MKTG Ch. 1: Creating Customer Relationships and Value through Marketing

LO 1: Define marketing and identify the diverse factors influencing marketing actions
– Organisational function
– Set of processes for creating, communicating, delivering, and exchanging offerings that benefit the organistaion, it’s stakeholders and society at large
Exchange
Trade of things of value between a buyer and a seller so that each is better off after the trade
Environmental Factors
1. Social
2. Economic
3. Technological
4. Competitive
5. Regulatory

– Uncontrollable factors

4 factors needed for marketing to occur
1. 2 or more parties with unsatisfied needs

2. a desire and ability on their part to have their needs satisfied

3. a way to communicate

4. something to exchange

LO 2: Explain how marketing discovers and satisfies consumer needs
– Researching what consumer needs are

– Satisfy consumer needs by implementing a marketing program possessing the right combination of the marketing mix – the 4 P’s

Marketing Mix
1. Product
2. Price
3. Promotion
4. Place

– Controllable factors because they are under the control of the marketing department in an organisation

LO 3: Distinguish between marketing mix factors and environmental forces
Factors that make up the marketing mix are controllable, whereas environmental factors are uncontrollable
LO 4: Explain how organisations build strong customer relationships and customer value through marketing
– Best Price
– Best Product
– Best Service

Combination of quality, price, convenience, on-time delivery, before- and after-sales service.

Relationship marketing
Links the organisation to its individual customers, employees, suppliers, and other partners for mutual long term benefits.
Marketing program
Plan that integrates the marketing mix to provide a good, service or idea to prospective buyers.
Market segments
Relatively homogenous groups of prospective buyers that:
1. Have common needs
2. Will respond similarly to a marketing action
LO 5: Describe how today’s customer relationship era differs from prior eras
Today’s customer relationship era focuses on satisfying the high expectations of customers.
Marketing concept
Idea that an organisation should:

1. Strive to satisfy the needs of customers while also,
2. trying to achieve the organisation’s goals

Market Orientation
An organisation that has a market orientation focuses its efforts on:

1. continuously collecting information about customers’ needs

2. Sharing this information across departments

3. using it to create customer value

Ultimate consumers
People who use products and services purchased for a household
Organisational buyers
Manufacturers, wholesalers, retailers, and govt agencies that buy products and services for their own use or for resale.