Topic 1 - Creating and capturing customer value Flashcards
What is marketing
Identifying and meeting human and social needs, maintaining profitable relations with customers.
What is the double aim of marketing?
- attract new customers delivering superior value
- to keep and grow actual customers providing satisfaction
What is the marketing process
- Understand the market place & customer wants and needs
- Design a customer value driven marketing strategy
- Construct an integrated market plan that delivers superior value
- Build profitable relations and create customer delight
- Capture value from customers to create profit
What is a need
State of felt deprivation - basic human requirements
What is a want
The form human needs take as they are shared by culture and individual personality
What is a demand
Wants for specific products backed by ability to pay
What are market offerings
Combination of products, services and information or experiences offered by a market to satisfy a want or need. (can be physical products or services)
What is marketing myopia
The mistake of paying more attention to the specific products a company offers rather than the benefits and experiences produced by these products
What is customer value and satisfaction
- Customers assign value to each available market offering
- Taking into account the value and cost of each offering, the customer chooses to buy a certain product/service
- After the product/ service experience, its value is redesigned
What is the marketing management aim
Chasing target markets and building profitable relationships with them, based on delivering superior customer value
What should be taking into account with the marketing management aim?
- Who is our target market (Segmentation)
- What is our proposition (Definition)
- Marketing management orientations - what should guide these marketing strategies
What is the production concept
- Consumers will favour products that are available
- Benefits will come from improving production & distribution performance
- Focus in production and placement
What is the product concept?
- Consumers will favour products that offer the most in quality, performance, innovative features etc
- Prices may be higher
- Marketing Myopia
What is the selling concept?
- unsought goods
- large scale selling (sales force) and promotion effort
- Factory, Existing products, selling & promoting, profits through sales volume
What is the marketing concept?
- Customer centred sense and respond philosophy
- Long term customer relationships based on satisfaction
What is the structure/ order of the marketing concept?
Starting point - Market
Focus - customer needs
Means - Integrated marketing
Ends - profits through customer satisfaction
What is the societal marketing concept
- Considers consumers long - run interests and societies long run interests
What is the marketing mix?
Set of tools that the company uses to implement its marketing strategy. includes price, product, place and promotion
What is an integrated marketing program?
integral plan that communicates and delivers value to selected customers
What is customer relationship management
The overall process of building and maintaining profitable customer relations by delivering superior value and satisfaction
What is the customer relationship diagram - explain it
- Butterfly
- True friends
- Strangers
- Barnacles
What is customer value
Difference between all benefits and costs of a product
What is customer satisfaction
A products perceived performance vs expectations
What are customer relationship levels?
Basic relationship, full partnership, tools
