Chapter 13- Marketing: Helping Buyers Buy

The Production Era

1860 to the early 1900's. The general philosophy of business was "Produce as much as you can, because there is a limitless market for it". Business owners were mostly farmers, carpenters, and trade workers. The greatest marketing need in this industry is for more production and less expensive distribution and storage.

The Selling Era

1920's - Business had developed mass-production techniques, and production capabilities often exceeded the immediate market demand. Therefore, the businesses philosophy turned from producing to selling.

The Marketing Concept Era

1945 - returning soldiers starting new careers and beginning families sparked a tremendous demand for goods and services. Competition for the consumer's dollars was fierce. Business recognized that they needed to be responsive to consumers if they wanted to get their business, and philosophy emerged in the 1950's called the "Marketing concept".

The Customer Relationship Era

1990's and early 2000's, managers extended the marketing concept by adopting the practice of customer relationship management (CRM)

The Marketing Concept

A three part business philosophy: 1. Customer Orientation. Find out what customers want and provide it for them. 2. Service Orientation. Make sure everyone in the organization has the same objective: Customer Satisfaction. This should be a total and integrated organizational effort. 3. Profit Orientation. Focus on those goods and services that will earn most profit and enable the organization to survive and expand to serve more consumer wants and needs.

Customer Relationship Management (CRM)

CRM is the process of learning as much as possible about customers and doing everything you can to satisfy them or even exceed their expectations with goods and services. The newest in CRM efforts is customer-managed relationships (CMR). The idea is to give the costumer the power to build relationships with suppliers and consumers.

The Evolution of Marketing

Marketing in the United States has passed thought for eras: 1.- Production 2. Selling 3. Marketing Concept 4. Customer Relationships

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. We can also think of marketing, more simply, as the activities buyers and sellers perform to facilitate mutually satisfying exchanges.

Marketing Mix

The ingredients that go into a marketing program: Product, Price, place, and promotion. The four P's are the convenient way to remember the basics of marketing.