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Work with these documents and activities to master chapter learning objectives.
Chapter 1: Customer-Driven Strategic Marketing
- Define marketing.
Marketing is the process of creating, pricing, distributing, and promoting goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. The essence of marketing is to develop satisfying exchanges from which both customers and marketers benefit.
- Understand several important marketing terms, including target market, marketing mix, marketing exchanges, and marketing environment.
A target market is the group of customers toward which a company directs a set of marketing efforts.
The variables-product, price, distribution, and promotion-are known as the marketing mix because marketing managers decide what type of each element to use and in what amounts. Marketing managers strive to develop a marketing mix that matches the needs of customers in the target market. Before marketers can develop a marketing mix, they must collect in-depth, up-to-date information about customer needs.
Individuals and organizations engage in marketing to facilitate exchanges-the provision or transfer of goods, services, and ideas in return for something of value. Four conditions must exist for an exchange to occur: (1) Two or more individuals, groups, or organizations must participate, and each must possess something of value that the other party desires; (2) the exchange should provide a benefit or satisfaction to both parties involved in the transaction; (3) each party must have confidence in the promise of the "something of value" held by the other; and (4) to build trust, the parties to the exchange must meet expectations. Marketing activities should attempt to create and maintain satisfying exchange relationships with all stakeholders-those constituents who have a "stake," or claim, in some aspect of a company's products, operations, markets, industry, and outcomes.
The marketing environment, which includes competitive, economic, political, legal and regulatory, technological, and sociocultural forces, surrounds the customer and the marketing mix. These forces can create threats to marketers, but they also generate opportunities for new products and new methods of reaching customers.
- Be aware of the marketing concept and marketing orientation.
According to the marketing concept, 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. Customer satisfaction is the marketing concept's major objective. The philosophy of the marketing concept emerged in the United States during the 1950s after the production and sales eras. Organizations that develop activities consistent with the marketing concept become marketing-oriented organizations.
- Understand the importance of building customer relationships.
Relationship marketing involves establishing long-term, mutually satisfying buyer-seller relationships. Customer relationship management (CRM) focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships. Managing customer relationships requires identifying patterns of buying behavior and using that information to focus on the most promising and profitable customers.
Value is a customer's subjective assessment of benefits relative to costs in determining the worth of a product. Benefits include anything a buyer receives in an exchange, whereas costs include anything a buyer must give up to obtain the benefits the product provides.
- Explain the major marketing functions that are part of the marketing management process.
Marketing management is the process of planning, organizing, implementing, and controlling marketing activities to facilitate effective and efficient exchanges. Planning is a systematic process of assessing opportunities and resources, determining marketing objectives, developing a marketing strategy, and preparing for implementation and control. Organizing marketing activities involves developing the marketing unit's internal structure. Proper implementation of marketing plans depends on coordinating marketing activities, motivating marketing personnel, and communicating effectively within the unit. The marketing control process consists of establishing performance standards, comparing actual performance with established standards, and reducing the difference between desired and actual performance.
- Understand the role of marketing in our society.
Marketing costs absorb about half of each buyer's dollar. Marketing activities are performed in both business and nonprofit organizations. Marketing activities help business organizations to generate profits, and they help fuel the increasingly global economy. Knowledge of marketing enhances consumer awareness. New technology improves marketers' abilities to connect with customers. Socially responsible marketing can promote the welfare of customers and society. Finally, marketing offers many exciting career opportunities.