Copyright©2011byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/IrwinDefinemarketingandidentifythediversefactorsinfluencingmarketingactivities.LO1Explainhowmarketingdiscoversandsatisfiesconsumerneeds.Distinguishbetweenmarketingmixfactorsandenvironmentalforces.LO3LO2LEARNINGOBJECTIVES(LO)AFTERREADINGCHAPTER1,YOUSHOULDBEABLETO:1-2Explainhoworganizationsbuildstrongcustomerrelationshipsandcustomervaluethroughmarketing.Describehowtoday’scustomerrelationshiperadiffersfromprioreras.LO4LO5LEARNINGOBJECTIVES(LO)AFTERREADINGCHAPTER1,YOUSHOULDBEABLETO:1-3RESEARCHINGHOWCOLLEGESTUDENTSSTUDYTOLAUNCHANEWPRODUCTAT3M1-4INNOVATIONANDMARKETINGAT3MDISCOVERING&SATISFYINGSTUDENTSTUDYNEEDS+FeltTipHighlighters=3MproductthatwillcombinePost-it®NotesorPost-it®FlagsandHighlighters3MPost-it®NotesorPost-it®Flags1-5MarketingisNOTEasyWHATISMARKETING?LO1YouAreaMarketingExpertAlready•Involvedin1,000sofBuyingDecisions•MayBeInvolvedinSellingDecisions1-61.True2.True3.(c)plasticbottlesFIGURE1-1Thesee-if-you’re-really-a-marketing-experttest1-7MARKETINGMATTERSPayofffortheJoys(!)andSleeplessNights(?)ofStartingYourOwnSmallBusiness:YouTube!!!!LO11-8MarketingSeeksto:Exchange•DiscoverNeedsandWantsofCustomers•SatisfyThemWHATISMARKETING?DELIVERINGBENEFITSLO1AMADefinitionofMarketing1-9WHATISMARKETING?DIVERSEFACTORSINFLUENCEMARKETINGACTIVITIESLO1TheOrganizationItselfandItsDepartmentsSocietyEnvironmentalForces1-10FIGURE1-2Amarketingdepartmentrelatestomanypeople,organizations,andenvironmentalforces1-11HOWMARKETINGDISCOVERSCONSUMERNEEDSTHECHALLENGE:NEWPRODUCTSLO2ConsumersMayNotKnoworCannotDescribeWhatTheyNeedorWantMostNewProductsFail•“FocusontheConsumerBenefit”•“LearnFromthePast”TheChallenge:1-12Dr.CareVanilla-MintAerosolToothpasteWhat“benefits”andwhat“showstoppers?”LO21-13HotPocketsSideshotsMicrowaveableSnacksWhat“benefits”andwhat“showstoppers?”LO21-14AT&TCruiseCastWhat“benefits”andwhat“showstoppers?”LO21-15PepsiMaxWhat“benefits”andwhat“showstoppers?”LO21-16NeedWantDoesMarketingPersuadePeopletoBuythe“Wrong”Things?MarketHOWMARKETINGDISCOVERSCONSUMERNEEDSNEEDSVS.WANTSLO21-17FIGURE1-3Marketingseekstodiscoverconsumerneedsthroughresearchandthensatisfythemwithamarketingprogram1-18HOWMARKETINGSATISFIESCONSUMERNEEDSLO3•Promotion•PlaceTargetMarketThe4P’s:ControllableMarketingMixFactors•Product•Price$1991-19HOWMARKETINGSATISFIESCONSUMERNEEDSLO3•Technological•RegulatoryUncontrollableEnvironmentalForces•Social•Economic•Competitive1-20THEMARKETINGPROGRAMCUSTOMERVALUEANDRELATIONSHIPSLO4•BestPrice•BestServiceCustomerValue•BestProductValueStrategies1-21SouthwestAirlines,Starbucks,andHomeDepotWhatcustomervaluestrategy?LO41-22THEMARKETINGPROGRAMRELATIONSHIPMARKETINGLO4•EasytoUnderstandRelationshipMarketing•HardtoDoMarketingProgram1-233M’SSTRATEGY&MARKETINGPROGRAMHELPINGSTUDENTSSTUDYLO4MovefromIdeastoaMarketableHighlighterProductAddthePost-it®FlagPenDevelopaMarketingProgramforthePost-it®FlagHighlighterandPen1-24FIGURE1-4Marketingprogramsfortwonew3MPost-it®brandproductstargetedattwodistinctcustomersegments:collegestudentsandofficeworkers1-253MSTRATEGY&MARKETINGPROGRAMMARKETPLACESUCCESS?LO4DevelopedSecondGenerationPost-it®FlagHighlighterAppearedonTheOprahWinfreyShow1-26FIGURE1-AFourdifferentorientationsinthehistoryofAmericanbusinessProductionEraSalesEraMarketingConceptEraCustomerRelationshipEra•MarketOrientation1-27HOWMARKETINGBECAMEIMPORTANTEVOLUTIONOFTHEMARKETORIENTATIONLO5CustomerRelationshipManagement(CRM)CustomerExperience•DirectContactfromBuyingtheService•IndirectContactviaUnplanned“Touches”1-28HOWMARKETINGBECAMEIMPORTANTETHICSANDSOCIALRESPONSIBILITYLO5EthicsSocialResponsibility•SocietalMarketingConcept•SocialEntrepreneurship1-29HOWMARKETINGBECAMEIMPORTANTBREADTHANDDEPTHOFMARKETINGLO5WhoMarkets?WhatIsMarketed?•Goods•Services•Ideas1-30HOWMARKETINGBECAMEIMPORTANTBREADTHANDDEPTHOFMARKETINGLO5WhoBenefits?WhoBuys&UsesWhatIsMarketed?•UltimateConsumers•OrganizationalBuyersHowDoConsumersBenefit?:Utility•FormUtility•PlaceUtility•TimeUtility•PossessionUtility1-313M’SPOST-IT®FLAGHIGHLIGHTER:EXTENDINGTHECONCEPT!VIDEOCASE11-32VIDEOCASE13M’sPost-it®FlagHighlighter1.(a)Howdid3M’sDavidWindorskigetideasfromcollegestudentstohelphimindesigningthefinalcommercialversionofthePost-it®FlagHighlighter?(b)Howweretheseideasimportanttothesuccessoftheproduct?1-332.What(a)specialadvantagesand(b)potentialproblemsdid3Mhaveinintroducinganewhighlighter-with-flagsproductforcollegestudents?VIDEOCASE13M’sPost-it®FlagHighlighter1-343.Visityourcollegebookstorebeforeyouanswer.(a)WherewouldyoudisplaythePost-it®FlagHighlighterinacollegebookstore,and(b)Howcanthedisplayincreasestudentawarenessoftheproduct?VIDEOCASE13M’sPost-it®FlagHighlighter1-354.Inwhatwaysmight3MtrytopromoteitsPost-it®FlagHighlighterandmakestudentsmoreawareoftheproduct?VIDEOCASE13M’sPost-it®FlagHighlighter1-365.Whatare(a)thespecialopportunitiesand(b)potentialchallengesfor3MintakingitsPost-it®FlagHighlighterintointernationalmarkets?(c)Onwhichcountriesshould3Mfocusitsmarketingefforts?VIDEOCASE13M’sPost-i