Marketing Chapter 1: Creating Customer Value and Engagement Flashcards
What is marketing?
- Marketing is delighting a consumer, customer
to achieve a profit or other pre-established goal.
▪ Marketing is the process by which companies
engage customers, build strong relationships
and create customer value and capture value
from customers in return.
Creating and capturing customer value
Customer needs,wants,demands
Needs are states of felt deprivation. Need: Food
Wants are the form human needs take as they are shaped by culture and individual personality. Want: Spaghetti
Demands are human wants that are backed by buying power Demand: organic pasta
Understanding the Marketplace and
Customer Needs
Difference bewteen wants and demands
- The main difference between wants and demands is that wants are
the desires and preferences of consumers,
while demands are wants
that are backed by the ability and willingness to make a purchase
Understanding the Marketplace and
Customer Needs
Market offerings and myopia definition
Market offerings are some combination of products,
services, information, or experiences offered to a market to
satisfy a need or want.
Marketing myopia—paying more attention to the specific
products than to the benefits and experiences produced and the needs of the customer
Understanding the Marketplace and
Customer Needs
Exchange relationship
Customers form expectations about the value and
satisfaction of market offerings.
– Satisfied customers buy again
– Dissatisfied customers switch to competitors
Exchange is the act of obtaining a desired object from
someone by offering something in return.
Marketing actions try to create, maintain, and grow desirable
exchange relationships
Understanding the Marketplace and
Customer Needs
Market def
A market is the set of actual and potential buyers.
Consumers market when they:
* search for products
* interact with companies to obtain information
* make purchases
Marketing management def
the art and science of choosing
target markets and building profitable relationships with
them.
* What customers will we serve (target market)?
* How can we best serve these customers (value
proposition)?
value proposition
A brand’s value proposition is the set of benefits or values it
promises to deliver to customers to satisfy their needs.
Value propositions: Sonos positions its Sonos One with Amazon
Alexa as “The smart speaker for music lovers.” It gives you all the
advantages of Alexa but with high-quality Sonos sound.
all types of concept
- Production concept
- Product concept
- Selling concept
- Marketing concept
- Societal Marketing concept
Societal marketing
The company’s marketing decisions should consider consumers’
wants, the company’s requirements, consumers’ long-run
interests, and society’s long-run interests.
Woke-washing def
a term used to define practices in business that
provide the appearance of social consciousness without any of
the substance. A woke-washed business could theoretically
promote the opposite of racial equality within its walls while
championing causes of social justice to the outside world.
Marketing mix and integrated marketing
The marketing mix is comprised of a set of tools known a
the four Ps:
* product
* price
* promotion
* place
Integrated marketing program—a comprehensive plan that
communicates and delivers intended value
Managing Customer Relationships
and Capturing Customer Value
Customer relationship management
the overall process
of building and maintaining profitable customer relationships
by delivering superior customer value and satisfaction
Relationship Building Blocks
- Customer-perceived value
– The difference between total
customer perceived benefits and
customer cost - Customer satisfaction
– The extent to which perceived
performance matches a buyer’s
expectations
Perceived value: Some owners
consider a Patek Philippe watch a real
bargain, even at prices ranging from
$20,000 to $1,000,000 or more. “You
never actually own a Patek Philippe.
You merely look after it for the next
generation.”
