1 MARKETING AN INTRODUCTION Armstrong/Kotler Marketing Creating and Capturing Customer Value Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter Outline • What is Marketing? • Market management orientation • Role of marketing: – Satisfy customer needs and wants – Build customer relationship 1- 2 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall What is Marketing Based on your knowledge and experience, what is the major role of marketing for a company? 1-3 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Marketing Concept • The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. 1- 4 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Customer Needs, Wants, and Demands Needs Wants Demands 1- 5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Discussion Question Describe a college education in terms of wants, needs, and demands? 1- 6 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Market Offerings Customer needs and wants are fulfilled Through market offering: • Products • Services •Marketing Myopia 1-7 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Examples of Marketing Myopia Xerox Company We make copying Definition equipment Missouri-Pacific We run a railroad Railroad Carrier We help improve office Suggestion productivity We are a people-andgoods mover We make air conditioners We provide climate co and furnaces in the home 1- 8 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Examples of Marketing Myopia Xerox Company We make copying Definition equipment Suggestion Missouri-Pacific We run a railroad Railroad Carrier We make air conditioners and furnaces 1- 9 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Two Questions for Marketers What markets will we serve? How can we serve these customers best? 1- 10 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Discussion Question Why is it important to a marketer to decide which customers they will serve? 1- 11 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Marketing Management Orientations • • • • • Production concept Product concept Selling concept Marketing concept Societal marketing concept 1- 12 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Marketing Management Orientations Production concept Product Concept Selling concept Marketing Concept Societal Marketing Concept 1- 13 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Summary of Marketing Orientations Orientation Focus is on… Production Production and distribution efficiency Product Most quality product Sales Product sales Market Consumers’ needs and wants Societal In addition to consumers’ needs and wants, also consider benefits to the society 1- 14 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Preparing an Integrated Marketing Plan and Program Price Place Promotion Product 1- 15 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Building Customer Relationships • What is Customer Relationship Management – Customer value – Customer satisfaction • Customer relationship levels and tools 1- 16 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Discussion: NASCAR • Basic about NASCAR • Can you profile NASCAR fans? 1- 17 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Who will be NASCAR fans? • 75 Million in the U.S – 4 of every 10 people in the U.S regularly watch or attend NASCAR – Young, Affluent, and Family oriented – $700/per person a year on Nascar-related collectibles 1- 18 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Question • As for the Marketing aspects of NASCAR, how should they offer what consumers want? 1- 19 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall How the Marketing works: • Develop strong customer relationship – National tours (200,000 people attended the recent Daytona 500, doubling the size of Super Bowl) – Tailgate parties, camp and cook out, making sports a family affair – TV coverage reaches 20 million viewers weekly • 250 big name sponsors – Wal-Mart, Home depot to U.S Army 1- 20 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Kodak continued to focus on producing traditional film-based cameras long after competitors introduced digital models. Kodak suffered from: 1-21 • • • • Marketing myopia Poor partner relationship management Outside-in perspective Customer driven strategy Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall ©2011 Pearson Education, Inc. publishing as Prentice Hall 1- 21 Kodak continued to focus on manufacturing traditional film-based cameras long after competitors introduced digital models. Kodak suffered from: • • • • 1-22 Marketing myopia Poor partner relationship management Outside-in perspective Customer driven strategy Kodak ignored consumers’ desire for digitized photos that could be printed at home or shared over the Internet. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall ©2011 Pearson Education, Inc. publishing as Prentice Hall 1- 22 You favor an approach that emphasizes the quality and new features of your product while your assistant prefers to emphasize innovative promotion strategies. Which two marketing concepts are being exhibited? 1-23 • • • • Marketing and selling Production and societal marketing Product and marketing Product and selling Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall ©2011 Pearson Education, Inc. publishing as Prentice Hall 1- 23 You favor an approach that emphasizes the quality and new features of your product while your assistant prefers to emphasize innovative promotion strategies. Which two marketing concepts are being exhibited? • • • • Marketing and selling Production and societal marketing Product and marketing Product and selling 1-24 The product concept emphasizes product quality, performance, and innovative features. The selling concept focuses on creating sales transactions. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall ©2011 Pearson Education, Inc. publishing as Prentice Hall 1- 24