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Chapter 2 Objectives

Chapter 2 Objectives. When you finish this chapter, you should. 1. Know what the marketing concept is—and how it should affect strategy planning in a firm or nonprofit organization. 2. Understand what customer value is and why it is important to customer satisfaction.

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Chapter 2 Objectives

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  1. Chapter 2 Objectives When you finish this chapter, you should 1. Know what the marketing concept is—and how it should affect strategy planning in a firm or nonprofit organization. 2. Understand what customer value is and why it is important to customer satisfaction. 3. Understand what a marketing manager does. 4. Know what marketing strategy planning is—and why it is the focus of the book. 5. Understand target marketing. 6. Be familiar with the four Ps in a marketing mix. 7. Know the difference between a marketing strategy, a marketing plan, and a marketing program. 8. Understand the important new terms. 2-2

  2. Simple Trade Era Production Era Focus: Sell Surplus Sales Era Focus: Increase Supply Marketing Department Era Focus: Beat Competition Marketing Company Era Focus : Coordinate and Control Focus : Long-Run Customer Satisfaction Marketing’s Changing Role 2-3

  3. Customer Satisfaction Total Company Effort The Marketing Concept Profit The Marketing Concept Exhibit 2-1 2-4

  4. Marketing Orientation Sounds Easy,Isn’t • Even the “best” firms sometimes backslide into a production orientation • In today’s highly competitive markets it is often difficult to • keep up with changing customer needs • beat aggressive competitors to the punch • find the right focus -- one that matches the firm’s objectives and resources to market opportunities • offer customers superior value 2-5

  5. Customer Value Reflects Benefits and Costs Customer value concerns the difference between the benefits a customer sees from a firm’s market offering and the costs of obtaining those benefits Costs Benefits The customer’s view of costs and benefits is not just limited to economic (or even rational) considerations--and a low price may NOT result in superior value... 2-6

  6. Customer Value Costs Benefits • One customer’s view of the benefits and costs of a firm’s market offering may vary from another customer’s view, so firm may not be able to satisfy everybody with the same offering. • Customer value concept takes the customers point of view, but customers may not explicitly weigh costs and benefits and even if they do their view may not match some “objective” reality. 2-7

  7. Non- Customer Support Non- Economic Measures Characteristics of Nonprofit Organizations Poorly Organized for Marketing Nonprofits Need Marketing, Too 2-8

  8. Whole-Company Strategic Management Planning Marketing Planning Adjust Plans As Needed Control Marketing Plan(s) and Program Implement Marketing Plan(s) and Program The Marketing Management Process Exhibit 2-4 2-9

  9. The Marketing Mix C Marketing Strategy Planning Exhibit 2-5 2-10

  10. Product Place C Price Promotion The Four Ps of the Marketing Mix Exhibit 2-7 2-11

  11. Product Place Promotion Price Physical Goods Service Features Quality Level Accessories Installation Instructions Warranty Product Lines Packaging Branding Objectives Channel Type Market Exposure Kinds of Middleman Kinds and Locations of Stores How to Handle Transporting and Storing Service Levels Recruiting Middlemen Managing Channels Objectives Blend Salespeople Kind Number Selection Training Motivation Advertising Targets Kinds of Ads Media Type Copy Thrust Who Prepares? Sales Promotion Publicity Objectives Flexibility Level over PLC Geographic Terms Discounts Allowances Strategy Decision Areas Organized by the Four Ps Exhibit 2-8 2-12

  12. Manufacturer or producer Citibank Nissan Del Monte Procter & Gamble Wholesaler Wholesaler Wholesaler Retailer Retailer Retailer Consumer Four Examples of Basic Channels of Distribution for Consumer Products Exhibit 2-9 2-13

  13. Target Market Marketing Strategy + = Marketing Mix Marketing Plan + = A Firm’s Marketing Program Time-Related Details + = Other Marketing Plans Elements of the Marketing Program Exhibit 2-11 2-14

  14. Death-wish marketing Best-practices marketing 68% (Average Marketing Program) (Below average) (Above average) (Well below average) (Well above average) 2% 14% 14% 2% Total Failure Poor Fair Good Exceptional Distribution of Different Firms Based on Performance Exhibit 2-12 2-15

  15. Key Terms Simple Trade Era Production Era Sales Era Marketing Department Era Marketing Company Era Marketing Concept Production Orientation Marketing Orientation Customer Value Nonprofit Organizations Social Responsibility Marketing Management Process Strategic (Management) Planning Marketing Strategy Target Market Marketing Mix Target Marketing Mass Marketing Channel of Distribution Personal Selling Mass Selling Advertising Publicity Sales Promotion Marketing Plan Implementation Operational Decisions Marketing Program 2-16

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