Marketing: Creating Customer Value and Engagement

Define Marketing
Process by which companies create value for customers and build strong customer relationships in order to capture value from customers
Outline the steps in the marketing process
Five steps. First four are value based. First, Marketers need to understand the marketplace and customer needs and wants. Second, Design a customer driven marketing strategy with the goal of getting, keeping, and growing target customers. Third, Construct a marketing program that actually delivers superior value. Fourth, Building profitable customer relationships and creating customer delight. Fifth: Company reaps the rewards of strong customer relationships by capturing value from customers
Importance of Understanding the marketplace and customers
Understanding customer’s needs, wants and demands helps companies design want satisfying market offerings and build valuable customer relationships where they can capture customer lifetime value and greater share of customer. Resulting in increased long-term customer equity for the firm.
Identify the Five Core Marketplace concepts
Needs, wants, demands; Market offerings: products, services, experiences; Value and satisfaction; Exchange and relationships; Markets.
Wants: form taken by needs when shaped by culture and individual personality.
Demands: Wants backed by buying power
Needs: Companies address this by putting forth a value proposition; delivers customer value and satisfaction, resulting in long-term exchange relationship
Identify key elements of a customer driven marketing strategy
Design a winning marketing strategy by dividing the market into segments of customers (market segmentation) and selecting which segments it will cultivate (target marketing). Decide how to serve targeted customers (how it will differentiate and position itself in the marketplace) and positioning within the market
The marketing management orientations that guide marketing strategy
Can have one of five competing market orientations.
Production Concept: management’s task is to improve production n efficiency and bring down prices.
Product Concept: Consumers favor products that offer the most in quality, performance, and innovative features; little need for promotional effort
Selling Concept: Consumers will not buy enough of an organizations products unless it undertakes a large-scale selling and promotion effort.
Marketing Concept: Achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.
Societal Marketing concept: Generating customer satisfaction and long-run societal well-being through sustainable marketing strategies
Customer Relationship Management, Customer Engagement Marketing, and strategies for creating value for customers and capturing value from customers in return.
Aim is to produce high customer equity: total combined customer lifetime values of all the company’s customers. Must develop the right relationships with the right customers, will create value for targeted customers and capture value from customers in the form of profits and customers. Must be good at partner relationship management.
Major Trends and forces that are changing the marketing landscape
Blend new digital approaches with traditional marketing to create a smoothly integrated marketing strategy and mix. Marketers must now emphasize the value in their value propositions after the Great Recession. Marketing has become a part of Not-For-Profit organizations. Global competition also affects every company big or small. New ethical and societal responsibilities. Creating and capturing customer value building value-laden relationships with their customers, partners, and the world.