Marketing in the Modern Organization

Marketing Concept

The achievement of corporate goals through meeting and exceeding customer needs better than the competition

The Marketing Concept

Customer orientation

Corporate activities are focused upon providing customer satisfaction

Integrated effort

All staff accept the responsibility for creating

customer satisfaction

Goal achievement

The belief that corporate goals can be achieved

through customer satisfaction

Marketing concept

The achievement of corporate goals through meeting and exceeding

customer needs and expectations better than the competition

Customer orientation

Corporate activities are focused upon

providing customer satisfaction

Integrated effort

All staff accept the responsibility for

creating customer satisfaction

Goal achievement

The belief that corporate goals can be achieved through customer satisfaction

MarketingOrientation

Integrated customer

focus

Long run profitsthrough customer

satisfaction

SalesOrientation

Push! Push!Sell! Sell!by promotion

Short term gains in profit via sales increases

Evolution of theMarketing Concept

ProductionOrientationProduction &

assembly line refinement

Profits throughproduction controls

Production Orientation

Customers

Production capabilities

Manufacture product

Aggressive sales effort

Marketing Orientation

Customer needs

Potential market

opportunities

Marketing products

and services

Customers

Marketing Orientated Businesses

INSERT TABLE 1.1

Marketing Orientated Businesses

Efficiency and Effectiveness

Ineffective

Goes out of business quickly

Dies Slowly

Survives

Does wellThrives

Effective

Efficient

Inefficient

Limitations of the Marketing Concept

- The marketing concept as an ideology.- Marketing and society.

- Marketing as a constraint on innovation.- Marketing as a source of dullness.

Creating Customer Value

Product benefitsService benefitsRelational benefitsImage benefits

Monetary costsTime costsEnergy costsPsychological costs

Customer value

Perceived benefits

Perceived sacrifice

Positive Negative

Creating Customer Value

INSERT FIGURE 1.5

Creating Customer SatisfactionDelight

Neutral

DissatisfactionAbsent Fulfilled

Presence of the characteristic

Cus

tom

er s

atis

fact

ion

‘Delighters’

‘More is better’

‘Must be’

The Marketing Mix

- Product

- Price

- Promotion

- Place

An Effective Marketing Mix

Effective marketing

mix

Matches customer needs

Creates a competitive advantage

Well balanced

Matches corporate resources

Marketing Mix and Customer Needs

Customer needs

Key customer requirements

Competitive advantage

Marketing mix

Marketing Mix and Customer Needs

Customer needs

Key customer requirements

Competitive advantage

Marketing mix

PsychologicalEconomic

Customer needs

Performance Availability Reliability Durability Productivity

Self-image Quiet life Pleasure Convenience Risk reduction

Marketing Mix and Customer Needs

Customer needs

Key customer requirements

Competitive advantage

Marketing mix Product

Price Promotion Place

Marketing mix

The Relationship Between Market Orientation and Profitability

INSERT FIGURE 1.9