Basic Marketing, 13th edition

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Chapter 2 Marketings Role within the Firm
or Nonprofit Organization
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Chapter 2 Objectives
When you finish this chapter, you should

• 1. Know what the marketing concept isand how it
  should affect strategy planning in a firm or
  nonprofit organization.
• 2. Understand what customer value is and why it
  is important to customer satisfaction.
• 3. Understand what a marketing manager does.
• 4. Know what marketing strategy planning isand
  why it is the focus of the book.

• 5. Understand target marketing.
• 6. Be familiar with the four Ps in a marketing
  mix.
• 7. Know the difference between a marketing
  strategy, a marketing plan, and a marketing
  program.
• 8. Understand the important new terms.

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Marketings Changing Role
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The Marketing Concept
Exhibit 2-1
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Marketing Orientation Sounds Easy,Isnt

• Even the best firms sometimes backslide into a
  production orientation
• In todays highly competitive markets it is often
  difficult to
• keep up with changing customer needs
• beat aggressive competitors to the punch
• find the right focus -- one that matches the
  firms objectives and resources to market
  opportunities
• offer customers superior value

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Customer Value Reflects Benefits and Costs
Customer value concerns the difference between
the benefits a customer sees from a firms market
offering and the costs of obtaining those benefits
Costs
Benefits
The customers view of costs and benefits is not
just limited to economic (or even rational)
considerations--and a low price may NOT result in
superior value...
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Customer Value
Costs
Benefits

• 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.
• Customer 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.

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Nonprofits Need Marketing, Too
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The Marketing Management Process
Exhibit 2-4
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Marketing Strategy Planning
Exhibit 2-5
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The Four Ps of the Marketing Mix
Exhibit 2-7
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Strategy Decision Areas Organized by the Four Ps
Exhibit 2-8
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Four Examples of Basic Channels of Distribution
for Consumer Products
Exhibit 2-9
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Elements of the Marketing Program
Exhibit 2-11
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Distribution of Different Firms Based on
Performance
Exhibit 2-12
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Key Terms
Nonprofit Organizations Social
Responsibility Marketing Management
Process Strategic (Management)
Planning Marketing Strategy Target Market
Marketing Mix Target Marketing Mass
Marketing Channel of Distribution
Simple Trade Era Production Era Sales
Era Marketing Department Era Marketing Company
Era Marketing Concept Production
Orientation Marketing Orientation Customer
Value
Personal Selling Mass Selling Advertising
Publicity Sales Promotion Marketing
Plan Implementation Operational
Decisions Marketing Program
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