H1
What is marketing
Marketing
The process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return.
Marketing process
1. Understand the marketplace and customer needs and wants.
2. Design a customer-driven marketing strategy.
3. Construct an integrated marketing program that delivers superior value.
4. Build profitable relationships and create customer delight.
5. Capture value from customers to create profits and customer equity.
Understanding the marketplace and customer needs
Needs
States of felt deprivation.
*Physical needs+ Social needs+ Individual needs. Basic part of the human makeup.
Wants
The form human needs take as they are shaped by culture and individual personality.
*An American needs food but wants a Big Mac.
Demands
Human wants that are backed by buying power.
Market offerings
Some combination of products, services, information, or experiences to a market to satisfy a
need or want.
Marketing myopia
The mistake of paying more attention to the specific products a company offers than to the
benefits and experiences produced by these products.
*The sellers focus only on existing wants and lose sight of underlying customer needs. They
forget that a product is only a tool to solve a consumer problem. The customer need will stay
the same but the wants can change.
Marketers must be careful to set the right level of expectations
*Too low, they satisfy those who buy but fail to attract enough buyers.
*Too high, buyers will be disappointed.
Customer value and customer satisfaction are the key for building and developing a good
customer relationship.
Exchange
The act of obtaining a desired object from someone by offering something in return.
Market
The set of all actual and potential buyers of a product or service
,Designing a customer- driven marketing strategy
Once it fully understands consumers and the marketplace, marketing management can design
a customer-driven marketing strategy.
Marketing management
The art and science of choosing target markets and building profitable relationships with
them.
A winning marketing strategy must answer two important questions:
What customers will we serve? (what’s our target)
*The company wants to select only customers that it can serve well and profitably.
How can we serve these customers best? (what’s our value proposition)
A brand’s value proposition is the set of benefits or values it promises to deliver to
consumers to satisfy their needs.
Companies must design strong value propositions that give them the greatest advantage in
their target markets.
There are five different concepts under which organizations design and carry out their
marketing strategies:
The production concept.
*The idea that consumers will favor products that are available and highly affordable;
therefore, the organization should focus on improving production and distribution
efficiency.
The product concept.
*The idea that consumers will favor products that offer the most quality, performance
and features; therefore, the organization should devote its energy to making
continuous products improvements.
The selling concept.
*The idea that consumers will not buy enough of the firm’s products unless the firm
undertakes a large-scale selling and promotion effort.
The marketing concept.
*A philosophy in which achieving organizational goals depends on knowing the needs
and want of target markets and delivering the desired satisfactions better than
competitors do.
The societal marketing concept.
*The idea that a company’s marketing decisions should consider consumers’ wants,
the company’s requirements, consumers’ long-run interests, and society’s long-run
interests.
, Preparing an integrated marketing plan and program
The marketing program consist of the firm’s marketing mix.
Marketing mix
The set of marketing tools the firm uses to implement its marketing strategy.
The major marketing mix tools are classified into four broad groups (the 4p’s):
Product
Price
Place
Promotion
The firm must blend each marketing mix tool into a comprehensive integrated marketing
program that communicates and delvers the intended value to chosen customers.
Marketing mix
The set of tactical marketing tools – product, price, place, and promotion – that the firm
blends to produce the response it wants in the target market.
Building customer relationships
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 all the benefits and all the costs of a
marketing offer relative to those of competing offers.
Customer satisfaction
The extent to which a product’s perceived performance matches a buyer’s expectations.
Customer-managed relationships
Marketing relationships in which customers, empowered by today’s new digital technologies,
interact with companies and with each other to shape their relationships with brands.
Consumer-generated marketing
Brand exchanges created by consumers themselves –both invited and uninvited- by which
consumers are playing an increasing role in shaping their own brand experiences and those of
other consumers.
Partner relationship management
Working closely with partners in other company departments and outside the company to
jointly bring greater value to customers.
What is marketing
Marketing
The process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return.
Marketing process
1. Understand the marketplace and customer needs and wants.
2. Design a customer-driven marketing strategy.
3. Construct an integrated marketing program that delivers superior value.
4. Build profitable relationships and create customer delight.
5. Capture value from customers to create profits and customer equity.
Understanding the marketplace and customer needs
Needs
States of felt deprivation.
*Physical needs+ Social needs+ Individual needs. Basic part of the human makeup.
Wants
The form human needs take as they are shaped by culture and individual personality.
*An American needs food but wants a Big Mac.
Demands
Human wants that are backed by buying power.
Market offerings
Some combination of products, services, information, or experiences to a market to satisfy a
need or want.
Marketing myopia
The mistake of paying more attention to the specific products a company offers than to the
benefits and experiences produced by these products.
*The sellers focus only on existing wants and lose sight of underlying customer needs. They
forget that a product is only a tool to solve a consumer problem. The customer need will stay
the same but the wants can change.
Marketers must be careful to set the right level of expectations
*Too low, they satisfy those who buy but fail to attract enough buyers.
*Too high, buyers will be disappointed.
Customer value and customer satisfaction are the key for building and developing a good
customer relationship.
Exchange
The act of obtaining a desired object from someone by offering something in return.
Market
The set of all actual and potential buyers of a product or service
,Designing a customer- driven marketing strategy
Once it fully understands consumers and the marketplace, marketing management can design
a customer-driven marketing strategy.
Marketing management
The art and science of choosing target markets and building profitable relationships with
them.
A winning marketing strategy must answer two important questions:
What customers will we serve? (what’s our target)
*The company wants to select only customers that it can serve well and profitably.
How can we serve these customers best? (what’s our value proposition)
A brand’s value proposition is the set of benefits or values it promises to deliver to
consumers to satisfy their needs.
Companies must design strong value propositions that give them the greatest advantage in
their target markets.
There are five different concepts under which organizations design and carry out their
marketing strategies:
The production concept.
*The idea that consumers will favor products that are available and highly affordable;
therefore, the organization should focus on improving production and distribution
efficiency.
The product concept.
*The idea that consumers will favor products that offer the most quality, performance
and features; therefore, the organization should devote its energy to making
continuous products improvements.
The selling concept.
*The idea that consumers will not buy enough of the firm’s products unless the firm
undertakes a large-scale selling and promotion effort.
The marketing concept.
*A philosophy in which achieving organizational goals depends on knowing the needs
and want of target markets and delivering the desired satisfactions better than
competitors do.
The societal marketing concept.
*The idea that a company’s marketing decisions should consider consumers’ wants,
the company’s requirements, consumers’ long-run interests, and society’s long-run
interests.
, Preparing an integrated marketing plan and program
The marketing program consist of the firm’s marketing mix.
Marketing mix
The set of marketing tools the firm uses to implement its marketing strategy.
The major marketing mix tools are classified into four broad groups (the 4p’s):
Product
Price
Place
Promotion
The firm must blend each marketing mix tool into a comprehensive integrated marketing
program that communicates and delvers the intended value to chosen customers.
Marketing mix
The set of tactical marketing tools – product, price, place, and promotion – that the firm
blends to produce the response it wants in the target market.
Building customer relationships
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 all the benefits and all the costs of a
marketing offer relative to those of competing offers.
Customer satisfaction
The extent to which a product’s perceived performance matches a buyer’s expectations.
Customer-managed relationships
Marketing relationships in which customers, empowered by today’s new digital technologies,
interact with companies and with each other to shape their relationships with brands.
Consumer-generated marketing
Brand exchanges created by consumers themselves –both invited and uninvited- by which
consumers are playing an increasing role in shaping their own brand experiences and those of
other consumers.
Partner relationship management
Working closely with partners in other company departments and outside the company to
jointly bring greater value to customers.
