MARKETING: MANAGING PROFITABLE CUSTOMER RELATIONSHIPS
1. Define what marketing is and discuss its core concepts.
2. Define marketing management and compare the five marketing management orientations.
3. Discuss customer relationship management and strategies for building lasting customer relationships.
4. Analyze the major challenges facing marketers heading into the new “connected” millennium.
Marketing is part of all of our lives and touches us in some way every day. To be successful each company that deals with customers on a daily basis must not only be customer-driven, but customer-obsessed. The best way to achieve this objective is to develop a sound marketing function within the organization. Marketing is defined as “a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.” Marketing is a key factor in business success. The marketing function not only deals with the production and distribution of products and services, but it also is concerned with the ethical and social responsibility functions found in the domestic and global environment. Marketers must also be aware of customer value and customer satisfaction and make these concepts a central part of the firm’s strategic plan. Marketing must also be aware of and respond to change. Four of the greatest changes that have had an impact on the way companies bring value to their customers are the explosive growth of the computer, the Internet, telecommunications, and information technology. Marketing and its core concepts, the exchange relationship, the major philosophies of marketing thought and practice, customer relationship management, and marketing challenges in the new “connected” millennium are the major topics presented in this introductory chapter. There is a special emphasis on connectedness and the technologies for accomplishing connections.
a. Today’s successful companies at all levels have one thing in common. 1). All successful companies are:
a). Strongly customer focused.
b). Heavily committed to marketing.
b. To be successful an organization motivates everyone in the organization to produce superior value for their customers, leading to high levels of customer satisfaction.
2. What is Marketing?
a. Creating customer value and satisfaction are at the very heart of modern marketing thinking and practice.
b. A very simple definition of marketing is managing profitable customer relationships.
1). The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.
2). Sound marketing is critical to the success of every organization. c. You already know a lot about marketing—it’s all around you.
d. Many people think of marketing only as selling and advertising. 1). Marketing is no longer “telling and selling.” 2). Today, marketing’s new sense is concerned with satisfying customer needs. e. Marketing is defined as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
Needs, Wants, and Demands
f. Human needs are the most basic concept underlying marketing. A human need is a state of felt deprivation.
1). Humans have many complex needs.
a). Basic, physical needs for food, clothing, warmth, and safety. b). Social needs for belonging and affection. c). Individual needs for...