BA 355 Chapter 1

creating customer relationships and value through marketing

Marketing

The art and science of

\-choosing target markets and

\-getting, keeping, and growing customers

\-through creating, delivering, and communicating : superior customer value

\-for customers, clients, partners, and society at large

Good Marketing: additional thoughts

1. delighting the customer
2. the customer is the focus
3. customer perceived value

Customer Perceived Value: Value

worth what it costs (think of a scale)

High value

more benefits than price

the essence of marketing

provide value superior to the competition

to create value:

improve benefits or reduce price


1. product improvements
2. new distribution channels
3. better communications


1. cut monetary and non-monetary costs and prices

value=

benefits/price

value formula: V=B/P

Best overall marketing example?

Think Beyond Advertising

Think Omnichannel

\-McMillions

What is Marketing?

1. you are a marketing expert already
2. involved in thousands of buying decisions
3. involved in some selling decisions
4. Good marketing is NOT easy
5. Every year, thousands of new products fail

Marketing seeks to:

1. discover needs and wants of customers


1. satisfy them

Exchange:

1. trade of things of value


1. both buyer and seller are better off

Diverse elements influence marketing actions: Focus

assessing and satisfying customer needs

Diverse elements influence marketing actions: other people, groups, and forces

also interact to shape its actions

Diverse elements influence marketing actions:

organizational goals

Diverse elements influence marketing actions: collaboration

marketing works closely with other departments to provide products and services

Marketing facilitates

relationships: internally and externally

Marketing Decisions are affected by:

\*environmental factors


1. social
2. economic
3. technological competitive
4. regulatory

3 departments

organization-stakeholders-environment

What is needed for marketing to occur?

1. two or more parties with unsatisfied needs
2. desire and ability to be satisfied
3. a way for the parties to communicate
4. something to exchange (ability to pay)

The challenge:

meeting consumer needs with new products


1. consumers may not know or cannot describe what they need or want
2. 38,000 new products are introduced each year
3. 40% of new products fail

\
The challenge:


1. “focus on the consumer benefit”


1. “learn from past mistakes”

Needs Vs Wants

Needs: basic necessities

Wants: shaped by knowledge, personality, culture

Ethics:

does marketing persuade people to buy the “wrong” things?

marketing concentrates efforts:

on certain needs of a specific group of potential consumers (target market)

marketing research:

discover, then satisfy consumer needs and wants through a marketing program

Target Market: The 4 P’s

controllable marketing mix factors:

\-PRODUCT: goods, services, or ideas

\-PRICE: what is exchanged for product

\-PROMOTION: all efforts communication between seller and buyer

\-PLACE: means of getting product to consumer

uncontrollable environmental forces

SCE-RT


1. Social
2. Competitive
3. Economic
4. Regulatory
5. Technological

Customer value

gain loyal customers by providing unique value


1. Best Price: target
2. Best Service: Nordstrom


1. Best Product: Starbucks

Evolution of marketing: 4 distinct stages:

1. PRODUCTION era-goods were scarce
2. SALES era-manufacturers produced more goods than buyers could consumer
3. MARKETING CONCEPT
4. CUSTOMER RELATIONSHIP

CRM

Customer relationship management

CX

Customer Experience

ethics

companies develop codes of ethics, policies, and guidelines

social responsibility

organizations are accountable to a larger society \`

Read Chapters 1-3

HW