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What Is Marketing?
- Managing profitable customer relationships
- Marketing goal: attract new customers and
- grow current customers
What is the 5 Step Marketing Process?
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
What are needs?
states of felt deprivation. Can be physical (clothing, food, shelter), social (belonging, affection), individual (knowledge and self-expression)
What are wants?
needs that are shaped by culture and individual personality. Shaped by society and marketing programs
What are demands?
wants that are backed by buying power
What is the Market Offering?
product, service, information and experience
What is Marketing Myopia?
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
What's Customer Value?
comparison between what’s gotten and what’s given
What's Customer Satisfaction?
a comparison between what the customer expected to get and what they actual got (see class notes for satisfied, dissatisfied and delighted)
What's Marketing Management?
the art and science of choosing target markets and building profitable relationships with them
What's Market Segmentation?
dividing the market into segments of customers
What's Target Marketing?
choosing which segments to go after
What's Value Preposition?
set of benefits a company promises to deliver
What are the 5 alternative concepts organizations use to carry out their marketing strategies?
Societal Marketing Concept
What is Production Concept?
Focus on improving production and efficiency
What is Product Concept?
Focuses on the product and making continuous product improvements
What is Marketing Concept?
knowing the needs and wants of target market and delivering desired value and satisfaction better than the competition
What is Selling Concept?
Typically aims to sell what company makes rather than making what the market wants
What is Societal Marketing Concept?
Questions if marketing concept overlooks possible conflicts between customer short-run wants and long-term welfare
What is Customer Life-time Value?
the entire stream of purchases a customer makes from one company over a lifetime of patronage
What is share of customer?
The share a company gets of customer’s purchasing in their product categories
What is customer equity?
the total combined lifetime values of all the company’s current and potential customers
How can Companies classify customers according to their potential profitability and manage relationships accordingly?
- True friends: long term customers and highest profitability
- - Butterflies: short term customers yet high
- profit potential
- - Barnacles: long term customers yet low
- - Strangers: short term customers and very
- little profitability