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Copyright 2015 Pearson Education, Inc. 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 technologys
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.

Copyright 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 4 of 26

 d
ne
efi
D 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 Classicos

ad relate to the
marketing concept?

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Development of the Marketing
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 technologys revolutionary
role in designing effective retention
measures and strategies.

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Successful Relationships

Value,
Defined as the ratio
Satisfaction, between the
and Retention
Customer customers perceived
Value benefits and the
Customer resources used to
Satisfaction obtain those benefits
Perceived value is
Customer
relative and subjective
Retention
Developing a value
proposition is critical
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Discussion Questions

How does
McDonalds
create value for
the consumer?
How do they
communicate this
value?

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Successful Relationships

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

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Successful Relationships

Value, The objective of

Satisfaction, providing value is to
and Retention retain highly satisfied
Customer customers.
Value Loyal customers are key
Customer They buy more products
Satisfaction They are less price
sensitive
Customer
Servicing them is
Retention cheaper
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
individual
consumers
Categorizes them
into tiers based on
consumption
behavior
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.

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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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 All rights reserved. No part of this publication may be reproduced, stored in a
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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