Marketing is: managing profitable customer relationships.
The twofold goal is:
1. To attract new customers by promising superior value.
2. Keep and grow current costumers by delivering satisfaction. Old marketing sense: telling and selling
New marketing sense: satisfying customer needs
Marketing starts before the product is produced and goes on throughout the product’s life.
Definition marketing in the business context: a process by which companies create value for customers and build strong customer relationships in order to capture value from the customer in return.
The five steps in Marketing:
1. Understand the marketplace and the customer’s needs and wants. 2. Design a customer driven marketing strategy
3. Construct a marketing programme that delivers superior value. 4. Build profitable customer relationships and create customer delight 5. Capture value from customers to make profits and customer equity
B2B ( the similar groups or individuals exchange products of value to each other B2C ( not an exchange, this is to fulfill each other’s needs and wants.
What is marketing?
A managerial process deployed by an organization
What is the objective?
To fulfill the needs and wants of the deploying organization How is this achieved?
A social process whereby other individuals or groups obtain their needs and wants by creating and exchanging products and value.
Understanding marketplace and customer value
Needs: the basic physical social and individual needs
Wants: specialized needs, developed by culture and individual personality Demands: Human wants backed up by paying ability (buying power)
The market offering: Products, Services and experiences.
Companies address needs by putting forth a value proposition, a set of benefits that they promise to customers to satisfy their needs. The value proposition is fulfilled by a market offering. Market offering: a combination of product, services, information and experience to satisfy the customers wants and needs.
Sellers don’t have to sell a product, they have to sell a solution to a need or want.
Value, satisfaction and quality
Customer value: the difference between the values the customer gains and the costs that come along with gaining the product. Customer’s satisfaction depends on the perceived value and what the gained value actually is. The buyer is delighted when the performance of the product perceives the customer’s expectations.
Exchanges, transactions and relationships
Exchange is the act of obtaining a desired object from someone by offering something in return.
Transaction is a trade between two parties that at least two things of value, agreed-upon conditions, a time of agreement and a place of agreement.
Relationships marketing is creating, maintaining and enhancing profitable relationships with customers and other stakeholders.
Principles of Marketing chapter 3
‘Failing to plan means planning to fail’
Companies usually prepare the following plan:
❖ The annual plan = current situation, company objectives, the strategy for that year etc. ❖ The long-term plan = Described the primary factors and forces affecting the organization during the next few years. ❖ The strategic plan = involves adapting the organization to take advantage of opportunities in its constantly changing environment. Marketing planning occurs at the business-unit, product and market levels. These plans support the strategic plan.
The planning process:
✓ Implementation; turns the strategic plan into action. ✓ Control
A mission states the purpose of a company. Sometimes the mission fades away because it is forgotten or the mission doesn’t fit in the current environment. When a mission becomes formal it is called: Mission statement, the mission statement is a statement of the organization’s purpose; what it wants to...