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Customer Satisfaction. Customer satisfaction is the extent to which a firm fulfills a consumer’s needs, desires, and expectations As some needs are met, others may become more important Expectations may change based on experiences Satisfying experiences may lead to increasing expectations

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customer satisfaction
Customer Satisfaction
  • Customer satisfaction is the extent to which a firm fulfills a consumer’s needs, desires, and expectations
  • As some needs are met, others may become more important
  • Expectations may change based on experiences
    • Satisfying experiences may lead to increasing expectations
    • Disappointing experiences may reduce expectations
    • Expectations may be realistic or unrealistic
what is marketing
What Is Marketing?
  • MICRO-MARKETING:
    • the performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producers to customer or client
  • MACRO-MARKETING:
    • a social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society
  • AMA COMMITTEE DEFINITION:
    • marketing is the process of planning and executing conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives
economic systems

Marketing-Directed

Economic Systems

Planned

Economic Systems

Consumer choices are

the invisible hand that

guides the economy

Government planners

decide what consumers

should get

Economic Systems
micro macro dilemma
Micro-Macro Dilemma
  • Micro-macro dilemma: what is "good" for some producers and consumers may not be good for society as a whole.
  • Examples:
    • some consumers want handguns, but guns can be dangerous
    • all terrain vehicles are fun for some people, but may result in injuries or damage to wilderness areas
    • non-returnable soft drink bottles are convenient, but sometimes result in litter and dangerous broken glass along highways.
    • repairing an old air-conditioning system might save the owner money, but might require continued use of ozone depleting fluorocarbons (used as coolant)
stages of economic development
Stages of Economic Development
  • 1. Self-supporting agriculture
  • 2. Preindustrial or commercial
  • 3. Primary manufacturing
  • 4. Nondurable and semidurable consumer products manufacturing
  • 5. Capital equipment and consumer durable products manufacturing
  • 6. Exporting manufactured products
nations macro marketing systems are connected
Nations’ Macro-Marketing Systems Are Connected
  • Economic growth has prompted more international trade
  • World Trade Organization (WTO)
    • Only international body dealing with the rules of trade between nations
    • Replaced the General Agreement on Tariffs and Trade (GATT)
  • Tariffs and quotas may reduce trade
economies of scale
Economies of Scale
  • Economies of Scale: as a company produces larger numbers of a particular product, the cost for each of these products goes down.
  • Facilitated by mass production
  • Facilitated by mass distribution
  • Not always possible (for example, in labor intensive services)
  • Flexible production--to meet varying or changing needs--may be more important than economies of scale in creating real customer value
facilitators
Facilitators
  • Ad agencies
  • Marketing research firms
  • Information technology suppliers
  • Product testing labs
  • Public warehouses
  • Transporting specialists
  • Financial institutions
  • . . . and others
some criticisms of marketing
Some Criticisms of Marketing
  • Some criticisms focus on micro-marketing and some focus on the whole macro-marketing system:
    • "Too many ads are annoying, misleading, or both."
    • "There are too many unnecessary products."
    • "Middlemen raise prices but don't add value."
    • "Marketing makes people materialistic."
  • Many criticisms result from misunderstandings about marketing!
marketing orientation
Marketing Orientation
  • Trying to carry out the marketing concept
  • Maintaining a customer orientation
    • All departments work together guided by customer needs
    • Focus on profit objective (or other overall objective)
    • NOT just trying to "unload" what the firm has produced