Principles of Marketing Essay

Learning ObjectivesAfter studying this chapter, you should be able to 1. Define marketing and outline the steps in the marketing process 2. Explain the importance of understanding customers and the marketplace, and identify the five core marketplace ideals 3. Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy 4. Discuss customer affinity management, and identify strategies for creating appraise for customers and capturing value from customers in return 5. Describe the major trends and forces that are changing the marketing landscape in this age of relationships1-2Chapter Concepts1. 2. 3. 4. 5. 6. 7. 8.What Is market? Understanding the grocery storeplace and guest Needs figure a node-Driven selling Strategy Preparing an Integrated market Plan and broadcast retraceing Customer familys Capturing rank from Customers The mod Marketing adorn So, What Is Marketing? pulling It All Together1-3What Is Marketing?Marketing Defined Marketing is the process by which companies create value for customers and build strong customer relationships to capture value from customers in return1-4What Is Marketing?The Marketing Process1. 2. 3. 4. 5.Understand the marketplace and customer wants and needs Design a customer-driven marketing strategy Construct a marketing plan that delivers superior value hold profitable relationships and create customer satisfaction Capture value from customers to create profit and customer rectitude 1-5Marketing processDetermine needs and wants Design customer driven marketing strategy Construct marketing program that delivers superior value Build relationships and delight the customer Capture value from customer to achieve profitsFigure 1.1 Core Marketing ConceptsNeeds, Wants & DemandsMarketsCore Marketing ConceptsMarketing OffersExchange & Relationships shelter & SatisfactionUnderstanding the Marketplace and Customer NeedsCustomer Needs, Wa nts, and DemandsNeeds are states of deprivation Physicalfood, clothing, warmth, safety Socialbelonging and affection mortalknowledge and selfexpression1-6Understanding the Marketplace and Customer NeedsCustomer Needs, Wants, and Demands Wants are the form that needs take as they are shaped by acculturation and individual personality Demands are wants backed by buying power1-7Understanding the Marketplace and Customer NeedsMarket OfferingsProducts, Services, and Experiences Market offerings are or so combination of reapings, services, information, or experiences offered to a market to satisfy a need or want1-8Understanding the Marketplace and Customer NeedsMarket OfferingsProducts, Services, and Experiences Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs Exchange is the act of obtaining a desired prey from someone by offering something in return 1-9Understanding the Marketplace and Customer NeedsCustomer Value and Satisfaction Expectations CustomersValue and satisfaction Set the right direct of expectationsMarketersNot too high or too low1-10Understanding the Marketplace and Customer NeedsExchanges and Relationships Exchange is the act of obtaining a desired object from someone by offering something in return Relationships consist of actions to build and maintain desirable relationships 1-11Understanding the Marketplace and Customer NeedsMarkets are the roach of actual and potential buyers of a product Marketing system consists of all of the actors (suppliers, company, competitors, intermediaries, and end users) in the system who are affected by major environmental forces Demographic Economic Physical Technological Politicallegal Socio-cultural 1-12Designing a Customer-Driven Marketing StrategyMarketing heed Marketing management is the artistry and science of choosing target markets and building profitable relationships with them What customers will we serve? How can we best serve these custo mers?1-13Designing a Customer-Driven Marketing StrategySelecting Customers to Serve Market segmentation Dividing the markets into segments of customers Target marketing Which segments to go after1-14Designing a Customer-Driven Marketing StrategySelecting Customers to Serve De-marketing Marketing to reduce demand temporarily or permanently the aim is not to destroy demand but to reduce or shift it.1-15Designing a Customer-Driven Marketing StrategySelecting Customers to Serve Marketing management is Customer management Demand management1-16Designing a Customer-Driven Marketing StrategyChoosing a Value Proposition The value proposition is the exercise of benefits or values a company promises to deliver to customers to satisfy their needs1-17Designing a Customer-Driven Marketing StrategyMarketing Management Orientations outturn concept Product concept Selling concept Marketing concept Societal concept 1-18Designing a Customer-Driven Marketing StrategyMarketing Management Orientat ions Production concept is the idea that consumers will favor products that are available or highly affordable1-19Designing a Customer-Driven Marketing StrategyMarketing Management Orientations Product concept is the idea that consumers will favor products that offer the most quality, performance, and features for which the organization should therefore devote its energy to making continuous improvements1-20Designing a Customer-Driven Marketing StrategyMarketing Management Orientations Selling concept is the idea that consumers will not buy enough of the firms products unless it undertakes a freehanded scale selling and promotion effort1-21Designing a Customer-Driven Marketing StrategyMarketing Management Orientations Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do1-22Designing a Customer-Driven Marketing Strategy Selling Versus Marketin gDesigning a Customer-Driven Marketing StrategyMarketing Management Orientations Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers wants, the companys requirements, consumers long-term interests, and societys long-run interests1-23Societal Marketing ConceptSociety (human welfare)Consumers (want satisfaction)Company (profits)Preparing an Integrated Marketing Plan and ProgramMarketing mess up The marketing mix is the set of tools (four Ps) the firm usesto implement its marketing strategy Product Price Promotion Place 1-24Preparing an Integrated Marketing Plan and ProgramIntegrated Marketing Program Integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers1-25 build Customer RelationshipsCustomer Relationship Management (CRM) Customer relationship management is the overall process of building and maintaining profitable customer relationships by deliver ing superior value and satisfaction1-26 building Customer RelationshipsCustomer Relationship Management (CRM)Customer perceived value is the difference between total customer value and total customer address Customer satisfaction is the extent to which a products perceived performance matches a buyers expectations 1-27Building Customer RelationshipsCustomer Relationship Management (CRM) Customer Relationship Levels and Tools Basic relationship Full relationships Frequency marketing programs Club marketing programs 1-28Building Customer RelationshipsThe Changing Nature of Customer RelationshipsRelating with more carefully selected customers uses selective relationship management to target fewer, more profitable customers Relating for the long term uses customer relationship management to retain menstruation customers and build profitable, long-term relationships Relating directly uses directmarketing tools (telephone, mail order, kiosks, Internet) to make direct connections with customers 1-29Building Customer Relationships follower Relationship Management Partner relationship management refers to working closely with partners in other company departments and outside the company to jointly bring greater value to customers1-30Building Customer RelationshipsPartner Relationship ManagementPartners inside the company is every function area interacting with customers Electronically Cross-functional teams Partners outside the company is how marketers connect with their suppliers, channel partners, and competitors by developing partnerships 1-31Building Customer RelationshipsPartner Relationship Management Supply chain is a channel that stretches from raw materials to components to final products to final buyers Supply management strategical partners Strategic alliances 1-32Capturing Value from CustomersCreating Customer Loyalty and Retention Customer life sentence value is the value of the entire stream of purchases that the customer would make over a lif etime of patronage1-33Capturing Value from CustomersGrowing Share of Customer Share of customer is the portion of the customers purchasing that a company gets in its product categories1-34Capturing Value from CustomersBuilding Customer Equity Customer equity is the total combined customer lifetime values of all of the companys customers1-35Capturing Value from CustomersBuilding Customer Equity Building the right relationships with the right customers involves treating customers as assets that need to be managed and maximized Different types of customers require different relationship management strategies Build the right relationship with the right customers 1-36The New Marketing ornamentMajor Developments Digital age Globalization Ethics and social office Not-for-profit marketing1-37The New Marketing LandscapeThe New Digital AgeRecent technology has had a major impact on the ways marketers connect with and bring value to their customers Market research Learning about and track ing customers Create new customized products Distribution CommunicationVideo conferencing Online data services1-38The New Marketing LandscapeThe New Digital Age Internetcreates marketplaces and marketspaces Information Entertainment Communication1-39The New Marketing LandscapeRapid Globalization The world is smaller debate globally, act locally1-40The New Marketing LandscapeThe Call for More Ethics and Social business Marketers are being called upon to take greater responsibility for the social and environmental impact of their actions in a global economy1-41The New Marketing LandscapeThe Call for More Ethics and Social Responsibility Social marketing campaigns encourage energy conservation and concern for the environment or discourage smoking, excessive drinking, and drug use1-42The New Marketing LandscapeThe Growth for Not-for-Profit Marketing Colleges Hospitals Museums Zoos Orchestras Religious groups1-43