MODULE 1: Chapter-1

STUDENT LEARNING OBJECTIVES

After reading this chapter students should be able to:

· Define marketing and explain the importance of (1) discovering and (2) satisfying consumer needs and wants.

· Distinguish between marketing mix elements and environmental factors.

· Describe how organizations build strong customer relationships using current thinking about customer value and relationship marketing.

· Explain the meaning of ethics and social responsibility and how they relate to the individual, organizations, and society.

KEY TERMS AND CONCEPTS

customer value marketing program

environmental factors exchange

relationship marketing

market societal marketing concept

market orientation target market

marketing marketing concept

marketing mix

EXAMPLE

After Huge Success…What’s Next?

Rollerblade has the classic marketing problem of any innovative firm that has created an entire industry: What does it do for an encore? What does it do to provide new products and to build loyal customer relationships?
Success Invites Danger, Which Invites Innovation
WHAT IS MARKETING?
Common sense and personal experience as consumers usually help us analyze marketing decisions. However, experience can mislead us, which is one reason for an in-depth study of marketing. / Marketing is the process of developing, pricing, promoting, and distributing goods, services, and ideas to satisfy the needs of consumers
EXAMPLE
To serve both buyers and sellers, marketing seeks:
1. To discover the needs and wants of prospective customers.
2. To satisfy these needs and wants.
The Diverse Factors Influencing marketing Activities
Which of the following is true regarding the marketing process?
A.  It is synonymous to personal selling.
B.  Its exchanges satisfy sellers only.
C.  Its exchanges satisfy both consumers and sellers.
D.  It is synonymous to advertising.
E.  It is synonymous to personal selling. / The four outside groups that exert important direct influences on an organization consist of:
Politicians, regulators, minority groups, and consumer monitoring groups
EXAMPLE
Consumer Needs and Consumer Wants.
· A need occurs when a person feels physiologically deprived of basic necessities, such as food, clothing, and shelter.
· A want is a felt need that is shaped by a person’s knowledge, culture, and personality. Marketing does not create the need for a product, but shapes a person’s wants.
Key Terms: What is a market?
Current and Potential consumers make up a market, which consists of people with both the desire and the ability to buy a specific product.
Target Market: An organization focuses on the needs of its target market—one or more specific groups of potential consumers toward which an organization directs its marketing program.
The four outside groups that exert important direct influences on an organization consist of:
Politicians, regulators, minority groups, and consumer monitoring groups
EXAMPLE
Customer value is the unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-time delivery, and both before-sale and after-sale service.
Relationship marketing links an organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits
Many companies, industries, and professional associations have developed codes of ethics to assist managers.
societal marketing concept, the view that an organization should discover and satisfy the needs of its consumers in a way that also provides for society’s well-being.
EXAMPLE
The elements of the marketing mix are the marketing manager’s controllable factors—product, price, promotion, and place—that can be taken to solve a marketing problem.
· Social forces.
· Economic forces.
· Technological forces.
· Competitive forces.
· Regulatory forces.
The four outside groups that exert important direct influences on an organization consist of:
Politicians, regulators, minority groups, and consumer monitoring groups

Key Highlights of Chapter -1

Key Concept
Exchange
Market
Market Orientation
Marketing Mix
Marketing Program
Relationship Marketing
Customer Value
Marketing Concept
Societal marketing concept
Target Market
Environmental factors