Chapter 1

Needs

States of felt deprivation

Wants

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

Demands

human wants that are backed by buying power

Marketing offerings

some combinations of products/services, information or experiences offered to a market to satisfy a need or want

Marketing myopia

focuses only on existing wants and losing sight of underlying customer needs.

Marketing actions

try to create, maintain, and grow desirable exchange relationships.

Exchange

The act of obtaining a desired object from someone by offering something in return

Market

set of actual and potential buyers

Buyers

people in the market that 1. search for products 2. interact with companies to obtain info 3 make purchases

Marketing management

the art and science of choosing target markets and building profitable relationships with them.

Marketing (American Marketing Association)

The activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customer, clients, partners and society at large

Integrated Marketing Process

A comprehensive plan that communicates and delivers intended value

Peter Drucker

aim of Marketing is to make selling unnecessary

Customer relationship management

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

Customer perceived value

Difference between total customer perceived benefits and customer cost

Customer satisfaction

extent to which perceived performance matches a buyer's expectation

Customer-engagement Marketing

Fosters direct continuous involvement in shaping brand conversations, experiences and community

Consumer Generated Marketing

Brand exchanges created by customers themselves and customers are playing an increasing role in shaping brand experiences

Share of customer

portion of customers purchasing that a company get in its products categories

Customer equity

the total combined customer lifetime values of all of the company's customers

Designing a customer-value-driven marketing strategy

1. Production Concept

2. Product Concept

3. Selling concept

4. Marketing concept

5. Societal marketing concept

Societal marketing

The company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and societies long-run interests

Integrated marketing programme

a comprehensive plan that communicates and delivers intended value

Customer perceived value

the difference between total customer perceived benefits and customer cost

Customer satisfaction

The extent to which perceived performance matches a buyers expectation

The production concept

customers buy what is available/affordable, focus on production/ distribution - can lead to market mytopia

product concept

quality, performance and neat features, focus on innovation/development, differentiates you from competitions

selling concept

large-scale selling and promotion efforts, inside-out approach- effective at getting people to do things

marketing concept

knowing customers better, delivering satisfaction focus on customer values, very profit orientated