Professional Documents
Culture Documents
Chapter 1 Introduction
Chapter 1 Introduction
Chapter 1 Introduction
MANAGEMENT
CHAPTER 1
INTRODUCTION
1
MODULE OBJECTIVES
• Academic Dishonesty
• As stated in the faculty Handbook, cheating, including plagiarism,
will not be tolerated. All written work, including paper summaries,
must be your own work. If you wish to quote a source, you must do
so explicitly, and with proper attribution. Any "double dipping" that
does not meet the requirements set out above will be treated as a
violation of the academic honesty policy for the class, and dealt
with accordingly.
• Marketing - An organizational
function and a set of
processes for:
• Creating, communicating,
& delivering value to
customers
• Managing customer relationships in ways that
benefit the organization and its stakeholders
EVOLUTION OF MARKETING
EVOLUTION OF MARKETING
Henry Ford
EVOLUTION OF MARKETING
“Real innovation in
technology involves a
leap ahead,
anticipating needs that
no one really knew
they had & then
delivering capabilities
that redefine product
categories.”
Steve Jobs
EVOLUTION OF MARKETING
RELATIONSHIP ERA
• Represents a major shift from the traditional
concept of marketing as a simple exchange
between buyer and seller
• Relationship marketing involves developing long-
term, value-added relationships over time with
customers and suppliers
• Strategic alliances and partnerships with vendors
and retailers play a major role in relationship
marketing
• Prevailing attitude is that long-term relationships
with customers and partners will benefit everyone
RELATIONSHIP MARKETING
Intangibility Heterogeneity
SERVICES
Simultaneous
Perishability
production &
consumption
What it means?
• Performances/actions can’t be
seen, felt, tasted, touched.
• Ie: health care services
Challenges
• Can’t be inventoried
communicated
• Pricing is difficult
What it means?
• No two services will be precisely alike.
experience)
Challenges
• Inconsistent service quality
produced.
• Customer can take part in the production
process.
• Interaction between customers
time’
• Customer is involved and observes
• Decentralization
What it means?
• Goods can be inventoried/stored,
sold on another day and returned if
customer is not satisfied.
• Services can’t be saved, stored, resold,
returned.
Challenges
• Difficult to synchronize supply and
(1) Product
(2) Price
(3) Promotion
(4) Place
(5) People Extended
Marketing Mix
(6) Physical Evidence
(7) Process
Relationship
strategy
Business Customer
Communication
strategy knowledge
Individual
value
proposition
ELEMENTS OF CRM
Customer Knowledge
• Knowledge of individual customer is essential
Relationship Strategy
• Individual customer info must be used to