Marketing summary
Chapter 1, Marketing: creating customer value and engagement
Marketing = engaging customers, managing profitable customer relationships and create customer
value in order to capture value from customers in return.
How to create customer value:
1. Understanding the marketplace and customer needs and wants
2. Design a customer-driven marketing strategy
3. Construct a marketing program that delivers superior value
4. Build profitable relationships and create customer delight
Needs, wants and demands
Need food, clothes, warmth, safety
Wants needs formed by culture and individual personality (luxury) big mac, Gucci hat etc.
Demand if you have the money and the will to actually buy it
Marketing offerings: products that are offered in a market to satisfy a costumer want or need
Marketing myopia: focusing on the existing wants and not focusing on the needs
If marketers set the level of expectation too low, they fail to attract enough buyers.
If marketers set the level of expectation too high, they will disappoint buyers.
Exchange: the act of wanting a object by giving something in return
For example, a company wants profit, they give good costumers relationships in return
Market = actual and potential buyers of a product or service
Suppliers Company and competitors Marketing intermediaries Consumers
Marketing management: choosing target markets and building profitable relationships with them
- What costumers will we serve?
- How can we best serve our customers?
Marketing segmentation: dividing market in segment of costumers
Target marketing: in which segments it goes after ^
Value proposition: the value a company promises to deliver to customers to satisfy their needs
Marketing management orientations:
- Production concept: consumers favor available and affordable products, organization
focusses on improving production and distribution
- Product concept: consumers favor the products with the most quality, performance and
features, organization focusses on product improvements
- Selling concept: consumers will not buy enough, unless it is on a large scale and promotion
effort
- Marketing concept: company knows the wants and needs of target markets and deliver the
best satisfactions, better than competition
- Societal marketing concept: consumer wants and long term interests (environment)
,Marketing mix (4p’s): product, place, price, promotion
Integrated marketing program: plan that delivers intended value of costumers
Customer relationship management (CMR): proves of building and maintaining profitable customer
relationships by delivering superior customer value and satisfaction.
Customer-perceived value: difference between total customer value and total costumer costs
A customer buys from the firm that offer the highest customer-perceived value.
Customer satisfaction: extent to how much the customers expectations matches the product
Higher levels of customer satisfaction lead to greater customer loyalty, which leads to better
company performance.
Customer relationships:
- Basic relationships: not personal
- Full partnership: personal
Customer-engagement marketing: making the brand a meaningful part of consumer’ conversations
and lives by fostering direct and continuous customer involvement in shaping brand conversations,
experience and community.
Customer-managed marketing: marketing relationships in which customers interact with companies
to shape their relationships with brands (they do this through digital technologies).
Costumer-generated marketing: brand exchanges created by consumers themselves. By which
consumers are plating 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.
Inside the company through: electronically, cross-functional teams.
Outside the company through: marketers connect with their suppliers, channel partners and
competitors.
Costumer lifetime value = the value of the entire stream of purchases that a costumer would make
over a lifetime of patronage.
If the costumer has an emotional relationship with a brand, it keeps coming back. It is also easier to
keep an old costumer than to acquire a new one.
Share of customer: the portion of customer’s purchasing that a company gets in its product
categories.
So, a supermarket want to get more ‘share of stomach’, car companies want to increase ‘share of
garage’ and airlines want a greater ‘share of travel’.
Customer equity: total combined customer lifetime values of all the company’s customers.
More loyal the firm’s profitable customers, the higher its customer equity.
, Costumer relationship groups:
High profitable Butterflies True friends
Low profitable Strangers Barnacles
Short-term customers Long-term customers
Butterflies: good fit between company’s offerings and customer’s need: high profit potential
True friends: good fit between company’s offerings and customer’s need: highest profit potential
Strangers: little fit between company’s offerings and customer’s need: lowest profit potential
Barnacles: limited fit between company’s offerings and customer’s need: low profit potential
Digital age:
- People are connected to people and information around the world
- Marketers have greater tools to communicate with customers
- Internet + mobile communication devices create environment for online marketing
Digital and social media marketing: using digital marketing tools such as websites, social media,
mobile apps and ads, online video, email and vlogs to engage consumers anywhere, at any time.
Create value for customers and build customer relationships by:
- Understand the marketplace and customer needs and wants:
Research it ^
Manage marketing info and customer data
- Design a driven marketing strategy
Select customers to serve: market segmentation and targeting
Decide on a value proposition: differentiation and positioning
- Construct an integrated marketing program that delivers superior value
Product and service design: build strong brands
Pricing: create real value
Distribution: manage demand and supply chains
Promotion: communicate the value proposition
- Build profitable relationships and create customer delight
Customer relationship management: build strong relationships with customers
Partner relationship management: build strong relationships with marketing partners
Capture value from customers in return to create profits and customer equity:
Create satisfied, loyal customers
Capture customer lifetime value
Increase share of market and share of customer
Chapter 2, company and marketing strategy: partnering to build customer engagement, value and
relationships
Strategic planning is the process of developing and maintain a strategic fit between:
- Organization’s goals
- Capabilities
- Changing marketing opportunities
Chapter 1, Marketing: creating customer value and engagement
Marketing = engaging customers, managing profitable customer relationships and create customer
value in order to capture value from customers in return.
How to create customer value:
1. Understanding the marketplace and customer needs and wants
2. Design a customer-driven marketing strategy
3. Construct a marketing program that delivers superior value
4. Build profitable relationships and create customer delight
Needs, wants and demands
Need food, clothes, warmth, safety
Wants needs formed by culture and individual personality (luxury) big mac, Gucci hat etc.
Demand if you have the money and the will to actually buy it
Marketing offerings: products that are offered in a market to satisfy a costumer want or need
Marketing myopia: focusing on the existing wants and not focusing on the needs
If marketers set the level of expectation too low, they fail to attract enough buyers.
If marketers set the level of expectation too high, they will disappoint buyers.
Exchange: the act of wanting a object by giving something in return
For example, a company wants profit, they give good costumers relationships in return
Market = actual and potential buyers of a product or service
Suppliers Company and competitors Marketing intermediaries Consumers
Marketing management: choosing target markets and building profitable relationships with them
- What costumers will we serve?
- How can we best serve our customers?
Marketing segmentation: dividing market in segment of costumers
Target marketing: in which segments it goes after ^
Value proposition: the value a company promises to deliver to customers to satisfy their needs
Marketing management orientations:
- Production concept: consumers favor available and affordable products, organization
focusses on improving production and distribution
- Product concept: consumers favor the products with the most quality, performance and
features, organization focusses on product improvements
- Selling concept: consumers will not buy enough, unless it is on a large scale and promotion
effort
- Marketing concept: company knows the wants and needs of target markets and deliver the
best satisfactions, better than competition
- Societal marketing concept: consumer wants and long term interests (environment)
,Marketing mix (4p’s): product, place, price, promotion
Integrated marketing program: plan that delivers intended value of costumers
Customer relationship management (CMR): proves of building and maintaining profitable customer
relationships by delivering superior customer value and satisfaction.
Customer-perceived value: difference between total customer value and total costumer costs
A customer buys from the firm that offer the highest customer-perceived value.
Customer satisfaction: extent to how much the customers expectations matches the product
Higher levels of customer satisfaction lead to greater customer loyalty, which leads to better
company performance.
Customer relationships:
- Basic relationships: not personal
- Full partnership: personal
Customer-engagement marketing: making the brand a meaningful part of consumer’ conversations
and lives by fostering direct and continuous customer involvement in shaping brand conversations,
experience and community.
Customer-managed marketing: marketing relationships in which customers interact with companies
to shape their relationships with brands (they do this through digital technologies).
Costumer-generated marketing: brand exchanges created by consumers themselves. By which
consumers are plating 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.
Inside the company through: electronically, cross-functional teams.
Outside the company through: marketers connect with their suppliers, channel partners and
competitors.
Costumer lifetime value = the value of the entire stream of purchases that a costumer would make
over a lifetime of patronage.
If the costumer has an emotional relationship with a brand, it keeps coming back. It is also easier to
keep an old costumer than to acquire a new one.
Share of customer: the portion of customer’s purchasing that a company gets in its product
categories.
So, a supermarket want to get more ‘share of stomach’, car companies want to increase ‘share of
garage’ and airlines want a greater ‘share of travel’.
Customer equity: total combined customer lifetime values of all the company’s customers.
More loyal the firm’s profitable customers, the higher its customer equity.
, Costumer relationship groups:
High profitable Butterflies True friends
Low profitable Strangers Barnacles
Short-term customers Long-term customers
Butterflies: good fit between company’s offerings and customer’s need: high profit potential
True friends: good fit between company’s offerings and customer’s need: highest profit potential
Strangers: little fit between company’s offerings and customer’s need: lowest profit potential
Barnacles: limited fit between company’s offerings and customer’s need: low profit potential
Digital age:
- People are connected to people and information around the world
- Marketers have greater tools to communicate with customers
- Internet + mobile communication devices create environment for online marketing
Digital and social media marketing: using digital marketing tools such as websites, social media,
mobile apps and ads, online video, email and vlogs to engage consumers anywhere, at any time.
Create value for customers and build customer relationships by:
- Understand the marketplace and customer needs and wants:
Research it ^
Manage marketing info and customer data
- Design a driven marketing strategy
Select customers to serve: market segmentation and targeting
Decide on a value proposition: differentiation and positioning
- Construct an integrated marketing program that delivers superior value
Product and service design: build strong brands
Pricing: create real value
Distribution: manage demand and supply chains
Promotion: communicate the value proposition
- Build profitable relationships and create customer delight
Customer relationship management: build strong relationships with customers
Partner relationship management: build strong relationships with marketing partners
Capture value from customers in return to create profits and customer equity:
Create satisfied, loyal customers
Capture customer lifetime value
Increase share of market and share of customer
Chapter 2, company and marketing strategy: partnering to build customer engagement, value and
relationships
Strategic planning is the process of developing and maintain a strategic fit between:
- Organization’s goals
- Capabilities
- Changing marketing opportunities
