Chapter 1. What is Marketing? Creating Customer Value & Building Customer Relationships 5 Core...
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Transcript of Chapter 1. What is Marketing? Creating Customer Value & Building Customer Relationships 5 Core...
The process by which companies:
-Create Value
-Develop customer relationships
To generate profits in return.
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Philosophy that holds that achieving organizational goals depends on:
◦Knowing the NEEDS and WANTS of target markets and
◦Satisfying those needs/wants BETTER than competition.
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1. Attract new customers by promising superior value.
2. Keep and grow current customers by delivering satisfaction, creating relationships.
OLD view of marketing:
Making a sale—“telling and selling”
NEW view of marketing:
Satisfying customer needs
1. Needs, wants, and demands2. Market offerings3. Value and satisfaction4. Exchanges and relationships5. Markets
Need: Physical, social, and individual needs.
Wants: Shaped by culture and individual personality.
Wants + Buying Power = Demand.
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Some combination of products, Some combination of products, services, information, or services, information, or experiences offered to a market experiences offered to a market to satisfy a need or want.to satisfy a need or want.
Marketing offers fulfill needs and wants
Market offerings are not limited to physical products.
UNCF powerfully markets the idea that “A mind is a terrible thing to waste.”
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall
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Occurs when sellers pay more attention to their products (market offerings) than to the benefits produced by their products.
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Customer’s evaluation all of the Customer’s evaluation all of the benefitsbenefits and all of the and all of the costscosts of of a marketing offer relative to a marketing offer relative to competing offerscompeting offers..
Quality/Experience
Price= VALUE
Firms now relate more deeply and interactively via social networking,
websites, email, video sharing (YouTube) Must practice marketing by attraction –
creating marketing messages/offerings that involve consumers, not interrupt them (eg TV ads)
Attraction NOT Intrusion
CRM = Customer Relationship Marketing
A market:◦Is the set of actual and potential buyers of a product.
These people share a need or want that can be satisfied through exchange relationships with a company.
Uncertain Economic Environment
Digital Age, Mobile Marketing, Social Networking
Rapid Globalization
Growth of not-for-profit marketing
66% of McDonald’s revenue now comes from outside the US.
200,000 new donors contributed $30 million to the APSCA as a result of “The Ad”
Brand exchanges created by consumers themselves –
Invited AND Uninvited
Shapes consumers relationship with the brand and that of others.
Coke/Mentos video Coke Mentos Video
H.J. Heinz attempted to harness consumer-generated marketing and received 8,000 entries in a homemade ad contest for its ketchup brand on YouTube.