FDNMARK Value loop

Marketing

The social and managerial process of building profitable, value-laden exchange relationships (not just selling or advertising).

Five-Step Marketing Blueprint

1. Understand the marketplace and customer needs; 2. Design a customer-driven marketing strategy; 3. Construct an integrated marketing programme; 4. Build profitable relationships and customer delight; 5. Capture value from customers to create profits and customer equity.

Needs

Basic human states of felt deprivation (physical, social, individual).

Wants

Needs shaped by culture and individual personality.

Demands

Wants backed by economic buying power.

The Market

Actual and potential buyers.

Market Offerings

Products, services, or experiences that satisfy demands.

Marketing Myopia

The mistake of paying more attention to the specific physical product than to the underlying benefit it produces.

Market Segmentation

Dividing the total market into distinct groups of buyers with different needs or behaviours.

Target Marketing

Selecting specific segments of the market to profitably serve.

Value Proposition

The set of benefits or values a brand promises to deliver, answering the question: "Why should I buy your brand rather than a competitor's?"

Production Concept

A marketing management philosophy focusing on efficiency and affordability, running the risk of severe myopia.

Product Concept

A marketing management philosophy focusing on quality and features, running the risk of building a better mousetrap no one needs.

Selling Concept

An inside-out view focusing on pushing existing products through heavy promotion to hit sales volume (Factory to Market).

Marketing Concept

An outside-in view focusing on customer needs and yielding profits through satisfaction ("Sense and respond", Market to Factory).

Societal Marketing Concept

A philosophy focusing on balancing company profits, consumer want satisfaction, and long-term societal well-being (human welfare).

4 Ps (Marketing Mix)

The set of tactical marketing tools—Product, Price, Place, and Promotion—blended into an integrated marketing programme to deliver the value proposition.

Product (4 Ps)

The goods-and-services combination offered to the target market.

Price (4 Ps)

The amount of money customers must pay to obtain the product.

Place (4 Ps)

Company activities that make the offering available to target consumers.

Promotion (4 Ps)

Activities that communicate merits of the product and persuade target customers to buy it.

Customer-Perceived Value

The customer's subjective evaluation of benefits versus costs relative to competitors.

Customer Satisfaction

The match between product performance and buyer expectations.

Customer Equity

The combined discounted lifetime values of all the company's current and potential customers.

Share of Customer

Getting a larger portion of customer purchasing through cross-selling and excellent service.

Customer Loyalty & Retention

The creation of highly satisfied customers who remain loyal, being mathematically cheaper to keep than to acquire.

Sustainable Marketing

Delivering value in a socially and environmentally responsible way by balancing company profits, consumer want satisfaction, and societal human welfare.

The Golden Rule of Marketing

Find the right products for your customers, not the right customers for your product.