1. Know what the marketing concept is—and how it should affect strategy planning in a firm or nonprofit organization.
2. Understand what customer value is and why it is important to customer satisfaction.
3. Understand what a marketing manager does.
4. Know what marketing strategy planning is—and why it is the focus of the book.
. Understand target marketing.
6. Be familiar with the four Ps in a marketing mix.
7. Know the difference between a marketing strategy, a marketing plan, and a marketing program.
8. Understand the important new terms.
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Chapter 2: Marketing’s Role within the Firm or Nonprofit OrganizationWhen you finish this chapter, you should2-2Chapter 2 Objectives 1. Know what the marketing concept is—and how it should affect strategy planning in a firm or nonprofit organization.2. Understand what customer value is and why it is important to customer satisfaction.3. Understand what a marketing manager does.4. Know what marketing strategy planning is—and why it is the focus of the book.5. Understand target marketing.6. Be familiar with the four Ps in a marketing mix.7. Know the difference between a marketing strategy, a marketing plan, and a marketing program.8. Understand the important new terms.Simple Trade EraProduction EraSales EraMarketing DepartmentEraMarketing CompanyEraSell SurplusIncrease SupplyBeat CompetitionCoordinate and ControlLong-RunCustomer SatisfactionFocus:Focus:Focus:Focus :Focus :Marketing’s Changing Role2-3The Marketing ConceptExhibit 2-1ProfitCustomerSatisfactionTotal CompanyEffortTheMarketingConcept2-4Marketing Orientation Sounds Easy,Isn’tEven the “best” firms sometimes backslide into a production orientationIn today’s highly competitive markets it is often difficult tokeep up with changing customer needsbeat aggressive competitors to the punchfind the right focus -- one that matches the firm’s objectives and resources to market opportunitiesoffer customers superior value2-5Customer Value Reflects Benefits and Costs CostsBenefitsCustomer value concerns the difference between the benefits a customer sees from a firm’s market offering and the costs of obtaining those benefitsThe customer’s view of costs and benefits is not just limited to economic (or even rational) considerations--and a low price may NOT result in superior value...2-6Customer ValueCostsBenefits One customer’s view of the benefits and costs of a firm’s market offering may vary from another customer’s view, so firm may not be able to satisfy everybody with the same offering. Customer value concept takes the customers point of view, but customers may not explicitly weigh costs and benefits and even if they do their view may not match some “objective” reality.2-7Nonprofits Need Marketing, TooPoorlyOrganizedfor MarketingNon-CustomerSupportNon-EconomicMeasuresCharacteristicsof NonprofitOrganizations2-8Exhibit 2-4The Marketing Management Process2-9Whole-CompanyStrategicManagementPlanningMarketingPlanningImplement MarketingPlan(s) and ProgramControl MarketingPlan(s) and ProgramAdjust PlansAs NeededExhibit 2-52-10Marketing Strategy PlanningTheMarketingMixC2-11The Four Ps of the Marketing MixExhibit 2-7ProductPlacePricePromotionCProductPhysical GoodsServiceFeaturesQuality LevelAccessoriesInstallationInstructionsWarrantyProduct LinesPackagingBrandingPlaceObjectivesChannel TypeMarket ExposureKinds of MiddlemanKinds and Locations of StoresHow to Handle Transporting and StoringService LevelsRecruiting MiddlemenManaging ChannelsPromotionObjectivesBlendSalespeople Kind Number Selection Training MotivationAdvertising Targets Kinds of Ads Media Type Copy Thrust Who Prepares?Sales PromotionPublicityPriceObjectivesFlexibilityLevel over PLCGeographic TermsDiscountsAllowances2-12Exhibit 2-8Strategy Decision Areas Organized by the Four PsManufacturer or producerConsumerProcter &GambleDelMonteNissanCitibankWholesalerWholesalerRetailerWholesalerRetailerRetailer2-13Exhibit 2-9Four Examples of Basic Channels of Distribution for Consumer ProductsElements of the Marketing ProgramTargetMarketMarketingMixMarketingStrategyTime-RelatedDetailsMarketingPlanOtherMarketingPlansA Firm’sMarketingProgram+++===2-14Exhibit 2-11Distribution of Different Firms Based on Performance2-15Exhibit 2-122%2%14%14%TotalFailurePoorFairGoodExceptional(Well belowaverage)(Belowaverage)(Well aboveaverage)(Aboveaverage)68%(AverageMarketingProgram)Death-wishmarketingBest-practicesmarketingNonprofit OrganizationsSocial ResponsibilityMarketing Management ProcessStrategic (Management) PlanningMarketing Strategy Target Market Marketing MixTarget MarketingMass MarketingChannel of DistributionSimple Trade EraProduction EraSales EraMarketing Department EraMarketing Company EraMarketing ConceptProduction OrientationMarketing OrientationCustomer ValuePersonal SellingMass Selling Advertising PublicitySales PromotionMarketing PlanImplementation Operational DecisionsMarketing ProgramKey Terms2-16
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