MKTG 301 chapter 1

Marketing
The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return

Why?
-affects our lives every day
-key to effective business strategies and business models
-vital to profitability and growth of business

Five Step Model of Marketing Process
1. Understand the marketplace and customer needs and wants

2. Design a customer-driven marketing strategy

3. Construct an integrated marketing program that delivers superior value

4. Build profitable relationships and create customer delight

5. Capture value from customers to create profits and customer equity

Understanding the Marketplace and Customer Needs
1)needs, wants, demands
2)market offerings (products,services, and experience)
3) Value and satisfaction
4) Exchanges and relationships
5)Markets
Needs
States of felt deprivation
-Physical needs for food, clothing, warmth, and safety
-Social needs for belonging and affection
-Individual needs for knowledge and self-expression
Wants
The form human needs take as shaped by culture and individual personality
Demands
Human wants that are backed by buying power
Market Offering
Some combination of products, services, information, or experiences offered to a market to satisfy a need or want
Marketing Myopia
The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products
Exchange
The act of obtaining a desired object from someone by offering something in return
Market
The set of all actual and potential buyers of a product or service
Designing a customer driven marketing strategy
(See marketing management)
Marketing Management
The art and science of choosing target markets and building profitable relationships with them

its customer management and demand management

Market Segmentation
Dividing the market into segments of customers
-Deciding “who” the company will serve
Target Marketing
Selecting which segments a company will cultivate
Value Proposition
A set of benefits that a company promises to consumers to satisfy their needs
-Fulfilled through a market offering
Differentiating and Positioning
Deciding “how” a company will serve targeted customers
Production Concept
The idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency
Product Concept
The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements
Selling Concept
The idea that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort
Marketing Concept
The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
Societal Marketing Concept
The idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumer’s long-run interests, and society’s long-run interests.

Or

Triangle of societies long run needs, consumers long term needs, and the companies needs for profit.

Sustainable Marketing
socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs
Marketing Mix
the set of marketing tools the firm uses to implement its marketing strategy

FOUR Groups:
-Product
-Price
-Place
-Promotion

Firms must create a need-satisfying market offering, then decide how much it will charge for it, decide how it will make it available. Finally, they must communicate its merits and persuade the consumer

Customer Relationship Management
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
Customer-perceived Value
The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers
Customer Satisfaction
The extent to which a product’s perceived performance matches a buyer’s expectations
Customer-managed Relationships
Marketing relationships in which customers, empowered by today’s new digital technologies, interact with companies and with each other to shape their relationships with brands
Consumer-generated Marketing
Brand exchanges created by consumers themselves–both invited and uninvited–by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers
Partner Relationship Management
Working closely with partners in other company departments and outside the company to jointly bring greater value to customers
Customer Lifetime Value
The value of the entire stream of purchases that the customer would make over a lifetime of patronage
Share of Customer
The portion of the customer’s purchasing that a company gets in its product categories
Customer Equity
The total combined customer lifetime values of all the company’s customers
The Core Marketing Concepts
1. Needs, wants, and demands
2. Market offerings (products, services, experiences)
3. Value and satisfaction
4. Exchange and relationships
5. Markets
Value
Marketers create value through “products”
Types of Products
Physical Objects
People
Organizations
Places
Information
Ideas