MRKT CH1 Year 2 Term 1

Marketing

A process by which companies create value for customers and build strong customer relationships to capture value from customers in return. Perhaps the simplest definition of marketing is engaging customers and managing profitable customer relationships.

The main goal of marketing is

• Is to attract new customers by promising superior value & grow current customers by delivering satisfaction.

The Marketing Process

Creating and Capturing Customer Value.

Needs

are states of felt deprivation.
– Physical - food, clothing, warmth, safety
– Social-belongingandaffection
– Individual-knowledgeandself-expression

Wants

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

Demand

Wants backed by buying power.

Market Offering

Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

Market Myopia

Paying more attention to the specific products than to the benefits and experiences produced.

Customers form expectations about the value and satisfaction of market offerings.

– Satisfied customers buy again
– Dissatisfied customers switch to competitors

Exchange

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

Strong Relationships

Marketers aim at building __ to retain customers by consistently delivering superior value.

Market

The set of actual and potential buyers.

Marketing Management

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

• What customers will we serve (target market)?

• How can we best serve these customers (value

  proposition)?

Value Proposition

The set of benefits or values it promises to deliver to customers to satisfy their needs.

Segmentation

Dividing the market into segments of customers with common needs or characteristics.

Targeting

Choosing a segment that the company finds profitable and go after it.

Positioning

The process by which a company creates a distinctive image for its products or brand in consumers’ minds.

Production Concept

The idea that consumers will favor products that are available and highly affordable.

Product Concept

The idea that consumers will favor products that offer the most quality, performance, and features.

Selling Concept

The idea that consumers will not buy enough products unless it undertakes a large scale selling and promotion effort.

Marketing Concept

The idea that to succeed you have to understand consumers needs and deliver value better than competitors.

Social Marketing Concept

The idea that marketing decisions should fulfill the needs of the target audience in ways that improve, preserve, and enhance society’s well-being while meeting the business objectives.

Societal Concept

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

Marketing Mix

Comprised of a set of tools known a the four Ps:

• Product
• Price
• Promotion • Place

Integrated Marketing Program

A comprehensive plan that communicates and delivers intended value

Customer Relationship Management

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

Relationship Building Blocks

Customer Perceived Blocks & Customer Satisfaction.

Customer-Percieved Value

The difference between total customer perceived benefits and customer cost.

Customer Satisfaction

The extent to which perceived performance matches a buyer’s expectations.

Consumer-Generated Marketing

Brand exchanges created by consumers themselves. Consumers are playing an increasing role in shaping brand experiences.

Partner Relationship Management

Involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers.

Customer Lifetime Value

The total value of purchases that a customer would make over his lifetime with a company.

Share Of Customer

The portion of the customer’s purchasing that a company gets in its product categories.

Customer Equity

The total combined customer lifetime values of all of the company’s customers.

Butterflies

High profitability + Short-Term Loyalty

True Friends

High profitability + Long-Term Loyalty

Strangers

Low profitability + Short-Term Loyalty

Barnacles

Low profitability + Long-Term Loyalty

The Changing Marketing Landscape

• Digital Age

• Changing Economic Environment

• Growth of Not-for-Profit Marketing

• Rapid Globalization

• Sustainable Marketing

Social Media

Provides exciting opportunities to extend customer engagement and get people talking about a brand.

Mobile Marketing

Using mobile channels to stimulate immediate buying, make shopping easier, and enrich the brand experience.

Big Data & AI

Brands can use big data to gain deep customer insights, personalize marketing offers, and improve customer engagements and service.

Changing Economic Environment

Refers to the constant, complex shifts in underlying economic conditions like global growth rates, inflation, and interest rates, driven by factors such as globalization, technological advancements, climate change, and government policies.

Not-For-Profit Marketing

Is growing, and marketing can help organizations attract membership, funds, and support.

Rapid Globalization

Managers around the world are taking both local and global views of the company’s

– Industry
– Competitors

– Opportunities

Sustainable Marketing

Corporate ethics and social responsibility have become important for every business.