Chapter 1: customer value and engagement Flashcards
What is marketing?
Marketing is the process by which companies engage their customers, build strong relationships, and create customer value. It is a social and managerial process by which individuals and businesses obtain what they need and want
What are the 5 steps in the marketing process?
- understand the marketplace and customers needs and wants
- design customer value-driven strategy
- construct integrated marketing program that delivers superior customer value
- engage customers, build profitable relations and customer delight
- capture value to create profits and customer equity
vision of the future
explorers look at the future and what has not been invented
Changes in trends
The appearance of new trends makes changes in consumer behavior and will alter the way people used to engage with products, services, and brands
Changes in markets
The appearance of customers, competitors, new features, new technologies and the ways to improve the product will generate new revenue streams
Changes in the company
decline in sales, become more profitable and be more sustainable
Needs
states of felt deprivation
What are the different types of needs?
physical, social and individual
Wants
the form human needs take as they are shaped by culture and individual personality
Demands
human wants that are backed by a buying power
market offerings
the combination of products, services, information or experiences offered to a market to satisfy a certain need or want
What is marketing myopia
The mistake of paying more attention to specific products that a company offers than to the benefits and experiences offered by these products
What is the main idea of customer value and satisfaction?
Satisfied customers will tend to buy again and will tell others about their good experiences with a company or product.
Why should marketers set the right level of expectations?
Because, if they set them too low, they might create satisfaction but fail to attract customers while if they set them to high, buyers might be disappointed
What are exchanges
the act of obtaining a desired object from someone by offering something in return
How can companies build relationships
Companies look to build strong relationships by consistently delivering superior customer value
What is a market?
A market is a set of actual and potential buyers of a product or service who share a particular need or want and can be satisfied through exchange relationships
what is marketing management
The art and science of choosing target markets and building profitable relationships with them
What are the steps in creating a value-driven marketing strategy
- selecting customers to serve
- create a value proposition
- marketing management orientations
Value proposition
The set of benefits or values a company promises to deliver to customers to satisfy their needs
Marketing management orientations
design strategies that will engage target customers and build profitable relationships with them
production concept
idea that customers will favour the products that are available and affordable
Product concept
Customers will favour products with the highest quality, performance and features
Selling concept
consumers will not buy enough of the firms products unless the firm undertakes a large scale selling and promotion effort
Marketing concept
Achieving goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors
Societal marketing concept
A company’s marketing decisions should consider customer wants, the companies requirements, customers long run interests and societies long run interests
What is an integrated marketing plan
outline of which customers it will serve and how it will create value for these customers
Purpose of an integrated marketing plan
Develop an integrated marketing program that will actually deliver the intended value to target customers
customer relationship management
the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
what are the relationship building blocks
- customer perceived value
- customer satisfaction
customer perceived value
the customers evaluation of the difference between all the benefits and the costs of a marketing offer relative to competitive offers
Customer satisfaction
Extent to which a product’s perceived performance matches a buyers expectations
customer relationship levels
companies can build customer relationships at many levels which depend on the nature of the target market
Customer relationship tools
marketers can use specific marketing tools to develop stronger bonds with customers
Customer engagement marketing
making the brand a meaningful part of consumers conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences and community
Consumer generated marketing
Brand exchanges created by consumers themselves by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers
Partner relationship management
Working closely with partners in other company departments and outside the company to jointly bring greater value to customers
why create customer loyalty and retention
Satisfied customers remain loyal and talk favorably to others about the company and its products which might attract more potential customers
Customer lifetime value
the value of the entire stream of purchases a customer makes over a lifetime of patronage
growing share of customer
the portion of the customer’s purchasing that a company gets in its product categories
Customer equity
The total combined customer lifetime values of all the company’s customers
building the right relationships with the right customers
Butterflies: potentially profitable but not loyal
True friends: profitable and loyal
Barnacles: highly loyal but not profitable
Strangers: low profitability and little loyalty
digital and social media marketing
Using digital marketing tools to engage consumers anywhere at any time, via their digital devices
social media marketing
online social media provides a digital home where people can connect and share important information an moments in their lives
Mobile marketing
Smartphones are always present, always on finely targeted and highly personal which makes them ideal for engaging customers anytime, anywhere as they move through the buying process
what is the challenge of the changing economic environment
The challenge is to balance the brands value proposition with the current times while also enhancing its long term equity
rapid globalization
marketers are taking a fresh look at the ways in which they relate with the broader world around them
Sustainable marketing
marketers are reexamining their relationships with social values and responsibilities and with the very earth that sustains us. corporate ethics and social responsibility have become important for almost every business
