Marketing is managing profitable customer relationships.
* To attract new customers by promising superior value
* To keep and grow current customers by delivering satisfaction
* Marketing = satisfying customer needs
* Not only selling and advertising only a small portion of a larger “marketing mix” – a set of marketing tools that work together to SATISFY CUSTOMER NEEDS and BUILD CUSTOMER RELATIONSHIPS * A social and managerial process where individuals and organizations obtain what they need and want through creating and exchanging value with others * Building profitable, value-laden exchange relationships with customers * Giving character/personality to a brand/firm
Marketing: the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
The Marketing Process
7 Step Model (modified from textbook)
1. Strategic Business Planning
2. Understand the marketplace and customer needs and wants * Situation analysis
3. Design a customer-driven marketing strategy
* What customers will we serve?
* How can we best serve our target customers?
4. Construct an integrated marketing program that delivers superior value * Four Ps
5. Build profitable relationships and create customer delight * Customer Relationship Management (CRM) - build and maintain profitable relationships 6. Capture value from customers to create profits and customer equity * Future sales, market share and profit; loyal customers who by more 7. Monitoring and control
* Plans who need constant monitoring – ensure that plans are following company objectives/goals
UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS
Customer Needs, Wants and Demands
Needs: states of felt deprivation
* Physical needs = food, clothing, warmth, safety
* Social needs = belonging, affection
* Individual needs = knowledge, self-expression
Wants: the form human needs take as shaped by culture and individual personality * Objects that will satisfy needs
Demands: human wants that are backed by buying power
* Given wants and resources, people demand products which will give value and satisfaction
* Marketing companies conduct consumer research and analyze customer data to learn about customers’ needs, wants and demands
Marketing Offerings – Products, Services and Experiences
Marketing offerings: some combination of products, services, information or experiences offered to a market to satisfy a need or want * Not limited to physical products, includes services (activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything; eg banking, hotel) * Also includes persons, places, organizations, information, ideas Marketing myopia: the mistake of paying more attention to specific products a company offers than to the benefits and experiences produced by these products * Sellers understand that a customer wants their products, but fails to realize WHY the customer may need it Brand experiences: when marketers look beyond attributes of the product/service and immerse the customer in the brand
Customer Value and Satisfaction
* Customers form expectations about the value and satisfaction that various market offerings will deliver * Customer value and customer satisfaction are key for developing and managing customer relationships * If expectations are too low, may satisfy those who buy but can’t attract enough buyers * If expectations are too high, will disappoint customers Exchanges and Relationships
* Marketing occurs when people decide to satisfy needs and wants through exchange relationships Exchange: the act of obtaining a desired object from someone by offering something in return * Marketer tries to bring about a response to some market offering * To build and...