Customer-Driven Strategic Marketing
We define marketing as the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. [ A ].
Marketing Focuses on Customers
[ 1 ].
As the purchasers of the products that organizations develop, promote, distribute, and price, customers are the focal point of all marketing activities. [ 2 ].
The essence of marketing is to develop satisfying exchanges from which both customers and marketers benefit. [ 3 ].
Organizations generally focus their marketing efforts on a specific group of customers, or target market. [ B ].
Marketing Deals with Products, Distribution, Promotion, and Price 1.
Marketing is more than simply advertising or selling a product; it involves developing and managing a product, making the product available in the right place and at a price acceptable to buyers, and communicating information to help customers determine if the product will satisfy their needs. 2.
These activities—product, distribution, promotion, and pricing—are known as the marketing mix because marketers decide what type of each element to use and in what amounts. 3.
The Product Variable
[ a ])
The product variable of the marketing mix deals with researching customers’ needs and wants and designing a product that satisfies them. [ b ])
A product can be a good, a service, or an idea.
( [ 1 ])
Good—a physical entity
( [ 2 ])
Service—the application of human and mechanical efforts to people or objects to provide intangible benefits to customers ( [ 3 ])
Idea—concept, philosophy, image, or issue
[ c ])
The product variable includes the creation or modification of brand names and packaging. It may also include decisions regarding warranty and repair services. [ d ])
Product variable decisions and related activities are important because they directly impact the creation of products that meet customers’ needs and wants. 4.
The Distribution Variable
In dealing with the distribution variable, a marketing manager makes products available in the quantities desired to as many target market customers as possible, keeping total inventory, transportation, and storage costs as low as possible. 5.
The Promotion Variable
The promotion variable relates to activities used to inform individuals or groups about an organization and its products. a)
Promotion can be aimed at increasing public awareness of an organization and new or existing products. b) Promotional activities can also educate customers about product features or urge people to take a particular stance on a political or social issue. 6.
The Price Variable
The price variable relates to decisions and actions associated with establishing pricing objectives and policies and determining product prices. b)
Price is a critical component of the marketing mix because customers are concerned about the value obtained in an exchange. 7.
Marketing mix variables are often viewed as controllable because they can be modified; however, economic conditions, competitive structure, or government regulations may limit a marketing manager’s influence. [ C ].
Marketing Builds Relationships with Customers and Other Stakeholders 1.
Individuals and organizations engage in marketing to facilitate exchanges—that is, the provision or transfer of goods, services, or ideas in return for something of value. [ 4 ].
Four conditions must exist for an exchange to occur: a)
Two or more individuals, groups, or organizations must participate, and each must possess something of value desired by the other party. b)
The exchange should provide a benefit or satisfaction to both parties involved in the transaction. c)
Each party must have confidence in the promise of the “something of value” held by the other. d)
To build trust, the parties to the...
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