Objective Outline

Refine marketing and outline the steps in the marketing proc

I Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. - ■.'■'"; : : '..'.. v :

raSBSO Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return, ^ ^ ^ : , y

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Describe the major trends and forces that are changing the marketing landscape in this age of relationships.

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Today's successful companies have one thing in common: Like Mannai Automotive Group, they are strongly customer focused and heavily committed to marketing. These companies share a passion for understanding and satisfying the needs of their customers in well-defined target markets. They motivate everyone in their organizations to help build lasting customer relationships based on creating value. As Mohamed Helmy, the general manager of Mannai Trading Company, puts it: "After all, great customer service is the heart and soul not only of Mannai Automotive, but all companies of Mannai Group."1-2

Author I stop here for a second Comment | and think about how you'd answer this question before studying marketing. Then, see how your answer changes as you go through the chapter.

What Is Marketing? (pp 28-30)

Marketing, more than any other business function, deals with customers. Although we will soon explore more-detailed definitions of marketing, perhaps the simplest definition is this one: Marketing is managing profitable customer relationships. The twofold goal of marketing is, to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.

Wal-Mart has become the world's largest retailer—and the world's largest company— by delivering on its promise, "Save money. Live Better." At Disney theme parks, "imagi-neers" work wonders in their quest to "make a dream come true today." Apple fulfills its motto to "Think Different" with dazzling, customer-driven innovation that captures customer imaginations and loyalty. Its wildly successful iPod grabs more than 70 percent of the music player market; its iTunes music store captures nearly 90 percent of the song download business.3

Sound marketing is critical to the success of every organization. No matter where they're based, large for-profit firms such as Mannai Corporation, Google, Carrefour, Toyota,

Marketing

The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

This important figure shows marketing in a nutshell! By creating value for customers, marketers capture value from customers in return. This five-step process forms the marketing framework for the rest of the chapter and the rest of the text.

Nokia, and L'Oréal use marketing. But so do not-for-profit organizations such as colleges, hospitals, museums, symphony orchestras, and even churches.

You already know a lot about marketing—it's all around you. Marketing comes to you in the good old traditional forms: You see it in the abundance of products at your nearby shopping mall and in the advertisements that fill your TV screen, spice up your magazines, or stuff your mailbox. But in recent years, marketers have assembled a host of new marketing approaches, everything from imaginative Web sites, Internet chat rooms, and social networks to interactive TV and your cell phone. These new approaches aim to do more than just blast out messages to the masses. They aim to reach you directly and personally. Today's marketers want to become a part of your life and to enrich your experiences with their brands—to help you live their brands.

At home, at school, where you work, and where you play, you see marketing in almost everything you do. Yet, there is much more to marketing than meets the consumer's casual eye. Behind it all is a massive network of people and activities competing for your attention and purchases. This book will give you a complete introduction to the basic concepts and practices of today's marketing. In this chapter, we begin by defining marketing and the marketing process.

Marketing Defined

What is marketing? Many people think of marketing only as selling and advertising. And no wonder—every day we are bombarded with TV commercials, direct-mail offers, sales calls, and e-mail pitches. However, selling and advertising are only the tip of the marketing iceberg.

Today, marketing must be understood not in the old sense of making a sale— "telling and selling"—but in the new sense of satisfying customer needs. If the marketer understands consumer needs; develops products that provide superior customer value; and prices, distributes, and promotes them effectively, these products will sell easily. In fact, according to management guru Peter Drucker, "The aim of marketing is to make selling unnecessary."4 Selling and advertising are only part of a larger "marketing mix"—a set of marketing tools that work together to satisfy customer needs and build customer relationships.

Broadly defined, marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. In a narrower business context, marketing involves building profitable, value-laden exchange relationships with customers. Hence, we define marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.5

The Marketing Process

^ Figure 1.1 presents a simple five-step model of the marketing process. In the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. In the final step, companies reap the rewards of creating superior customer value. By creating value for consumers, they in turn capture value from consumers in the form of sales, profits, and long-term customer equity.

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