1. Slide 1-1Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Slide 1-2
Define marketing and identify the
requirements for marketing to occur.LO1
Explain how marketing discovers and
satisfies consumer needs.
Distinguish between marketing mix
elements and environmental forces.LO3
LO2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:

3. Slide 1-3
Explain how organizations build strong
customer relationships and customer
value through marketing.
Describe how today’s customer
relationship era differs from prior eras
oriented to production and selling.
LO4
LO5
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 1, YOU SHOULD BE ABLE TO:
Explain how marketing creates utilities
for consumers.LO6

4. Slide 1-4
HOW DO COLLEGE STUDENTS STUDY?
A NEW PRODUCT CHALLENGE FOR 3M!

5. Slide 1-5
HOW DO COLLEGE STUDENTS STUDY?
DISCOVERING STUDENT STUDYING NEEDS
3M Post-it®
Notes or
Post-it®
Flags
+
Felt Tip Highlighters
=
3M product that
will combine
Post-it®
Notes or
Post-it®
Flags and
Highlighters
Click Sound Icon to Play

6. Slide 1-6
HOW DO COLLEGE STUDENTS STUDY?
SATISFYING STUDENT STUDYING NEEDS

7. Slide 1-7
 Marketing
• Is NOT Easy
• Affects ALL Individuals, Organizations,
Industries, and Countries
WHAT IS MARKETING ?LO1
 You Are a Marketing Expert Already
• Involved in 1,000s of
Buying Decisions
• Some Involved in Selling Decisions

8. Slide 1-8
1. True
2. (c) 30%
3. True
4. (c) plastic bottles
FIGURE 1-1FIGURE 1-1 The see-if-you’re-really-a-
marketing-expert test

9. Slide 1-9
MARKETING MATTERS
Payoff for the Joys (!) and Sleepless Nights (?)
of Starting Your Own Small Business: YouTube!!!!

10. Slide 1-10
 Marketing Seeks to:
 Exchange
• Discover Needs and Wants of Customers
• Satisfy Them
WHAT IS MARKETING?
DELIVERING BENEFITS
LO1

11. Slide 1-11
WHAT IS MARKETING?
DIVERSE FACTORS INFLUENCE MARKETING ACTIVITIES
LO1
 Organization Itself
 Society
 Environmental Forces

12. Slide 1-12
FIGURE 1-2FIGURE 1-2 A marketing department relates
to many people, organizations, and
environmental forces

13. Slide 1-13
 Parties With Unsatisfied Needs
WHAT IS MARKETING?
REQUIREMENTS FOR IT TO OCCUR
LO1
 A Desire & Ability to be Satisfied
 A Way for the Parties to Communicate
 Something to Exchange

14. Slide 1-14
HOW MARKETING
DISCOVERS CONSUMER NEEDS
THE CHALLENGE: NEW PRODUCTS
LO2
 Consumers May Not Know or Cannot
Describe What They Need or Want
 Most New Products Fail
• “Focus on the Consumer Benefit”
• “Learn From the Past”
 The Challenge:

15. Slide 1-15
Dr. Care Vanilla-Mint Aerosol Toothpaste
What “benefits” and what “showstoppers”?

16. Slide 1-16
Hot Pockets Subs Microwaveable Snacks
What “benefits” and what “showstoppers”?

17. Slide 1-17
iRobot Scooba Robotic Floor Washer
What “benefits” and what “showstoppers”?

18. Slide 1-18
Coca Cola C2
What “benefits” and what “showstoppers”?

19. Slide 1-19
 Need
 Want
 Does Marketing Persuade People to Buy
the “Wrong” Things?
 Market
HOW MARKETING
DISCOVERS CONSUMER NEEDS
NEEDS VS. WANTS
LO2

20. Slide 1-20
MAKING RESPONSIBLE DECISIONS
Student Credit Cards—What is the Real Price?

21. Slide 1-21
FIGURE 1-3FIGURE 1-3 Marketing seeks to discover
then satisfy consumer needs through
research and a marketing program

22. Slide 1-22
HOW MARKETING SATISFIES
CONSUMER NEEDS
LO3
• Promotion
• Place
 Target Market
 The 4 P’s: Controllable Marketing Mix
Factors
• Product
• Price $399

23. Slide 1-23
HOW MARKETING SATISFIES
CONSUMER NEEDS
LO3
• Technological
• Regulatory
 Uncontrollable Environmental Forces
• Social
• Economic
• Competitive

24. Slide 1-24
MARKETING PROGRAM
CUSTOMER VALUE AND RELATIONSHIPS
LO4
• Best Price
• Best Service
 Customer Value
• Best Product
 Value Strategies

25. Slide 1-25
Costco and Starbucks
What customer value strategy?

26. Slide 1-26
MARKETING PROGRAM
RELATIONSHIP MARKETING
LO4
• Easy to Understand
 Relationship Marketing
• Hard to Do
 Marketing Program

27. Slide 1-27
3M PRODUCT & MARKETING PROGRAM
HELPING STUDENTS STUDY
LO4
 Move from Ideas to a Marketable
Highlighter Product
 Extend the Product Line
 Develop a Marketing
Program for the
Post-it®
Flag
Highlighter and Pen

28. Slide 1-28
FIGURE 1-4FIGURE 1-4 Marketing programs for two new
3M Post-it®
brand products targeted at two
distinct customer segments: college
students and office workers

29. Slide 1-29
HOW MARKETING BECAME IMPORTANT
EVOLUTION OF THE MARKET ORIENTATION
LO5
 Production Era
 Sales Era
 Marketing Concept Era
 Customer Relationship Era
• Market Orientation
• Customer Relationship Management (CRM)
• Customer Experience

30. Slide 1-30
FIGURE 1-5FIGURE 1-5 Four different market
orientations in the history of American
business

31. Slide 1-31
HOW MARKETING BECAME IMPORTANT
ETHICS AND SOCIAL RESPONSIBILITY
LO5
 Ethics
 Social Responsibility
• Societal Marketing Concept
• Macromarketing
• Micromarketing

32. Slide 1-32
HOW MARKETING BECAME IMPORTANT
BREADTH AND DEPTH OF MARKETING
LO6
 Who Markets?
 What Is Marketed?
• Goods • Services • Ideas

33. Slide 1-33
HOW MARKETING BECAME IMPORTANT
BREADTH AND DEPTH OF MARKETING
LO6
 Who Benefits?
 Who Buys & Uses What Is Marketed?
• Ultimate Consumers
• Organizational Buyers
 How Do Consumers Benefit?
• Utility
 Form Utility
 Place Utility
 Time Utility
 Possession Utility

34. Slide 1-34
3M’S POST-IT®
FLAG HIGHLIGHTER:
EXTENDING THE CONCEPT!
VIDEO CASE 1

35. Slide 1-35
VIDEO CASE 1
3M’s Post-it®
Flag Highlighter
1. (a) How did 3M’s David
Windorski get ideas from college
students to help him in designing
the final commercial version of
the Post-it®
Flag Highlighter?
(b) How were these ideas
important to the success of the
products?

36. Slide 1-36
2. What (a) special advantages and
(b) potential problems did 3M
have in introducing a new
highlighter-with-flags product for
college students in 2004?
VIDEO CASE 1
3M’s Post-it®
Flag Highlighter

37. Slide 1-37
3. Visit your college bookstore
before you answer. (a) Where
would you display the Post-it®
Flag Highlighter in a college
bookstore and (b) How can the
display increase student
awareness of the product?
VIDEO CASE 1
3M’s Post-it®
Flag Highlighter

38. Slide 1-38
4. In what ways might 3M try to
promote its Post-it®
Flag
Highlighter and make students
more aware of the product?
VIDEO CASE 1
3M’s Post-it®
Flag Highlighter

39. Slide 1-39
5. What are (a) the special
opportunities and (b) potential
challenges for 3M in taking its
Post-it®
Flag Highlighter into
international markets? (c) On
which countries should 3M focus
its marketing efforts?
VIDEO CASE 1
3M’s Post-it®
Flag Highlighter

40. Slide 1-40
DO MARKETERS PERSUADE
CUSTOMERS TO BUY THE
“WRONG” PRODUCTS?
SUPPLEMENTAL
LECTURE NOTE 1-1

41. Slide 1-41
DESIGNING A CANDY BAR
IN-CLASS ACTIVITY 1-1

42. Slide 1-42
Ghirardelli Milk Chocolate Squares
What Candy Have You Recently Bought and Why?

43. Slide 1-43

44. Slide 1-44
WHAT MAKES A
BETTER MOUSETRAP?
IN-CLASS ACTIVITY 1-2

45. Slide 1-45
If a man (woman)
makes a better
mousetrap,
the world will
beat a path to
his (her) door.”
~ Ralph Waldo
Emerson
A Victorious Mouse

46. Slide 1-46

47. Slide 1-47

48. Slide 1-48
Marketing
Marketing is the activity for
creating, communicating,
delivering, and exchanging
offerings that benefit the
organization, its stakeholders,
and society at large.

49. Slide 1-49
Exchange
Exchange is the trade of things
of value between buyer and seller
so that each is better off after the
trade.

50. Slide 1-50
Market
A market consists of people with
both the desire and the ability to
buy a specific product.

51. Slide 1-51
Target Market
A target market consists of
one or more specific groups of
potential consumers toward
which an organization directs its
marketing program.

52. Slide 1-52
Marketing Mix
The marketing mix consists of
the marketing manager’s
controllable factors—product,
price, promotion, and place—that
can be used to solve a marketing
problem.

53. Slide 1-53
Environmental Forces
Environmental forces consist of
the uncontrollable factors in a
marketing decision involving
social, economic, technological,
competitive, and regulatory forces.

54. Slide 1-54
Customer Value
Customer value is the unique
combination of benefits received
by targeted buyers that includes
quality, convenience, on-time
delivery, and both before-sale
and after-sale service at a
specific price.

55. Slide 1-55
Relationship Marketing
Relationship marketing links
the organization to its individual
customers, employees, suppliers,
and other partners for their
mutual long-term benefits.

56. Slide 1-56
Marketing Program
A marketing program is a plan
that integrates the marketing mix
to provide a good, service, or idea
to prospective buyers.

57. Slide 1-57
Marketing Concept
A marketing concept is the
idea that an organization should
(1) strive to satisfy the needs of
consumers (2) while also trying to
achieve the organization’s goals.

58. Slide 1-58
Market Orientation
A market orientation in an
organization focuses its efforts
on (1) continuously collecting
information about customers’
needs, (2) sharing this information
across departments, and (3) using
it to create customer value.

59. Slide 1-59
Customer Relationship
Management (CRM)
Customer relationship management
(CRM) is the process of identifying
prospective buyers, understanding
them intimately, and developing
favorable long-term perceptions of the
organization and its offerings so that
buyers will choose them in the
marketplace.

60. Slide 1-60
Customer Experience
Customer experience is the
internal response that customers
have to all aspects of an
organization and its offerings.

61. Slide 1-61
Societal Marketing Concept
Societal marketing concept is
the view that organizations should
satisfy the needs of consumers in
a way that provides for society’s
well-being.

62. Slide 1-62
Ultimate Consumers
Ultimate consumers consist of
the people who use the goods
and services purchased for a
household. Also called
consumers, buyers, or customers.

63. Slide 1-63
Organizational Buyers
Organizational buyers are
those manufacturers, wholesalers,
retailers, and government
agencies that buy goods and
services for their own use or for
resale.

64. Slide 1-64
Utility
Utility consists of the benefits or
customer value received by users
of the product.