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2006 McGraw-Hill Ryerson Ltd.All rights reserved.The University of Regina provides a dynamic,innovative and supportive learning The University of Regina provides a dynamic,innovative and supportive learning experience with a growing national reputation for excellence in teaching and experience with a growing national reputation for excellence in teaching and research.The Universitys comprehensive services and programs prepare students research.The Universitys comprehensive services and programs prepare students to excel in local and global communities and its research opportunities attract to excel in local and global communities and its research opportunities attract the best and brightest minds.the best and brightest minds.Location:Location:Main CampusMain Campus3737 Wascana Parkway,Regina,Saskatchewan,Canada3737 Wascana Parkway,Regina,Saskatchewan,Canada 2006 McGraw-Hill Ryerson Ltd.All rights reserved.MarketingMarketing6th Canadian Edition6th Canadian Edition 2006 McGraw-Hill Ryerson Ltd.All rights reserved.Marketing:Customer Marketing:Customer Value,Satisfaction,and Value,Satisfaction,and Customer RelationshipsCustomer Relationships1 2006 McGraw-Hill Ryerson Ltd.All rights reserved.1.1.Define Define MarketingMarketing.2.2.Know the basic requirements for successful marketing to occur.Know the basic requirements for successful marketing to occur.3.3.Understand the breadth and depth of marketing.Understand the breadth and depth of marketing.4.4.Explain how marketing discovers and satisfies consumer needs Explain how marketing discovers and satisfies consumer needs and wants.and wants.Learning ObjectivesLearning ObjectivesAfter reading this chapter,you should be able to:After reading this chapter,you should be able to:2006 McGraw-Hill Ryerson Ltd.All rights reserved.5.5.Distinguish between Distinguish between marketing mixmarketing mix elements and elements and environmental environmental factorsfactors.6.6.Describe how Describe how market orientationmarket orientation in the present era focuses on in the present era focuses on creating creating customer valuecustomer value,satisfaction,and customer,satisfaction,and customer relationships.relationships.7.7.Understand the meaning of Understand the meaning of ethicsethics and and social responsibilitysocial responsibility and and how they relate to the individual,organizations,and society.how they relate to the individual,organizations,and society.Learning ObjectivesLearning ObjectivesAfter reading this chapter,you should be able to:After reading this chapter,you should be able to:2006 McGraw-Hill Ryerson Ltd.All rights reserved.Marketing is not:Marketing is not:advertising advertising selling selling common sense common sense hucksterism hucksterism manipulating manipulatingWHAT MARKETING IS AND WHAT IT IS NOTWHAT MARKETING IS AND WHAT IT IS NOT 2006 McGraw-Hill Ryerson Ltd.All rights reserved.MarketingMarketing is:is:an organizational functionan organizational function a set of processes for creating,communicating,and delivering a set of processes for creating,communicating,and delivering value to customersvalue to customers managing customer relationships in ways that benefit the managing customer relationships in ways that benefit the organization and its stakeholdersorganization and its stakeholdersWHAT MARKETING IS AND WHAT IT IS NOTWHAT MARKETING IS AND WHAT IT IS NOT 2006 McGraw-Hill Ryerson Ltd.All rights reserved.Requirements for Marketing to OccurRequirements for Marketing to Occur Two or More Parties with Unsatisfied NeedsTwo or More Parties with Unsatisfied Needs Desire and Ability to Satisfy These NeedsDesire and Ability to Satisfy These Needs A Way for the Parties to CommunicateA Way for the Parties to Communicate Something to ExchangeSomething to ExchangeWHAT MARKETING IS AND WHAT IT IS NOTWHAT MARKETING IS AND WHAT IT IS NOT 2006 McGraw-Hill Ryerson Ltd.All rights reserved.The Breadth and Depth of MarketingThe Breadth and Depth of Marketing What is a Market?What is a Market?Who Markets?Who Markets?What is Marketed?What is Marketed?Social MarketingSocial MarketingWHAT MARKETING IS AND WHAT IT IS NOTWHAT MARKETING IS AND WHAT IT IS NOT 2006 McGraw-Hill Ryerson Ltd.All rights reserved.The Breadth and Depth of Marketing(cont.)The Breadth and Depth of Marketing(cont.)Who Buys and Uses What is Marketed?Who Buys and Uses What is Marketed?Ultimate CustomersUltimate Customers Organizational BuyersOrganizational Buyers Who Benefits?Who Benefits?WHAT MARKETING IS AND WHAT IT IS NOTWHAT MARKETING IS AND WHAT IT IS NOT 2006 McGraw-Hill Ryerson Ltd.All rights reserved.The Diverse Factors Influencing Marketing ActivitiesThe Diverse Factors Influencing Marketing ActivitiesWHAT MARKETING IS AND WHAT IT IS NOTWHAT MARKETING IS AND WHAT IT IS NOT 2006 McGraw-Hill Ryerson Ltd.All rights reserved.FIGURE 1-1FIGURE 1-1 An organizations marketing department relates to many people,groups,and forces 2006 McGraw-Hill Ryerson Ltd.All rights reserved.Concept CheckWhat is marketing?Answer:According to the American Marketing Association,marketing is an organizational function and a set of processes for creating,communicating,and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.2006 McGraw-Hill Ryerson Ltd.All rights reserved.Concept CheckMarketing focuses on _ and _ prospective customers needs and wants.discoveringsatisfying 2006 McGraw-Hill Ryerson Ltd.All rights reserved.Concept CheckWhat four factors are needed for marketing to occur?Answer:(1)Two or more parties with unsatisfied needs,(2)a desire and ability on their part be satisfied,(3)a way for the parties to communicate,and(4)something to exchange.2006 McGraw-Hill Ryerson Ltd.All rights reserved.Discovering Consumer NeedsDiscovering Consumer Needs Consumer Needs and Consumer WantsConsumer Needs and Consumer WantsHOW MARKETING DISCOVERS AND HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDSSATISFIES CONSUMER NEEDS 2006 McGraw-Hill Ryerson Ltd.All rights reserved.FIGURE 1-2FIGURE 1-2 Marketings first task:discovering consumer needs 2006 McGraw-Hill Ryerson Ltd.All rights reserved.Satisfying Consumer NeedsSatisfying Consumer Needs Target marketTarget market The Four Ps:Controllable The Four Ps:Controllable Marketing Mix Marketing Mix FactorsFactors ProductProduct PricePrice Promotion Promotion PlacePlace The Uncontrollable,The Uncontrollable,Environmental FactorsEnvironmental FactorsHOW MARKETING DISCOVERS AND HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDSSATISFIES CONSUMER NEEDS 2006 McGraw-Hill Ryerson Ltd.All rights reserved.The The Marketing ProgramMarketing ProgramTHE MARKETING PROGRAMTHE MARKETING PROGRAM 2006 McGraw-Hill Ryerson Ltd.All rights reserved.FIGURE 1-3FIGURE 1-3 Marketings second task:satisfying consumer needs 2006 McGraw-Hill Ryerson Ltd.All rights reserved.FIGURE 1-4FIGURE 1-4 Marketing Program for Curves 2006 McGraw-Hill Ryerson Ltd.All rights reserved.Concept CheckAn organization cant satisfy the needs of all consumers,so it must focus on one or more subgroups,which are its _.target markets 2006 McGraw-Hill Ryerson Ltd.All rights reserved.Concept CheckWhat are the four marketing mix elements that make up the organizations marketing program?Answer:The four marketing mix elements that make up the organizations marketing program are product,price,promotion,and place,or otherwise known as the 4 Ps.This portion of the marketing program is controllable by the marketing departments and its organization.2006 McGraw-Hill Ryerson Ltd.All rights reserved.Concept CheckWhat are uncontrollable variables?Answer:Uncontrollable factors are largely beyond the control of the marketing department and its organization.These are the environmental factors in a marketing decision involving social,economic,technological,competitive,and regulatory forces.2006 McGraw-Hill Ryerson Ltd.All rights reserved.Evolution of Market OrientationEvolution of Market Orientation Production EraProduction Era Sales EraSales Era The The Marketing Concept Marketing Concept EraEra Marketing conceptMarketing conceptHOW MARKETING HOW MARKETING BECAME SO IMPORTANTBECAME SO IMPORTANT 2006 McGraw-Hill Ryerson Ltd.All rights reserved.Evolution of Market Orientation(cont.)Evolution of Market Orientation(cont.)The The Market Orientation Market Orientation EraEra Customer ValueCustomer Value Customer SatisfactionCustomer Satisfaction Customer relationship management(CRM)Customer relationship management(CRM)Customer lifetime value(CLV)Customer lifetime value(CLV)e eCRMCRMHOW MARKETING HOW MARKETING BECAME SO IMPORTANTBECAME SO IMPORTANT 2006 McGraw-Hill Ryerson Ltd.All rights reserved.FIGURE 1-5FIGURE 1-5 Four different orientations in the history of North American business 2006 McGraw-Hill Ryerson Ltd.All rights reserved.What type of value does Starbucks offer their customers?2006 McGraw-Hill Ryerson Ltd.All rights reserved.Ethics and Social Responsibility:Ethics and Social Responsibility:Balancing the Interests of Different GroupsBalancing the Interests of Different Groups EthicsEthics Social ResponsibilitySocial Responsibility Societal marketing conceptSocietal marketing concept MacromarketingMacromarketing MicromarketingMicromarketingHOW MARKETING HOW MARKETING BECAME SO IMPORTANTBECAME SO IMPORTANT 2006 McGraw-Hill Ryerson Ltd.All rights reserved.Concept CheckMany firms have gone through four distinct orientations for their businesses:starting with the _ era and ending with todays _ era.productionmarket orientation 2006 McGraw-Hill Ryerson Ltd.All rights reserved.Concept CheckAn organization that has a marketing orientation focuses its efforts on what 3 things?Answer:(1)continuously collecting information about customers needs and competitors capabilities,(2)sharing this information throughout the organization,and(3)using the information to create value,ensure customer satisfaction,and develop customer relationships.2006 McGraw-Hill Ryerson Ltd.All rights reserved.Concept CheckThe process of building and developing long-term relationships with customers by delivering customer value and satisfaction is called _.Answer:Customer relationship management(CRM)
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