1 | 2Copyright © Houghton Mifflin Company. All rights reserved. Part One Understanding And Managing...

1 | 2Copyright © Houghton Mifflin Company. All rights reserved.

Part OneUnderstanding And Managing

Marketing Strategies

Chapter 1An Overview of

Strategic Marketing


Objectives

• Define marketing as focused on customers

• Identify important marketing terms

• Become aware of the marketing concept and marketing orientation

• Understand importance of building customer relationships

• Learn the process of marketing management

• Recognize role of marketing in society


Marketing

The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchanges with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment.


Customers

The purchasers of organizations’ products; the focal point of all marketing activities.


Components ofStrategic Marketing


Target Market

A specific group of customers on whom an organization focuses its marketing efforts.


Marketing Mix

Product

Distribution

Promotion

Pricing


Product Variable

A good, a service, or an idea.


Distribution Variable

Make products available in quantities desired Costs:

Inventory Transportation Storage

Select/Motivate intermediaries Establish/Maintain inventory control Develop/Manage transportation &

storage systems


Promotion Variable

• Activities to inform individuals or groups about the organization and its products

– aim is to increase awareness of the organization and new or existing products.


Price Variable

Decisions and actions associated with establishing pricing objectives and policies and determining product prices


Exchange

The provision or transfer of goods, services, or ideas in return for something of value


Exchange BetweenBuyer and Seller


Stakeholders

Constituents who have a stake or claim in some aspect of a company’s products, operations, markets, industry, and outcomes.


Conditions of Exchange

1) Two or more must participate and possess something of value other party desires

2) Exchange should provide benefit/satisfaction to both parties

3) Party have confidence in promise of “something of value” held by the other

4) Parties must meet expectations


Marketing Concept

A philosophy that an organization should try to provide products that satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals.


Evolution of theMarketing Concept


Marketing Orientation

An organization-wide commitment to researching and responding to customer needs.


Relationship Marketing

Establishing long-term, mutually satisfying buyer-seller relationships.


Relationship Development

Acquire new customers

Enhance profitability of existing customers

Extend duration of customer relationship


CustomerRelationship Management

Using information about customers to create marketing strategies that develop and sustain desirable customer relationships.


Marketing Management

The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently.


Importance of Marketing in the Global Economy (Pt.1)

Costs consume sizable portion of buyers’ dollars

Used in nonprofit organizations

Important to business and economy

Fuels the global economy


Importance of Marketing in the Global Economy (Pt. 2)

Knowledge enhances consumer awareness

Connects people through technology

Promotes welfare of customers and society

Offers many exciting career prospects

1 | 2Copyright © Houghton Mifflin Company. All rights reserved. Part One Understanding And Managing...

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