topic 1: Nature of Marketing

What is Marketing?

Marketing is an individual and organisational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas.

What is examples of the important of customer retention?

• Creates Brand Reputation

• Saves time

• Reduction in cost

• Build brand loyalty

Define the marketing philosophy and explain its core principles. How does adopting this philosophy influence a company’s approach to customer relationships

Marketing concept: the achievement of corporate goals through meeting and exceeding customer needs better than the competition.

Customer orientation: corporate activities are focused upon providing customer satisfaction

Integrated effort: all staff accept the responsibility for creating customer satisfaction

Goal achievement: the belief that corporate goals can be achieved through customer satisfaction

How is customer value defined within marketing? Identify and describe four types of value and illustrate your answer with examples

Customer value is the difference between the perceived benefits and the perceived sacrifices associated with a product or service.

Price value: customers perceive a product as being cheaper than those offered by competitors, e.g. Ryanair flight tickets and cheaper than competitors like air lingus

Performance value: Customers look for the latest features, functionality, convenience and quality, e.g. Dyson has better performance product that are sold for high price

Relational value: the quality of service received by a customer engenders a high level of trust which leads to a strong and reciprocal relationship with customers, e.g. online support offering assistance to people who need help with products

Emotional value: sometimes the only differences that exist between brands is based on customer perceptions, e.g. coco-cola. This is a badge value because emotional is hard to break even if we hear something negative.

What are the perceived benefits and perceived sacrifices in customer value?

Perceived benefits:

• Product benefits

• Service benefits

• Image benefits

Perceived Sacrifices:

• Monetary costs

• Time costs

• Energy costs

• Psychological costs