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Mark 201- Book Notes .docx

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MANA 298
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CHAPTER 1 CreatingCapturing Customer ValueMarketing aim of marketing is to create value for customers and to capture value from customers in returnoThe activity set of institutions and processes for creating communicating delivering and exchanging products that have value for customers clients partners and society at largeThe Firms Stakeholders these include employees unions customers competitors activists government and the press these people affect companyThe Marketing Process 1 Understand the marketplacecustomers needswants 2 Design a customerdriven market strategy 3 Construct a marketing program that delivers superior value 4 build relationshipscreate customer delight 5 Capture value from customers to create profits and customer equity Human Needs states the felt deprivation include basic physical needs for food clothing warmth and safety social needs for belongingaffection and individual needs for knowledge and selfexpression These needs are not created by marketersHuman Wants the form of human needs take as shaped by culture and individual personality Wants are shaped by ones societymarketing programs oNeed food but want a breakfast sandwich and espresso at TimsHuman Demands when backed by buying power wants become demands Given someones wants people demand products that add up to most valuesatisfactionMarketing Offerings a combination of products services information or experiences offered to a market to satisfy a need or want Not only products also services bankhotelMarketing Myopia the mistake sellers make of paying more attention to the specific products a company offers than to the benefitsexperiences produced by these products Goal of Marketing satisfying consumer needs and building customer relationshipsExchange the act of obtaining a desired object from someone by offering something in return Marketing consists of actions to buildmaintain desirable exchange relationships with target audiences involving a product service idea etcMarkets the set of actual and potential buyers of a product These buyers share a particular needwant that can be satisfied through exchange relationshipsDesigning a CustomerDriven Marketing StrategyMarketing Management the artscience of choosing target markets and building profitable relationships with them The marketing managers aim is to find attract keep and grow target customers by creating and delivering superior customer valueThe company must first decide whom it will serve Done by dividing the market into segments of customers market segmentation and selecting which segments it will go after target marketingValue Proposition The Company must also decide how it will serve its target customers how it will differentiate and position itself in the marketplace A companys value proposition is the set of benefitsvalues it promises to deliver to consumers to satisfy their needsBMW ultimate driving machine APPLE touching is believingProduction Concept the idea that consumers will favor products that are available and highly affordable Also that the company should focus on improving production and distribution efficiency Low labor costs high production efficiencymass distributionProduct Concept the idea that consumers will favor products that offer the most quality performance and features Also that the company should devote its energy to making continuous product improvements can lead to marketing myopia mousetrapspraySelling Concept the idea that consumers will not buy enough of the firms products unless it undertakes a largescale selling and promotion effort The selling concept is typically practiced with unwanted goods that buyers dont normally think of buying ex insurance giving blood etcMarketing Concept idea that achieving organizational goals depends on knowing the needs and wants of target markets and delivering desired satisfactions better than competitors do Customer focus and value are the paths to sales and profits Selling vs Marketing ConceptSelling starting point factoryfocus existing productsends profits through salesMarketing starting point marketfocus customer needsends profits through consumer satisfactionSocietalMarketing Concept the idea that a companys marketing decisions should 1 Consider consumers wantsthe Companys requirements 2 Consumers and societys longrun interests This concept believes that marketing strategy should deliver value to customers in a way that maintains or improves both the consumers and societys well beingCompanies should balance three considerations 1 Consumers wants 2 Companys profits and 3 Societys interestswelfare credo honesty integrity peopleprofitsMarketing Mix classified into the four PsoProduct the firm must first create a needsatisfying market offeringproductoPrice it must decide how much it wall charge for the offeringoPlace how it will make the offering available to target consumersoPromotion communicate with target consumers bout the offering and persuade them of its valuemeritsCustomer Relationship Management the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Deals with all aspects of acquiring keeping and growing customersRelationship Building Blocks Customer ValueSatisfaction 1CustomerPerceived Value customer buys from the firm that offers the highest CPVthe customers evaluation od the difference between all the benefits and costs of a marketing offering relative to those of competing offers2Customer Satisfaction depends on the products perceived performance relative to a buyers expectations Product performanceexpectations dissatisfied and viceversaoHigher levels of satisfactiongreater customer loyaltycompany profitsFrequency Marketing Programs reward customers who buy frequently or large amounts Ex airlines upgrades points and supermarkets discountsClub Marketing Programs offer members special benefits and create member communities Ex Harley Davidson magazines custom dream HarleySelective Relationship Management cant attract every customer so target fewer and more profitable customers with attractive offers to capture and get their loyalty Ex Best Buys angel customers 20 of customers that produce most of its profit buy new released electronics without waiting for a sale and demons slap down rockbottom prices from websites and demand best buy to match only buy on sale ConsumerGenerating Marketing marketing messages ads and other brand exchange created by consumer themselvesboth invited and uninvited Basically customers us making videos or other things of products we like consumer is kingPartner Relationship Management working closely with partners in other company departments and outside the company to jointly bring value to customersoMore areas of a company than just marketing take on understanding customers and representing customer needs Teams are now made consisting of salesmarketing people operations specialistsmarketfinancial analysts Creating and Capturing Customer ValueFirst four steps in the marketing process involve building customer relationships by creatingdelivering superior customer value Final step capturing value in return in the form of current and future sales market share and profitsSuperior Customer Valuehighly satisfied customers who stay loyal and buy moregreater longrun returns for the firm The outcomes of creating customer value are
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