COMM 223 Lecture Notes - Lecture 1: Customer Satisfaction, History Of Marketing, Customer Relationship Management
COMM 223- Midterm
LECTURE 1 – Introduction
…
Marketing concept: the key to achieving organizational goals consists of determining the
needs/wants of target markets + delivering the desired satisfactions more effectively/efficiently
than competitors
Concentrate → needs of buyer, NOT needs of seller
Marketing: the process of maximizing company profits (short/long-term) through creation of
superior value for customers relative to competition {from slide: – series of activities that link
business’ products/services to consumer’s needs with return of profit to firm. & Marketing – is a process
involving an exchange of something of value to meet a need. It comprises all those activities designed to
facilitate that exchange.}[Marketing’s role: anticipate demand, plan and develop product/ services
to meet demand, establish price, provide communication, and provide for the exchange of title of
products, physical distribution (logistics)]
The Core Marketing Concept:
Needs: state of feeling deprivation (e.g.:
hunger)
Wants: needs shaped by culture/individual
personality (e.g.: “I want a hamburger and
fries”)
Demands: wants backed by buying power
(e.g.: I have money to buy this meal → I’m
buying it)
Meeting customer needs and wants:
Products: anything that can be offered to a
market for attention, acquisition, use or consumption and that might satisfy a need/want.
Customer’s Decision Criterion:
Customer value: benefits customer gains from using product compared to cost of getting product
Customer satisfaction: depends if product’s perceived performance in delivering value can meet
buyer’s expectations
How Consumers Meet Needs and Wants:
Exchanges: obtaining a desired object from someone, offering something in return
Relationships: process of creating, maintaining and enhancing ongoing exchanges/transactions
The Market: the set of all actual/potential buyers of a product/service
Commented [DP1]: Evolution of Marketing
Agrarian societies Trading societies Industrial
revolution
Marketing process began with large manufacturing
capacity.
need to find buyers for surplus stock
need for mass distribution systems to distribute
goods
need to find new products to use expanded
manufacturing capacity
Marketing is often not clearly understood:
some think of it as just selling
some think of it as just advertising
What is Marketing?
It is a process or system of activities by which the
organization gets its products/services into the hands of
customers.
In this complex process, the seller and customer are
linked by virtue of a product (or service), which meets
the customer’s needs.
So the essence of marketing is a transaction – an
exchange of something of value – which is intended to
satisfy human needs at a profit to the firm. Marketing
consists of all those activities designed to facilitate that
exchange.
Marketing is:
A total system of organization activities
Designed to plan, price, promote and distribute
Something of value want-satisfying goods/services
To the benefit of the target market – present and potential
consumers or organizational users.
A Market is people with needs and/or wants
Money to send willingness to spend it
Marketing is the total of what we are talking about
Selling is one part of promotion, and promotion is one
part of the total marketing system
Merchandising is product planning = the internal company
planning to get the right product or service to the right
market at the right time, at the right place, and in the right
colours and sizes.
Distribution is Market coverage = the retailing and
wholesaling structure – the channels used to get the
products to its markets.
Physical distribution is material-flow activities such as
transportation. Warehousing, and inventory control.
Selling orientation:
Emphasis is on the product
Company first makes the product and then figures out how
to sell it
Management is sales-volume oriented
Planning is short-run oriented, in terms of today’s products
and markets
Marketing orientation:
Emphasis is on the customer’s wants
Company first determines what the customers want, and
then figures out how to make and deliver a product to satisfy
those wants.
Management is profit oriented
...
{Marketing concept is built on marketing orientation, profitable sales volume & coordination of
marketing activities}
Concept: 1.Production 2.Product 3.Selling 4.Marketing 5.Societal Marketing
Focus: 1.Manufacturing and distribution efficiency 2. Innovation, quality, performance 3.
Promotion, had sell 4. Customer’s needs at a profit to firm 5. Customer’s needs at a profit plus
human long term welfare.
Core Values of successful organization: customer focus, innovation, respect for others,
teamwork, integrity, community, leadership, and performance.
LECTURE 2 – Company & Marketing Strategy + The Marketing
Environment
Marketing Management Orientations:
Marketing Approaches
…
Classic Marketing Approach (stick to basics)
Alternative Marketing Approach (innovation)
Market-driven
“Give customer what they want.”
Matches well with markets containing
products with high buyer familiarity
Assumes buyers evaluate choices
based on fixed value concepts
Market-driven
“Help customers learn what they
want”
Matches well with rapidly evolving
markets with growing number of
original products
Assumes buyers can learn/evolve with
new value concepts
Customer Relationship Management (CRM):
General process of building/maintaining profitable customer relationships by delivering
superior customer value/satisfaction.
It costs 5-10x more to attract a new customer than it does to keep current one satisfied
Marketers → concerned with lifetime value of the customer
Customer equity: total customer values of all of the company’s current/potential
customers
Ideal relationships with customers → treating customers as assets that need to be
managed/maximized
Commented [DP2]: Summary
Four steps in strategic marketing planning
-Define company mission
-Setting company objectives and goals
-Design business portfolio
-Business unit level strategy
Marketing environment
-Macro-environment
-Micro-environment
Commented [DP3]: Role of marketing manager is finding
new opportunities which is limited by:
Financial strength
Skill of personnel/ leadership ability
Patents
Marketing strengths (product/ distribution advantage)
Public acceptance
Raw material reserves
Commented [DP4]: Business has 3 prime goals/missions
Marketing: seeing the business form the customer’s point of
view.
Innovation: coming up with better solutions to old problems
(improved products)
Achieve a measure of Profitability in order to grow, within
the context of being a good corporation citizen.
Commented [DP5]: Customer relationship management
(CRM) is defined as: “the overall process of building and
maintaining profitable customer relationships by delivering
superior customer value and satisfaction.” More than
implementing customer database management!
Document Summary
Marketing concept: the key to achieving organizational goals consists of determining the needs/wants of target markets + delivering the desired satisfactions more effectively/efficiently than competitors. Concentrate (cid:314) needs of buyer, not needs of seller. Marketing: the process of maximizing company profits (short/long-term) through creation of superior value for customers relative to competition {from slide: series of activities that link business" products/services to consumer"s needs with return of profit to firm. & marketing is a process involving an exchange of something of value to meet a need. It comprises all those activities designed to facilitate that exchange. }[marketing"s role: anticipate demand, plan and develop product/ services to meet demand, establish price, provide communication, and provide for the exchange of title of products, physical distribution (logistics)] Wants: needs shaped by culture/individual personality (e. g. : i want a hamburger and fries ) Demands: wants backed by buying power (e. g. : i have money to buy this meal (cid:314) i"m buying it)
