Chapter One:creating and capturing customer value Flashcards
What is marketing
Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return
Explain the marketing process
°Understand the marketplace and customer needs and wants.
°design a customer-driven marketing strategy.
°construct an integrated marketing program that delivers superior value.
°build profitable relationships and create customer delight.
Capture value from customers to create profits and customer equity.
Define market offerings
Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want
Define marketing myopia
Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs
Explain the customer needs wants and demands
1)Needs:physical:food,clothing,
Warmth,safety
2)wants: forms that needs take as they are shaped by culture and individual personality
3)demands:wants backed by buying power
Define exchange
Exchange is the act of obtaining a desired object from someone by offering something in return
What’s marketing management?
Marketing management is the art and science of choosing target markets and building profitable relationships with them.
- what customers will we serve?
- how can we best serve these customers?
What’s market segmentation?
Refers to dividing the markets into segments of customers
What’s target marketing?
Refers to which segments do we go after
What’s the value of proposition?
Set of benefits or values a company promises to deliver to customers to satisfy their needs
Explain the marketing orientations:
- production concept:the idea that consumers will favor products that are avail or highly affordable.
- product concept: that idea that consumers will favor products that offer the most quality,performance & features.organization should consistently devote its energy to making continuous product improvement.
- selling concept: that idea that consumers will not buy enough of the firm’s product unless it does a good selling and promotion effort
- marketing concept:that idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do
- societal marketing concept: that idea that companies should make good marketing decisions based on: a) consumer wants
b) the company’s requirements
c) consumers long term interest
d) the society’s long term interest
What’s the marketing mix?
The marketing mix is a set of tools (4p's) a company uses to apply its marketing strategy (4p's): Product Price Promotion Place
What’s an Integrated marketing program?
A comprehensive plan that communicates and delivers the intended value to chosen customers
What’s customer relationship management (CRM)?
Customer relationship management is the overall process of building and maintaining profitable relationships by delivering superior customer value and satisfaction
What’s customer perceived value?
The difference between the total customer value and total customer cost
Explain the total customer cost and total customer value.
The total customer cost is the complete fees a customer expects to pay in the researching,buying and maintaining of a given product or service.
Meanwhile the total customer value is the perception(observation) of what a customer is getting from a given product or service in comparison to it’s price
What’s “customer satisfaction” ?
Customer satisfaction is when a products performance matches the buyers expectation
Explain the changing nature of customers relationships:
- relating with more carefully selected customers uses selective relationship management to target fewer, more profitable customers.
- relating more deeply and interactively by incorporating(include)more interactive two way relationships through blogs,websites,online communities and social networks
Explain “customer managed relationships”
A marketing relationship by which customers are empowered by today’s digital technology interact with companies and with each other to shape their relationship with brands
Explain “ Partner relationship management”
Involves working closely with partners in other company departments and outside the company to jointly(together) bring better value to customers.
- partners with inside the company are very functional area interacting with customers.(function area:teams of employees who have similar skills and expertise)electronically-cross functional teams.
- partners outside the company is how marketers connect with their suppliers,channel partners,and competitors by developing relationships.
What’s the supply chain?
Supply chain is a channel that stretches from raw materials to components to final products to final buyers
Raw material ~components ~final product ~ final buyer
What’s “customer lifetime value?
represents the total amount of money a customer is expected to spend in your business, or on your products, during their lifetime.
What’s “share of customer”?
A portion of the customers purchasing that the company gets in its product
What’s “customer equity”?
Customers equally is the total combined of customer lifetime value
Explain what is needed to be done in order to build customer equity
- Right relationships with the right customers involves treating the customers as assets that needs to be managed and maximized
- different types of customers require different management strategies
What’s “customer lifetime value?
represents the total amount of money a customer is expected to spend in your business, or on your products, during their lifetime.
What’s “share of customer”?
A portion of the customers purchasing that the company gets in its product
What’s “customer equity”?
Customers equally is the total combined of customer lifetime value
Explain what is needed to be done in order to build customer equity
- Right relationships with the right customers involves treating the customers as assets that needs to be managed and maximized
- different types of customers require different management strategies
What’s “customer lifetime value?
represents the total amount of money a customer is expected to spend in your business, or on your products, during their lifetime.
What’s “share of customer”?
A portion of the customers purchasing that the company gets in its product
What’s “customer equity”?
Customers equally is the total combined of customer lifetime value
Explain what is needed to be done in order to build customer equity
- Right relationships with the right customers involves treating the customers as assets that needs to be managed and maximized
- different types of customers require different management strategies
Explain the changing marketing landscape
1) uncertain economic environment:new customer frugality,marketers focus on the value for the customer.
2) Digital age:
- people the connected continuously to people and information worldwide.
- marketers have great new tools to communicate with customers “.
- internet+mobile communication devices creates an environment for online marketing.
3) rapid globalization:simple globalization that happen fast
4) sustainable marketing:the promotion of environmental and socially responsible products,practices,and brand values.
5) non profit marketing: the activities and strategies that spread the message of the organization
What is marketing? Pulling it all up
Understand the market place and customer needs and wants : > > >
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.capture value from customers to create profits and customer equity.
