Marketing Management Chapter 1-7

Topics: Marketing, Strategic management, Marketing plan Pages: 14 (3671 words) Published: October 14, 2012
Marketing Test 1.
Chapter 1

These days companies have one thing in common: they are strongly customer focused and heavily committed to marketing. Media, and new electronic (websites) reach costumers directly and personally, and marketers want to become a part of their life and to help them to live their brands. Marketing is satisfying customer needs.

See figure 1.1 page 34.

Marketers need to understand customer needs and wants and the marketplace within they operate. Five core customer and marketplace concepts:
Customer needs wants and demands. Needs are a basic part of the human makeup. Wants are the form Human needs take as they are shaped by culture and individual personality. People demand products with benefits that add up the most value and satisfaction. Market offerings. Customer needs and wants are fulfilled through market offerings: some combination of products, information services or experiences offered to a market to satisfy a need or want. Customer value and satisfaction.

Exchanges and relationships. Marketers wants to build a strong relationships with customers so they will come back. Market. A market is the set of actual and potential buyers of a product. A modern marketing system see figure 1.2 at page 36.

We define marketing management as the art and science of choosing target markets and building profitable relationships with them. Marketing managers do not serve all the customers well, only the customers who are profitable. Value propositions differentiate one brand from another.

There are 5 alternative concepts under which organizations design and carry out their marketing strategies: The production concept. This holds that customer will favour products that are available and highly affordable. The product concept. This holds that consumer will favour products that offer the most in quality performance an innovative features. The selling concept. This holds that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort. The marketing concept. This holds that achieving orginizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. See figure 1.3 at page 39. The social marketing concept. This questions whether the pure marketing concept pverlooks possible conflicts between consumer short-run wants an consumer long-run welfare. Companies should balance three considerations in setting their marketing strategies: company profits, consumer wants and society’s interest.

Building profitable customer relationships. This is the most important concept of modern marketing. A customer buys from the firm that offers the highest customer-perceived value. Customer satisfaction depends on the product’s perceived performance relative to a buyers expectations.

Companies can build customer relationships at many levels, depending on the nature of the target market. Beyond offering consistently high value and satisfaction, marketers can use specific marketing tools to develop stronger bonds with consumers. Some important trends in the way companies and customers are relating to one another: Relating with more carefully selected customers. ‘Not all customers are worth your marketing offers’. Relating more deeply and interactively. The new communications approaches let marketers create deeper consumer involvement and a sense of community surrounding a brand to make a brand a meaningful part of consumers. Greater consumer control means that in building costumer relationships companies can no longer rely on marketing by intrusion. Instead marketers must practice marketing by attraction. Consumer-generated marketing, whether invited marketers or not, has become a significant marketing force.

When it comes to creating customer value and building strong customer relationships, they must work closely with a variety of marketing partners. The new thinking of...
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