CHAPTER 1Slide 2NASCAR – A Marketing Success StoryWhat Is Marketing?Marketing DefinedFigure 1-1 A Simple Model of the Marketing ProcessCore Customer and Marketplace ConceptsNeeds, Wants, and DemandsSlide 9Slide 10Slide 11Marketing OffersSlide 13Products Can Be IdeasSlide 15Marketing MyopiaSlide 17Value and SatisfactionSlide 19Exchanges and RelationshipsSlide 21MarketsFigure 1-2 Elements of a Modern Marketing SystemDesigning Marketing StrategiesSegmentation and Target MarketingSlide 26Marketing ManagementSlide 28Value PropositionMarketing Management PhilosophiesFigure 1-3 Marketing and Sales Concepts ContrastedCustomer-Driven MarketingFigure 1-4 The Societal Marketing ConceptThe Marketing MixCustomer Relationship ManagementPerceived Value vs. SatisfactionCustomer RelationshipsPartner Relationship MarketingCapturing Value from CustomersCustomer Loyalty & RetentionSlide 41Customer EquityFigure 1-5 Customer Relationship GroupsThe New Marketing LandscapeFigure 1-6 Expanded Model of the Marketing ProcessRest Area: Reviewing the ConceptsCCHAPTER HAPTER 11MARKETING:MARKETING: Managing Profitable Managing Profitable Customer Customer RelationshipsRelationshipsCopyright 2007, Prentice-Hall Inc. 1-2Define marketing, outline the steps in the marketing process.Explain the importance of understanding customers and the marketplace, and identify the five core marketplace concepts.Identify the key elements of a customer-driven marketing strategy & marketing management orientations that guide marketing strategy.Discuss customer relationship management and identify strategies for creating value for customers & capturing value from customers.Describe the major trends and forces that are changing the marketing landscape.Roadmap: Previewing the ConceptsCopyright 2007, Prentice-Hall Inc. 1-3Creating ValueNASCAR sells the experience – in-car cameras, wholesome family orientation.NASCAR.com engages fans via content.Success has been achieved by creating lasting customer relationships.Capturing ValueNASCAR is the second highest rated sport on TV.Fans are young, affluent, family oriented, & spend nearly $700 annually on NASCAR merchandise.NASCAR fans are three times as likely to seek out sponsors’ products than are nonfans.NASCARNASCAR – A Marketing Success Story – A Marketing Success StoryCopyright 2007, Prentice-Hall Inc. 1-4What Is Marketing?Simple Definition: –Marketing is managing profitable customer relationships.How? By accomplishing the following: 1. Attracting NEW customers by promising superior value.2. KEEPING and GROWING current customers by delivering satisfaction.Copyright 2007, Prentice-Hall Inc. 1-5Marketing DefinedA social and managerial process A social and managerial process by which individuals and groups by which individuals and groups obtain what they need and want obtain what they need and want through creating and exchanging through creating and exchanging products products and value with others.and value with others.Old View:Old View: “Telling and Selling”“Telling and Selling”New View:New View: Satisfying NeedsSatisfying NeedsCopyright 2007, Prentice-Hall Inc. 1-6Figure 1-1A Simple Model of the Marketing ProcessCopyright 2007, Prentice-Hall Inc. 1-7Core Customer and Marketplace ConceptsCreating value for customers requires that we first understand the marketplace and customer needs, including five core customer and marketplace concepts:–Needs, wants, and demands–Marketing offers (products, services, and experiences)–Value and satisfaction–Exchanges and relationships–MarketsCopyright 2007, Prentice-Hall Inc. 1-8Needs, Wants, and DemandsNeeds:–A state of felt deprivation including physical, social, and individual needs. Name some specific examples of each need type.Copyright 2007, Prentice-Hall Inc. 1-9Needs, Wants, and DemandsTypes of Needs:–Physical:Food, clothing, shelter, safety–Social:Belonging, affection–Individual:Self-expression, learning, knowledgeCopyright 2007, Prentice-Hall Inc. 1-10Needs, Wants, and DemandsWants:–Form that a human need takes, as shaped by culture and individual personality.–Preferences for brands are wants.Copyright 2007, Prentice-Hall Inc. 1-11Needs, Wants, and DemandsWants–Given their wants and resources, people will demand products with benefits that add up to the greatest value and satisfaction.Copyright 2007, Prentice-Hall Inc. 1-12Marketing OffersSome combination of products, Some combination of products, services, information, or services, information, or experiences offered to a market experiences offered to a market to satisfy a need or want.to satisfy a need or want.Needs and wants are fulfilled through a marketing offer.Copyright 2007, Prentice-Hall Inc. 1-13Marketing OffersProducts: –Anything that can be offered to a market to satisfy a need or want.Services: –Activity or benefit offered for sale that is essentially intangible and does not result in the ownership of anything.Consumer Experiences: –“Dazzle their senses, touch their hearts, and stimulate their minds.”Copyright 2007, Prentice-Hall Inc. 1-14Products Can Be IdeasProducts do not have to be physical objects. Here the “product” is an idea -- protecting animals.Products can also be people, organizations, places, or information.Marketing in ActionCopyright 2007, Prentice-Hall Inc. 1-15Let’s Talk!Does the ad shown at right promote consumer experiences? Explain.Offer a different example of a current advertising campaign that promotes a “consumer experience.”Do you believe the campaign is effective? Why or why not?Copyright 2007, Prentice-Hall Inc. 1-16Marketing MyopiaSuccessful marketers avoid Marketing Myopia when constructing offers:–Marketing myopia occurs when 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.”Copyright 2007, Prentice-Hall Inc. 1-17Marketing in ActionFocused on selling prerecorded CDs, the record industry missed early opportunities to partner with music downloading services and manufacturers of digital MP3 type recording devices. Marketing Myopia in the Recording IndustryCopyright 2007, Prentice-Hall Inc. 1-18Value and SatisfactionSetting proper expectations is critical:–If performance is lower than expectations, satisfaction is low.–If performance is higher than