Marketing
The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
Needs
States of felt deprivation.
Wants
The form human needs take as shaped by culture and individual personality.
Demands
Human wants that are backed by buying power.
Market offering
Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
Marketing myopia
The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.
Exchange
The act of obtaining a desired object from someone by offering something in return.
Market
The set of all actual and potential buyers of a product or service.
Marketing management
The art and science of choosing target markets and building profitable relationships with them.
Production concept
The idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency.
Product concept
The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements.
Selling concept
The idea that that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort.
Marketing concept
The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
Societal marketing concept
The idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.
Customer relationship management
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
Customer-perceived value
The customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
Customer satisfaction
The extent to which a product's perceived performance matches a buyer's expectations.
Consumer-generated marketing
Marketing messages, ads, and other brand exchanges created by consumers themselves�both invited and uninvited.
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
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 its product categories.
Customer equity
The total combined customer lifetime values of all of the company's customers.
Internet
A vast public web of computer networks that connects users of all types all around the world to each other and to an amazingly large "information repository.
Marketing Mix
Product;
Price;
Promotion;
Place;
Target Market
Product
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
Price
The amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service.
Promotion mix (marketing communications mix)
The specific blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships.
Place
Distribution, placing on the market
Target Market
Who it is being marketed to.
Evolution of Market Orientation
Production Concept;
Product Concept;
Selling Concept;
Marketing Concept;
Societal Marketing Concept
Who Uses Marketing?
Business, Government, Religions, Special Interest Groups, etc.
Why Customer Relationship Management
Cheaper to keep old customers than to find new ones.
What do customers value?
product, psychology, benefit, cost, shipping & handling (or going to get it), hassle
What is customer satisfaction?
Customers expectation v. reality; measure by survey, repeat business, referrals, complaints, lost customer analysis
Selective Relationship Management
Cultivate valuable customers (20% of customers account for 80% of profit)
Retaining Customers
Welcome new customers;
Encourage complaints;
Act on complaints (empower);
Improve the process;
Talk to customers and ex-customers;
Know your customers
Building Lasting Customer Relationships
Customer Lifetime Value;
Customer Equity;
Financial (reward frequent customers),
Social (clubs, know names),
Structural (make it easier)
Strategic Planning
Long term plans based on marketing opportunities and company goals;
setting goals & objectives:
profit (market share, sales, social positions);
not for profit (education, support)