Ch 1 Marketing

Marketing

the set of strategies and activities by which companies acquire and engage customers, build strong customer relationships, and create superior customer value in order to capture value from customers in return

The 3 goals of marketing

to attract new customers by promising superior value, engage and grow current customers by delivering the promised value, and help drive long-term company profitability by recapturing some of the delivered value from satisfied and loyal customers

Needs

states of felt deprivation

Wants

the form human needs take as they are shaped by culture and individual personality

Demands

Human wants that are backed by buying power

Market offerings

some combination of products, services, solutions, and experiences offered to a market to satisfy a need or a want

Marketing myopia

paying more attention to the specific products they offer than to the customer benefits and experiences they deliver

Exchange

the act of obtaining a desired object from a person or an organization by offering something in return

Market

the set of actual and potential buyers of a product or service

The five core customer and marketplace concepts

Needs, wants, and demands; market offerings; value and satisfaction; exchanges and relationships; and markets

To design a winning marketing strategy, marketing managers must answer two key questions

What customers will we serve (what’s our target market)? and How can we serve these customers best (what’s our value proposition)?

The production concept

holds that consumers will favor available and highly affordable products

The product concept

holds that consumers will favor products that offer the most in quality, performance, and innovative features

The selling concept

consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort

The marketing concept

achieving organizational goals depends on knowing the needs and wants of target markets, delivering the desired offerings, and creating more customer satisfaction than competitors

The societal marketing concept

questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare

Customer relationship management

the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Customer perceived value

the customer’s evaluation of the difference between the benefits delivered by and the costs of obtaining and using a market offering, relative to those of competing offerings

Customer satisfaction

depends on the product’s perceived performance relative to a buyer’s expectations. If the product’s performance falls short of expectations, the customer is dissatisfied

Customer engagement marketing

fostering direct and continuous customer involvement in shaping brand conversations, brand experiences, and brand community

Customer brand advocacy

satisfied customers initiate favorable interactions with others about a brand

Customer generated marketing

customers themselves help shape their own brand experiences and those of others

Partner relationship management (PRM)

working with others inside and outside the company to jointly engage and bring more value to their customers

Customer lifetime value

The value of the entire stream of purchases a customer makes over a lifetime of patronage

Share of customer

the share they get of the customer’s purchasing in their product categories

Customer equity

the total combined customer lifetime values of all of the company’s current and potential customers

High spenders, short term loyalty

Butterflies

Low spenders, short term loyalty

Strangers

Low spenders, long term loyalty

Barnacles

High spenders, long term loyalty

True friends

Online, mobile, and social media marketing

using digital marketing tools such as websites, social media, mobile ads and apps, online video, email, blogs, and other digital platforms to engage consumers anywhere, anytime via their computers, smartphones, tablets, internet-ready TVs, and other digital devices