Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 1 Slide 1-2 DEVELOPING CUSTOMER RELATIONSHIPS AND VALUE THROUGH MARKETING Chapter 1 Associate professor of Plekhanov REA Marketing department Irina I. Skorobogatykh (Ph.D)

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 2 Slide 1-5 LECTURE questions: Define marketing and explain the importance of (1) discovering and (2) satisfying consumer needs and wants. Distinguish between marketing mix elements and environmental factors.

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 3 Slide 1-6 AFTER THIS LECTURE YOU SHOULD BE ABLE TO: 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.

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 4

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 5 Important information All materials are available for the first year students on e-box: Password: marketing

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 6 Recommended Literature TEXT: E.Berkovitz, K.Hartley. K.Kerin. Marketing. The 6-th International edition. McGrow-Hill (available in the Library) READER: E.Berkovitz, K.Hartley. K.Kerin. Marketing. The 6-th International edition. Mcgrow-hill (available in the Library) Marketing. Lectures (Power-Point presentations), prepared by I.I.Skorobogatykh (available in the library)

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 7 Marketing. Course structure 8– 2academic hours lectures ( weeks 1-8) (prof. Skorobogatykh I.I.) 16 – 2 academic hours seminars/per students group (prof.Skorobogatykh I.I., prof.Prosvirkin B.L.) Midterm exam (multiple choice questions+essay questions: theory+practical applications) Final exam (multiple choice+small case analysis) Course work (team project – teams should be not more than 5 members with project manager)

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 8 Students evaluation on the course Midterm – 40 % Final exam - 45% Attendance of the lectures, seminars+participation+presentation of additional materials – 15% Course work – independent mark -100% (maximum)

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 9 WHAT IS MARKETING? Slide 1-9 Marketing: Using Exchanges to Satisfy Needs Marketing Marketing Exchange Exchange The Diverse Factors Influencing Marketing Activities

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 10 Slide What is marketing? A: Marketing is the process of developing, pricing, promoting, and distributing goods, services, and ideas to satisfy the needs of consumers. Concept Check

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 11 Slide 1-12 An organizations marketing department relates to many people, groups, and forces

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 12 Slide Marketing focuses on __________ and _________ consumer needs. discovering satisfying Concept Check

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 13 HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDS Slide 1-15 Discovering Consumer Needs The Challenge of Launching Winning New Products Consumer Needs and Consumer Wants Need Want What a Market Is What a Market Is

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 14 Slide 1-86 A market consists of people (organizations) with both the desire and ability to buy a specific product. Market

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 15 Slide 1-18 Marketings first task: discovering consumer needs

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 16 HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDS Slide 1-20 Satisfying Consumer Needs The Four Ps: Controllable Marketing Mix Factors of Internal Environment The Four Ps: Controllable Marketing Mix Factors of Internal Environment Target Market Target Market Product Promotion Price Place The Uncontrollable, External Environmental Factors

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 17 Slide 1-87 The target market consists of one or more specific groups of potential customers toward which an organization directs its marketing program. Target Market

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 18 Slide 1-88 The marketing mix consists of the marketing managers controllable factorsproduct, price, promotion, and place (the 4Ps)that can be taken to solve a marketing problem. Marketing Mix

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 19 Slide 1-21 Summary of factors that affect an organizations marketing program

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 20 Slide 1-89 External Environmental factors are the uncontrollable factors involving social, economic, technological, competitive, and regulatory forces. Environmental Factors

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 21 THE MARKETING PROGRAM: HOW CUSTOMER RELATIONSHIPS ARE BUILT Slide 1-22 Customer Value: Developing Loyal Customers Customer Value Customer Value Relationship Marketing and the Marketing Program Relationship Marketing Relationship Marketing Marketing Program Marketing Program

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 22 Slide 1-90 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. Customer Value

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 23 Slide 1-91 Relationship marketing links an organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits. Relationship Marketing

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 24 Slide 1-92 A marketing program is a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers. Marketing Program

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 25 Slide 1-25 Marketings second task: satisfying consumer needs

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 26 THE MARKETING PROGRAM: HOW CUSTOMER RELATIONSHIPS ARE BUILT Slide 1-26 A Marketing Program for Rollerblade Listening to Consumers to Stay Ahead of the Trends Focusing the Marketing Program on Four Key Segments Exploiting Strengths in Technology

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 27 Slide An organization cant satisfy the needs of all consumers, so it must focus on one or more subgroups, which are its ____________. target markets Concept Check

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 28 Slide What are the four marketing mix elements that make up the organizations marketing program? A: product, price, promotion, place Concept Check

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 29 Slide What are uncontrollable variables? A: Environmental factors the organizations marketing department cant control. These include social, economic, technological, competitive, and regulatory forces. Concept Check

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 30 HOW MARKETING BECAME SO IMPORTANT Slide 1-32 Evolution of the Market Orientation Production Era Market Orientation Era Market Orientation Era Customer Relationship Management (CRM) Sales Era Marketing Concept Era Marketing Concept Era

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 31 HOW MARKETING BECAME SO IMPORTANT Slide 1-33 Societal Marketing Concept Ethics and Social Responsibility: Balancing Interests Ethics Social Responsibility

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 32 HOW MARKETING BECAME SO IMPORTANT Slide 1-34 The Breadth and Depth of Marketing Who Markets? What Is Marketed? Goods Services Who Buys and Uses What Is Marketed? Ultimate Consumers Ultimate Consumers Organizational Buyers Organizational Buyers

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 33 HOW MARKETING BECAME SO IMPORTANT Slide 1-36 The Breadth and Depth of Marketing Who Benefits? How Do Consumers Benefit? Utility Utility Form Utility Place Utility Time Utility Possession Utility

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 34 New official AMA definition of marketing, unveiled on September 14-th, 2004 Marketing is an organizational function and a set of processes for creating. Communicating, and delivering value to customers and managing customer relationships in ways that benefit the organization and its stakeholders

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 35 Slide 1-37 Concept Check 1. What are the two key characteristics of the marketing concept ? A: An organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organizations goals.

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 36 Slide 1-38 Concept Check 2. What is the difference between goods and services? A: Goods are physical objects, such as iron ore, apples, a computer, or an airplane. Services include things as diverse as legal advise, a college education, or air travel.

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 37 Slide 1-85 Exchange is the trade of things of value between buyer and seller so that each is better off. Exchange

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 38 Slide 1-93 The marketing concept is the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organizations goals. Marketing Concept

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 39 Slide 1-94 An organization that has a market orientation 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. Market Orientation

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 40 Slide 1-95 The societal marketing concept is the view that an organization should discover and satisfy the needs of its consumers in a way that also provides for societys well-being. Societal Marketing Concept

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 41 Slide 1-96 Ultimate consumers are the people who use the goods and services purchased for a household. Ultimate Consumers

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 42 Slide 1-97 Organizational buyers are units such as manufacturers, retailers, or government agencies that buy goods and services for their own use or for resale. Organizational Buyers

Marketing, Lecture 1ass.prof. Irina I.Skorobogatykh (Ph.D) 43 Slide 1-98 Utility is the benefits or customer value received by users of the product. Utility