Chapter 1 An Overview of Marketing

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Chapter 1An Overview of Marketing
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What is Marketing?
plus
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What is Marketing?
American Marketing Association Definition Marketi
ng is the process of planning and executing the
conception, pricing, promotion, and distribution
of ideas, goods, and services to create
exchanges that satisfy individual and
organizational goals.
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Marketing Management Philosophies
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The Marketing Concept

• Focuses on customer wants and needs to
  distinguish products from competition
• Integrates all organizations activities to
  satisfy customer wants and needs
• Achieves organizations long-term goals by
  satisfying customer wants and needs

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http//acsi.asqc.org
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Customer Satisfaction is Key How satisfied are
your customers? How do you know? What causes
different levels of satisfaction?
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What Customers Like - Q1/2000
Top Nondurables - How can you screw up
ketchup? Middle Durables - More complexity
means more can go wrong Bottom Services -
Stressed frontline workers/low wages Most
recent Results Example Industry Satisfaction
Score Last Change Beverage 84
1.2 Apparel 79 NC Autos 78 -
1.3 Police (suburban) 78 9.8 Commercial
Banks 68 - 2.9 National News 64
3.2 Internal Revenue 51 - 3.8
American Satisfaction Index Results
http//acsi.asq.org/)
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The American Customer Satisfaction Index

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Overall Customer Satisfaction (ACSI)





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Satisfaction/Retention Metrics
zone of affection
Apostles
Retention
0 20 40 60 80
100
zone of indifference
Terrorists
zone of defection
Extremely Somewhat Slightly
Satisfied Very Dissatisfied Dissatisfied
Dissatisfied Satisfied
Satisfaction
Putting the Service-Profit Chain to Work, James
L. Heskett, et al, Harvard Business Review,
March-April, 1994, PP 164-174.
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The Profit Chain
Internal Service Quality
Customer Satisfaction
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Sales vs. Market Orientations
Organizations Focus
Firms Business
For Whom?
Primary Profit Goal?
Tools to Achieve
Everybody
Primarily promotion
Inward
Selling goods and services
Maximum sales volume
Sales Orientation
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The Organizations Focus
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Defining a Firms Business

• Benefits instead of goods/services
• Ensures a customer focus
• Encourages innovation
• Stimulates an awareness of customer change

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Marketing Process Activities
Understand the organizations mission
Set marketing objectives
Gather, analyze, interpret SWOT information
Develop a marketing strategy
Implement the marketing strategy
Design performance measures
Evaluate marketing efforts--change if needed