Building customer relationships through effective marketing

what is marketing?

The process of creating distributing promoting and pricing services and ideas of facilitate satisfying exchange relationship, relationships with customers, and to develop and maintain favorable relationship with stakeholders and dynamic environment

What is customer value?

total benefits minus the cost

what are the three customer value strategies?

Best price, best product, best service

what is a market?

everyone with the desire and ability to purchase your offering

Who are customers?

purchasers of organizations product offering

what is a target market?

specific group of consumers on whom the organization focuses marketing efforts

what is the essence of marketing?

figure out the customers needs and once and fill them

what are the four p's of marketing?

Product, price, promotion, place

what are the four forms of utility?

form, place, time, possession

What is form utility?

The production/customization of a good or service

what is place utility?

having the product offering available where the customer wants/ needs it

what is time utility?

having the product offering available when the customer needs/wants it

what is possession utility?

making an item easy to purchase

what is marketing strategy?

an organization's long-term course of marketing actions designed to deliver a unique customer experience while accomplishing objectives

Why have a strategy?

Limited resources/can't be everything to everybody

what is a low-cost leader?

marketing strategy that is broad, but with low cost

Example - Walmart

what is a niche?

A narrow market scope

Example - Claire's, Whole Foods

what is differentiation?

it is different but broad

what are the five steps of the customer purchased decision process in order?

problem recognition, information search, alternative evaluation, purchase decision, post purchased behavior

what is problem recognition?

identifying situation of where you don't want to be

what is information search?

an internal or external search of information to make a decision

what is an internal search?

Scan a memory for previous experience with brand/product

what is an external search?

is needed when pass experience or knowledge is insufficient, and the risk of the wrong purchase decision is high

what is alternative evaluation?

it's all about assessing value (evaluation criteria/consideration set)

What is evaluation criteria?

A benchmark upon which other alternatives are compared

Example- truck needs to be under $60,000 and have a diesel engine

what is a consideration set?

A group of brands within a product category that a buyer reviews of alternatives for possible purchase

Example- Ford, Chevrolet, not ram

what is a purchase decision?

making the purchase, choosing a brand, picking the seller, deciding when to buy

what is post purchased behavior?

perceptions and expectations, customer, satisfaction, studies, cognitive dissonance

what is perceptions and expectations equal?

satisfaction

what do customer satisfaction studies prove?

dissatisfied people talk more than satisfied people, customer satisfaction leads to the customer retention

what is cognitive dissonance?

post purchase psychological tension or anxiety

what is high decision involvement?

it's expensive, has serious personal consequences, reflects on social image

what is low decision involvement?

it's inexpensive/has a limited consequences

what is market segmentation?

putting buyers into groups that have common needs/once and will respond similarly to market action

Example - 1950s tide to modern day tide

what are the four ways to segment consumer markets?

demographic segmentation- mini van for moms

geographic segmentation- cracker barrel

psychographic segmentation - interest opinion, opinions

Behavioral segmentation - behavior/limitations

why do companies expand with market segmentation?

because if they don't a competitor will