Summary Chapter 11

Marketing: building proftable
customer connections

11.1: Marketing: getting value by giving value
 American marketnn associatonn “activity, set of vissttutoss, asd proocesses foro croeatsng,
commusvicatsng, deelviierovisng, asd exchasngvisng oferovisngs that haie iaelue foro customeros,
celviests, parotseros, asd socviety at elaronge
 Beseft that busvisesses seek froom maroketsng: elosng-terom prooftabvielvity ivirost they seed to
deelviiero iaelue to customeros asd othero stakehoelderos
 Successfuel maroketero: deelviieros iaelue by felvisng customero seeds vis ways that exceed theviro
expectatoss
 Thvis mavistaviss saeles vis the futuroe, asd thus rouss visto elosng-terom prooftabvielvity
 Utlityn abvielvity of ngoods asd seroivices to satsfy these wasts Svisce theroe vis a wvide roasnge of
wasts, prooducts cas prooivide utelvity vis dviferoest ways
o Form utlityn satsfes wasts by cosierotsng visputs visto a fsvished forom he ng the
selvicvisng, dvicvisng asd froyvisng of potatoes visto frovies
o Time utlityn Satsfes wasts by prooividvisng ngoods asd seroivices asd a cosiesviest
tme he ng eiesvisng deelviieroy tmes oro 24 houro roestauroasts
o Place utlityn satsfes wasts by prooividvisng ngoods asd seroivices at a cosiesviest
pelace foro customeros he ng iesdvisng machvises: roefueel troed studests os campus
o Ownership utlityn satsfes wasts by smoothely troassferorovisng owseroshvip of ngoods
asd seroivices froom seelelero to buyero he ng caro deaeleros: fsascvisng optoss
 Satsfyvisng wasts that exceed expectatoss vis a job that seiero esds

11.1.1: scope of marketing
 ioro yearos, busvisesspeopele haie appelvied the proviscvipeles of maroketsng to ngoods & seroivices vis
aelel catengorovies
 Is the past decade, othero orongasvisatoss adopted maroketsng stroatengvies/tactcs to expasd
ngoaels
 Nos-prooft orongasvisatoss – vis proviiate asd pubelvic sectoros – pelay a svingsvifcast rooele vis ouro
ecosomy, empeloyvisng moroe peopele thas the federoael ngoierosmest asd aelel ngoierosmests
combvised
 These orongasvisatoss use maroketsng to achvieie ngoaels he ng coelelenges marokets vitseelf to
proospectie studests asd aelumsvi dosoros
 These orongasvisatoss pelay as essestael rooele vis the expassvios of maroketsng acrooss ouro
ecosomy New maroketsng stroatengvies:
o People marketnnn sporots poelvitcs asd arot domvisate thvis catengoroy hesterotaviseros
asd atheletes us maroketsng he ng Parovis Hvieltos, who buvields hero caroeero os proomotos,
visceludvisng perofumes asd fashvios vitems
o Place marketnnn droawvisng peopele to a parotcuelaro pelace Cvites asd states use thvis
to atroact busvisesses, oro tourovism he ng Vengas: “what happess vis Vengas… stays vis
Vengas”

, o Event marketnnn visceludes maroketsng oro spossorovisng atheletc, cuelturoael oro
charovitabele eiests Parotseroshvips betwees pubelvic/proviiate sectoros aroe viscroeasvisngely
commos he ng Oelympvics
o Idea marketnnn Pubelvic/proviiate orongasvisatoss maroket videas that aroe meast to
chasnge how peopele thvisk oro act he ng Dos’t drovisk asd droviie
 Cas be used vis combvisatos: e ng Waelk foro broeast cascero

11.1.2: Evolution of Marketing: product to consumer

Production era
 Maroketsng dvids’t aelways bengvis wvith the customero Cossumeros dvid sot haie oierowheelmvisng
sumbero of chovices that aroe aiavielabele sow Prooducts weroe purochased as soos as they weroe
prooduced/dvistrovibuted
 Top busvisess proviorovity was to prooduce elaronge quasttes as efcviestely as possvibele

Selling era
 Prooductos capacvity viscroeased vis ‶920 Suppely exceeded demasd, whvich caused the
emerongesce of harod seelel
 hespecviaelely whes the deproessvios asd WW2 made cossumeros eies moroe roeeluctast to parot
wvith theviro elvimvited mosey

Marketing era
 Is the ‶950s as eroa of roeelatie peace/proosperovity emeronged
 Maroketeros atempted to prooivide ngoods asd seroivices that met the customero seeds betero
thas asythvisng eelse os the maroket
 The marketnn concept vis a phvielosophy that makes customero satsfactos the cestroael
focus
 Compasvies that embroace thvis, stroviie to deelvinght customeros, vistengroatsng vit vis aelel activites

Relationship era
 Maroketsng coscept has ngatheroed momestum acrooss the ecosomy eleadvisng to the curoroest
eroa: zeroos vis os elosng-terom customero roeelatosshvips
 Acquvirovisng sew customeros costs a elot of tme asd mosey Satsfed customeros cas deieelop
adiocates foro youro busvisess, becomvisng powerofuel ngeseroatoros


11.2: Customers: front and centre

11.2.1: Customer relationship management (CRM)
 CRM vis the cestroepviece of successfuel maroketsng It vis the osngovisng proocess of acquvirovisng,
mavistavisvisng asd ngroowvisng prooftabele customero roeelatosshvips by deelviierovisng usmatched
iaelue
 It woroks best whes maroketeros combvise commusvicatos wvith ose-os-ose perososaelvisatos
 Isforomatos vis essestael: vit vis sot possvibele wvithout coelelectsng, masangvisng asd appelyvisng the
rovinght data at the rovinght tme foro the rovinght perosos

Limited relationships
 Scope of roeelatosshvip does sot depesd osely os data you ngathero, but os the visdustroy
 he ng compasvies cassot mavistavis a perososael bosd wvith eieroy chocoelate buyero