Marketing : is the management of creating and exchanging products and value in order to satisfy the needs and wants.
• Marketing satisfy customers at a profit.
• The goal of marketing is (1) to attract new customers by promising superior value (e.g. Ritz-Carlton “memorable experiences”, “Always Coca Cola”) and (2) to keep current customers by delivering satisfaction.
Needs, Wants, and Demands
• Consumers have needs (physical, social, individual etc.) wants, and demands to be satisfied. Consumers view products as bundles of value (benefits) and choose products that give them the best value for their money. E.g. Honda Civic ( transportation, low price, fuel economy; Mercedes ( comfort, luxury, status Products
• A product (persons, places, organizations, activities, ideas) is anything that can satisfy a need or want. Producers must see themselves as providing a solution to a need rather than just selling a product. Otherwise, when a new product satisfies the needs better or less expensively, they would not make money.
• Research is a must to understand the needs and wants of the customers to produce the right product. E.g. At Disney World, each manager spends a day in the park in a Mickey costume or work on the front line - taking tickets, selling pop-corn.
Creating Customer Value and Satisfaction :
Value, Satisfaction, and Quality
How do customers choose among these many products? Consumers make choices based on;
Value : is the difference between owning the product and the cost of obtaining the product, in an way “profit” to the customer. Customers do not judge product values objectively, on the contrary they act on perceived value. E.g. Is Hilton really the best hotel company?
Satisfaction: is the difference between the product’s performance and buyer’s expectations. If the product’s...