MKTG301 Ch1 Marketing creating and capturing customer value

Marketing
the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
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.
needs
states of felt deprivation
wants
the form human needs take as they are shaped by culture and individual personality.
demands
human wants that are backed by buying power
market offerings
some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
market mypoia
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
value proposition
the set of benefits or values it promises to deliver to consumers to satisfy their needs
the 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
the 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. (Can lead to marketing myopia)
the 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. (E.g. insurance or blood donation)
the marketing concept
a 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. (But sometimes customers don’t know what they want either)
the societal marketing concept
the idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.
marketing mix
the set of marketing tools the firm uses to implement its marketing strategy (product, price, place,promotion)
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
customer-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
partnership 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 get in its product categories
customer equity
the total combined customer lifetime values of all of the company’s customers