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Chapter 1Marketing: The Art and Science
of Satisfying Customers
Principles of Contemporary MarketingKurtz & Boone
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Chapter Objectives
1. Define marketing, explain how it creates utility, and describe its role in the global marketplace.
2. Contrast marketing activities during the four eras in the history of marketing.
3. Explain the importance of avoiding marketing myopia.
5. Explain the shift from transaction-based marketing to relationship and social marketing.
6. Identify the universal functions of marketing.Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
o Organizations must create utility to survive
What is Marketing?
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
o Marketing - An organizational function and a set of processes for:o Creating, communicating, and delivering value to customers
o Managing customer relationships in ways that benefit the organization and its stakeholders
A Definition of Marketing
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
o Factors that have extended economic viewso Increase in international trade agreements
o Growth of electronic businesso Interdependence of the world’s economies
Today’s Global Marketplace
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
o The essence of marketing is the exchange process
Four Eras in the History of Marketing
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Characteristics of the Four Eras
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Era in marketing Focus
Production Era Production orientation
Sales Era Sales orientation
Marketing Era Consumer orientation
Relationship Era Relationship marketing
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
o Marketing myopia - Management’s failure to recognize the scope of its business
o Focusing on customer need satisfaction can overcome myopia
Avoiding Marketing Myopia
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
o Focus is on moving the customers up the loyalty ladder to increase their lifetime value
o Interactive marketing creates direct communication with customers, allows larger exchanges, and puts the customer in control
o It is increasingly taking place on social media sites like Facebook, Twitter, and blogs
Relationship Marketing
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
o Strategic alliances provide firms competitive advantage
o Forms of alliances o Product development partnershipso Vertical alliances
o Not-for-profits often raise awareness and funds through strategic partnerships
Partnerships and Strategic Alliances
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CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
o Firms spend money (thereby incurring costs) to create utility
o Functions of marketingo Exchange functions - Buying and selling
o Physical distribution functions - Transporting and storing
o Facilitating functions - Standardizing and grading, financing, risk taking, and securing marketing information
Costs and Functions of Marketing
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 1 Marketing: The Art and Science of Satisfying Customers
o Companies that promote ethics and social responsibility produce increased employee loyalty and customer growth
o Social responsibility programs are meant to enhance the society but help in improving public image of the firm
o Sustainable products and practices are goals of socially responsible firms
Ethics and Social Responsibility
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