Chapter 1 Flashcards
Marketing –> definition
marketing is a process where companies create value for customer and build strong relationships in order to capture value in return
1- attract new customers by promising superior value
2- keep and grow current customers by delivering satisfaction
The marketing concept
Create value for customers:
1- understand the marketplace and customer needs and wants
2-design customer value driven marketing strategy
3- construct an integrated marketing program
4- build prfitale relationships and create customer delight
Capture value from customers in return:
5- capture value from customers to create profits and customer equity
5 core concepts in marketing
1 - Customer needs, wants and demand
2 - marketing offerings = products, services and experiences
3- customer value and satisfaction
4 - exchange and relationships
5 - markets
1 - Understand the marketplace and customer needs
needs = are states of deprovation, they include basic needs such as good cloth warmt and safety, belonging, affection
Wants = the form human needs take as they are shaped by culture and individual personality
Demands= human wants that are backed by buying power
Marketing offerings - products, services, 2- and experiences
Marketing offerings are some combination of products, services, solutions and experiences offered to a market tot satisfy a need or want
Marketing myopia
marketing myopia is focusing only on existing wanrs and losing sight of underlying consumer needs
3- Customer value and satisfaction
Marketers need to set right level of expectations. if they are to low fail to attract enough customers, if too high buyers will be dissapointed
customers form expectations about the value and satisfaction that will be delivered
4- exchange and relationships
exchange is the act of obtaining desired object from someone by offering something in return
Exchange relationships –> marketing actions try to create maintain and grow desirable exchange reltaionship
5- Markets
the set of all actual buyers of a product or a service
“How can we influence our customers?” Instead, they are also asking, “How can our customers influence us?” and even “How can our customers influence each other?
Designing customer value-driven marketing strategy and planning
Once it fully understands consumers and the marketplace, marketing management can design a customer value–driven marketing strategy
the marketing manager must acquire, engage, keep, and grow target customers by creating, delivering, and communicating superior customer value.
What customers will we serve (what’s our target market)? and How can we serve these customers best (what’s our value proposition)?
- selecting customers
- choosing a value proposition
- marketing orientation
designing customer value driven marketing strategy part 2
selecting customers = whom to serve
segment -> target
choosing value proposition = how to serve
differentiate -> position
Marketing managment orientation
focus on production or selling, or marketing.
selecting customers to serve
marketing managment is the art and scienc of choosing target markets and building profitable relationships
▪ What customers will we serve?
▪ How can we best serve these customers?
Selecting Customers to Serve
Market segmentation refers to dividing the markets into segments of customers.
Target marketing refers to which segments to go after.
choosing a value proposition
a brands value proposition is the set of benefits or value it promises to deliver to customers to satisfy their needs
Marketing orientations
1- production concept
2- product concept
3 - selling concept
4- marketing concepts
5- societal marketing concept
Marketing orientations - 1 production concept
focus is on mass production and process efficiency improve production and distribution efficiency
little direction from the customers –> can lead to marketing myopia
<marketing> 2 product orientation
</marketing>
focus on developing products that offer the most quality, performance and innovative features
the product is more important than the other 3P’s
< marketing orientation > 3 selling concept
focus on convincing pressuring the customers
maximizing sales by whatever means necessary ( price cuts aggressive promotions and sales tactics )
The idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort.
profits through sales volume
< market orientation > 4 marketing concept
A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
profits through customer satisfaction
< marketing orientation > 5 societal marketing concept
The idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.
preparing an integrated marketing plan and program
an integrated marketing program is a comprehensive plan that communicates and delivers that intended value to chosen customers. Transforms the strategy into action
marketing mix
marketing mix is the set of tools ( 4 p’s ) that the firm uses to implement its strategy. this set includes product, price, promotion and place
< Building Customer Relationships > Customer relationship management
customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior value and satisfaction
< Building Customer Relationships > Value & Satisfaction
Value = the customers evaluation of the difference between all the benefits and all the costs of marketing offer relative to those of competing offers
satisfaction = to extend to which a products perceived performance matches a buyers expectations
< Building Customer Relationships > Customer relationships levels and tools
basic relationships = low margin customers
full partnership = high margin customers
frequency marketing programs = reward customers
< Capturing Value from Customers >
Creating Customer Loyalty and Retention
Customer lifetime value = is the value of the entire stream of purchases that the customer would make over a lifetime of
patronage.
Share of customer (Share of wallet) = is the portion of the customer’s purchasing that a company gets in its product categories.
Customer equity = is the total combined customer lifetime values
of all of the company’s customers
< Capturing Value from Customers >
1- creating customer loyalty
2- growing share of customers
3- building customer equity
< Capturing Value from Customers >
Building customer loyalty
potential profitablity
and projected loyalty
high profitability - short term projected loyalty = butterflies
high profitability - long term loyalty = true
low profitability - short loyalty = strangers
low profitability - long term loyalty = barnacies
< Capturing Value from Customers >
growing share of customer / wallet
the portion of the customer’s purchasing that a company gets in its product categories
Upselling = is a sales technique where a seller encourages a customer to purchase a more expensive version of a product or service than they originally intended. The goal is to increase the value of the purchase by offering premium features, upgrades, or additional benefits.
Cross-selling = involves suggesting complementary or related products to the customer in addition to their original purchase. The aim is to enhance the customer’s experience and increase overall sales.
Building Customer Relationships &
Capturing Value
Building Customer Relationships
- Customer Relationship Management
- Engaging Customers
- Partner Relationship Management
Capturing Value from Customers
- Creating Customer Loyalty & Retention
- Growing Share of Customer
- Building Customer Equity
