Pride2e basic ch01

Part OneStrategic Marketing

and ItsEnvironment

11Marketing’s

Role in Business and

Society

Copyright © Houghton Mifflin Company. All rights reserved. 1–2

Chapter Learning Objectives

1. To be able to define marketing

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

3. To be aware of the marketing concept and marketing orientation

4. To understand the importance of building customer relationships

5. To explain the major marketing functions that are part of the marketing management process

6. To recognize the role of marketing in our society


Components of Strategic Marketing

FIGURE 1.1


Customers Are the Focus

• Customers

–The purchasers of an organization’s products; the focal point of all marketing activities

• Target Market

–A specific group of customers on whom an organization focuses its marketing efforts• Large or small customer groups

• Single or multiple product markets

• Single or multiple products

• Local to global markets


Marketing Deals with Products, Price, Distribution, and Promotion

• The Marketing Mix

–Four marketing activities—product, pricing, distribution, and promotion—that a firm can control to meet the needs of customers within its target market

ProductProduct

PricingPricing

DistributionDistribution

PromotionPromotion

TargetTargetMarketMarket


Satisfying Exchange Relationships

• Exchange

–The provision or transfer of goods, services, or ideas in return for something of value

FIGURE 1.2


Understanding the Marketing Concept

• Marketing Concept

–A philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals

–Customer satisfaction• Analysis of customers’ current and long-term

needs

• Analysis of competitors’ capabilities

• Integration of firm’s resources


Implementing the Marketing Concept

• Becoming marketing oriented requires

– establishing an information system to discover customers’ needs and using the information to create satisfying products.

– coordinating all marketing activities by restructuring the organization.

– obtaining the support of all managerial and staff levels in the organization.


Managing Customer Relationships

• Relationship Marketing

–Establishing long-term, mutually satisfying buyer-seller relationships allowing for cooperation and mutual dependency• Increased value of customer

(loyalty) over time results in increased profitability.


Customer Relationship Management (CRM)

• Using information about customers to create marketing strategies that develop and sustain desirable customer relationships

–Identifying buying-behavior patterns of customers

–Using behavioral information to focus on the most profitable customers


Marketing Management (cont’d)

• Planning

– Assessing opportunities and resources

– Determining marketing objectives

– Developing a marketing strategy and plans for implementation and control• How, when and by whom are marketing activities

performed?

• Organizing

– Developing the internal structure of the marketing unit• Functions, products, regions, customer types


Marketing Management (cont’d)

• Implementation

– Coordinating marketing activities

– Motivating marketing personnel

– Developing effective internal communications within the unit

• Control

– Establishing performance standards

– Comparing actual performance to established standards

– Reducing the difference between desired and actual performance


Effective Marketing Control Process

• Provides for quick detection of differences in planned and actual performance

• Accurately monitors activities and is flexible enough to accommodate changes

• Incurs low process costs relative to the costs of a “no-control” situation

• Is understandable by both managers and subordinates

Pride2e basic ch01

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