Objective 1: Define marketing and outline the steps in the marketing process. Objective 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. Objective 3: Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. Objective 4: Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return. Objective 5: Describe the major trends and forces that are changing the marketing landscape in this age of relationships.
Objective 1: Define marketing and outline the steps in the marketing process.
Marketing is managing profitable customer relationships.
Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
Steps in the marketing process:
1. Understanding customer needs
2. Designing customer-driven marketing strategies
3. Designing integrated marketing programs
4. Building customer relationships
5. Capturing value for the firm
Figure 1.1 from page 27Create value for customers and build ‘’relationships final step
Objective 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.
Five core customer and marketplace concepts:
1. Needs, wants, and demands
Needs: Physical need like food, clothing, warmth and safety
Wants: Human needs shaped by culture: Americans need food (Big Mac) Demands: When wants are backed by buying power they become demands
2. Market offerings (products, services, and experiences)
Consumers’ needs and wants are fulfilled through market offerings; Think of products, services or experiences (such as information) Marketing myopia is focusing too much on the specific products a company offers than to the benefits and experiences produced by these products. Example: Railroads assumed themselves to be in the railroad business rather than in the transportation business.
Passengers and freight transportation in general grew, but they choose for cars, trucks, airplanes, etc. making railroad transportation declining. The reason they defined their industry incorrectly was that they were railroad oriented instead of transportation oriented; they were product oriented instead of customer oriented.
3. Value and satisfaction
Customer value and satisfaction are key blocks for developing and managing customer relationships. The customer is looking for value and satisfaction and will buy accordingly to the company that offers the best. Expectations shouldn’t be too high or too low.
4. Exchanges and relationships
Exchange is the act of OBTAINING a desired object from someone by OFFERING something IN RETURN. Examples are [Political candidate: votes] [Church: members] [orchestra: audience].
A market is the set of all ACTUAL and POTENTIAL buyers of a product or service. All below are influenced by major environmental forces.
Objective 3: Identify the key elements of a customer-driven marketing
strategy and discuss the marketing management orientations that guide marketing strategy.