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MGCR 352 (82)
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Department
Management Core
Course
MGCR 352
Professor
Emine Sarigollu
Semester
Fall

Description
MGCR 352 Chapter 1- Marketing: Customer Value, Satisfaction, Relationships, and Experiences Adam Sherman Marketing: Defined Marketing is the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large. To serve both buyers and sellers, marketing seeks  to discover the needs and wants of prospective customers and,  to satisfy them Requirements for Marketing to Occur  Two or more parties with unsatisfied needs  A desire and ability on their part to be satisfied  A way for the parties to communicate  Something to exchange The Breadth and Depth of Marketing What is a Market?  A market is people with the desire to buy a specific produce Who Markets?  Every organization markets! Firms, non-profit organizations, places, etc. What is Marketed?  Goods – physical objects  Services – activities, deeds or basic intangibles  Ideas – intangibles involving thoughts about actions or causes  Experiences – personal and memorable experiences Social marketing is designed to influence the behaviour of individuals by which benefits accrue to those individuals or to society in general and not to the marketer . Who Buys and Uses What is Marketed? Both individuals and organizations buy and use services that are marketed. Ultimate consumers are people who use goods and services purchased for a household. Organizational buyers are units such as manufactures, retailers, or government agencies, that buy goods and services for their own use or resale. Who Benefits? In our free-enterprise society, there are 3 types of benefactors from effective marketing:  Consumers – finds value from the best products, the lowest prices, or exceptional service.  Organizations – prosperous business operations  Society – enhances competition, both in quality and better products. Satisfying Consumer Needs A company must concentrate its efforts on certain needs of a specific group of potential consumers. This is the target market – one or more specific groups of potential consumers toward which an organization directs its marketing program. The Four Ps: Controllable Marketing Mix Factors Firms must develop a complete marketing program that creates, communicates, and delivers value to a target market. This happens through the use of four tools, first published by Professor E. Jerome McCarthy:  Product – a good, service, or idea to satisfy the consumer’s needs.  Price – What is exchanged for the product  Promotion – a means of communication between the seller and buyer  Place – a means of getting the product into the consumer’s hands. o This is known as the marketing mix. The Uncontrollable, Environmental Forces These are the environmental forces in a marketing decision, the uncontrollable factors involving social, economic, technological, competitive, and regulatory forces. These five forces serve as accelerators or brakes on marketing, sometimes expanding an organization’s marketing opportunities and other times restricting them. The Marketing Program Concepts must be converted into a tangible marketing program – a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers. Evolution of North American Businesses Production Era  Goods were scarce so buyers were willing to accept virtually any goods that were produced and make do as best they could. Sales Era  Firms discovered that they could produce more goods than their regular buyers could consume. Competition grew. The usual solution was to hire more salespeople to find new buyers. (circa 1950) Marketing Concept Era  In the 1960’s marketing became the motivating force among many firms. The marketing concept, is the idea that an organization should strive to satisfy the needs of consumers, while also trying to achieve the organization’s goals. Marketing Orientation Era  Firms with a market orientation focus their efforts on o Continuously collecting information about customers needs and competitors capabilities o Sharing this information throughout the organization o Using the information to create value, ensure customer satisfaction, and develop customer relationships.  Customer value is defined as the unique combination of benefits received by the customer that include quality, price, convenience, on-time delivery, and both before sale and after-sale service.  Customer satisfaction is the match between customer expectation of the product and the product’s actual performance.  Organizations with a market orientation actually engage in customer relationship management (CRM) – the process of building and developing long term relationships with customers by delivering customer value and satisfaction.  Organizations engaging in CRM understand the importance of lifetime value, not just single transactions. Customer lifetime value (CLV) is the profit generated by the customer’s purchase of an organization’s product or service of the customer’s lifetime.  CRM has been broadened to include eCRM – a web centric
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