Marketing ch1

5 core customer and marketplace concepts

*Needs, wants, and demands *marketing offerings *value and satisfaction *exchanges and relationships *marketing

Marketing management orientations

*production concepts *product concept *selling concept *marketing concept *societal marketing concept

Markets

A set of actual and potential buyers of a product ot service. Sellers must search for buyers, identify their needs, design good market offerings, set prices for them, promote them, store and deliver them.

Goals of marketing

Attract new customers by promisjng superior value. Keep and grow current customers by delivering satisfaction

Marketing management

Choosing target markets and building profitable relationships

Marketin offerings

Combination of products, services, persons, places, organizations, information, ideas, or experiences offerd to a market to satisfy a need or a want

Digital and social media marketing

Engaging consumers via their digital devices using digital marketing tools

Marketing

Engaging customers and managing profitably customer relationships

Production concept

Holds that consumers will favor products that are abailable and highly affortable

Product concept

Holds that consumers will favor products that offer the most quality, performance, and features

Marketing concept

Is the philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better that competitiors do

sustainable marketing practices.

Marketers are reexamining their relationships with social values and responsibilities and with the very Earth that sustains us. Today's marketers are being called on to develop sustainable marketing practices. Corporate ethics and social responsibility have gained in importance. They seek ways to profit by serving immediate needs and the best long-run interests of their customers and communities.

Integrated marketing program

Marketing mix tools should be blended into a comprehensive integrated marketing program that communicates and delivers the intended value to chosen customers

Marketing Myopia

Paying more attention to the specific products than to the benefits and experiences produced

4 P's

Product, price, promotion, place

cross-functional teams

Rather than letting each department go its own way, firms must link all departments in the cause of creating customer value.

Market segmentation

Refers to dividing the markets into segments of customers

Selling concepts

Refers to the idea thay consumers will not buy enough of the firms products unless the firm undertakes a large-scale selling amd promition effort

Target marketing

Refers to which segments to go after

Design a winning market strategy

Target market? Value proposition?

Exchange

The act of obtaining a desired object by offering something in return

Value proposition

The compant must decide how it will differentiate and position itself in the marketplace EX: facebook helps you "connect and share with the people in your life"

strangers.

The company will not gain anything by investing time and resources in developing relationships with strangers

share of customer.

This refers to the portion of the customer's purchasing that a company gets in its product categories. To increase share of customer, firms can offer greater variety to current customers or they can create programs to cross-sell and up-sell to market more products and services to existing customers.

Customer Equity

Total combined customer lifetime values of all of the company's customers. Measures the future value of the company's customer base. Increases when the loyalty of the firm's profitable customers increases. Better measure of a firm's performance than current sales or market share.

Mobile marketing

Using mobile channels to stimulate immediate buying, make shopping easier, and enrich the brand experience

Societal marketing concepts

Which holds the idea that a companys marketing decisions should consider consumer wants, the company's requirements, consumers long-run interests, and society's long-run interests

Customer-engagement marketing

aims to make a brand a meaningful part of consumers' conversations and lives through direct and continuous customer involvement in shaping brand conversations, experiences, and community

Barnacles

are highly loyal but not very profitable. There is a limited fit between their needs and the company's offerings. The company may be able to improve the profitability of barnacles by selling them more, raising their fees, or reducing service to them. However, if they cannot be made profitable, they should be fired.

True friends

are loyal and have the potential to generate good profit for the company. The firm should make continuous relationship investments to delight these customers and nurture, retain, and grow them.

Five major developments that are changing the marketing landscape and challenging marketing strategy include the

digital age, changing economic environment, growth of not-for-profit marketing, rapid globalization, and the call for sustainable marketing practices.

Marketing segmentations

dividing the market into segments of customers

marketing concept

holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do

product concept

holds that consumers favor products that offer the most in quality, performance, and innovative features; thus, little promotional effort is required

selling concept

holds that consumers will not buy enough of an organization's products unless it undertakes a large-scale selling and promotion effort

societal marketing concept

holds that generating customer satisfaction and long-run societal well-being through sustainable marketing strategies is key to both achieving the company's goals and fulfilling its responsibilities

production concept

holds that management's task is to improve production efficiency and bring down prices

Customer-perceived value

is the customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. Importantly, customers often do not judge values and costs accurately or objectively. They act on perceived value. To some consumers, value might mean sensible products at affordable prices.

Customer satisfaction

is the extent to which a product's perceived performance matches a buyer's expectations. Studies show that higher levels of customer satisfaction lead to greater customer loyalty, which in turn results in better company performance. Outstanding marketing companies aim to delight customers by promising only what they can deliver and then delivering more than they promise. For example, JetBlue creates first-rate, customer-satisfying experiences. Its slogan—JetBlue: YOU ABOVE ALL—tells customers that they are at the very heart of JetBlue's strategy and culture.

customer relationship management

is the process of engaging customers and building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Customer lifetime value

is the value of the entire stream of purchases a customer makes over a lifetime of patronage.

Partner relationship management

refers to working closely with partners in other company departments and outside the company to jointly bring greater value to customers.

target marketing

selecting which segments it will cultivate

Differentiate and position itself in the marketplace

the company must decide how it will serve targeted customers

butterflies

the company should create satisfying and profitable transactions, capturing as much of their business as possible in the short time during which they buy from the company. Efforts to convert butterflies into loyal customers are rarely successful.