Chapter 1: Marketing - Creating and Capturing Customer Value Flashcards
What is marketing?
Marketing is managing the profitable customer relationships.
A set of institutions and processes for creating, communicating and delivery and exchanging offerings that have value for customers, clients, partners and society at large.
What is the aim of marketing?
The aim of marketing is to create value for customers and to capture value from customers in return.
What is the twofold goal of marketing?
To attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.
What is different about today’s marketers?
They reach you directly and personally. They want to become a part of your life and enrich your experienced with their brands - to help you live their brands.
When examining a marketing organisation, what factors contribute to making a business or other organisational type successful?
. Great strategy
. Dedicated employees
. Good information systems
. Excellent implementation
(among others)
What is the one thing all successful organisations at all levels have in common?
They have a strong market orientation - meaning they are focused on their customers and their competitors (and they a have a commitment to sharing this information with all parts of the organisation).
What is at the very heart of modern marketing thinking and practice?
Creating excitement, customer value and satisfaction is at the very heart of modern marketing thinking and practice.
What is the goal of marketing?
To attract new customers by promising superior value, and to keep current customers by delivering satisfaction.
Marketing definition.
Marketing is the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.
What are some importance terms in the marketing definition?
. Customer needs, wants and demands . Market offerings . Value, satisfaction and quality . Exchange transactions and relationships . Markets
What is the marketing process?
This is a 5-step process which involves creating value for customer and building customer relationships as well as capturing value from customers in return.
In the first four steps, marketing organisations uncover knowledge about consumers, create customer value and build strong customer relationships. In the final step, companies reap the rewards of creating superior customer value.
By creating value for customers, they in turn capture value from consumers in the form of sales, profits and long-term customer equity.
What are the 5-steps of the marketing process?
. Understanding the marketplace and customer needs, wants and demands
. Design a customer-driven marketing strategy
. Construct an integrated marketing program that delivers superior value
. Build profitable relationships and crest customer delight
. Capture value from customer to create profits and customer equity
Explain the first step of the marketing process.
Marketers need to understand the marketplace and customer needs, wants and demands, and the marketplace within which they operate.
There are five core customer and marketplace concepts, being:
. Customer needs, wants and demands
. Market offerings (goods, services and experiences)
. Customer value and satisfaction
. Exchanges and relationships
. and Markets.
Each concept builds on the one before it.
What are needs?
States of felt deprivation (needed to survive). This is the most basic concept underlying marketing.
It can include:
. Physical needs for food, clothing, warmth and safety
. Social needs for belonging and affection
. Individual needs for knowledge and self-expression
While marketers may stimulate these needs, they do not created them (to for they ate a basic part of human make-up).
What happens when a need is not satisfied?
When a need is not satisfied, a person will try either to reduce the need or look for an object that will satisfy it.
People in less developed societies might try to reduce their desires and satisfy them with what is available.
People in industrial societies might try to find or develop objects that will satisfy their needs
What are wants?
The form human needs take as shaped by culture and individual personality. Wants are described in terms of objects that will satisfy needs.
As society evolves, the wants of its members expand. As people as exposed to more objects that arouse their interest and desire, producers try to provide want-satisfying goods and services.
People have almost unlimited wants, but limited resources. Thus, they want to choose products that provide the most value and satisfaction for their money.
What are demands?
Human wants that are backed by buying power.
Consumers view products as bundles of benefits and choose products that give them the best bundle for their money.
Given their wants and resources, people demand products with the benefits that add up to the most satisfaction.
What do outstanding marketers do?
They go to great lengths to understand their customers’ needs, wants and demands.
They conduct qualities research such as small focus groups and customer clinics to ascertain if there are unmet needs wants and demands.
They conduct quantitive research on a larger scale to ascertain the magnitude of the unmet needs, wants and demands.
They seek customer insights when they examine their databases for patterns hidden in purchase data, customer complaints, inquiries, warranty claims and service performance data.
They train salespeople and other frontline personnel to be on the lookout for unfulfilled customer needs.
They observe customer their own competing products …… Page 6
