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
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”?
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
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
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
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
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.
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.
David Windorski is an inventor of Post-it brand products and continually seeks ways to design new products. He had some creative “thinking time” under 3M’s “15% Rule” in which inventors can use up to 15 percent of their time to do research that might lead to marketable 3M products. Working with a team of four college students, Windorski and the team observed and questioned dozens of students about how they studied—how they used their textbooks, wrote and used their lecture notes, did research and wrote papers, reviewed for exams, and so on. Students told Windorski and his team about their studying habits—behaviors that might lead to a new Post-it ィ product. In summary, while students highlight a page in their textbooks or notes, they often can’t find the important pages after they highlighted them. Some students began to mark their pages with a Post-it Note or Post-it Flag. So, for Windorski, it was reasonable to put Post-it Notes or Flags together with a highlighter to combine the two functions into one product.