Principles of Marketing Chpts 1-3
"market oriented"
Mission statements should be ______and defined in terms of satisfying basic customer needs
Product/ Market expansion grid
- a portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
position
A product _____ is the place it occupies relative to competitors products in consumer's minds
"invisible hand"
A clear mission statement acts as the ___________ that guides the people in the organization
competitors - microenvironment
A company must gain strategic advantage by positioning their offerings strongly against _____offerings in the minds of consumers
detailed objectives for each level of management
A company needs to turn its mission into
one in which it can profitably generate the greatest customer value and sustain it over time
A company should target what type of segments
" geographic organization"
A company that sells across the country or internationally often uses _______ in which its sales and marketing people are assigned to specific countries, regions or districts
weakest link
A company's value chain is only as strong as its
Marketing Segment
A group of consumers who respond in a similar way to a given set of marketing efforts
metropolitan areas
Americans have been moving from rural to
Diversification
Company growth through starting up or acquiring businesses outside the company's current products and markets
Marketing Control
Because many surprises occur during the implementation of marketing plans, marketers must practice constant_______measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved
1) the company must analyze its current business portfolio and determine which businesses should receive more, less or no investment 2) it must shape the future portfolio by developing strategies for growth and downsizing
Business portfolio planning involves two steps,
"profitable growth"
Companies need growth to compete, satisfy, and attract but growth itself can't be the objective. The company's objective must be to manage
" Product management organization"
Companies with many products or brands often create _______ and by using this approach a product manager develops and implements a complete strategy and marketing program for a specific product or brand
Market Development
Company growth by identifying and developing new market segments for current company products ( ex. Reviewing new demographic markets)
Market Penetration
Company growth by increasing sales of current products to current market segments without changing the product ( ex, adding new stores in current marketing areas making it easier for customers to visit)
Product Development
Company growth by offering modified or new products to current market segments
"service products"
Critics say the four Ps omit important things like services, but services are products too, just called,,,
Market offerings
Customers' needs and wants are fulfilled through .....
Value Chain
Each company department can be thought of as a link in the companies the series of internal departments that carry out value creating activities to design, produce, market, deliver, and support a firms products
Differentiation
Effective positioning begins with _____actually differentiating the market offering to create superior customer value
equal
Every market has segments, but not all ways of segmenting are
"market or customer management organization"
For companies that sell one product line to many different types of markets and customers who have different needs and preferences, a ____ is best, the main advantage is the company is organized around the specific needs of customer segments
What is our business, who is the customer, what do customers value, and what should our business be
Forging a sound mission begins with these questions
fair markets
Good regulation can encourage competition and ensure
" Public Policy"
Governments develop _______ to guide commerce (set of laws and regulations that limit business for the goods of society)
Business Portfolio
Guided by the company's mission statement and objectives, management now must plan a _____collection of businesses and products that make up a company
conflicts and misunderstandings
Ideally a company's different functions should work in harmony to produce value for customers But in practice interdepartmental relations are full of
customer value differences
In positioning its brand a company first identifies possible
contains many specialists
In small company's one person might do everything (research, customer service, etc.) In large companies, the marketing department ....
some "combination" of the functional, geographic, product, and market organizational forms
Large companies that produce many different products flowing into many different geographic and customer markets usually employ..
dogs
Low growth, low share businesses and products, may generate enough cash to maintain themselves but don't promise to be large sources of cash
" Strategic Business Units" SBUs
Managements 1st step in analyzing the current business portfolio is to identify key businesses that make up the company aka Next the company assesses the attractiveness of its various _____ and decide how much support each deserves
Radio-frequency identification (RFID)
Many firms are already using __________to track products through various points in the distribution channel
critical for success
Many managers think that "doing things right" (implementation) is as important as/ or more important than doing the right things (strategy) but both are
lifestyle, life stage, or the common values they seek in the products they buy
Marketers need to form more precise age-specific segments within each group Defining people by their birth date may be less effective than segmenting them by..........
one in the same
Marketers recognize that that worlds of people with or without disabilities are ...
cost increases
Marketers should be aware of several trends in the natural environment , such as the 1) growing shortages of raw materials. Renewable resources must also be used wisely, like oil. Firms making products that require scarce resources face large ....
web sites, mobile phone apps, videos and online social media
Marketing is all around you, in good old traditional forms and in a host of new forms, such as..
the business unit, product, and market levels
Marketing planning occurs at what levels
customer management
More and more companies are shifting their brand management focus towards _______ moving away from managing only product or brand profitability and toward managing customer profitability and customer equity
Value delivery network
More companies today are partnering with other members of the supply chain to improve the performance of the customer________ the network made up of the company, its suppliers, distributors, and ultimately its customers who partner with each other to improve the performance of the entire system
full market coverage
Most companies enter a new market by serving a single segment, if it is successful it adds more. Large companies eventually seek
partners
Most marketers today treat their suppliers as _______in creating and delivering customer value
1) the attractiveness of the SBUs market or industry 2) the strength of the SBUs' position in that market or industry
Most standard portfolio analysis methods evaluate SBUs' on two important dimensions
larger
Partnering with resellers isn't easy as they are getting ..
1) invest more in the businesses unit to build its share 2) invest just enough to hold the SBU share at the current level 3) it can harvest the SBU, milking its short term cash flow regardless of the long term effect 4) it can divest the SBU by selling it or phasing it out and using the resources somewhere else
Once you have classifies your SBU's a company must determine what role to play in the future, there are 4 strategies
To make selling unnecessary
Peter Drucker said " the aim of marketing is...
natural environment
Second environmental trend is 2) "increased pollution" industry almost always damages the quality of the .....
cross-functional teams of divisional managers who are close to their marketers
Some have dropped the matrix for a more customized approach , today's strategic planning is decentralized and companies are placing responsibility in the hands of
customer analysis
Sound marketing requires careful
Needs
States of felt deprivation
coordinates the activities of various functions
Success depends on how well each group performs its work of adding customer value and on how the company
champion the customer's cause- to be the chief customer officer
The CMOs role is to
opportunities in the environment
The best business portfolio is the one that best fits the company's strengths and weaknesses to
phase down or drop
The company is going to want to put strong resources into its more profitable businesses and ____________ the weaker ones
Create value for customers and build customer relationships
The first four steps of the marketing process do what?
Wants
The form human needs take as they are shaped by culture and individual personality
weaknesses and minimizing the threats
The goal of SWOT is to match the company's strengths to attractive opportunities in the environment while simultaneously eliminating or overcoming the
Captures value from customers in return
The last step of the marketing process does what?
SWOT analysis
The marketing function begins with a complete analysis of the company's situation. The marketer should conduct a ______ an overall evaluation of the company's strengths, weaknesses, opportunities, and threats
human needs
The most basic concept underlying marketing is that of ...
" functional organization"
The most common form of marketing organization is______- under this different marketing activities are headed by a functional specialist
customers
The most important actors in the company's microenvironment
The Natural Environment- macroevnivornment
The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities
Marketing
The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
Portfolio Analysis
The process by which management evaluates the products and businesses that make up the company
Market Targeting
The process of evaluating each market segments attractiveness and selecting one or more segments to enter
strategic management
The purpose of________is to find ways in which the company can best use its strengths to take advantage of attractive opportunities in the environment
retaining and valuing important ethnic and cultural differences
The us has been called a melting put but In reality the US is just a salad bowl, in which various groups have mixed together but have maintained their diversity by ..
older
There are falling birthrates and longer life expectancy, so the us population is getting ...
the firm may have grown too fast or entered areas where it lacks experience, the market environment might change, making some products or markets less profitable
There are many reasons that a firm might want to abandon products or markets
being so centralized can be difficult, time consuming and costly, they focus on classifying current businesses but provide little advice for future planning
There are problems with the matrix
suppliers - microenvironment
They provide the resources needed by the company to produce its goods and services
The Changing Age Structure of the Population
This is the most important demographic trend
societal marketing concept
This marketing management orientation is the idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
Production Concept
This marketing management orientation is the idea that consumers will favor products that are available and highly affordable, therefore the organization should focus on improving production and distribution efficiency
Product concept
This marketing management orientation is the idea that consumers will favor products that offer the most quality, performance and features; therefore, the organization should devote its energy to making continuous product improvements
Selling concept
This marketing management orientation is the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling a promotion effort
"chief marketing officer" (CMO) position
To head up large marketing organizations many companies have now created a____________ this person heads up the companies entire marketing operation and represents marketing on the company's top management team. He puts marketing on equal footing with other c level executives
West and south
We are in a period of great migratory movements Americans are mobile people Over 2 decades the U.S population has shifted toward the sunbelt states ____ have grown, this is taken into account with marketers because different regions buy differently
Physical- for food clothing warmth and safety Social- for belonging and affection Individual- for knowledge and self expression
What are the three types of needs
1) attract new customers by promising superior value 2) grow current customers by delivering satisfaction
What is the two fold goal of marketing
prune, harvest or digest them
When a firm finds brands or businesses that are unprofitable or that no longer fit its overall strategy, it must carefully do what to them
external publics
When employees feel good about the companies they work for this positive attitude spills over to the ...
"think consumer"
When marketing tries to improve customer satisfaction it can cause other departments to do a poorer job in their terms Marketers must find ways to get all departments to ________and develop a smoothly functioning value chain
work
Where people live causes a shift in where they ...
internal environment ( of the company) - microenvironment
With designing marketing plans, marketing management takes other company groups into account ( top management, finance, etc) All these interrelated groups form the ...
Marketing Intermediaries - microenvironment
are firms that help the company to promote, sell and distribute goods to final buyers
"developing economies"
_________ that can offer outstanding marketing opportunities for the right kinds of products
subsistence economies
__________ consume most of their own agricultural and industrial output and offer few market opportunities
wants
are shaped by ones society and are objects that will satisfy needs
customers that they can serve well and profitably
a company cannot serve all the customers, so who do they serve
'"general public"
a company needs to be concerned about the general public's attitude towards its products and activities (image affects buying behavior)
basic relationships
a company with may low margin customers may seek to develop what type of relationship with them
the entire system serves the needs of final consumers
a company's success at engaging customers and building profitable relationships depends not only on its own actions but also on how well ...
Customer-perceived value
a customer is going to buy from the firm that offers the best _______________________, the customers evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competitive offers
maximize customer satisfaction, there must be a balance where the marketer continues to generate more customer value and satisfaction but not give away the house
a customer-centered firms seeks to deliver high-customer satisfaction but doesn't not attempt to do what
marketing mix
a set of marketing tools that work together to engage customers, satisfy customer needs, and build customer relationships
mission statement
a statement of the organizations purpose-what is wants to accomplish in the larger environment
zoomers
active boomers are called __ because they have no intention of abandoning their youthful lifestyles as they age
services
activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything
Promotion
activities that communicate merits of the product and persuade target customers to buy it
"resellers"
are distribution channel firms that help the company find customers or make sales to them
Buying less, looking for more value
after the recession of 2008 Consumers have adopter a back-to basic sensibility in their lifestyles and spending patterns that will probably persist which is
Price
amount of money customers must pay to obtain the product
Marketing return on investment or (marketing ROI)
an important marketing performance measure is________ which is the net return from a marketing investment divided by the cost of the marketing investment
adapting the firm to take advantage of opportunities in its constantly changing environment
annual and long range plans deal with the company's current businesses and how to keep them going, in contrast strategic plans involves
club marketing programs
another way to offer consistently high satisfaction is offering members special benefits and create member communities, this is called
Positioning
arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target customers
periodically reassess its overall approach to the marketplace
because marketing strategies and programs can quickly become outdated and each company should
smartphones
because they are ever-present, always on, finely targeted, and highly person they are ideal for engaging customers anytime, anywhere as they move through the buying process
Growth-Share Matrix
best known portfolio planning method was developed by the Boston consulting group. They classify SBUs' according to the________ a portfolio planning method that evaluates a company's SBU's in terms of market growth rate and relative market share
marketing program
builds customer relationships by transforming marketing strategy into action, it consists of the firms marketing mix
reseller markets
buy goods and services to resell at a profit
business markets
buys goods and services for further processing or use in their production processes
Place
company activities that make the product available to the target customers
"citizen action publics"
company's marketing decisions may be questioned by consumer organizations, environmental groups, minority groups and others. The public relations department can help it stay in touch with consumer and citizen groups
Government markets
consists of government agencies that buy goods and services to produce public services or transfer the goods and services to others who need them
consumer markets
consists of individuals and households that buy goods and services for personal consumption
Political Environment
consists of laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society
Marketing Environment
consists of the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers
microenvironment
consists of the actors close to the company that affect its ability to engage and serve its customers (the company, suppliers, marketing intermediaries, customer markets, competitors, and publics)
International markets
consists of these buyers in other countries
attraction
consumer empowerment means that companies can no longer rely on marketing by intrusion, instead they must pratice _____ which is creating marketing offerings and messages that encourage consumers rather than interrupt them
threats
current and emerging external factors that may challenge the company's performance
butterflies
customer group potentially profitable but not loyal, good fit between the company's offerings and their needs, and example is a stock market investor
barnacles
customer group that are highly loyal but not very profitable, limited fit between their needs and the company's offerings, they are the most problematic
true friends
customer group that is both profitable and loyal, strong fit between their needs and the company's offerings
Strangers
customer group with low potential profitability and little projected loyalty, little fit between company's offerings and their needs
perceived value
customers do not judge on values and costs accurately or objectively, they act on
customer satisfaction
depends on the products perceived performance relative to a buyers expectations
Supply chain
describes a longer channel, stretching from raw materials to components to final products that are carried to final buyers
market segmentation
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
adds value for the next level
each party in the modern marketing system does what
Economic environment- macroenvironment
economic factors that affect consumer purchasing power and spending patters
loyalty
even a slight drop from complete satisfaction can create an enormous drop in
opportunities
external factors that the company may be able to exploit to its advantage
marketing myopia
focusing only on the company's products can lead to what
Technological environment- macroenvironment
forces that create new technologies, creating new product and market opportunities, perhaps the most dramatic force now shaping our destiny
consumer-generated marketing ( like when companies ask for new product ideas)
form of customer-engagement marketing where brand exchanges are created by consumers themselves, both invited and uninvited, by which consumers are playing an increasing role in shaping their own brand experiences and those of other concumers
an opportunity to do well by doing good
forward looking companies accept environment responsibilities and view sustainable marketing as
share of customer
good customer relationship management can help marketers increase there ___________ the portion of the customers purchasing that a company gets in its product categories
Product
goods and services the company offers to the target market
applying new tech and making new stuff
government Regulations resulted in higher costs and longer intervals between new products so You must be aware of regulation when
value marketing
had become a marketers watchword
"physical distribution firms"
help the company stock and move goods from their points of origin to their destinations
Stars
high growth, high share businesses or products, need heavy investments, when growth slows they turn into cash cows
company performance
higher levels of customer satisfaction lead to greater customer loyalty, which in turn results in better
marketing concept
his marketing management orientation is a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
they form expectations about the value and satisfactions that various market offerings will deliver and buy accordingly
how do customers choose from the many marketing offerings
demands
human wants that are backed by buying power
customer-driven
if customers don't know what they want or even what is possible, what type or marketing in necessary
disappointed
if you set expectations to high, buyers will be
attract enough buys
if you set expectations to low, you may satisfy those who buy but fail to
customer managed relationships
in addition to customer relationship management, today's marketers must also deal effectively with
full partnerships ( how p&G works with wally world)
in markets with few customers and high margins, sellers want to create what type of relationships with them
value for the money, practicality, and durability
in response to new spending habits marketers are focusing now on
Environmental Protection Agency (EPA)
in the US ____ was created in 1970 to create and enforce pollution standards and conduct pollution research
marketing measurement and accountability
in the past markets just threw money at campaigns, but the free-spending days have been replaces by a new era of
frugality
in this post recession era, spending is on the rise again, but now Americans are showing an enthusiasm for
"Financial Intermediaries"
include banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods
"local publics"
includes neighborhood residents and community organizations. Large companies work to become responsible members of the local communities in which they operate
customer-centered measures
increasingly to measure marketing returns, beyond standard performance measures, marketers are using ________ that capture not only current marketing performance but also future performance resulting from stronger customer relationships
strenghts
internal capabilities, resources, and positive situational factors that may help the company serve its customers and achieve its objectives
weaknesses
internal limitations that may interfere with a company's ability to achieve its objectives
operating control
involves checking ongoing performance against the annual plan and taking corrective action when necessary, it ensures that the company achieves the sales/profits/and other goals set out in its annual plan
Strategic Control
involves looking at whether the companies basic strategies are well matched to its opportunities
digital and social media marketing
involves using digital marketing tools such as web sites, social media, mobile apps, and ads, online videos, email, and blogs that engage consumers anywhere, at any time, via their digital devices
Public
is any group that has an actual potential interest in or impact on an organizations ability to achieve its objectives
marketing management
is customer management and demand management
acquire a new one
its five times cheaper to keep an old customer than to
Cash cows
low growth, high share businesses or products, they are established and successful and need less investments
question marks
low share business units in high-growth markets, require lots of cash to hold their share
a global view
managers around the world are taking more of what type of view
"government publics"
managers must often consult the company's lawyers on issues of product safety, truth in advertising, and other matters
services, or other entities such as persons, places, organizations, information, and ideas
market offerings aren't limited to products they also include
customer-managed relationships
marketers are now embracing not only customer relationship management but also ___________ in which customers connect with companies and with each other to help forge their own brand experiences
competition
marketing involves serving a market of final customers in the face of
marketing dashboards
meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance
customers and the customers experience the company seeks to create
mission statements shouldn't be stated as making more sales/profits, but focus on
dedicated social marketing teams
nearly 90 percent of all U.S companies now use social media as part of their marketing mix, and 78 percent have
Customer-engagement marketing
old marketing involved marketing brands to customers, and new marketing is _______________ making the brand a meaningful part of consumers conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community
marketing 3.0
organizations that are value driven, where values amount to caring about the state of the world its aka purpose driven marketing
mobile marketing
perhaps the fastest growing digital marketing platform
customer relationship management
perhaps the most important concept of modern marketing, its the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction, deals with all aspects of acquiring, engaging, and growing customers
sense and respond
product-centered has a make and sell philosophy, the marketing concept has a what philosophy
marketing analysis
provides inputs to each of the other marketing management functions
explain why their brands are worth it
rather than slashing prices in uncertain economic timer, many marketers hold the on prices and instead
shared value
recognizes that societal needs, not just economic needs define markets
Frequency marketing programs
reward customers who buy frequently or in large amounts as a way to offer consistently high satisfaction
Marketing Myopia
sellers often make the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products, causing them to lose sight of customer needs
caring capitalism
setting yourself apart by being civic minded and responsible, building social and environmental responsibility into their company value and mission statements
delivering more than they promise
smart companies aim to delight customers by promising only what they can deliver and than what
Brand experiences
smart marketers look beyond the attributes of the products and services they sell, by orchestrating several services and products they create...
market offerings
some combination of products, services, information, or experiences offered to a market to satisfy a need or want
"industrial economies"
some countries have ______________which constitute rich markets for many different kinds of goods
consumers' lives and coversations
successful engagement marketing means making relevant and genuine contributions to
older tech ( streaming replaced dvds)
tech Creates new opportunity and new markets but Every new tech replaces....
generation X
the 49 million people born between 1965 and 1976 in the birth dearth following the baby boom, family comes first, and they prize experience, the first to grow up in the internet era, most educated and good to sell houses to
baby boomers
the 78 million people born during the years following World War 11 (1946) and lasting until 1964. They are the wealthiest generation in U.S history with 70 percent of the nation's disposable income
Millennials (Generation y)
the 83 million children of the baby boomers between 1977 and 2000, the most financially strapped generation, but larger than the baby boomers
exchange
the act of obtaining a desired object from someone by offering them something in return
marketing management
the art and science of choosing target markets and building profitable relationships with them
people, and people make up their markets
the demographic environment is of major interest to marketers because it involves ...
a tiered market
the income distribution has created what type of marketing
The macroenvironment
the larger societal forces that affect the microenvironment (demographics, economic, natural, technological, political, and cultural forces)
Marketing Strategy
the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
"marketing services agencies"
the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets
membership, funds or support
the nations not-for-profits face stiff competition for
strategic planning
the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
how they buy
the rising number of educated professions will affect not just what people buy but also
market
the set of all actual and potential buyers of a product or service
value proposition
the set of benefits or values it promises to deliver to customers to satisfy their needs, they answer the question "why should I buy your brand rather than a competitors"
marketing mix
the set of tactical tools (product price place promotion) that the firm blends to produce the response it wants in the target market, it consists of everything the firm can do to influence the demand for its product
sustainable marketing
the societal marketing concept calls for this type of marketing, where socially and environmentally responsible marketing meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs
Demography- macroenvironment
the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics
customer equity
the ultimate aim of customer relationship management is to produce high ________________ the total combined customer lifetime values of all the company's customers, its a great measure of the firms performance
customer lifetime value
the value of the entire stream of purchases a customer makes over a lifetime of patronage
marketing management
their aim is to find, engage, keep and grow target customers by creating, delivering, and communicating customer value
environment
third environmental trend is "increased government intervention" in natural resource management, governments vary in their concern and efforts for the ..
selling concept
this concept is usually practices with unsought goods, those that buyers so not normally think of buying, like life insurance. so they must be good at tracking down prospects and selling them on a products benefits
"media publics"
this group carries news, features, editorial opinions, and other content (TV's and newspapers)
"financial publics"
this group influences the company's ability to obtain funds (banks, stockholders)
supply chain management
through this companies today are strengthening their connections with partners all along the supply chain
1) what customers will we serve (our target market) 2) How can we serve these customer best ( whats our value position)
to design a winning marketing strategy the marketing manager must answer what two important questions
sourcing more supplies and components abroad and developing new products for specific markets around the world
today companies are not just selling more of their locally produced good in international markets, they are also
a socially and environmentally responsible way
today's customers expect companies to deliver value in what way
don't invest anything in them, make money on every transaction
what relationship management strategy should you take with strangers
Marketing Implementation
turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives Marketing planning address the what and why, but this addresses the who where when and how
customer focus and value
under the marketing concept what are the paths to sales and profits
Product, price, place, promotion
what are the four P's of marketing
dollars
what are the r and i measured in (ROIs)
it focuses on creating sale transactions rather than building long-term profitable customer relationships they sell what they make not what people want assuming people will be coaxed into buying it
what are the risks of the selling concept
its timely/costly and difficult to sort through invitations can even backfire sometimes
what are the struggles of harnessing consumer generated content
relationships that must be developed and managed
what do the arrows represent in the modern marketing system
they are all strongly customer focused and heavily committed to marketing
what do today's successful companies all have in common?
the profits generated by investments in marketing activities, it can be hard to measure
what does ROI measure
Rich are richer, middle class is shrinking, the poor have remained poor
what does the income distribution look like now
to make the brand a meaningful part of consumers conversations and lives
what is customer-engagement marketing's goal
create superior value, and satifaction
what is the key to building lasting customer relationships
they may focus too narrowly on their own operations and lose sight of the real objective
what is the risk coming with the production concept
if they cant be made profitable they should be fired
what relationship management strategy should you take with barnacles
enjoy them while they are there, create satisfying and profitable transactions with them, capturing as much of their business as possible in the short time they buy from the company. then move on
what relationship management strategy should you take with butterflies
make continuous relationship investments to delight these customers and nurture, retain and grow them
what relationship management strategy should you take with true friends
outdated, and they will miss new product and market opportunities
when old industries fight or ignore new tech, their business declines, companies that do not keep up will be
its a measure of the future value of the company's customer base, sales and market share reflect the past
why is customer equity better than current sales or market share when measuring the quality of a firm
because they are now growing more rapidly than traditional households
why must marketers consider the special needs of nontraditional households
making cuts in the wrong places can damage long term brand images and customer relationships
why shouldn't you just slash prices to meet the new frugal economy
" internal publics"
workers, managers, volunteers, and the board of directors. Large companies use newsletters to inform and motivate their internal publics
Partner relationship management
working closely with others inside and outside the company to jointly engage and bring more value to customers
are using online, mobile, and social media to refine their targeting and to engage in customers more deeply and interactively
yesterdays companies focused mostly on mass marketing to broad segments of customers at arm length, today's companies are doing what
true believers
you want true friends to be _________________ who come back regularly and tell others about their good experiences with the company
Generation Z
young people born after 2000 (although many analysts include people born after 1995) who make up the kids, tweens, and teen markets, they represent tomorrows market
customer solution, customer cost, convenience, and communication
• The 4Ps take the sellers views of the market not the buyers, but there are 4Cs as well