Lecture 2 - Marketing Fundamentals PDF

Lecture 2 What is marketing? ○ Discovering and satisfying needs ○ Creating value for customers ○ Managing profitable customer relationships ○ Building strong relationships to capturate value from customer Goals ○ Customer acquisition...

Lecture 2 What is marketing? ○ Discovering and satisfying needs ○ Creating value for customers ○ Managing profitable customer relationships ○ Building strong relationships to capturate value from customer Goals ○ Customer acquisition and customer retention ○ Main goal - lifelong customers Process & Cycle ○ Identify needs and develop products to satisfy needs ○ Mutual value generated from client and seller Marketing process 1. Understand marketplace & customer needs/wants 2. Design customer-driven marketing strategies 3. Construct integrated marketing program that delivers superior value 4. Build profitable relationships and build customer delight 5. Capture value from customers to create profits and customer equity 1-Understand marketplace & customer needs/wants 5 core concepts ○ Needs wants demands Needs- essential for survival Wants- shaped by personality & culture demands - sum of wants and buying power ○ Market offerings Products, services, information or experiences offered to satisfy a need or want ○ Value & satisfaction Provides meeting expectations, better than competitors ○ Exchange & relationship Exchange- act of obtaining a desired object from someone by offering something in return Consistently delivering superior customer value leads to beneficial relationships ○ Markets Set of actual and potential buyers of a product or service 2-Design customer-driven marketing strategies Segmentation and targeting  ○ Dividing market into groups of customer ○ Selection one or more segments to serve Value proposition ○ Benefits promised from product ○ Differentiates you and other 3-Construct integrated marketing program that delivers superior value Preparing an integrated marketing plan ○ Analizing the firms current position ○ Transforming marketing strategy into action 4 P’s of marketing ○ Product Feature, quality, branding… ○ Price Price strategy, pricing, allowances … ○ Place Inventory, transport, market coverage ○ Promotion Advertising, PR, discounting strategy 4-Build profitable relationships and build customer delight CRM customer relationship management ○ Profitable customer relationship Deliver good quality value Deals with getting new and maintaining customers ○ Customer-perceived value Customer evaluates between the price and what is being delivered ○ Customer satisfaction Extent to which the perceived value matches the buyer’s expectations ○ Customer delight What is delivered is even more than what customer expected ○ Customer-engagement marketing Brand infiltrates the customers life, making them talk about it by being relevant example coke and the names ○ Customer- generated marketing Customers play a role in shaping the brand, aka social media influence 5-Capture value from customers to create profits and customer equity Customer Lifetime Value  ○ The value of the entire stream of purchases that the customer would make over a lifetime of patronage Share of Customer ○ The portion of the customer’s purchasing that a company gets in their product categories Customer Equity ○ The total combined customer lifetime values of all the company’s current and potential customers