MRK Ch. 1 Notes PDF

Ch.1 Defining Marketing and the Marketing Process 1/24 Sales people add value to society What is marketing? Strategies and activities companies require to engage customers Build Strong relationships,increase customer value,and gain value in return. Satisfied customer needs If business doesn’t con...

Ch.1 Defining Marketing and the Marketing Process 1/24 Sales people add value to society What is marketing? Strategies and activities companies require to engage customers Build Strong relationships,increase customer value,and gain value in return. Satisfied customer needs If business doesn’t continue to grow, stock market crashes (ex.Apple continues to innovate) Easy to become #1 harder to maintain that position Needs-states of felt deprivation Wants-form human needs take as they are shaped by culture and individual personality Demands-human wants,backed by buying power Becoming more materialistic? Do we ‘create’ needs? Wants-persuasion Need-natural feeling —-----------=-------------=------------=-----------=--------- 1/27 Market offering ​ Combo of products,services,info,experiences offered to a market to satisfy a need or want Marketing myopia (businesses focus too narrowly on short-term gains) ​ Paying more attention to specific products than to the benefits and experienced produced Destination marketing??? Country marketing??? Customers form expectations about the value and satisfaction of market offerings ​ Satisfied customers buy again ​ Dissatisfied switch competitors ❖​ Exchange,act of obtaining a desired object from someone by offering something in return  ❖​ Marketing actions try to create,maintain,grow desirable exchange relationships A good experience while shopping brings you back…could be an aroma,decor,etc. Market-actual and potential buyers Consumer Market…. ​ Search for products ​ Interact with companies for info ​ Make purchases Marketing management-art and science of choosing target markets and building profitable relationships ​ What customers we serve (target market) ​ How can we best serve these customers (value proposition) ❖​ summarizes why a consumer should buy a product or use a service. Customer value-driven,Market Strategy ​ Production concept- ​ Product concept- ​ Selling product-consumers won’t buy enough ​ Marketing concept- ​ Societal marketing concept- 1/29 Societal marketing Company’s marketing decisions should considser consumers wants,company’s requirements,long-run interests,and society’s long-run interests 3 Marketings Concepts ​ Society ​ Consumers Marketing mix Set of tools known as the four P’s ​ Product ​ Price ​ Promotion *NEED TO READ BOOK* Customer relationship Overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Relationship building blocks Customer-perceived value ​ Difference between total customer perceived benefit and customer cost Customer satisfaction ​ Extent to which perceived performance matches a buyer’s expectations Partner relationship management Working closely with partners in other company departments and outside the company to jointly bring greater value to customers Ex.airline promotes customer loyalty with numerous membership benefits Consumer-generated marketing Brand exchanges created by consumers themselves. Consumers Partner relationship management Working closely with partners in other company departments and outside the company to jointly bring greater value to customers Customer lifetime value Entire stream of purchases that the customer would make over a lifetime of patronage -keep customers coming back —-------------=---------------=------------=----------- BOOK 1/31 Customer generated marketing Brand exchanges created by customers themselves,both invited and uninvited by which customers play a role in shaping their own brand experiences and those of other customers ​ Some companies directly asks their customers for product/service ideas ​ Boosted by COVID-19 Marketing Process:Creating and Capturing Customer Value ​ Understand the marketplace and customer needs and wants ​ Design a customer value-driven marketing strategy ​ Construct and integrated marketing mix that delivers superior value ​ Engage customers,build profitable relationships and create customer delight ​ Capture value from customers to create profits and customer equity Changing marketing landscape ​ Digital age ​ Changing economic enviroment ​ Growth of not-for-profit marketing ​ Rapid globalization ​ Sustainable marketing Social media ​ Exciting opportunities to extend customer engagement and get people talking about a brand Mobile marketing ​ Using mobile channels to stimulate immediate buying,make shopping easier,and enrich the brand experience Big data and AI ​ Brands can use big data to gain deep customers Not-for-profit 5 core customer and marketplace offerings -needs,wants,and demands -market offerings (products,services,and experiences) -value and satisfaction -exchanges and relationships -markets Market offerings Some combo of products,services,solutions,and experiences offered to a market to satisfy a need or want ​ Include entities,persons,organizations,info,ideas and causes Marketing myopia-sellers pay more attention to the specific products they offer than the benefits and experiences produced by these products ​ Exchange Act of obtaining a desired object from a person or an org by offering something in return Market Set of all actual and potential buyers of a product or service ​ ​ Company Suppliers—> ​ Competitors —> Marketing Intermediaries—--. Final Consumers One a company understands its consumers and the marketplace,they must decide which customers it will service and how it will bring value to them Production concept-idea that consumers will favor products that are available and affordable,org should focus on improving production and distribution efficiency Selling concept-idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort ​ High risks ​ Focused on sale transactions rather than relationships Marketing Concept Achieving orag goals depends on knowing needs and wants of target markets and delivering desired satisfaction better than competitors do