Marketing in the Modern

Organization
 The Marketing Concept
Marketing concept
MarketingofConcept
The achievement corporate goals
The achievement of corporate
through meeting and exceeding
goals through meeting and
customerexceeding
needscustomer
and expectations
needs
betterbetter
than than the competition
the competition

Customer Integrated Goal

orientation
Customer orientation efforteffort
Integrated
achievement
Goal achievement
Corporate activities are
Corporate activities All All staffaccept
staff accept thethe The
The belief
belief that
that corporate
focused upon providing responsibility for creating goals can be achieved
are focused
customer upon
satisfaction responsibility for
customer satisfaction corporate goals can
through customer
providing customer creating customer be achieved through
satisfaction

satisfaction satisfaction customer satisfaction

 Evolution of the
Marketing Concept

Integrated Marketing Long run profits

customer Orientation through customer
focus satisfaction

Push! Push! Sales Short term

Sell! Sell! Orientation gains in profit
by promotion via sales increases
Production
Production & Orientation Profits through
assembly line production controls
refinement
 Production Orientation
Production
capabilities

Manufacture
product

Aggressive
sales effort

Customers
 Marketing Orientation
Customer
needs

Potential
market
opportunities

Marketing
products
and services

Customers
Marketing Orientated Businesses

INSERT
TABLE 1.1
Marketing Orientated Businesses
 Efficiency and Effectiveness

Ineffective Effective

Goes out of
Inefficient business quickly
Survives

Does well
Efficient Dies Slowly
Thrives
Limitations of the Marketing Concept

- The marketing concept as an ideology.

- Marketing and society.
- Marketing as a constraint on innovation.
- Marketing as a source of dullness.
 Creating Customer Value
Positive Customer Negative
value

Perceived Perceived
benefits sacrifice

Product benefits Monetary costs

Service benefits Time costs
Relational benefits Energy costs
Image benefits Psychological costs
Creating Customer Value

INSERT
FIGURE 1.5
 Creating Customer Satisfaction
Delight

‘Delighters’
Customer satisfaction

‘More is better’
Neutral

‘Must be’

Dissatisfaction
Absent Fulfilled
Presence of the characteristic
 The Marketing Mix
- Product

- Price

- Promotion

- Place
An Effective Marketing Mix
Matches
customer needs

Creates a Effective
competitive marketing Well
advantage balanced
mix

Matches corporate
resources
 Marketing Mix and Customer Needs

Key customer
Customer Competitive Marketing
requirements
needs advantage mix
 Marketing Mix and Customer Needs

Customer needs
Economic Psychological
 Performance  Self-image
Key customer
Customer Competitive Marketing
 Availability  requirements
Quiet life
needs advantage mix
 Reliability  Pleasure
 Durability  Convenience
 Productivity  Risk reduction
 Marketing Mix and Customer Needs

Marketing
mix
Key customer
Customer Competitive Marketing
requirements
needs advantage  mix
Product
 Price
 Promotion
 Place
The Relationship Between Market
Orientation and Profitability

INSERT FIGURE 1.9