Key Term Outline 1–11–1 Pride/Ferrell Foundations of Marketing Third Edition Chapter 1: Customer-Driven Strategic Marketing.

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Pride/Ferrell

Foundations of MarketingThird Edition

Chapter 1:Customer-Driven Strategic Marketing

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Part 1Strategic Marketing and Its Environment

Chapter 1 Customer-Driven Strategic Marketing

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Objectives

1. Define marketing.2. Understand several important marketing terms,

including target market, marketing mix, marketing exchanges, and marketing environment.

3. Be aware of the marketing concept and marketing orientation.

4. Understand the importance of building customer relationships.

5. Explain the major marketing functions that are part of the marketing management process.

6. Understand the role of marketing in our society.

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Outline

1. Marketing Defined

2. Understanding the Marketing Concept

3. Managing Customer Relationships

4. Value-Driven Marketing

5. Marketing Management

6. The Importance of Marketing in Our Global Economy

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customer relationship management (CRM)

marketing environment

relationship marketing

customersmarketing

managementstakeholders

exchanges marketing mix target market

marketingmarketing orientation

value

marketing concept

product

Key Terms

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1. WHAT IS MARKETING?

The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchanges with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment.

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Who is the Focus?

CustomersThe purchasers of organizations’ products; the focal point of all marketing activities.The Target Market

Hard Rock focuses on its target market to meet their needs

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Marketing Mix

Figure 1.1

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Product Variable

A good, a service, or an idea.

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Product Example

Is this advertisement for a good, service, or idea?

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Price Variable

Decisions and actions associated with establishing pricing objectives and policies and determining product prices

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Distribution Variable

Make products available in quantities desired

Minimize costs: Inventory

Transportation

Storage

Select/Motivate intermediaries

Establish/Maintain inventory control

Develop/Manage transportation &storage systems

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Promotion Variable

Activities to inform individuals or groups about the organization and its products Increase awareness of

the organization and new or existing products.

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Creating Awareness

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Relationships with Customers

Exchange: The provision or transfer of goods, services, or ideas in return for something of value

Figure 1.2

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Customer as the Stakeholder

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Relationships with other Stakeholders

Constituents who have a stake or claim in some aspect of a company’s products, operations, markets, industry, and outcomes.

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Forces of the Marketing Environment

CompetitiveCompetitive

SocioculturalSociocultural

TechnologicalTechnological

EconomicEconomic

PoliticalPolitical

LegalLegalRegulatoryRegulatory

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2. THE MARKETING CONCEPT

A managerial philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals.

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Core Competency as Marketing Concept

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Evolution of the Marketing Concept

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Figure 1.3

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Marketing Orientation

An organization-wide commitment to researching and responding to customer needs.

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3. MANAGING CUSTOMER RELATIONSHIPS

Establishing long-term, mutually satisfying buyer-seller relationships.Customer Relationship Management (CRM)

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Customer Relationships

Relationship marketing deepens buyer's trust in the company

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4. VALUE-DRIVEN MARKETING

Value = Customer Benefits minus Customer Costs

Rapala uses value to promote its products to fisherman around the world.

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5. MARKETING MANAGEMENT

The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently.

EffectivenessEffectiveness EfficiencyEfficiency

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6. IMPORTANCE OF MARKETING IN OUR GLOBAL ECONOMY

Costs consume sizable portion of buyers’ dollars

Used in nonprofit organizations

Important to business and economy

Fuels the global economy

Knowledge enhances consumer awareness

Connects people through technology

Promotes welfare of customers and society

Offers many exciting career prospects

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Nonprofit Organizations

Marketing Employed by Nonprofit Organizations

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Why Study Finance, Marketing, HR, & Operations Research

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After reviewing this chapter you should:

Be able to define marketing.Know the meaning of important marketing terms, including target market, marketing mix, marketing exchanges, and marketing environment.Be aware of the marketing concept and marketing orientation.Understand the importance of building customer relationships.Be able to explain the major marketing functions that are part of the marketing management process.Recognize the important role of marketing in our society.