Click the button below to hear a recorded version of this chapter's summary below. The free Adobe Flash Player is required to play the audio clips. Learning Objective 1: Define marketing and identify the requirements for successful marketing to occur.
Marketing is the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large. For marketing to occur, it is necessary to have (a) two or more parties with unmet needs, (b) a desire and ability to satisfy them, (c) communication between the parties, and (d) something to exchange.
Learning Objective 2: Understand the breadth and depth of marketing.
Marketing affects every person and organization. Both for-profit and non-profit organizations perform marketing activities. They market products, services, ideas, and experiences that benefit consumers, organizations, and countries.
Learning Objective 3: Explain how marketing discovers and satisfies consumer needs and wants.
The first objective in marketing is discovering the needs of prospective consumers. The second objective in marketing is satisfying the needs of targeted consumers. Because an organization cannot satisfy all consumer needs, it must concentrate its efforts on certain needs of a specific group of potential consumers or target marketone or more specific groups of potential consumers toward which an organization directs its marketing program. Having selected its target market, the organization then takes action to satisfy the customers needs by developing a unique marketing program to appeal to that market.
Learning Objective 4: Distinguish between marketing mix elements and environmental factors.
Four elements in a marketing program designed to satisfy customer needs are product, price, promotion, and place. These elements are called the marketing mixthe four Psor the controllable variables because they are under the general control of the marketing department within an organization. Environmental forces, also called uncontrollable variables, are largely beyond the organizations control. These include social, technological, economic, competitive, and regulatory forces.
Learning Objective 5: Describe how a market orientation focuses on creating customer value, satisfaction, and customer relationships.
Organizations with a market orientation focus their efforts on (a) continuously collecting information about customers needs and competitors capabilities, (b) sharing this information throughout the organization, and (c) using the information to create value, ensure customer satisfaction, and develop customer relationships. Organizations with a market orientation engage in customer relationship management (CRM)the process of building and developing long-term relationships with customers by delivering customer value and satisfaction. Organizations engaging CRM understand the importance of the customer lifetime value (CLV)the profits generated by the customers purchase of an organizations product or service over the customers lifetime. The concept of eCRMa Web-centric, personalized approach to managing long-term customer relationships electronically, which includes interactive marketingis changing the way buyers and sellers interact. Interactive marketing technology now allows for a level of customer interaction, individualization, and customer relationship management process to be carried out on a scale never before available.
Learning Objective 6: Explain why some organizations have transitioned from the market orientation era to the customer experience management era.
Companies have found that CRM is necessary but not sufficient in building effective relationships with customers. Accordingly, many companies have transitioned from the market orientation era to the customer experience management (CEM) eramanaging the customers interactions with the organization at all levels and at all touchpoints so that the customer has a positive impression of the organization, is satisfied with the experience, and will remain loyal to the organization. This shift also requires a new type of organization called a customer-centric marketing organization (CCMO), and some Canadian companies have already made this transition and are enjoying marketing success.
Learning Objective 7: Understand the emergence of the social media marketing era.
The social media marketing era is ushering in a major structural change in our economy. Social media marketing has two distinct dimensions: (a) consumer-generated online-marketing efforts to promote brands and companies for which they are fans (or conversely, negatively promoting brands and companies for which they are non-fans), and (b) the use by marketers of online tools and platforms such as Facebook, MySpace, Twitter, and YouTube to promote their brands or organizations. Some suggest that social media marketing is creating a new form of economy called socialnomics where consumers will no longer search for products or services, but rather will find them via social media. To survive in this new social media world organizations must understand, navigate and adapt to this new landscape.
Learning Objective 8: Understand the meaning of ethics and social responsibility and how they relate to the individual, organizations, and society.
Marketing managers must balance consumer, organizational, and societal interests. This involves issues of ethics and social responsibility. Ethics are the moral principles and values that govern the actions and decisions of an individual or group. Ethics serve as guidelines on how to act correctly and justly. Social responsibility means that individuals and organizations are part of a larger society and are accountable to that society for their actions. Some marketing experts stress the societal marketing concept, the view that an organization should discover and satisfy the needs of its consumers in a way that also provides for societys well-being which includes sustainable business practices and green marketing.