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“Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others”
Keywords: -creating & exchanging value with others. -not only telling and selling but the sense of satisfying customer needs.
Marketing is about managing profitable customer relationships: Attracting new customers Retaining and growing current customers
-the customers still keep on buying/using your product/services.
Understanding the Marketplace
State of felt deprivation Not created by marketer-it is basic part of human life Example: Need food, cloth, safety
The form of needs as shaped by culture and the individual Example: Want a Big Mac
Wants which are backed by buying power Given their wants & resources, people demand product with benefits that add up to the most value and satisfaction
Combination of products, services, information or experiences that satisfy a need or want Keywords: Offer may include services, activities, people, places, information or ideas
Customers form expectations regarding value Marketers must deliver value to consumers
A satisfied customer will buy again and tell others about their good experience, dissatisfied customer will tell about she/he experiences to 11 person. dissatisfied, satisfied and delighted customer.
The act of obtaining a desired object from someone by offering something in return One exchange is not the goal, relationships with several exchanges are the goal Relationships are built through delivering value and satisfaction Keywords: relationships with exchanges are the goal and how you delivering value and satisfaction.
Set of actual and potential buyers of a product Marketers seek buyers that are profitable
Marketing management is the art and science of choosing target markets and building profitable relationships with them.
Keywords: • What customers will we serve?
-based on segmentation and target marketing
• How can we serve these customers best?
-how you want to differentiate or position your product in the marketplace.
Marketing Orientations Production concept
Consumer: will favor products that available and highly affordable. Management: focus on improving production/distribution efficiency. This concept will occur if product exceeds the supply: management should look for ways to increase production. If the product’s cost is to high and improved productivity is needed to bring it down.
Consumer: will favor products that offer the most quality, performance and innovative features. Marketing strategies: making continuous product improvements. Ex: shampoo, mousetraps, cameras
Consumer: will not buy enough of firm’s product unless undertakes large-scale selling or more promotion effort Practiced with unsought goods-insurance, blood donation-buyers do not normally think of buying/using, Marketing strategies:if faces overcapacity, aim to sell what they make rather than the market wants.
Company goal: on knowing the needs/wants of target markets and delivering the desired satisfaction better than competitor’s do.
The Societal-Marketing concept
See the conflicts between consumer short run wants and consumer long run welfare. Ex: McDonalds-the company should balance the 3 consideration in marketing strategies: company profit, consumer wants and society interests. Stress the honesty, integrity and putting the people (consumer first) before gain the profit
The Marketing Plan
Transforms the marketing strategy into action
The Marketing Mix
8P’s of marketing mix Set of controllable tactical marketing tools Marketing tools that the firm uses to pursue its marketing objectives in the target market
-goods and services (combination) the company offers to the target markets -product variation, quality, design, features, brand name
-the amount of money customers have to pay to obtain the product -list price, discount, allowances
-company activities that make the product available to target consumers -channels, locations, coverage
-activities that communicate the merits of the product and persuade target customers to buy it
-consumers must be educated in order for their expectations of the product/service to be managed and employees must be motivated and well trained in order to ensure that high standards of service are maintained
-as the success of the service is dependent on the total customer experience a well designed
-appearance of the delivery location and the elements provided to make the service more tangible can enhance the experience. Great atmosphere, constant reminders of the firm’s corporate identity help to build customer awareness and loyalty
Protection -patent (patent holder legal monopoly status), copyright, trademarkwork, symbol or device)
Building Customer Relationships
CRM – Customer Relationship Management: the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Keywords: It deals with all aspects of acquiring, keeping and growing customers.
Value and Satisfaction
Perceived Value The customer’s evaluation of the difference between benefits and costs. (You get what you pay) Customers often do not judge values and costs accurately or objectively. Customer Satisfaction Product’s perceived performance relative to customer’s expectations.
Capturing Value from Customers
Customer Loyalty and Retention
Customer delight leads to emotional relationships and loyalty Customer Lifetime Value (CLV) shows true worth of a customer Keywords: you will see your loss if the customer switch to your competitor. The loss is equivalent with the CLV. Therefore, try to retain your customer to capture positive CLV.
Share of Customer
Share of customer’s purchase in a product category. Achieved through offering greater variety, cross-sell and up-sell strategies Keywords:if you buy one product, you can earn bonus point, whereas you you can redeem the points to other products.
Therefore, the customer will buy the product to earn more bonus point. Or otherwise, beside selling books, you also can sell accessories, gifts, toys, etc. ex: Amazon.
The combined customer lifetime values of all current and potential customers. Measures a firm’s performance, but in a manner that looks to the future. Choosing the “best” customers is key Keywords:not just acquire the customer but keeping and growing them as well. Customer equity can be measure of a firm’s performance from current sales/market share. High customer that give profit, high customer equity.
Growth of the Internet Advances in telecommunications, information, transportation Customer research and tracking Product development Distribution New advertising tools-Internet, E-Commerce 24/7 marketing through the Internet
Geographical and cultural distances have shrunk-borderless Greater market coverage More options for purchasing and manufacturing Increased competition from foreign competitors-pros & cons for SME
Ethics and social responsibility
Marketers need to take great responsibility for the impact of their actions Keywords: seek profit by serving the best long run interest of their customers and communities
Many organizations are realizing the importance of strategic marketing. Example: Performing arts (museum, orchestras), Government agencies, Colleges,Hospitals, Churches
Profits through managing long-term customer equity Improve customer knowledge-for your latest product Target profitable customers Keep profitable customers Keywords: retain and maintain the customer relationship
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