Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return ( satisfying customer needs
2 goals of marketing:
• Attract new customers
• Keep and grow current customers by delivering satisfaction
Marketing process: understand the marketplace and customer needs and wants ( design a customer-driven marketing strategy ( construct and integrated marketing program that delivers superior value ( build profitable relationships and create customer delight ( capture value from customers to create profits and customer equity.
5 core customer and marketplace concepts:
1. Needs, wants, demands
2. Marketing offerings (Products, services, and experiences)
3. Value and satisfaction (building blocks for developing and managing customer relationships)
4. Exchanges and relationships
5. Markets (the set of all actual and potential buyers of a product or service)
So the marketing process involves 5 steps: the first four steps create value for customers. First, marketers need to understand the marketplace and customer needs and wants. Next, marketers design a customer-driven marketing strategy with the goal of getting, keeping and growing target customers. In the third step, marketers construct a marketing program that actually delivers superior value. All of these steps form the basis for the fourth step, building profitable customer relationships and creating customer delight. In the final step, the company reaps the rewards of strong customer relationships by capturing value from customers.
Marketing myopia: only watching at the product instead of the underlying customer needs.
Marketing management: the art and science of choosing target markets and building profitable relationships with them. (find, attract, keep, and grow target customers by creating, delivering, and communicating superior customer value). = customer management and demand management.
It’s best to select customers (target marketing) instead of serving all customers.
5 alternative concepts under which organisations design and carry out their marketing strategies:
• Production concept: consumers will favour products that are available and highly affordable
• Product concept: consumers will favour products that offer the most in quality, performance, and innovative features.
• Selling: buying asks for a lot of selling and promotion effort. ( inside-out perspective
• Marketing: achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. The job is not to find the right customers for your product, but to find the right products for your customer. ( outside-in perspective. Our goal is to lead customers where they want to go before they know where they want to go.
• Societal marketing concepts: a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.
Selling concept: factory ( existing products ( selling and promoting ( profits through sales volume
Marketing concept: market ( customer needs ( integrated marketing ( profits through customer satisfaction
4 P’s of marketing: Product, Price, Place, Promotion (these are marketing mix tools ( integrated marketing program)
Customer relationship management: the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
Customer perceived value: the customer’s evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers.
Customer satisfaction: the extent to which a product’s perceived performance matches a...