Marketing & sales
Chapter 1
Learning objectives:
- Define marketing and outline the steps in the marketing process.
- Explain the importance of understanding the marketplace and customers and
identify the five core marketplace concepts.
- Identify the key elements of a customer-driven marketing strategy and
discuss the marketing management orientations that guide marketing
strategy.
- Discuss customer relationship management and identify strategies for
creating value for customers and capturing value from customers in return.
- Describe the major trends and forces that are changing the marketing
landscape in this age of relationships.
The two-fold goal of marketing is to attract new customers by promising superior
value and to keep and grow current customers by delivering satisfaction. Marketing
is defined as the process by which companies create value for customers and build
strong customer relationships in order to capture value from customers in return.
The marketing process:
1. Understand the marketplace and customer needs and wants
2. Design a customer-driven marketing strategy
3. Construct an integrated marketing programme that delivers superior value
4. Build profitable relationships and create customer delight
5. Capture value from customers to create profits and customer equity.
In the first four steps, companies work to understand consumers, create customer
value and build customer relationships. In the final step, companies reap the rewards
of creating superior value.
Understand the marketplace and the customer needs
Needs wants and demands
The most basic concept underlying marketing is that of human needs. Needs are
states of felt deprivation. They include physical needs, social needs and individual
needs. Wants are human needs that are formed by culture and individual
,personality. Backed by buying power wants become demands. It is very important
for a company to know their customer’s needs, wants and demands.
Market offerings (products, services and experiences)
Customers’ needs and wants are fulfilled through market offerings, combination of
products, services, information or experiences offered to a market to satisfy a need
or want. Marketing myopia is the mistake of paying more attention to the specific
products a company offers than to the benefits and experiences produces by these
products.
Value and satisfaction
Customers form expectations about the value and satisfaction that various market
offerings will deliver and buy accordingly.
Exchanges and relationships
Exchange is the act of obtaining a desired object from someone by offering
something in return. Marketing consists of actions taken to create, maintain and grow
desirable exchange relationships with target audiences involving a product, service,
idea or other object.
Markets
A market is the set of actual potential buyers of a product or service.
Designing a customer value-driven marketing strategy
Marketing management is the art and science of choosing markets and building
profitable relationships with them.
Selecting customers to serve
First, the company must design whom it will serve. It does this by dividing the market
into segments and selecting which segments it will go after. Marketing managers
must decide which customers they want to target and, on the level, timing and nature
of their demand. Marketing management is customer management and demand
management.
Choosing a value proposition
The company must decide how it will serve targeted customers, how it will
differentiate and position itself in the marketplace. A brand’s value proposition is the
set of benefits or values it promises to deliver to consumers to satisfy their needs.
Marketing management orientations
- 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. However, this could lead to
marketing myopia.
- 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 product improvements. Could also
lead to marketing myopia
- The selling concept: the idea that consumers will not buy enough of the
firm’s products unless the firm undertakes a large-scale selling an promotion
, effort. Typically practiced with unsought goods. High aggressive selling has
risks.
- The marketing concept: a philosophy in which achieving organizational
goals depend on knowing the needs and wants of target markets and
delivering the desired satisfactions better than competitors do. customer focus
and value are the paths to sales and profits.
- The societal marketing concept: the idea that a company’s marketing
decisions should consider consumers’ wants, the company requirements,
consumer’s long-run interests, and society’s long-run interests.
Construct an integrated marketing programme that delivers superior value
The marketing programme builds customer relationships by transforming the
marketing strategy into action. It consists of the firm’s marketing mix (4P’s). To
deliver the value proposition, the firm must create a need-satisfying market offering
(product). Then it must decide how much it will charge for the offering (price) and
how it will make the offering available to target customers (place). Finally, it must
engage target customers, communicate about the offering, and persuade the
consumers of the offer’s merits (promotion).
Building customer relationships
Customer relationship management is the overall process of building and
maintaining profitable customer relationships by delivering superior customer value
and satisfaction.
Customer value
A customer buys from the firm that offers the highest customer-perceived value:
the customer’s evaluation of the difference between al the benefits and all the costs
of a market offering relative to those of competing offers. Value can mean different
things to different customers.
Customer satisfaction
Customer satisfaction is the extent to which a product’s perceived performance
matches a buyer’s expectation. Higher level of customer satisfaction lead to greater
customer loyalty.
Customer engagement and today’s digital and social media
The old marketing involved marketing brands to consumers. The new marketing is
customer-engagement marketing- making the brand a meaningful part of
consumer’s and lives by fostering direct and continuous customer involvement in
shaping brand conversations, experiences and community. Marketers are now
embracing not only customer relationship management, but also customer-managed
relationships, in which customers connect with companies and with each other to
help forge their own brand experiences.
Greater consumer empowerment means that companies can no longer rely in
marketing by intrusion. Instead, they must practice marketing by attraction- creating
market offerings and messages that engage consumers rather than interrupt them.
Successful engagement marketing means making relevant and genuine
contributions to consumer’s lives and conversation.
Chapter 1
Learning objectives:
- Define marketing and outline the steps in the marketing process.
- Explain the importance of understanding the marketplace and customers and
identify the five core marketplace concepts.
- Identify the key elements of a customer-driven marketing strategy and
discuss the marketing management orientations that guide marketing
strategy.
- Discuss customer relationship management and identify strategies for
creating value for customers and capturing value from customers in return.
- Describe the major trends and forces that are changing the marketing
landscape in this age of relationships.
The two-fold goal of marketing is to attract new customers by promising superior
value and to keep and grow current customers by delivering satisfaction. Marketing
is defined as the process by which companies create value for customers and build
strong customer relationships in order to capture value from customers in return.
The marketing process:
1. Understand the marketplace and customer needs and wants
2. Design a customer-driven marketing strategy
3. Construct an integrated marketing programme that delivers superior value
4. Build profitable relationships and create customer delight
5. Capture value from customers to create profits and customer equity.
In the first four steps, companies work to understand consumers, create customer
value and build customer relationships. In the final step, companies reap the rewards
of creating superior value.
Understand the marketplace and the customer needs
Needs wants and demands
The most basic concept underlying marketing is that of human needs. Needs are
states of felt deprivation. They include physical needs, social needs and individual
needs. Wants are human needs that are formed by culture and individual
,personality. Backed by buying power wants become demands. It is very important
for a company to know their customer’s needs, wants and demands.
Market offerings (products, services and experiences)
Customers’ needs and wants are fulfilled through market offerings, combination of
products, services, information or experiences offered to a market to satisfy a need
or want. Marketing myopia is the mistake of paying more attention to the specific
products a company offers than to the benefits and experiences produces by these
products.
Value and satisfaction
Customers form expectations about the value and satisfaction that various market
offerings will deliver and buy accordingly.
Exchanges and relationships
Exchange is the act of obtaining a desired object from someone by offering
something in return. Marketing consists of actions taken to create, maintain and grow
desirable exchange relationships with target audiences involving a product, service,
idea or other object.
Markets
A market is the set of actual potential buyers of a product or service.
Designing a customer value-driven marketing strategy
Marketing management is the art and science of choosing markets and building
profitable relationships with them.
Selecting customers to serve
First, the company must design whom it will serve. It does this by dividing the market
into segments and selecting which segments it will go after. Marketing managers
must decide which customers they want to target and, on the level, timing and nature
of their demand. Marketing management is customer management and demand
management.
Choosing a value proposition
The company must decide how it will serve targeted customers, how it will
differentiate and position itself in the marketplace. A brand’s value proposition is the
set of benefits or values it promises to deliver to consumers to satisfy their needs.
Marketing management orientations
- 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. However, this could lead to
marketing myopia.
- 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 product improvements. Could also
lead to marketing myopia
- The selling concept: the idea that consumers will not buy enough of the
firm’s products unless the firm undertakes a large-scale selling an promotion
, effort. Typically practiced with unsought goods. High aggressive selling has
risks.
- The marketing concept: a philosophy in which achieving organizational
goals depend on knowing the needs and wants of target markets and
delivering the desired satisfactions better than competitors do. customer focus
and value are the paths to sales and profits.
- The societal marketing concept: the idea that a company’s marketing
decisions should consider consumers’ wants, the company requirements,
consumer’s long-run interests, and society’s long-run interests.
Construct an integrated marketing programme that delivers superior value
The marketing programme builds customer relationships by transforming the
marketing strategy into action. It consists of the firm’s marketing mix (4P’s). To
deliver the value proposition, the firm must create a need-satisfying market offering
(product). Then it must decide how much it will charge for the offering (price) and
how it will make the offering available to target customers (place). Finally, it must
engage target customers, communicate about the offering, and persuade the
consumers of the offer’s merits (promotion).
Building customer relationships
Customer relationship management is the overall process of building and
maintaining profitable customer relationships by delivering superior customer value
and satisfaction.
Customer value
A customer buys from the firm that offers the highest customer-perceived value:
the customer’s evaluation of the difference between al the benefits and all the costs
of a market offering relative to those of competing offers. Value can mean different
things to different customers.
Customer satisfaction
Customer satisfaction is the extent to which a product’s perceived performance
matches a buyer’s expectation. Higher level of customer satisfaction lead to greater
customer loyalty.
Customer engagement and today’s digital and social media
The old marketing involved marketing brands to consumers. The new marketing is
customer-engagement marketing- making the brand a meaningful part of
consumer’s and lives by fostering direct and continuous customer involvement in
shaping brand conversations, experiences and community. Marketers are now
embracing not only customer relationship management, but also customer-managed
relationships, in which customers connect with companies and with each other to
help forge their own brand experiences.
Greater consumer empowerment means that companies can no longer rely in
marketing by intrusion. Instead, they must practice marketing by attraction- creating
market offerings and messages that engage consumers rather than interrupt them.
Successful engagement marketing means making relevant and genuine
contributions to consumer’s lives and conversation.
