Untitled Quiz

Principles of Marketing - Chapter 1

• Marketing: Creating customer value and engagement.
• Marketing goals: Attract new customers by promising superior value; keep and grow current customers by delivering satisfaction.
• Traditional marketing: Making a sale; abundance of products in nearby shopping centers; television, magazine, and direct-mail ads.
• Contemporary marketing: Satisfying customer needs; imaginative websites and mobile phone apps, blogs, online videos, and social media; reaching customers directly, personally, and interactively.
• Marketing process: Understand the marketplace and customer needs and wants; create value for customers and build customer relationships; design a customer value-driven marketing strategy; construct an integrated marketing program that delivers superior value; engage customers, build profitable relationships, and create customer delight; capture value from customers in return.

Objectives Outline

• Define marketing and outline the steps in the marketing process: This involves defining marketing and detailing the key stages involved in a typical marketing process.
• Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts: This requires understanding the significance of market knowledge and consumer insights; identifying the five fundamental concepts shaping a marketplace.
• Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy: This covers the core components of a customer-centric marketing strategy and explains the different approaches adopted by businesses to guide their marketing strategy.
• Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return: This explores the concept of customer relationship management, identifying methods for enhancing customer value creation and profitability.
• Describe the major trends and forces that are changing the marketing landscape in this age of relationships: This details the significant transformations occurring in the market environment.

What Is Marketing?

• Definition: Marketing encompasses engaging customers and handling profitable customer connections.

Forms of Marketing - Traditional vs Contemporary

• Traditional marketing focuses on making a sale, utilizing readily available methods such as physical stores and traditional advertisement channels like TV and magazines.
• Contemporary marketing focuses on fulfilling customer needs with innovative mediums and tools that allow for direct and interactive engagement.

Understanding the Marketplace and Customer Needs

• Market: Composed of all potential and current buyers of a product or service.

Customer Needs, Wants, and Demands

• Needs: States of felt deprivation (physical, social, individual).
• Wants: Needs shaped by culture and individual personality.
• Demands: Wants backed by buying power.

Market Offerings

• Products, services, information, or experiences: Offered to satisfy customer needs and wants.
• Marketing myopia: Focusing on specific products over the benefits and experiences.

Customer Value and Satisfaction

• Customer expectations: Formed around the value and satisfaction of market offerings.
• Satisfied customers: Repeat purchases.
• Dissatisfied customers: Switch to competitors.
• Setting right expectations: Crucial for attracting and retaining buyers.

Exchanges and Relationships

• Exchange: Obtaining a desired object by offering something in return.
• Marketing: Creating, maintaining, and developing desirable exchange relationships.
• Relationships: Built by consistent superior customer value delivery.

Markets

• Definition: All potential and actual buyers of a specific product or service; encompass sellers and consumers, characterized by customer-managed relationships.

A Modern Marketing System

• Company, suppliers, marketing intermediaries, final consumers, competitors, major environmental forces: All have crucial interdependent relationships in contributing to success.

Designing a Customer Value-Driven Marketing Strategy

• Customer value-driven marketing strategy: Understanding customers and the marketplace and deciding whom to serve and how to deliver value.
• Marketing management: Choosing target markets and building profitable relationships.
• Designing a winning marketing strategy: Determining target markets, value propositions, customer relationship management, and designing a successful product strategy.

Selecting customers to serve, Target Marketing

• Market segmentation: Dividing markets into groups of similar customers.
• Target marketing: Choosing market segments to serve.

Choosing a value proposition

• Choosing how to differentiate and position the company in the market

Marketing Management Orientations

• Production concept: Focuses on high production levels.
• Product concept: Focuses on creating better products.
• Selling concept: Relies on heavy selling efforts.
• Marketing concept: Customer needs and wants are central.
• Societal marketing concept: Considers customer needs, company profits, and society's best interests.

The Selling and Marketing Concepts Contrasted

• Selling concept: Company-centric, focuses on selling existing products; heavy and aggressive selling.
• Marketing concept: Customer-centric, focuses on customer satisfaction and needs.

Three Considerations Underlying the Societal Marketing Concept

• Society (Human welfare) - Consumers (Wants satisfaction) - Company (Profits): Business considerations include societal well-being, satisfying consumer needs, and achieving profitability

Preparing an Integrated Marketing Plan and Program

• Four Ps of Marketing: Product, Price, Place, Promotion.
• Integrated marketing plan: Blending marketing tools into a cohesive strategy.

Customer Relationship Management

• Delivering superior customer value and satisfaction: Building and maintaining profitable customer relationships.
• Customer-perceived value: Customer's evaluation of offerings compared to competitors.
• Customer satisfaction: Extent to which a product's perceived performance matches buyers' expectations.

Customer Relationship Levels and Tools

• Basic, low-margin customer relationships: Frequency programs and loyalty rewards.
• Full Partnerships, high-margin customers: Comprehensive programs including club marketing programs.

Customer-Engagement Marketing

• Customer-engagement marketing: Engaging customers meaningfully using various platforms
• Marketing by attraction: Companies need to enhance relationships via relevant and engaging brand messages to customers.

Consumer-Generated Marketing

• Brand exchanges created by consumers: Consumers shape their own and others experiences.
• Uninvited and invited exchanges: Consumers exchange experiences and ideas.

Partner Relationship Management

• Working closely with internal (cross-functional teams) and external (suppliers, channel partners) partners in bringing more value to customers.

Creating Customer Loyalty and Retention

• Customer lifetime value: The total value of purchases by customers throughout their relationship with a company.
• Customer defections: Can be costly in terms of lost lifetime value and potential attrition from other patrons. Key to maintain customer loyalty.

Growing Share of Customer

• Share of customer: Portion of purchases by a customer in a specific product category.
• Factors for increasing share include strong customer relationship management and expanding the variety offered to existing customers.

Building Customer Equity

• Customer equity: Total combined customer lifetime values of a firm's customer base.
• Measuring future firm value: Customer equity is a better measure of firm performance than current sales or market share. Indicates long-term growth potential.

Customer Relationship Groups

• Customer relationship groups: Categorized by potential profitability and projected customer loyalty based on short-term and long-term relationships including Butterflies, True Friends, Strangers, Barnacles.

The Changing Marketing Landscape

• Digital Age: Economic environments, not-for-profit marketing, globalization, and sustainable practices.

The Digital Age: Online, Mobile, and Social Media Marketing

• Digital and social media marketing: Engages via devices and digital tools.
• Mobile marketing: Enhances immediate buying.
• Integrating marketing perspectives: Blends new and existing channels to integrate campaigns.

Social Media Marketing

• Online social media: Connect and share information and life's moment.
• Social media for engagement: Real-time marketing and connection for brands and individuals.

Big Data and Artificial Intelligence

• Big Data: Brands gain customer insights, personalize offers, and improve service.
• Artificial Intelligence (AI): Enhanced engagement and services.

Growth of Not-for-Profit Marketing

• Sound marketing helps: Attract membership, raise funds, and fosters support for not-for-profit businesses.

Rapid Globalization and Sustainable Marketing

• Global considerations from a local perspective: Industry, competitors, opportunities.
• Corporate ethics and social responsibility: Key for every business.

An Expanded Model of the Marketing Process

• Expanded details: A diagram illustrating an enhanced marketing process.