Principles of Marketing Chapter 1

Marketing -Is the process of building profitable guest relationships by creating value for customers and capturing value in return -Satisfying customer needfully 2 GOALS OF selling To attr work out new customers by promising higher-ranking value To keep and grow certain customers by delivering satisfaction merchandise PROCESS 1. Understanding the Marketplace and node Needs 1. 1. Needs, Wants, and Demands 1. 1. 1. NEEDS states of tangle deprivation. 1. 1. 2. WANTS the form human ineluctably take as shaped by culture and individual personality. 1. 1. 3. DEMANDS human wants that are backed by get power. 1. 2.Marketing Offerings (Products, services, and experiences) some combination of proceedss, services, information, or experiences offered to a market to satisfy a need or want. Marketing Myopia the mistake of paying much attention to the specific products a participation offers than to the benefits and experiences produced by these products. 1. 3. Customer pass judg ment Satisfaction are key building blocks for developing and managing customer relationships. 1. 4. Exchanges and consanguinitys the act of obtaining a desired object from someone by offering in return. 1. 5. Markets set of tot every last(predicate)y actual and potential buyers of a product or service. . Designing a Customer-Driven Marketing Strategy Marketing focal point the guile and science of choosing target markets and building profitable relationships with them. 2. 1. What customers will we serve? (Whats our target market? ) 2. 1. 1. MARKET SEGMENTATION dividing the market into segments of customers 2. 1. 2. TARGET marketing selecting which segments it will go after. 2. 2. How can we serve these customers better? (Whats our value proposition? ) is the companionships set of benefits or values it promises to deliver to consumers to satisfy their inescapably. 2. 2. 1. merchandising MANAGEMENT ORIENTATIONS 2. 2. 1. . THE PRODUCTION notion the idea that consumers will favour products that are available and highly affordable and that the organization should therefore focus on improving production and diffusion efficiency. 2. 2. 1. 2. THE PRODUCT CONCEPT the idea that consumers will favour products that offer the approximately quality, consummation, and features and that the organization should therefore devote its energy to making continuous product improvements. 2. 2. 1. 3. THE SELLING CONCEPT the idea that consumers will not buy abounding of the firms product unless it undertakes a large-scale selling and promotion effort. . 2. 1. 4. THE MARKETING CONCEPT the marketing management philosophy that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. 2. 2. 1. 5. THE SOCIETAL MARKETING CONCEPT a principle of enlightened marketing that holds that a fraternity should make good marketing decisions by considering the consumers wants, t he companys requirements, consumers long-term interests, and the societys long-run interests. 3.Preparing an Integrated Marketing Plan and broadcast consists of the firms marketing mix, the set of marketing tools the firm uses to put through its marketing strategy. Marketing Mix (4Ps) a)Product b)Price c)Place d)Promotion 4. build Customer Relationships most essential step in marketing process 4. 1. Customer Relationship Management the overall process of building and maintaining customer relationships by delivering superior customer value and satisfaction 4. 2. Relationships Building Blocks Customer Value and Satisfaction 4. 2. 1. guest perceive VALUE the customers evaluation of the difference surrounded by all the benefits and all the costs of a market offering relative to those of competing offers. 4. 2. 2. CUSTOMER SATISFACTION the extent to which a products perceived performance matches a buyers expectations. 4. 3. Customer Relationship Levels and Tools 4. 3. 1. FREQU ENCY MARKETING PROGRAMS reward customers who buy frequently or in large amounts. 4. 3. 2. guild MARKETING PROGRAMS offers members special benefits and create member communities. 4. 4. The Changing Nature of Customer Relationships 4. 4. 1. RELATING WITH MORE CAREFULLY SELECTED CUSTOMERS True Mass Marketing selling in a standard way to any customer who cares along. Selective Relationship Management targeting fewer, more profitable customers 4. 4. 2. RELATING FOR THE LONG TERM serving chosen customers in a deeper, more lasting way to retain current customers and build long term relationships with them. 4. 4. 3. RELATING DIRECTLY serving customers without going to a store by telephone, mail order, catalogues, kiosks, and online. 4. 5. Partner Relationship Management functional close in other company or departments and outside the company to jointly bring greater value to customers. . 5. 1. PARTNERS INSIDE THE COMPANY linking all departments of a firm in the cause of creating customer value. 4. 5. 2. MARKETING PARTNERS OUTSIDDE THE debauched Supply Chain describes a longer channel, stretching from raw materials to components to net products that are carried to final buyers. Strategic Alliances strategic partners if they hope to be sound 5. Capturing Value from Customers 5. 1. Creating Customer Loyalty and Retention the value of the entire germinate purchases that a customer would make over a lifetime of patronage. 5. 2.Growing treat Customer the portion of the customers purchasing that a company gets in its product categories. 5. 3. Building Customer Equity the total feature customer lifetime values of all the companys customers. 5. 4. Building the Right Relationships with the Right Customers CLASSIFICATIONS OF CUSTOMERS Strangers Little fit between companys offerings and customers needs lowest profit potential Butterflies well behaved fit between companys offerings and customers needs high profit potential True Friends Good fit between co mpanys offerings and customers needs highest profit potential. Barnacles contain fit between companys offerings and customers needs low profit potential THE NEW MARKETING LANDSCAPE 1. late Digital Age marketers must harness marketing technology 2. fast Globalization take advantage of global opportunities 3. The Call for more morals and Social Responsibility marketers must ensure that they set in an ethical and socially responsible way. THE GROWTH FOR NOT-FOR-PROFIT MARKETING (Examples) Colleges Hospitals Museums Zoos Symphony Orchestra Churches