Chapter 1 What is Marketing - Principles of Marketing PDF

What is Marketing Principles of Marketing Specific Learning Outcomes At the end of this chapter, you will be able Describe the role of marketing in an organization Explain the implications of identifying, attracting, and maintaining on-going relationships with customers  Wha...

What is Marketing Principles of Marketing Specific Learning Outcomes At the end of this chapter, you will be able Describe the role of marketing in an organization Explain the implications of identifying, attracting, and maintaining on-going relationships with customers  What is Marketing? Marketing is a set of activities related to creating, communicating, delivering, and exchanging offerings that have value for others.  The Exchange Process The act of obtaining a desired object from someone by offering something of value in return. Customer (or buyer) Product Provider (or seller) Transaction  What is the function of marketing? Marketing brings value to customers, whom the business seeks to identify, satisfy, and retain. The Role of Marketing  Company Orientations Success depends on doing The Marketing Concept better than competitors at understanding, creating, delivering, and communicating value to their target customers Success depends on creating The Product Concept the best, most innovative product for the lowest price Success depends on a good The Sales Concept sales team with the right tools and incentives. Success depends on low The Production Concept production costs, highly efficient processes, and mass distribution. What is Customer Lifetime Value? Customer lifetime value predicts how much profit the company will make from the customer during his or her lifetime relationship with the company Relationship Stages Meeting and Getting Acquainted Providing a Satisfying Experience Sustaining a Committed Relationship  Find desirable target Stage 1 customers, including those likely to deliver a Meeting and high customer lifetime getting value acquainted Understand what these customers want Build awareness and demand for what you offer Capture new business  Measure and improve customer satisfaction Stage 2 Track how customers’ needs Providing a and wants evolve satisfying Develop customer confidence, trust, and experience goodwill Demonstrate and communicate competitive advantage Monitor and counter competitive forces  Convert contacts into Stage 3 loyal repeat customers, rather Sustaining a than one-time committed customers Anticipate and relationship respond to evolving needs Deepen relationships, expand reach of and reliance on what you offer  How Do Strong Customer Relationships Help a Business? Happy customers Return to buy more goods and services Help market the business with positive reviews or word of mouth Engage with the brand User Generated Content (UGC) Strong relationship with brand: Doritos Crash the Super Bowl  Goals of Marketing For profit Not for profit companies: organizations: Increase profits Promote the by selling mission by attracting products or donors or services to participants or customers by raising awareness of an issue or cause  Difference Between Customers and Consumers Customers are the Consumers are the individuals who buy individuals who the product actually use the product The customer and the consumer are not always the same Example: A food distributor’s customer is the restaurant, not the diner who is the consumer  B2B vs. B2C B2B or Business to Business companies sell products or services to other businesses B2C or Business to Consumer companies sell directly to consumers  How does Marketing Serve Customers? Marketing can help customers find goods and services that are valuable to them  How Does Marketing Serve Society? Marketing helps customers and businesses find each other to make exchanges that benefit them both Marketing can spread ideas and innovation  Quick Review What is marketing? Where do you experience marketing in everyday life? What are the differences between marketing, branding, advertising, and sales? What is the marketing concept? How does it differ from the production concept, the product concept, or the selling concept?  More Quick Review What is the role of marketing in building and managing customer relationships How do different types of organizations, such as non-profits, consumer product (B2C) firms and business-to-business (B2B) organizations, use marketing? How does marketing create value for the consumer, the company, and society? References Fauteux, J., Best, D., Evans, D., MacMaster, R., Powers, B., Swaniker, G., Brooks-Joiner, H., and Ghasemi, K. (Eds.). (2021). Introduction to Marketing I (2nd ed.). NSCC & Lumen Learning. https://pressbooks.nscc.ca/nsccprincip lesofmarketing2e/ Peek of the net. (n.d.). When pigs fly - Doritos Superbowl 2015. [video] YouTube. https://youtu.be/Li7Htpr_tAg