Marketing: Managing Profitable Customer Relationships
Marketing is the process my which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
The Marketing Process can be represented by a simple five-step model. In the first four steps, companies work to understand consumers, create customer value, build strong customer relationships. In the final step, companies reap the rewards of creating superior customer value. By creating value for customer, they in return capture value from consumers in the form of sales, profits, and long term customer equity.
Understand the marketplace and customer needs and wants
Construct a marketing program that delivers a superior value Design a customer-driven marketing strategy
Build profitable relationships and create customer delight
Capture value from customers to create profits and customer quality
Create value for customers and build customer relationships Capture value from l customers in return
Understanding the Marketplace and Consumer Needs
Customer Needs, Wants and Demands
Needs are something I have to have. They are not created by the marketers. Wants are the form human needs take being shaped by culture and individual personality. Can be affected by marketers. Demands are the human needs/want being backed by buying power.
Marketing Offers-Products, Services and Experiences
Marketing offer is the combination of products, services, information or experiences offered to a market to satisfy a need or a want.
Marketing Myopia is paying more attention to the specific products the seller produce than the benefits and experiences produced by these products. The seller is taken with their products and they focus only on existing wants and lose sight of underlying customer needs. They forget that the product is only a tool to solve a consumer problem.
Customer Value and Satisfaction
Customers form expectations about the value and satisfaction that various marketing offers will deliver and buy accordingly. Satisfied customers buy again and tell other about their good experiences. Dissatisfied customers often switch to competitors and harm the products reputation.
Exchanges and Relationships
Exchange is the act of obtaining a desired object from someone by offering something in return.
Since marketing occurs when people decide to satisfy needs and wants through exchange relationships, marketers try to bring about a response to some marketing offer. The goal is to retain customers and grow their business with the company. Strong relationships are built by constantly delivering auperior customer value.
Market is the set of actual and potential buyers of a product or service. These buyers share a particular need or want that can be satisfied through exchange relationships.
Elements of modern marketing system
Designing a Customer-Driven Marketing Strategy
Marketing management is the art and science of choosing target markets and building profitable relationships with them.
Selecting Customers to Serve
De-marketing is marketing to reduce demand temporarily or permanently; the sim is not to destroy demand but only to reduce or shift it.
This is done by dividing the market into segments of customers and selecting which segment to go after (Market Segmentation and Market Targeting). By trying to serve all customers, they may not serve any customer well. Instead, the company wants to select only the customers that it can serve well and profitably.
Choosing a Value Proposition
Value proposition the set of benefits or values it promises to deliver to consumers to satisfy their needs.
Such value propositions differentiate one brand from another. They answer the customer's question “Why should I buy your brand rather...