Management and Organizational Studies 2320A/B Study Guide - Midterm Guide: Wield, Marketing Strategy, Longrun

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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 firm’s 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 company’s marketing decisions should consider
consumers’ wants, the company’s requirements, consumer’s long-run interest, and
society’s 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 customer’s 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 customer’s purchasing that a company gets in its product
categories.
Customer equity: The total combined customer lifetime values of all the company’s 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 organization’s 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
company’s strategic business units (SBUs) in terms of its market growth rate and relative market
share.

Document Summary

Chapter 1 marketing: creating and capturing customer value. Understanding the marketplace and customer needs: five core concepts, customer needs, wants and demands. Want: the form human needs takes as shaped by culture and individual personality. Demands: human wants that are backed by buying power: 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: customer value and satisfaction, exchanges and relationships, 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. 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. Customer relationship management (crm): overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.