The Marketing ConceptEvolving Perspectives

What Is Marketing?

Simple Definition: Marketing is managing profitable customer relationships.

Goals: 1. Attract new customers by promising

superior value. 2. Keep and grow current customers

by delivering satisfaction.

Marketing Management Philosophies

Production ConceptProduction Concept

Product ConceptProduct Concept

Selling ConceptSelling Concept

Marketing ConceptMarketing Concept

Societal Marketing ConceptSocietal Marketing Concept

The Production Concept

The Product Concept

Marketing and Sales Concepts Contrasted

Societal Marketing Concept

This Is a Need

Needs - state of felt deprivation including physical, social, and individual needs.

Maslow’s Hierarchy of Needs

This Is a Want

Wants - form that a human need takes, as shaped by culture and individual personality.

Need / Want Fulfillment

Needs and Wants Fulfilled through a Marketing Offer : Some combination of

products, services, information, or experiences offered to a market to satisfy a need or want.

ProductsAnything that can be Offered to a Market to Satisfy a Need or Want

ProductsAnything that can be Offered to a Market to Satisfy a Need or Want

PersonsPersons PlacesPlaces OrganizationsOrganizations

IdeasIdeasInformationInformation

What Satisfies Consumers’ Needs and Wants?

ServicesActivity or Benefit Offered for Sale That is Essentially

Intangible and Does Not Result in the Ownership of Anything

ServicesActivity or Benefit Offered for Sale That is Essentially

Intangible and Does Not Result in the Ownership of Anything

Marketing Myopia

Sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products.

They focus on the “wants” and lose sight of the “needs.”

This Is Demand

“Demand”

Wants Buying Power

What is a Market?

The set of actual and potential buyers of a product.

These people share a need or want that can be satisfied through exchange relationships.

Segmentation and Target Marketing

Market Segmentation:

Divide the market into segments of customers

Target Marketing:

Select the segment to cultivate

#1 #2

Customer Satisfaction

Dependent on the product’s perceived performance relative to a buyer’s expectations.

Value and Satisfaction

Expectation

Performance810

If performance is lower than expectations, satisfaction is low.

If performance is higher than expectations, satisfaction is high.

Expectation

Performance

108

Customer Perceived Value

Customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Customer Relationship Levels

Basic Relationship

Full Partnershi

p

Continuum

Loyalty and Retention

Financial Benefits

Social Benefits

Structural Ties

Customer Relationship Management

The process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Customer Lifetime Value The entire stream of

purchases that the customer would make over a lifetime of patronage.

Share of Customer The share a company

gets of the customers purchasing in their product categories.

Customer Loyalty & Retention