Marketing Chapter 1: Managing Relationships

Fundamentals of Marketing

• This is a marketing course, likely a lecture or presentation
• The course is taught by Prof. Mansour Lotayif at BSU (likely a university) in 2024
• The slides are numbered sequentially by page

Marketing: Managing Profitable Customer Relationships, Chapter 1

• The chapter is about managing profitable customer relationships
• Objectives include defining marketing and its core concepts
• Also, defining marketing management and comparing five marketing orientations
• Other objectives include understanding customer relationship management and strategies
• Objectives also cover the key challenges facing marketers in the modern world

What is Marketing?

• Marketing is managing profitable customer relationships
• Attracting new customers and retaining and growing current customers are key components
• Marketing is not synonymous with "sales" or "advertising"
• Kotler's social definition of marketing; marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others
• Many things can be marketed, including goods, services, experiences, events, persons, places, properties, organizations, information, and ideas

Core Marketing Concepts

• Needs, wants, and demands
• Marketing offers (including products, services, and experiences)
• Value and satisfaction
• Exchange, transactions, and relationships
• Markets

Core Marketing Concepts Diagram

• Demonstrates a cyclical relationship between markets, core concepts, value and satisfaction, and offers. The cyclical process shows there is exchange, and relationships between all items in the loop.

Core Definitions

• Needs: A state of felt deprivation
• Wants: The form taken by human need shaped by culture and individual personality
• Demands: Human wants that are backed by buying power
• Marketing offer: A combination of products, services, information, or experiences
• Exchange: Obtaining a desired object by offering something in return
• Transaction: A trade of value between two parties
• Market: The set of all actual and potential buyers of a product.

Elements of a Modern Marketing System

• A visually presented model (likely a diagram) of interconnected components, including companies (marketers), suppliers, marketing intermediaries, end-users, and competitors. The environment is also shown as a part of the system.

Marketing Management

• Marketing management: The art and science of choosing target markets and building profitable relationships with them.
• Key elements in marketing management are creating, delivering, and communicating superior customer value

Marketing Management: Customer & Demand Management

• Customer management: Marketers select customers who can be well-served and are profitable.
• Demand management: Marketers must handle different demand states (no demand to too much demand)
• Demarketing is marketing to reduce demand — temporarily or permanently.

Marketing Management Orientations

• Production concept; customers will favor products that are highly available and affordable
• Product concept; consumers favor products that offer the most quality, performance, and features. Organizations should focus on continuous improvement
• Selling concept; the concept that customers will not buy enough of the organization's products unless the organization makes a concerted selling and promotion effort.
• Marketing concept; achieving organizational goals depends on satisfying the needs and wants of target markets more effectively and efficiently than competitors.
• Societal marketing concept; The organization should determine the needs, wants and interests of the target market and deliver desired satisfaction. Aim to maintain and improve customer and society well-being.

CRM (Customer Relationship Management)

• CRM: Customer relationship management is the overall process of building and maintaining profitable customer relationships through superior value and customer satisfaction.
• It costs more to attract new customers than to retain existing customers.
• Key concepts in CRM include: Attracting, retaining, and growing customers, and Building customer relationships and customer equity.

CRM: Specifics

• Customer Perceived Value, the difference between the total customer value and the total customer cost.
• Customer satisfaction, the degree to which a product's performance meets buyer expectations.
• Customer equity, the total combined customer lifetime values of all customers

Marketing Challenges: Connecting

• Technological advances, rapid globalization, and continuing social and economic shifts are causing marketplace changes
• These significant marketing developments are grouped under the theme of "Connecting"
• This involves many different connections including ones with technology, with customers, with marketing partners, and with the world

Marketing Challenges: Specifics

• Advances in computers, telecommunications, and video conferencing are important forces
• Databases allow for customization of products and messages. Also, allow analysis of needs.
• The Internet facilitates anytime, anywhere connections
• Selective relationship management, customer profitability analysis, and growing share of customer are key factors.
• Direct sales to buyers are growing.

Marketing Challenges: Connecting Specifics

• Partner relationship management (involves connecting inside the company and with outside partners - supply chain and strategic alliances)
• Globalization, competition, and new opportunities
• Greater concern for environmental and social responsibility
• Increased marketing by non-profit and public-sector entities, including social marketing campaigns

Case Study: Amazon

• Amazon has strong sales, but no profits. It is a customer-driven company with a unique customer experience
• Discussion on whether Amazon will survive

Business Now: SatMetrix Video Clip

• Video clip about customer loyalty and the bottom line

Win-Win Situations

• A matrix of different outcomes of business interactions between companies or parties, including possibilities of a win-win (both sides benefit) or win/lose

Customer Relationship Ladder

• A conceptual visual ladder to illustrate the different stages in an ascending order of relationship progression from a "Prospect" to the highest tier of a "Supporter" (Advocate and Promoter).

This quiz focuses on Chapter 1 of 'Marketing: Managing Profitable Customer Relationships', exploring the definition of marketing, its core concepts, and marketing management. Students will delve into different marketing orientations and learn about customer relationship management. It also addresses the modern challenges marketers face.