Chapter 11: Building Customer Relationships Through Effective Marketing

marketing
activity, set of Institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and Society
relationship marketing
establishing long-term mutually satisfying buyer-seller relationships
customer relationship management (CRM)
using info about customers to create marketing strategies that develop and sustain desirable customer relationships
customer lifetime value
measure of a customer’s worth (sales minus costs) to a business over one’s lifetime
utility
ability of a good or service to satisfy a human need
form utility
utility created by converting production inputs into finished products
Place utility
utility created by making a product available at a location where customers wish to buy it
time utility
utility created by making a product available when customers wish to buy it
possession utility
utility created by transferring title/ownership of a product to a buyer
marketing concept
philosophy that a firm should provide goods and services that satisfy customers needs through coordinated set of activities that allow the firm to achieve its objectives
marketing strategy
a plan that enables an organization to make the best use of its resources and advantages to meet the objectives
marketing mix
product, price, distribution, and promotion
target market
firm develops and maintains marketing mix suitable for the specific needs and preferences of a group
undifferentiated approach
directing a single marketing mix at the entire market for a particular product
Market segment
group of individuals or organizations within a market that share one or more common characteristics
Market segmentation
process of dividing a market into segments and directing a marketing next to a particular segment rather than the total Market
sales forecast
estimate of the amount of a product that an organization expects to sell during a certain period of time
marketing information system
a system for managing marketing information that is gathered continually from internal and external sources
marketing research
process of systematically gathering, recording, and analyzing data concerning a particular marketing problem
buying Behavior
the decisions and actions of people involved in buying and using products
consumer buying Behavior
the purchasing of products for personal and household use
business buying Behavior
the purchasing of products by producers, resellers, governmental units, and institutions
personal income
income of an individual receives from all sources minus Social Security taxes
disposable income
personal income minus all additional personal taxes
discretionary income
disposable income minus savings and expenditures on food, clothing, and housing
6 steps of marketing research
Define the problem, make a preliminary investigation, plan the research, gather factual info, interpret the info, and reach a conclusion
components of a marketing plan
executive summary, environmental analysis, SWOT analysis, marketing objectives, marketing strategies, marketing implementation, and evaluation and control