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publishing as Prentice Hall

Chapter 1 Learning Objectives

1.1 To understand the evolution of the marketing concept, the

most prominent tools used to implement marketing strategies,
the relationship between value and customer retention, and the
objectives of socially responsible marketing.
1.2 To understand how the Internet and related technologies
improve marketing transactions by adding value that benefits
both marketers and customers.
1.3 To understand the interrelationships among customer value,
satisfaction, and retention, and technology’s revolutionary role
in designing effective retention measures and strategies.
1.4 To understand consumer behavior as an interdisciplinary
area, consumer decision-making, and the structure of this book.

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How can a car help express its owners’ characteristics?

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Learning Objective 1.1

1.1 To understand the evolution of the

marketing concept, the most prominent tools
used to implement marketing strategies, the
relationship between value and customer
retention, and the objectives of socially
responsible marketing.

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 Marketing Concept

The essence of marketing consists

of satisfying consumers’ needs,
creating value, and retaining
customers.

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 Marketing Concept Application

How does Classico’s ad

relate to the marketing
concept?

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Development of the Marketing Concept

Production Product Selling Marketing

Concept Concept Concept Concept

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Marketing Concept Requirements

• Consumer Research
• Market Segmentation, Targeting and
Positioning
• The Marketing Mix (4 Ps)
– Product or service
– Price
– Place
– Promotion

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Socially Responsible Marketing

What is the societal

marketing concept?

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Learning Objective 1.2

1.2 To understand how the Internet and

related technologies improve marketing
transactions by adding value that benefits
both marketers and customers.

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Consumers Have Embraced Technology

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Behavior Information and Targeting

• Specialized information exchanges and cookies

• Consumer access to information; product
comparisons
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Discussion Question

How does technology affect the Marketing

Mix?

Provide examples:
• Interactive and novel communication
channels
• Customizing products and promotional
messages
• Better prices and distribution
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Learning Objective 1.3
1.3 To understand the interrelationships among
customer value, satisfaction, and retention, and
technology’s revolutionary role in designing effective
retention measures and strategies.

Successful Relationships
High level of
Customer
Customer value customer
retention
satisfaction

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Successful Relationships

Value, Satisfaction,
• Defined as the ratio
and Retention between the customer’s
• Customer Value perceived benefits and the
• Customer resources used to obtain
Satisfaction those benefits
• Customer • Perceived value is relative
Retention and subjective
• Developing a value
proposition is critical

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Discussion Questions

• How does
McDonald’s create
value for the
consumer?
• How do they
communicate this
value?

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Successful Relationships

Value, Satisfaction,
• The individual's perception
and Retention
of the performance of the
• Customer product or service in
Value relation to his or her
• Customer expectations.
Satisfaction • Customer groups based on
• Customer loyalty include loyalists,
Retention apostles, defectors,
terrorists, hostages, and
mercenaries
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Successful Relationships

Value, Satisfaction, • The objective of providing

and Retention value is to retain highly
satisfied customers.
• Customer Value
• Loyal customers are key
• Customer
– They buy more products
Satisfaction
– They are less price sensitive
• Customer – Servicing them is cheaper
Retention – They spread positive word
of mouth

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Technology and Customer Relationships

For Discussion:
• Provide two examples where brands used
technology to engage consumers/enhance
customer relationships.
• Provide two examples where technology
was used to add value to the consumer.

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 Customer Profitability-Focused Marketing

• Tracks costs and

revenues of Platinum
individual
consumers Gold
• Categorizes them
into tiers based on Iron
consumption
behavior Lead
• A customer pyramid
groups customers
into four tiers

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Profitability-Focused Segmentation

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Discussion Questions

• What is the difference between emotional

and transactional bonds?
• Identify and describe four of the eleven
determinants of customer satisfaction with
online merchants. Characterize each
selected determinant as primarily driven by
emotion or stemming from the mechanics of
the transaction.

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Why is Internal Marketing Important?

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Learning Objective 1.4

1.4 To understand consumer behavior as an

interdisciplinary area, consumer decision-
making, and the structure of this book.

Psychology

Sociology Communication

Anthropology

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Consumer Decision Making
• Inputs
– Firm marketing efforts
– Sociocultural influences
• Process
– Psychological factors
– Need Recognition, Decision Type, Prepurchase Search,
Evaluation of Alternatives
– Learning
• Outputs
– Purchase
– Post-purchase evaluation

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Consumer Decision Making

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retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2015 Pearson Education, Inc.

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