This is due on or before June 28, 2018 at 6:00 p.m. CSTThis discussion will allow you to obtain additional information for the Marketing Mix section of your Final Project.  Specifically, you will g

Chapter 1 Marketing’s Value to Consumers, Firms, and Society Copyright © 2015 McGraw -Hill Education. All rights reserved. No reproduction or distribution without the prior written consent o f McGraw -Hill Education. 1-2 At the end of this presentation, you should be able to: 1. know what marketing is and why you should learn about it. 2. understand the difference between marketing and macro -marketing. 3. know the marketing functions and why marketing specialists — including intermediaries and collaborators — develop to perform them. 4. understand what a market -driven economy is and how it adjusts the macro - marketing system. 1-3 At the end of this presentation, you should be able to: 5. know what the marketing concept is — and how it should guide a firm or nonprofit organization . 6. understand what customer value is and why it is important to customer satisfaction . 7. know how social responsibility and marketing ethics relate to the marketing concept . 8. understand important new terms. 1-4 All Those Bicycles! Marketing — What’s It All About? More Than Selling and Advertising 1-5 Things a Firm Should Do in Producing a Bike Predict Wants Estimate Demand Determine Where Estimate Price Decide Promotion Estimate Competition Provide Service Analyze Needs 1-6 Production vs. Marketing Creates Customer Satisfaction Marketing Makes sure right goods & services are produced Production • Making goods • Performing services 1-7 Marketing Is Important to You Important to every consumer! Important to your job ! (and your next job, too) Affects innovation and standard of living 1-8 How Should We Define Marketing? and Macro View Accomplishes the objectives of society Matches supply with demand Concerned with how marketing affects society and vice versa Micro View Anticipates customers’ needs Directs flow of goods and services Performed by individual organizations 1-9 Identify Customer Needs 1-10 Marketing Key Characteristics Profit and Nonprofit More than Persuasion Begins with Needs Doesn’t do it Alone Involves Exchanges Builds Relationships 1-11 Macro - Marketing Key Characteristics Matches Producers and Consumers Emphasis Is on Whole System Every Economy Needs It 1-12 Marketing Facilitates Production and Consumption (Exhibit 1 - 1) Production Sector Marketing needed to overcome discrepancies and separations Discrepancies of Quantity Discrepancies of Assortment Spatial Separation Separation in Time Separation of Information Separation in Values Separation of Ownership Consumption Sector 1-13 Separation Between Producers and Consumers Economies of Scale - Lower Unit Cost Unit Cost $ Producers Consumers Marketing Functions Marketing Bridges the Gap! Output 1-14 Overcoming Spatial Separation 1-15 Universal Functions of Marketing Marketing Functions Buying Selling Transporting Storing Standardization & Grading Financing Risk Taking Market Information 1-16 Who Performs Marketing Functions? Transport Firms ISP's Product Testing Firms Ad Agencies Research Firms Wholesalers Other Specialists Retailers Consumers Producers 1-17 Economics Systems OR Command Economy • Government officials decide about production and distribution • May work well if: • Simple economy • Little Variety • Adverse Conditions Market - Directed Economy • Adjusts itself • Price is value measure • Freedom of choice • Government’s role limited • Public interest groups 1-18 Model of a Market - Directed Macro - Marketing System (Exhibit 1 - 2) Many Individual Producers (heterogeneous supply) Intermediarie s Collaborators Perform universal marketing functions To overcome discrepancies and separation of producers / consumers To create value and direct flow of need -satisfying goods and services Many Individual Consumers (heterogeneous demand) Monitor by government (s) & public interest groups 1-19 Marketing’s Role Has Changed a Lot Over the Years Focus: Sell Surplus Long -Run Customer Satisfaction Focus: Focus: Increase Supply Focus: Beat Competition Focus: Coordinate & Control Simple Trade Era Production Era Sales Era Marketing Department Era Marketing Company Era 1-20 Discovering Customer Needs 1-21 The Marketing Concept (Exhibit 1 - 3) Profit (or another measure of long -term success) as an objective Total company effort Customer satisfaction The Marketing Concept 1-22 Checking Your Knowledge A store that is popular with newlyweds runs a wedding gift registry.

Five minutes before closing time on a Sunday, a young couple enters the store and wants to register — a process that usually takes 30 minutes or more. A sales associate advises the couple to come back when they have more time, even though a recent memo from the store’s regional manager specifically instructed store personnel to stay after closing time to help such customers. Which key element of the marketing concept is the main problem area in this situation? A. Customer need B. Total company effort C. Customer satisfaction D. Marketing orientation E. Product orientation 1-23 Some Differences in Outlook between Adopters of the Marketing Concept and Production -Oriented Managers (Exhibit 1 – 4) Topic Marketing Orientation Production Orientation Attitudes toward customers Customer needs determine company plans. They should be glad we exist, trying to cut costs and bringing out better products. Product offering Company makes what it can sell. Company sells what it can make. Role of marketing research To determine customer needs and how well company is satisfying them. To determine customer reaction, if used at all. Interest in innovation Focus is on locating new opportunities. Focus is on technology and cost cutting. 1-24 Topic Marketing Orientation Production Orientation Customer service Satisfy customers after the sale and they’ll come back again. An activity required to reduce consumer complaints. Focus of advertising Need -satisfying benefits of goods and services. Product features and how products are made. Relationship with customer Customer satisfaction before and after sale leads to a profitable long -run relationship. Relationship ends when a sale is made. Costs Eliminate costs that do not give value to customer. Keep costs as low as possible. Some Differences in Outlook between Adopters of the Marketing Concept and Production -Oriented Managers (Exhibit 1 – 4) 1-25 The Marketing Concept and Customer Value Costs Benefits Take Customer’s Point of View Customer May Not Dwell on Value Where Does Competition Fit? Customer Value Builds Relationships Customer Value Reflects Benefits and Costs 1-26 Costs, Benefits, and Customer Value (Exhibit 1 - 5) Perceived superior value Perceived inferior value High High Low Low Costs target customer sees to obtain benefits Benefits target customer sees in a firm’s goods and services 1-27 Interactive Exercise: Customer Value 1-28 Checking Your Knowledge Which of the following statements, made by marketing managers, illustrates an understanding of the concept of customer value ? A. “It’s more important to acquire new customers than to retain old ones.” B. “The only time it’s really necessary to demonstrate superior customer value is right before the actual sale.” C. “My main concern is with meeting this month’s sales quota — I’ll worry about relationship building later.” D. “I might think my product is a good value, but what really counts is if the customer thinks it’s a good value.” E. “Customer value really boils down to which product is the least expensive.” 1-29 Checking Your Knowledge A computer manufacturer is attempting to increase the customer value associated with purchases of its products.

Which of the following might be a way to achieve this increase in value? A. Reduce price. B. Increase technical support for customers. C. Increase warranty coverage. D. Offer free shipping. E. Any of the above, depending on the needs of the target market. 1-30 Total Company Effort to Satisfy Customers Total Company Effort to Satisfy Customers Putting It All Together (Exhibit 1 - 6) Build Profitable Customer Relationships Attract Customers Offer Superior Customer Value Satisfy Customers Retain Customers Increase Sales to Customers 1-31 The Marketing Concept Applies in Nonprofit Organizations Newcomers to Marketing Will “Satisfied Customers” Offer Support? The Bottom Line? May Not Be Organized for Marketing Characteristics of Nonprofit Organizations 1-32 The Micro - Macro Dilemma 1-33 Social Responsibility The Marketing Concept, Social Responsibility, and Marketing Ethics Should All Consumer Needs Be Satisfied? What if Profits Suffer? Micro - Macro Dilemma The Marketing Concept Guides Ethics Do All Marketers Act Responsibly? Group Needs Individual Needs 1-34 Sample Criticisms of Marketing (Exhibit 1 - 8) Criticisms Annoying and wasteful Poor quality and unsafe products Unnecessary & high price products Serves the rich and exploits the poor Overpromise service Easy consumer credit Misuse of private information of consumers Interest in polluting products Makes people materialistic 1-35 You should now be able to: 1. know what marketing is and why you should learn about it. 2. understand the difference between marketing and macro -marketing. 3. know the marketing functions and why marketing specialists — including intermediaries and collaborators — develop to perform them. 4. understand what a market -driven economy is and how it adjusts the macro - marketing system. 1-36 You should now be able to: 5. know what the marketing concept is — and how it should guide a firm or nonprofit organization. 6. understand what customer value is and why it is important to customer satisfaction. 7. now how social responsibility and marketing ethics relate to the marketing concept. 8. u nderstand the important new terms. 1-37 Key Terms 1. production 2. customer satisfaction 3. innovation 4. marketing 5. pure subsistence economy 6. macro -marketing 7. economies of scale 8. universal functions of marketing 9. buying function 10. selling function 11. transporting function 12. storing function 13. standardization and grading 14. financing 15. risk taking 16. market information function 17. intermediary 18. collaborators 19. e -commerce 20. economic system 1-38 Key Terms 21. command economy 22. market -directed economy 23. simple trade era 24. production era 25. sales era 26. marketing department era 27. marketing company era 28. marketing concept 29. production orientation 30. marketing orientation 31. triple bottom line 32. customer value 33. micro -macro dilemma 34. social responsibility 35. marketing ethics