Marketing and Marketing Management

Marketing Strategy and
Competitive Positioning
Seventh Edition
Chapter 1
Market-led strategic
management
First Stop: Amazon
Amazon does much more than just sell goods online. It
engages customers and creates satisfying customer
experiences. “The thing that drives everything is creating
genuine value for customers,” says Amazon founder Jeff
Bezos.
© 1996–2021, Amazon.com, Inc. or its affiliates
Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved
Marketing
• Marketing creates value for customers
– understand marketplace and customers
– design a customer value-driven marketing strategy
– construct a marketing program
– engage customers, build relationships
• Captures value from customers
Forms of Marketing
Traditional
• Making a sale
• Abundance of products in the nearby shopping centers
• Television, magazine, and direct-mail ads
Contemporary
• Satisfying customer needs
• Imaginative Web sites and mobile phone apps, blogs,
online videos, and social media
• Reach customers directly, personally, and interactively
Figure 1.1
The Marketing Process: Creating and Capturing Customer
Value
Understanding the Marketplace and
Customer Needs
Needs are states of felt deprivation.
Wants are the form human needs take as

they are shaped by culture and individual
personality.
Demands are human wants that are backed

by buying power.
COPYRIGHT © 2016
PEARSON EDUCATION,
INC.
Types of Needs 1-7
STATED
REAL
UNSTATED
DELIGHT
SECRET
Customer Needs (2 of 5)
• Market offerings are some combination
of products, services, information, or
experiences offered to a market to satisfy
a need or want.
• Marketing myopia—paying more
attention to the specific products than to
the benefits and experiences produced
“Text and Whatever.” Pereira O’Dell for the

National Highway Traffic Safety
Administration and Ad Council’s Texting and
Driving Prevention campaign.
• Customers form expectations about the value and
satisfaction of market offerings.
– Satisfied customers buy again
– Dissatisfied customers switch to competitors
• Exchange is the act of obtaining a desired object from
someone by offering something in return.
• Marketing actions try to create, maintain, and grow
desirable exchange relationships.
A market is the set of actual and potential buyers.
Consumers market when they:
• search for products
• interact with companies to obtain information
• make purchases
Five Basic Markets
• Resource markets
• Manufacturer markets
• Consumer markets
• Intermediary goods markets
• Government markets
Figure 1.1 Structure of Goods, Services, and
Money Flows in a Modern Exchange Economy
Designing a Customer Value–Driven
Marketing Strategy (1 of 4)
• Customer value-driven marketing strategy
– Once a company fully understands its consumers and
the marketplace, it must decide which customers it
will serve and how it will bring them value.”
• Marketing management: Choosing target markets and
building profitable relationships
• Designing a winning marketing strategy
– Target market?
– Value proposition?
• Selecting customers to serve
• Market segmentation refers to dividing the markets into
segments of customers.
• Target marketing refers to which segments to go after.
Choosing a value proposition—the company must decide
how it will differentiate and position itself in the
marketplace.
• Marketing Management Orientations
– Production concept
– Product concept
– Selling concept
– Marketing concept
– Societal marketing concept
MBM6
Underwhelming Customers Chapter 1
Little or no customer focus translates into an unfocused competitive

position and minimal customer satisfaction. The result is a vicious circle
of poor performance.
Copyright Roger J. Best,
Figure 1.2 A Modern Marketing System
Designing a Customer Value-Driven
Marketing Strategy and Plan (3 of 6)
Figure 1.3 Selling and Marketing Concepts Contrasted
Designing a Customer Value-Driven
Marketing Strategy and Plan (6 of 6)
The marketing mix is comprised of a set of tools known a
the four Ps:
• Product
• Price
• Promotion
• Place
Integrated marketing program—a comprehensive plan that

communicates and delivers intended value
What is Holistic Marketing?
• An integrated approach to managing strategy and tactics
– Relationship marketing
– Integrated marketing
– Internal marketing
– Performance marketing
Figure 1.4 The Concept of Holistic
Marketing
Relationship Marketing (1 of 3)
• Relationship marketing aims to build mutually satisfying long-term relationships with
key constituents in order to earn and retain their business
Relationship Marketing (2 of 3)
• Customers
• Employees
• Marketing partners
• Financial community
Integrated Marketing
• Devise marketing activities and programs that create, communicate, and deliver value
such that “the whole is greater than the sum of its parts.”
Internal Marketing
• The task of hiring, training, and motivating able employees who want to serve
customers well
Performance Marketing
• Financial accountability
• Environmental impact
• Social impact
Managing Customer Relationships
and Capturing Customer Value (1 of 9)
Customer relationship management—the overall process
of building and maintaining profitable customer relationships
by delivering superior customer value and satisfaction.
Relationship Building Blocks
• Customer-perceived value
– The difference between total
customer perceived benefits and
customer cost
• Customer satisfaction
– The extent to which perceived
performance matches a buyer’s
expectations
Perceived value: Some owners
consider a Patek Philippe watch a real
bargain, even at prices ranging from
$20,000 to $1,000,000 or more. “You
never actually own a Patek Philippe.
You merely look after it for the next
generation.” Courtesy of Patek Philippe Geneva
Consumer-Generated Marketing
Brand exchanges created by
consumers themselves.
Consumers are playing an
increasing role in shaping brand
experiences.
Customer-generated content: Heinz

invited people across five continents
The Kraft Heinz Company
to “draw ketchup.” Most drew Heinz.
Many of the sketchers and their
sketches—both sophisticated and
amateurish— were featured in an
online video and on digital
billboards.
Figure 1.5 Customer Relationship Groups
The Changing Marketing Landscape
(1 of 5)
• Digital Age
• Changing Economic Environment
• Growth of Not-for-Profit Marketing
• Rapid Globalization
• Sustainable Marketing
(2 of 5)
We live in the age of Internet of Things, where everything is
connected to everything else.
Digital and social media marketing involves using digital
marketing tools such as websites, social media, mobile ads
and apps, online videos, email, and blogs that engage
consumers anywhere, at any time, via their digital devices.
(3 of 5)
• Social media provide exciting opportunities to extend
customer engagement and get people talking about a
brand.
• Mobile marketing: Using mobile channels to stimulate
immediate buying, make shopping easier, and enrich the
brand experience.
• Big Data and A I: Brands can use big data to gain deep
customer insights, personalize marketing offers, and
improve customer engagements and service.
(4 of 5)
Not-for-profit marketing is growing, as sound marketing can help
organizations attract membership, funds, and support.
Not-for-profit marketing:
Make-A-Wish® skillfully
markets its mission to
“create life-changing wishes
for children with critical
illnesses.” Since its
founding, Make-A-Wish has
fulfilled more than 520,000
wishes to children at dark
times in their lives, bringing
them welcome rays of light
Make-A-Wish America
and hope that can play an
important part in their
healing.
(5 of 5)
• Rapid Globalization: Managers around the world are taking both
local and global views of the company’s
– Industry
– Competitors
– Opportunities
• Sustainable Marketing: Corporate ethics and social responsibility
have become important for every business.
The Dark Side of Marketing
• Harsh criticism of marketers who engage in illegal activities
• Detrimental effects on society

– Encouraging purchase of harmful products
– Addictive consumption
– Illegal consumer activities
– Anticonsumption when people deface or damage products

Marketing and Marketing Management

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Marketing and Marketing Management

Uploaded by

Copyright:

Available Formats

Marketing Strategy and

© 1996–2021, Amazon.com, Inc. or its affiliates

Wants are the form human needs take as

Demands are human wants that are backed

Types of Needs 1-7

“Text and Whatever.” Pereira O’Dell for the

• Intermediary goods markets

Little or no customer focus translates into an unfocused competitive

Integrated marketing program—a comprehensive plan that

Customer-generated content: Heinz

• Detrimental effects on society

You might also like