CREATING CUSTOMER RELATIONSHIPS AND VALUE THROUGH MARKETING

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CREATING CUSTOMER RELATIONSHIPS AND VALUE THROUGH
MARKETING
CHAPTER
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WHAT IS MARKETING?
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WHAT IS MARKETING?
Marketing Using Exchanges to Satisfy Needs
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The Concept of Exchange
The idea that people give up something to receive
something they would rather have. Both buyer and
seller are better off after the trade.
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WHO DO I AIM AT?

• Market All people with both the desire and
  ability
• to buy a specific product
• Target Market One or more subgroups I can
  satisfy

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THE CONTROLLABLE MARKETING FORCES
The Four Ps -the arrow
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THE UNCONTROLLABLE MARKETING FORCES
Helps identify market opportunities
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FIGURE 1-A Summary of factors that affect an
organizations marketing program
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FIGURE 1-4 Marketings task satisfying consumer
needs
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HOW MARKETING BECAMESO IMPORTANT

• Evolution of the Market Orientation

• Production Era

• Sales Era

• Marketing Concept Era

• Societal Era

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MARKETING MANAGEMENT PHILISOPHIES
Orientation
Key Ideas
Production
Focus on efficiency of internal operations if
we make it, they will buy it
Sales
Focus on aggressive sales techniques and believe
that high sales result in high profits
Market
Focus on satisfying customer needs and wants
while meeting objectives - if they will buy it,
we will make it
Focus on satisfying customer needs and wants
while enhancing individual and societal
well-being. I.e.-mfg using recyclables
Societal
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FIGURE 1-B Four different orientations in the
history of American business
Societal
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THE BREADTH DEPTH OF MARKETING

• Who Buys and Uses What Is Marketed?

• Ultimate Consumers

• Organizational Buyers

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HOW DO CONSUMERS BENEFIT
Utility the benefits or customer value
received by users of the product
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HOW TO DELIVER VALUE
Customer value-benefits received by targeted
buyers that include quality, price, convenience,
on-time delivery, and both before-sale and
after-sale service.

• Offer products that perform
• Give consumers more than they expect
• Avoid unrealistic pricing
• Give the buyer facts
• Offer organization-wide commitment in service and
  after-sales support

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KEEPING THE CUSTOMER SATISFIED

• Meet or exceed customers expectations
• Provide solutions to customers problems
• Cultivate relationships, NOT one-time
  transactions

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Concept Check
1. What is marketing?
A Marketing is an organizational function and a
set of processes for creating, communicating, and
delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders.
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Concept Check
1. An organization cant satisfy the needs of
all consumers, so it must focus on one or more
subgroups, which are its ____________.
target markets
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Concept Check
2. What are the four marketing mix elements that
make up the organizations marketing program?
A product, price, promotion, place
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Concept Check
3. What are environmental forces?
A Environmental forces are those that the
organizations marketing department cant
control. These include social, economic,
technological, competitive, and regulatory forces.
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Concept Check
1. What are the two key characteristics of the
marketing concept?
A (1) strive to satisfy the needs of consumers
(2) while also trying to achieve the
organizations goals.
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Concept Check
2. What is the difference between goods and
services?
A Goods are physical objects whereas services
are complex intangible items, such as legal
advice, a college education, or airline travel.
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Exchange
Exchange is the trade of things of value between
buyer and seller so that each is better off after
the trade.
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Market
A market consists of people with both the desire
and ability to buy a specific product.
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Customer Value
Customer value is the unique combination of
benefits receivedby targeted buyers that
includes quality, price, convenience, on-time
delivery, and both before-sale and after-sale
service.
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Marketing Concept
The marketing concept is the idea that an
organization should (1) strive to satisfy the
needs of consumers (2) while also trying to
achieve the organizations goals.
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Market Orientation
An organization that has a market orientation
focuses its efforts on(1) continuously
collecting information about customers needs,
(2) sharing this information across departments,
and(3) using it to create customer value.
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Societal Marketing Concept
The societal marketing concept is the view that
an organization should satisfy the needs of
consumers in a way that provides for societys
well-being.
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Organizational Buyers
Organizational buyers are those manufacturers,
wholesalers, retailers,and government agencies
that buy goods and services for their own use or
for resale.
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Utility
Utility is the benefits or customer value
received by users of the product.