Comm 223 - Chapter 1

• Managing profitable customer relationships
•       
• Marketing goal: attract new customers and
• grow current customers

1.Understand the marketplace and customer needs and wants

2.Design a customer-driven marketing strategy

3.Construct a 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

states of felt deprivation. Can be physical (clothing, food, shelter), social (belonging, affection), individual (knowledge and self-expression)

needs that are shaped by culture and individual personality. Shaped by society and marketing programs

wants that are backed by buying power

product, service, information and experience

when sellers make the mistake of paying too much attention to the specific product and not enough to the benefits and experiences produced by these products

comparison between what’s gotten and what’s given

a comparison between what the customer expected to get and what they actual got (see class notes for satisfied, dissatisfied and delighted)

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

dividing the market into segments of customers

choosing which segments to go after

set of benefits a company promises to deliver

Production concept

Product concept

Marketing concept

Selling concept

Societal Marketing Concept

Focus on improving production and efficiency

Focuses on the product and making continuous product improvements

knowing the needs and wants of target market and delivering desired value and satisfaction better than the competition

Typically aims to sell what company makes rather than making what the market wants

Questions if marketing concept overlooks possible conflicts between customer short-run wants and long-term welfare

the entire stream of purchases a customer makes from one company over a lifetime of patronage

The share a company gets of customer’s purchasing in their product categories

the total combined lifetime values of all the company’s current and potential customers

- True friends: long term customers and highest profitability

• - Butterflies: short term customers yet high
• profit potential

• - Barnacles: long term customers yet low
• profitability

• - Strangers: short term customers and very
• little profitability