California State University, Sacramento



MODULE 1: Chapter-1

STUDENT LEARNING OBJECTIVES

After reading this chapter students should be able to:

( Define marketing and explain the importance of (1) discovering and (2) satisfying consumer needs and wants.

( Distinguish between marketing mix elements and environmental factors.

( Describe how organizations build strong customer relationships using current thinking about customer value and relationship marketing.

( Explain the meaning of ethics and social responsibility and how they relate to the individual, organizations, and society.

KEY TERMS AND CONCEPTS

customer value marketing program

environmental factors exchange

relationship marketing

market societal marketing concept

market orientation target market

marketing marketing concept

marketing mix

|[pic] |EXAMPLE |

| |After Huge Success…What’s Next? |

| | |

| |Rollerblade has the classic marketing problem of |

| |any innovative firm that has created an entire |

| |industry: What does it do for an encore? What |

| |does it do to provide new products and to build |

| |loyal customer relationships? |

|[pic] |Success Invites Danger, Which Invites Innovation |

| | |

|WHAT IS MARKETING? | |

| |Marketing is the process of developing, pricing, |

|Common sense and personal experience as consumers usually help us analyze marketing |promoting, and distributing goods, services, and |

|decisions. However, experience can mislead us, which is one reason for an in-depth |ideas to satisfy the needs of consumers |

|study of marketing. | |

|[pic] |EXAMPLE |

| |To serve both buyers and sellers, marketing |

| |seeks: |

| | |

| |1. To discover the needs and wants of prospective|

| |customers. |

| |2. To satisfy these needs and wants. |

|[pic] |The Diverse Factors Influencing marketing |

| |Activities |

|Which of the following is true regarding the marketing process? |The four outside groups that exert important |

| |direct influences on an organization consist of: |

|It is synonymous to personal selling. |Politicians, regulators, minority groups, and |

|Its exchanges satisfy sellers only. |consumer monitoring groups |

|Its exchanges satisfy both consumers and sellers. | |

|It is synonymous to advertising. | |

|It is synonymous to personal selling. | |

|[pic] |EXAMPLE |

| |Consumer Needs and Consumer Wants. |

| | |

| |( A need occurs when a person feels |

| |physiologically deprived of basic necessities, |

| |such as food, clothing, and shelter. |

| |( A want is a felt need that is shaped by a |

| |person’s knowledge, culture, and personality. |

| |Marketing does not create the need for a product,|

| |but shapes a person’s wants. |

| Key Terms: What is a market? | |

| | |

|Current and Potential consumers make up a market, which consists of people with both | |

|the desire and the ability to buy a specific product. | |

| | |

|Target Market: An organization focuses on the needs of its target market—one or more | |

|specific groups of potential consumers toward which an organization directs its | |

|marketing program. | |

| |The four outside groups that exert important |

| |direct influences on an organization consist of: |

| |Politicians, regulators, minority groups, and |

| |consumer monitoring groups |

|[pic] |EXAMPLE |

| |Customer value is the unique combination of |

| |benefits received by targeted buyers that |

| |includes quality, price, convenience, on-time |

| |delivery, and both before-sale and after-sale |

| |service. |

| | |

| |Relationship marketing links an organization to |

| |its individual customers, employees, suppliers, |

| |and other partners for their mutual long-term |

| |benefits |

| | |

| | |

| |Many companies, industries, and professional |

| |associations have developed codes of ethics to |

| |assist managers. |

| | |

| |societal marketing concept, the view that an |

| |organization should discover and satisfy the |

| |needs of its consumers in a way that also |

| |provides for society’s well-being. |

| | |

|[pic] |EXAMPLE |

| |The elements of the marketing mix are the |

| |marketing manager’s controllable factors—product,|

| |price, promotion, and place—that can be taken to |

| |solve a marketing problem. |

| | |

| | |

| |( Social forces. |

| |( Economic forces. |

| |( Technological forces. |

| |( Competitive forces. |

| |( Regulatory forces. |

| |The four outside groups that exert important |

| |direct influences on an organization consist of: |

| |Politicians, regulators, minority groups, and |

| |consumer monitoring groups |

Key Highlights of Chapter -1

|Key Concept | |

| | |

| | |

|Exchange | |

| | |

|Market | |

| | |

|Market Orientation | |

| | |

|Marketing Mix | |

|Marketing Program | |

|Relationship Marketing | |

|Customer Value | |

|Marketing Concept | |

|Societal marketing concept | |

|Target Market | |

|Environmental factors | |

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