Midterm Notes

16 Pages
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Department
Management and Organizational Studies
Course Code
Management and Organizational Studies 2320A/B
Professor
Chris Torrence

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Description
CHAPTER 1 MARKETING: CREATING AND CAPTURING CUSTOMER VALUE The marketing process: Understand the marketplace and customer wants and needs Design a customer-driven marketing strategy Construct marketing program that delivers superior value Build profitable relationships and create customer delight Capture value from customers and create profits and customer equity Understanding the marketplace and customer needs Five core concepts: 1. Customer needs, wants and demands Need: States of felt deprivation. Want: The form human needs takes as shaped by culture and individual personality. Demands: Human wants that are backed by buying power. 2. Market offerings: products, services, and experiences. Marketing myopia: The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. 3. Customer value and satisfaction 4. Exchanges and relationships 5. Markets Market: The set of all actual and potential buyers of a product or service. In above diagram, suppliers and consumers are the major environmental forces. Designing a customer-driven marketing strategy Marketing management: The art and science of choosing target markets and building profitable relationships with them. Must decide on WHAT customers to serve and HOW to best serve them. Value proposition: Set of beliefs or values it promises to deliver to consumers to satisfy their needs. Five concepts under which marketing plans are carried out: 1. Production concept: Idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency. 2. Product concept: Idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous improvements. 3. Selling concept: Idea that consumers will not buy enough of the firms products unless it undertakes a large-scale selling and promotion effort. 4. Marketing concept: The marketing management philosophy that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. 5. Societal marketing concept: Idea that a companys marketing decisions should consider consumers wants, the companys requirements, consumers long-run interest, and societys long-run interests. Building customer relationships Customer relationship management (CRM): Overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Customer-perceived value: The customers evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers. Consumer-generated marketing: Marketing messages, ads, and other brand exchanges, created by consumers themselves, both invited and uninvited. Partner-relationship management: Working closely with partners in other company departments and outside the company to jointly bring greater value to customers. Capturing value from customers Customer lifetime value: The value of the entire stream of purchases that a customer would make over a lifetime of patronage. Share of customer: Portion of the customers purchasing that a company gets in its product categories. Customer equity: The total combined customer lifetime values of all the companys customers. The changing marketing landscape Four major trends and forces that are changing the marketing landscape: 1. The digital age 2. Rapid globalization 3. The call for more ethics and social responsibility 4. The growth of not-for-profit marketing CHAPTER 2 COMPANY AND MARKETING STRATEGY: PARTNERING TO BUILD CUSTOMER RELATIONSHIPS Strategic planning: The process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing market opportunities. Mission statement: A statement of the organizations purpose, what it wants to accomplish in the larger environment. Business portfolio: The collection of business and products that make up the company. Boston Consulting Group (BCG) Growth-share matrix: A portfolio-planning method that evaluates a companys strategic business units (SBUs) in terms of its market growth rate and relative market share. Product-market expansion grid: Market penetration: Increasing sales of current products to current market segments without changing the product. Market development: Identifying and developing new market segments for current products. Product development: Offering modified or new products to current market segments. Diversification: Starting up or acquiring business outside of the companys current products and markets. Downsizing: Eliminating products or business units that are not profitable or dont fit strategy. Planning marketing: partnering to build customer relationships Value chain: The series of departments tat carry out value-creating activities to design, produce, market, deliver, and support a firms products. Value delivery network: The network made up of the company, suppliers, distributors, and ultimately
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