and society.

Argue that the marketing concept will result in the

production of goods and services that do not adequately

correspond to societal welfare by paying attention to

personal benefits and discounting the societal impact.

10



Limitations of the Marketing Concept

3. Marketing as a constraint on innovation.

Customers have difficulty articulating needs beyond the

realm of their own experiences

4. Marketing as a source of dullness. Leads to me-too products, copycat promotions and

marketplace stagnations. Marketing should create demand

rather than reflect demand.

11



Creating Customer Value

Product benefitsService benefits

Relational benefits

Image benefits

Monetary costs

Time costs

Energy costs

Psychological costs

Customer

value

Perceivedbenefits

Perceivedsacrifice

Positive Negative

12



Creating Customer Value

13



Creating Customer Satisfaction

³Kano Model´

Delight

Neutral

Dissatisf actionAbsent Fulf illed

Presence of the characteristic

µDelighters¶

µMore is better¶

µMust be¶

C u s t o m e r S a t i s f a

c t i o n

14



The Marketing Mix

Product

Price

Promotion

Place

15

The 4-Ps



4-Ps: Apple - iPod

Apple has extended the iPod brand to cater f or

diver se customer requirements. 16



An Effective Marketing Mix

Eff ective

marketing

mix

Matche

s customer needs

Creates acompetitiveadvantage

Wellbalanced

Matches corporateresour ces

17



Marketing Mix and Customer Needs

Customer

needs

Key

customer

requirements

Competitive

advantageMarketing

mix

18



Customer

needs

Key

customer

requirements

Competitive

advantageMarketing

mix


PsychologicalEconomic

Customer needs

Performance

Availability

Reliability

Durability

Productivity

Self-image

Quiet life

Pleasure

Convenience

Risk reduction

19



Customer

needs

Key

customer

requirements

Competitive

advantageMarketing

mix


Product

Price

Promotion

Place

Marketing mix

20



Group Activity

1. Establish a company

2. Describe the marketing mix

3. Explain how you would increase

Perceived Value

4. Present your results

21



Core Reading

Core reading to

support this topic

can be f ound in

Chapter 1 of your

recommended

text

22

Ims Sem1 South Lecture 2 Chapter 1

Documents

Transcript of Ims Sem1 South Lecture 2 Chapter 1