MKTG1025 Lecture Notes - Lecture 1: Customer Engagement, The Digital Age, Market Segmentation
MARKETING PRINCIPLES – EXAM REVISION NOTES
CHAPTER 1 – DEFINIING MARKETING AND THE MARKETING PROCESS
Define marketing and outline the steps in the marketing process.
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. The marketing process involves five steps.
The first four steps create value for customers.
First, marketers need to understand the marketplace and customer needs and wants.
Next, marketers design a customer-driven marketing strategy with the goal of getting, keeping and growing
target customers.
In the third step, marketers construct a marketing program that actually delivers superior value. All these
steps form the basis for the fourth step, building profitable customer relationships and creating customer
delight.
In the final step, the company reaps the rewards of strong customer relationships by capturing value from
customers.
Explain the importance of understanding the marketplace and customers and identify the five core
marketplace concepts
Outstanding marketing companies go to great lengths to learn about and understand their customers’ eeds ,
wants and demands . This understanding helps them to design want-satisfying market offerings and to build
value-laden customer relationships by which they can capture customer lifetime value and greater share of
customer . The result is increased long-term customer equity for the firm.
The core marketplace concepts are needs, wants and demands;
market offerings (products, services and experiences);
value and satisfaction;
exchange and relationships; and markets.
Wants are the form taken by human needs when shaped by culture and individual personality. When backed
by buying power, wants become demands. Companies address needs by putting forth a value proposition, a
set of eefits they poise to osues to satisfy osues’ eeds. The alue proposition is fulfilled
through a market offering, which delivers customer value and satisfaction, resulting in long-term exchange
relationships with customers.
Identify the key elements of a customer driven market strategy, and discuss the marketing management
orientations that guide marketing strategy.
To design a winning marketing strategy, the company must first decide who it will serve. It does this by
dividing the market into segments of customers ( market segmentation ) and selecting which segments it will
cultivate ( target marketing ). Next, the company must decide how it will serve targeted customers (how it will
differentiate and position itself in the marketplace).
Marketing management can adopt one of five competing market orientations.
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find more resources at oneclass.com
Document Summary
Chapter 1 definiing marketing and the marketing process. Define marketing and outline the steps in the marketing process. 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. The first four steps create value for customers. First, marketers need to understand the marketplace and customer needs and wants. Next, marketers design a customer-driven marketing strategy with the goal of getting, keeping and growing target customers. In the third step, marketers construct a marketing program that actually delivers superior value. All these steps form the basis for the fourth step, building profitable customer relationships and creating customer delight. In the final step, the company reaps the rewards of strong customer relationships by capturing value from customers. Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.
