an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

A philosophy, an attitude, a perspective, or a management orientation that stresses ccustomer satisfaction. An organization function and a set of processes used to implement this phliosophy

• more investment
• stockholder satisfaction
• growth and profits
• repeat business
• higher quality
• greater effort

Exchange

• at least two parties
• something of value
• communication and delivery
• freedom to accept or reject
• desire to deal with other power

• Production
• Sales
• Market
• Societal

Production focuses on..

The idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives.

• Focusing on customer wants and needs to distinguish products from competitors’ offerings
  
• Integrating all the organization’s activities to satisfy these wants
  
• Achieving the organization’s long-term goals by satisfying customer wants and needs legally and responsibly

An organization exists not only to satisfy customer wants but also to preserve or enhance individuals’ and society’s long-term best interests.

The relationship between benefits and the sacrifice necessary to obtain those benefits.

The feeling that a product
met or exceeded the
customer’s expectations.

with..... 

• A way for companies to build customer relationships
• Customers base a company on how the employees treat them

• A way for companies to build customer relationships

• letting the employees solve customer issues instead of going straight to the manager

• Gives customers the feeling that their concerns are being addressed and gives employees the feeling that their expertise matters

Sales Orientation-- Organization Focus

Market Orientation--Organization Focus

Sales- inward

Market- outward

Sales Orientation- Firms business

Vs.

Market Orientation --Firms business

Sales- sales goods and services

Market- satisfying wants and needs

Sales orientation is for who?

Vs.

Market orientation is for who?

Sales- everybody

Market- specific groups of people

Sales orientation primary profit goal?

Vs.

Market orientation primary profit goal?

Sales- to maximize sales goals

Market-customer satisfaction

Sales orientation wants to achieve

Market orientation wants to achieve

Sales- promotion

Market orientation- to use all marketing activities

• The managerial process of creating and maintaining a fit between the organization’s objectives and resources and evolving market opportunities
• The goal is long-term profitability and growth

• product lines
• distribution channels
• marketing communications
• pricing

• business mission statement
• objectives
• situation or SWOT analysis
• Marketing strategy
• Implementation evauluation control

• Strategic planning
• long-term profitability and growth
• By writing a marketing plan

the markets rather than the goods or services

• to always understand and satisfy the needs of marketers so as to provide them with products and services that will help them be better marketers

• To empower marketers through information, education, relationships, and resources that will enrich their professional development and careers

• To advance the thought, application, and ethical practice of marketing

A statement of what is to be accomplished through marketing activities.

• communicate good marketing management philosophy
• provide management direction
• motivate employees
• force executives to think clearly
• allow for better evaluation results

Identifying

internal strengths (S)
and weaknesses (W)
and also examining
external opportunities (O)
and threats (T)

• internal strenghts
• things the company does well

• Weaknesses
• things the company does not do well

• examining external opportunites
• Conditions in the external environment that favor strengths

• external threats
• Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness

• Cost
• Product/Service differentiation
• niche strategies

§Brand names

• Patents
• Copy rights
• locations
• equipment
• technology
• customer service
• promotion

• market penetration
• market development
• product development
• diversification

Star

Cash Cow

Problem Child

Dog

to build

to hold

to harvest

to divest

appropriate for all SBUs except those classified as stars

• the goal is to increase the short-term cash return without too much concern for the long-run impact

• Segment the market based on groups with similar characteristics
  
• Analyze the market based on attractiveness of market segments
• Select one or more target markets
• appeal to the entire market with one market mix
• concentrate on one marketing segment
• appeal to multiple markets with multiple marketing mixes

Product

Place

Promotion

Price

• One of the four Ps
• the starting point of the four Ps
• Includes: Package, Warranty, Service, Brand, Image
• Can be tangible goods, ideas, services

• One of the four Ps
•  
  §Product availability where and when customers want them
  
  §All activities from raw materials to finished products
  
  §Ensure products arrive in usable condition at designated places when needed

• One of the four Ps
•  
  §Role is to bring about exchanges with target markets by:
  
  §Informing
  §Educating
  §Persuading
  Reminding

• Four Ps
• The most flexible and easiest to change
• What a buyer must give up to obtain power

The moral principles or values that generally govern the conduct of an individual.

attitudes

values

lifestyle

Products purchased

Prices paid for products

Effectivness of promotions

How, where, and when people purchase

Self-Sufficiency

Upward Mobility

Work Ethic

Conformity

The practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle.

Consumer Product Safety Commission- Protects consumer safety in
and around their homes

Fedral Trade Commission- Prevents unfair methods of

competition in commerce

Food & Drug Administration-  Enforces safety regulations for food and drug products

U.S. is world’s leading exporter of farm products.

1. companies operate in one country and sell into others
2. set up foreign subsidiaries to handle sales
3. operate an entire line of business in another country
4. virtual operation

natural resources

culture

economic development

technological development

political structure

demography

From least risk/ low return to high risk/high return

Export

Licensing

Contract Manufacturing

Joint Venture

Direct Investment

• need recognition
• informative speech
• evaluation of alternatives
• purchase
• post behavior

1. Level of consumer involvement
2. Length of time to make decision
3. Cost of good or service
4. Degree of information search
5. Number of alternatives considered

• Previous experience
• Interest
• Percieved risk of negative consequences
• situation
• social visibility

Reference groups

Direct Vs. Indirect

Direct- Primary, Secondary

Indirect- Aspirational, non-aspirational

Opinion Leaders

Direct Vs. Indirect

Direct- people you know

Indirect- Celebrities

Self-actualization

Esteem needs

Social needs

Safety needs

Physiological needs

Consumer changes or distorts information that conflicts

with feelings or beliefs

Consumer notices certain stimuli

and ignores others