Chapter 1
Marketing is a process by which companies create value for customers and
build strong customer relationships in order to capture value from customers in
return
The marketing process: (creating and capturing customer value)
Needs: are states of felt deprivation
Wants: are the from human needs takes as they are shaped by culture and
individual personality
Demands: are human wants that are backed by buying power
Market offerings: are some combination of products, services, information, or
experiences offered to a market to satisfy a need or want
Marketing myopia: paying more attention to the specific products than to the
benefits and experiences produced.
Customers from expectations about the value and satisfaction of marketing
offerings
- Satisfied customers buy again
- Dissatisfied customers switch to competitors
Exchange is the act of obtaining a desired object from someone by offering
something in return
Marketing actions try to create, maintain, and grow desirable exchange
relationships
a market is the set of actual and potential buyers, consumers market when
they:
- Search for products
- Interact with companies to obtain information
- Make purchases
Marketing management is the art and science of choosing target markets and
building profitable relationship with them
A brand’s value proposition is the set of benefits or values it promises to
deliver to customers to satisfy their needs
,Five alternative concepts under which organizations design and carry
out their marketing strategies.
- Production concept: the idea that consumers will Favor products that
are available and highly affordable; therefore the organization should
focus on improving production and distribution.
- Product concept: the idea that consumers will favor products that offer
the most quality, performance, and features; the organization should
devote its energy to making it continuous products improvements.
- Selling concept: the idea that consumers will not buy enough of the
firm’s products unless the firm undertakes a large-scale selling and
promotion effort.
Factory existing products selling and promoting profits through sale
volume
- Marketing concept: a philosophy in while achieving organizational goals
depends on knowing the needs and wants of target markets and delivering
the desired satisfaction better than competitors
Market customer needs integrated marketing profits through customer
satisfaction
- Societal marketing: the company’s marketing decisions should consider
consumers’ wants, the company’s requirements, consumers’ long run
interest, and society’s long run interests
Three considerations underlying the societal marketing concept:
- Society, human welfare
- Consumers, want satisfaction
- Company, profits
The marketing mix is comprised of a set of tools known a the four P’s:
- Product
- Price
- Promotion
- Place
Integrated marketing program – a comprehensive plan that communicates
and delivers intended value
Customer relationship management – the overall process of building and
maintaining profitable customer relationships by delivering superior customer
value and satisfaction
Relationship building blocks:
, - Customer- perceived value: the difference between total customer
perceived benefits and customer cost
- Customer satisfaction: the extent to which perceived performance
matches a buyer’s expectations
Customer – Engagement marketing: fosters direct and continuous customer
involvement in shaping brand conversations, experiences, and community
Consumer-Generated Marketing: brand exchanges created by consumers
themselves
Consumers are playing an increasing role in shaping brand experiences
Partner relationship management involves working closely with partners in
other company departments and outside the company to jointly bring greater
value to customers.
Customer lifetime value is the value of the entire stream of purchases that the
customer would make over a lifetime of patronage
Share of customer is the portion of the customers’s purchasing that a
company gets in its product categories
Customer equity: is the total combined customer lifetime values of all of the
companys customers.
Customer brand advocacy: actions by which satisfied
customers initiate favorable interactions with other
about a brand
The changing marketing landscape
- Digital age
- Changing economic environment
- Growth of not-for-profit marketing
- Rapid globalization
- Sustainable marketing
Digital and social media marketing involves using digital marketing tools such as
websites, social media, mobile ads and apps, online videos, email, and blogs that
engage consmers anywhere, at any time, via their digital devices
Social media provide exciting opportunities to extend customer engagement
and get people talking about a brand
Mobile marketing: using mobile channels to stimulate immediate buying, make
shopping easier, and enrich the brand experience
Marketing is a process by which companies create value for customers and
build strong customer relationships in order to capture value from customers in
return
The marketing process: (creating and capturing customer value)
Needs: are states of felt deprivation
Wants: are the from human needs takes as they are shaped by culture and
individual personality
Demands: are human wants that are backed by buying power
Market offerings: are some combination of products, services, information, or
experiences offered to a market to satisfy a need or want
Marketing myopia: paying more attention to the specific products than to the
benefits and experiences produced.
Customers from expectations about the value and satisfaction of marketing
offerings
- Satisfied customers buy again
- Dissatisfied customers switch to competitors
Exchange is the act of obtaining a desired object from someone by offering
something in return
Marketing actions try to create, maintain, and grow desirable exchange
relationships
a market is the set of actual and potential buyers, consumers market when
they:
- Search for products
- Interact with companies to obtain information
- Make purchases
Marketing management is the art and science of choosing target markets and
building profitable relationship with them
A brand’s value proposition is the set of benefits or values it promises to
deliver to customers to satisfy their needs
,Five alternative concepts under which organizations design and carry
out their marketing strategies.
- Production concept: the idea that consumers will Favor products that
are available and highly affordable; therefore the organization should
focus on improving production and distribution.
- Product concept: the idea that consumers will favor products that offer
the most quality, performance, and features; the organization should
devote its energy to making it continuous products improvements.
- Selling concept: the idea that consumers will not buy enough of the
firm’s products unless the firm undertakes a large-scale selling and
promotion effort.
Factory existing products selling and promoting profits through sale
volume
- Marketing concept: a philosophy in while achieving organizational goals
depends on knowing the needs and wants of target markets and delivering
the desired satisfaction better than competitors
Market customer needs integrated marketing profits through customer
satisfaction
- Societal marketing: the company’s marketing decisions should consider
consumers’ wants, the company’s requirements, consumers’ long run
interest, and society’s long run interests
Three considerations underlying the societal marketing concept:
- Society, human welfare
- Consumers, want satisfaction
- Company, profits
The marketing mix is comprised of a set of tools known a the four P’s:
- Product
- Price
- Promotion
- Place
Integrated marketing program – a comprehensive plan that communicates
and delivers intended value
Customer relationship management – the overall process of building and
maintaining profitable customer relationships by delivering superior customer
value and satisfaction
Relationship building blocks:
, - Customer- perceived value: the difference between total customer
perceived benefits and customer cost
- Customer satisfaction: the extent to which perceived performance
matches a buyer’s expectations
Customer – Engagement marketing: fosters direct and continuous customer
involvement in shaping brand conversations, experiences, and community
Consumer-Generated Marketing: brand exchanges created by consumers
themselves
Consumers are playing an increasing role in shaping brand experiences
Partner relationship management involves working closely with partners in
other company departments and outside the company to jointly bring greater
value to customers.
Customer lifetime value is the value of the entire stream of purchases that the
customer would make over a lifetime of patronage
Share of customer is the portion of the customers’s purchasing that a
company gets in its product categories
Customer equity: is the total combined customer lifetime values of all of the
companys customers.
Customer brand advocacy: actions by which satisfied
customers initiate favorable interactions with other
about a brand
The changing marketing landscape
- Digital age
- Changing economic environment
- Growth of not-for-profit marketing
- Rapid globalization
- Sustainable marketing
Digital and social media marketing involves using digital marketing tools such as
websites, social media, mobile ads and apps, online videos, email, and blogs that
engage consmers anywhere, at any time, via their digital devices
Social media provide exciting opportunities to extend customer engagement
and get people talking about a brand
Mobile marketing: using mobile channels to stimulate immediate buying, make
shopping easier, and enrich the brand experience
