1、BASIC MARKETINGChapter OneMarketing:manage valuable costumerLearning ObjectivesAfter studying this chapter,you should be able to:?1.Know what marketing is.2.Understand the difference between micro-marketing and macro-marketing.3.Know what the marketing concept is.4.Understand how the marketing conce
2、pt relates to customer value.5.Understand the important new terms.Chapter Outline1.2.3.4.5.6.7.8.Marketing definedMicro Marketing and Macro MarketingThe evolution of marketing The Marketing Concept Customer value Marketing of nonprofit organizationSocial Responsibility and Marketing Ethics Basic ter
3、ms in marketing Market 1.1 Marketing definedBy Production with guidance of marketingTimeFormUtilityPlaceTaskFigure 1.1 Utility and MarketingPossessionby MarketingThe 5 types of utility?Utility:the power to satisfy human needs.?Form utility is provided when someone produces something tangible.?Task u
4、tility is provided when someone performs a task for someone else.?Possession utility:obtaining a good or service and having the right to use or consume it.?Time utility:having the product available when the customer wants it.?Place utility:having the product available where the customer wants it.Mar
5、keting defined?The American Marketing association(AMA):Marketing is the process of planning and executing the conception,pricing,promotion and distribution of ideas,goods and services to create exchanges that satisfy individual and organizational objectives.?Marketing is both a set of activities per
6、formed by organizations and a social process.1.2 Micro Marketing and Macro Marketing?Micro-marketinglooks at customers and the organizations that serve them;?Applies to profit and nonprofit organizations?More than just persuading customers?Begins with customer needs?Builds an ongoing relationship?Ma
7、cro-marketing is a social process that directs an economys flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society.Figure 1.2 Micro-marketing and Macro-marketingMicro-marketingThe performance of activities
8、that seek to accomplish an organizations objectives by anticipating customer needs and directing the flow of need-satisfying goods and services.Macro-marketingA social process that directs an economys flow of goods and services to effectively match supply and demand and to meet societys objectives.F
9、igure 1.3 Model of Market-Directed Macro-Marketing SystemMany Individual ProducersMiddlemenintermediariesFacilitatorsPerform universal marketing functionsMonitoring by government(s)and public interest groupsTo overcome discrepancies andseparationsTo create utility and direct flow ofneed-satisfying g
10、oods and servicesMany Individual Consumers1.3 The evolution of marketing?Simple trade era:a time when families traded or sold their surplus output to local intermediaries,who then resold these goods to other consumers or distant intermediaries.?Production era:a time when a company focuses on product
11、ion of a few specific products-perhaps because few of these products are available in the market.?Sales era:a time when a company emphasizes selling because of increased competition.?Marketing department era:a time when all marketing activities are brought under the control of one department to impr
12、ove short-run policy planning and to try to integrate the firms activities.?Marketing company era:a time when marketing people develop long-range plans and the whole company effort is guided by the marketing concept.Figure 1.4 Marketings Changing RoleSimple Trade EraFocus:Sell SurplusFocus:Productio
13、n EraIncrease SupplyFocus:Sales EraBeat CompetitionFocus:Marketing DepartmentEraMarketing CompanyEraCoordinate and ControlFocus:Long-RunCustomer Satisfaction1.4 The marketing concept?Marketing concept:the idea that an organization should aim all of its efforts at satisfying its customers-at a profit
14、.?Production orientation:making whatever products are easy to produce and then trying to sell them.-trying to get customers to buy what the firm has produced.?Marketing orientation:trying to carry out the marketing concept.-trying to produce what the customers need.3 basic ideas.TopicAttitudes towar
15、d customersMarketing Orientation Production OrientationCustomer needs They should be glad we determine company exist,trying to cut plans.costs and bringing out better products.Company makes what it can sell.Company sells what it can make.Product offeringRole of marketing researchTo determine custome
16、r To determine customer needs and how well reaction,if used at company is all.satisfying them.Focus is on locating new opportunities.Focus is on technology and cost cutting.Interest in innovationTopicCustomer serviceMarketing Orientation Production OrientationSatisfy customers after An activity requ
17、ired to the sale and theyll reduce consumer come back againcomplaints.Need-satisfying benefits of goods and services.Product features and how products are made.Focus of advertisingRelationship with customerCustomer satisfaction Relationship ends before and after sale when a sale is made.leads to a p
18、rofitable long-run relationship.Eliminate costs that do Keep costs as low as not give value to possible.customer.Costs3 basic ideas of marketing concept?Customer satisfaction guides the whole system.?The team approach-all the departments adopt the marketing concept and work together;the organization
19、 work as a total system and specifies a high-level objective-customer satisfaction.?Survival and success require a profit.Profit is the difference between a firms revenue and its total costs,which is the bottom-line measure of its success and ability to survive.Figure 1.5The Marketing ConceptCustome
20、rSatisfactionTotal CompanyEffortTheMarketingConceptProfit1.5 Customer ValueCustomer value concerns the difference between the benefits a customer sees from a firms market offering and the costs of obtaining those benefits.CostsBenefitsThe customers view of costs and benefits is not just limited to e
21、conomic(or even rational)considerations-and a low price may NOT result in superior value.Customer ValueCostsBenefits?One customers view of the benefits and costs of a firms market offering may vary from another customers view,so firm may not be able to satisfy everybody with the same offering.?Custo
22、mer 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.Figure 1.6 Customer valuecustomer valuetotal customer benefitstotal customer costproduct benefitmonetary costservice benef
23、ittime costpersonnel benefitenergy cost image benefitpsychic cost1.6 Marketing of nonprofit organization?Marketing applies to all sorts of public and private nonprofit organizationsranging from government agencies,health care organizations,educational institutions,and religious groups to charities,p
24、olitical parties,and fine arts organizations.Figure 1.7 Nonprofits Need Marketing,TooNon-CustomerSupportCharacteristicsof NonprofitOrganizationsNon-EconomicMeasuresPoorlyOrganizedfor Marketing1.7 Social Responsibility and Marketing Ethics?Besides satisfying some consumers,social responsibility shoul
25、d be concerned with,which is a firms obligation to improve its positive effects on society and to reduce its negative effects.?Should all consumer needs be satisfied?Trying to balance consumer,company and social interests.?Code of ethics 1.8 Basic terms in marketing?market:“A market is all the peopl
26、e or organizations thatbuy or possibly buy some specific goods or service.”Market(=demand)=population+purchasingpower+purchasing motive?marketplace:physical,e.g.you go shopping in a store;?marketspace:digital,e.g.yougoshoppingontheinternet.needs,wants and demands?a.need:basic forces that motivate a
27、person to dosomething.food,airwater,clothing,shelter;recreation,education and entertainment.?b.want:needs that are learned during a personslife.It is directed to specific objects that might satisfythe need.Wants are shaped by ones society.?c.demand:wants for specific products backed by anability to
28、pay.It can be divided into real demand andpotential demand which can be turned into reality bypromoting or communicating.Marketers do not createneeds;needspreexistmarketers.Demand=willingness to buy+buying powerproduct or offering?A product is theneed-satisfyingoffering of a firm.?Basic offerings:a.
29、goodsb.servicesc.experiencesd.eventse.personsf.placesg.propertiesh.organizationsi.informationj.ideasCustomer Satisfaction?Satisfaction is a persons feelings of pleasure ordisappointment resulting from comparing a productsperceived performance(or outcome)in relation to his orher expectations.PEdissat
30、isfiedPEsatisfiedPEhighly satisfied or delighted?“Its no longer to satisfy customers.Youmustdelight them.”Marketing mixMarketing mix refers to the controllable variables that the company puts together to satisfy a target group(4Ps:product,price,place and promotion;4cs:customer solution,customer cost
31、,convenience,communication).Figure 1.8 Marketing Strategy PlanningTheMarketingMixCFigure 1.9The Four Ps of the Marketing MixProductPlaceCPricePromotionSocial marketing concept?Social marketing concept:the organizations task is todetermine the needs,wants,and interests of targetmarkets and to deliver
32、 the desired satisfactions moreeffectively and efficiently than competitors in a way thatpreserves or enhances the consumers and societyswell-being.It calls upon marketers to build social andethical considerations into their marketing practices.They must balance and juggle the often conflictingcrite
33、ria of company profits,consumer want satisfaction,and public interest.relationship marketing&integrated marketing?relationship marketing conceptIthastheaimofbuildinglong-termmutuallysatisfyingrelationswithkeyparties-customers,suppliers,distributors-in order to earn and retain theirlong-termpreferenc
34、eandbusiness.Marketersaccomplish this by promising and delivering high-qualityproducts and services at fair prices to the other partiesover time.It introduces another 2Ps into marketing mix-power and public relations.?integratedmarketing:whenallthecompanysdepartments work together to serve the custo
35、mersinterests,the result is integrated marketing.Problems and questions?Briefly describe how acceptance of the marketing concept might affect the organization and operation of your college or university?Does the acceptance of the marketing concept almost require that a firm view itself as a total sy
36、stem?Distinguish between production orientation and marketing orientation,illustrating with examples in your local area.?How do you think the consumers would react if a food processor developed a new food product that would provide all necessary nutrients in small pills for about RMB 1000 per person per year?
