Marketing Chapter 1: Creating Customer Value

Chapter One: Creating and Capturing Customer Value

• The chapter focuses on the process of creating and capturing customer value.
• Marketing is defined as engaging customers and managing profitable customer relationships.
• The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.
• The process encompasses defining marketing, understanding the marketplace and customer needs, designing a customer-driven marketing strategy, preparing an integrated marketing plan and program, building customer relationships, capturing value from customers, and considering the new marketing landscape.

What is Marketing?

• Marketing is a societal process where individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.
• Marketing entails planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

Kotler Definition

• Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
• Marketing involves products and services, pricing, promotion, and distribution.

Marketing is Evolving

• Marketing is a dynamic process adapting to changing times and customer demands.
• Marketing methods are evolving constantly from telemarketing to modern methods like inbound marketing, mobile marketing, and video marketing.

The Marketing Process

• The process focuses on building customer relationships and creating value for customers.
• Key steps involve understanding the marketplace and customer needs and wants, designing a customer-driven marketing strategy, building/constructing an integrated marketing program to deliver superior value, and capturing value from customers in return

Understanding the Marketplace and Customer Needs

• Needs are basic human requirements.
• Wants are shaped by culture and individual personality.
• Demands are wants backed by buying power.

STP Marketing Model

• Segmentation: Dividing the market into distinct groups of customers (segments).
• Targeting: Selecting the most attractive segment to focus your marketing on.
• Positioning: Determining how to position your product for each target segment.

Offering and Brand

• An offering is a company's method of addressing customer needs by conveying a value proposition.
• A value proposition is a set of benefits that satisfy those needs.
• A brand is an offering from a known source.

Products and Services

• Products can range from physical goods to digital downloads.
• Services include things like airline travel and medical treatments.

Experience

• Experiences can include things like visiting a theme park, attending live music, or going on a cruise.

Information

• This section discusses the importance of information and research in marketing.

Events

• Events can be trade fairs, conferences, or other gatherings designed to promote products or services.

Comparative Cost Theory, Product Lifecycle, and Other Theories

• Theories related to economic principles and marketing strategies.

Person

• This section discusses the role of key individuals in marketing, often using examples of celebrities or prominent figures.

Place

• This section often showcases locations that are important for customer experience.

Marketing Myopia

• Marketing myopia is focused on a company's products rather than the perceived value of benefits.
• The focus is on the product not customer benefit.
• Kodak is used as an example of a company that suffered from marketing myopia.

Value and Satisfaction

• Customer satisfaction analysis helps businesses understand what is important for the customer and then satisfy it.
• It's crucial for companies to satisfy customers' needs and wants to create long-term value.

Exchange and Relationships

• Exchange is obtaining a desired object in return for something else.
• Relationships in marketing are building and maintaining relationships with audiences

Markets

• A market consists of actual and potential buyers of a product or service.
• Includes a variety of factors such as competitors, suppliers, and intermediaries in a business-to-customer environment.

Designing a Customer-Driven Marketing Strategy

• This section explores various concepts of designing efficient and customer-driven marketing strategies.
• Covers different management orientations like production, product, selling, marketing, and societal marketing.

Differences between Marketing and Selling

• Marketing is customer-driven, long-term focused.
• Selling is producer-driven, short-term focused.

The Societal Marketing Concept

• Focuses on both company profitability and the wellbeing of customers and society as a greater aim.

Additional Activities

• Students are asked to analyze various marketing concepts and products.
• Key concepts related to designing effective marketing strategies are highlighted.

This quiz explores the fundamental concepts of marketing presented in Chapter One, including how to create and capture customer value. It defines marketing and its goals, discusses customer relationships, and outlines the importance of understanding the marketplace. Test your knowledge on the essential strategies for engaging customers and delivering satisfaction.