Principles of MarketingChapter （110）Name： Class： The International College of Henan University of Technology44Class 7Chapter 1：Marketing in a changing worldWhat is marketingl Marketers job is dealing with customers.l Marketing is the delivery of customer satisfaction at a profit.l Two goals of marketing: attracting new customer; keeping current customer.l Marketing is the most important job in an organization.Marketing definedl Marketing is not only selling and advertising.l The old sense of marketing is “telling and selling”; at the present, the only way do the marketing is satisfying customer needs.l A detailed definition: A social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others. The process of marketingIdentifycustomersneeds and wantsDesign or improvethe productSent the productto market(make it available)Get feedbackfrom customerTelling customer the product cansatisfy their needs & wantsSeveral important concepts in the definition1. Needs, wants, and demands.l Needs: the basic human requirement.l Want: The form taken by a human need as shaped by culture and individual personality.l Demands: human wants that are backed by buying power2. Products and servicesl Products: Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.l Products include physical objects, services, persons, places, organizations, and ideas.l Products can be referred as satisfier, resource, or marketing offer.3. Value, satisfaction, qualityl Customer value: The difference between the values the customer gains from owning and using a product and the costs of obtaining the product.l Customer satisfaction: The extent to which a products perceived performance matches a buyers expectation.l Quality: The totality of features and characteristic of a product or service that bear on its ability to satisfy customer needs.4. Exchange, Transactions, and Relationshipsl Exchange: the act of obtaining a desired object from someone by offering something in return.l Transaction: A trade between two parties that involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.l Relationship marketing: The process of creating, maintaining, and enhancing strong, value-laden relationships with customer and other stakeholders.SuppliersCompany(marketer)CompetitorsMarketingintermediariesEnd user marketEach party in the system adds value for the next level. So a companys success depends not only on its own actions but also on the relationships with others.5. Marketsl Market: The set of all actual and potential buyers of a product or serviceProduct-ServicesMoneyInformationInformationIndustry(a collection of sellers)Market(a collection of buyers) Marketing managementl The analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.l Marketing management involves demand management and customer relationship management.Demand management l General speaking obtaining maximized profit is companies goal.l Every company has a production optimization, to meet this optimized production level marketer need manage the demand.l In some sense, marketing management is demand managementCustomer relationship managementl Customer relationship managements objective is increasing customer loyalty.l Many research point out, the cost of obtaining a new customer is ten times higher than keeping a current customer.l Many companies put emphasis on explore customer lifetime value.Marketing management philosophies l The production conceptl The product conceptl The selling conceptl The marketing conceptl The societal marketing conceptThree considerations underlying the societal marketing conceptSocietalMarketingConceptSociety(Human welfare)Company(Profits)Consumers(Want satisfaction)Marketing challenges in the new connected millenniumConnections with marketing partnerOther company departmentSuppliers and distributorsStrategic alliancesConnections with CustomersConnecting more selectivelyConnecting for lifetime-valueConnecting directlyConnections with the world around usGlobal connectionsConnections with valuesAnd responsibilitiesBroadened connectionsConnecting technologiesComputerInformationCommunicationTransportationTechnologies for connectingl The major force behind the new connectedness is technology.l The technology boom has created exciting new ways to do marke