ADMS 2200 Study Guide - Midterm Guide: Marketing Mix, Starbucks, Market Segmentation

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Chapter 1 Notes
This chapter focuses on 1. Defining marketing, 2. Marketing process
Successful companies are focused on marketing they share a passion for
satisfying customer needs in respective target markets
Customer Relationships are very important in todays economy
What is marketing?
Deals with customers
Marketing: is managing profitable customer relationships
The second goal is to attract new customers by promising superior value
and satisfaction
Sound marketing is critical to success of every organization
Marketing is all around us
Marketers want to become a part of ones life To help one live the brand
Behind marketing is massive network of people and activities
Marketing Defined
Marketing is more than just selling and advertising: it’s a way of satisfying
customer needs
Selling and advertising are only part of a larger “marketing mix”
Tools are used to satisfy customer needs and build customer relationships
Marketing is a social and managerial process for organizations to obtain
what they need and want from others
Marketing: Marketing involves building profitable, value earning customer
relationships: to Build strong customer relationships in order to capture
value from customers in return
The Marketing Process
A five step model
1. Understand marketplace and customer needs
2. Design a customer driven market strategy
3. Create marketing program to deliver value
4. Build profitable relationships
5. Capture value from customer (to create profits and customer equity)
First four steps build value for customers; the final step captures value from
customers.
Understanding the Marketplace and customer needs
1. Needs, wants and demands
The most basic concept underlying marketing is human needs
Physical needs - food, clothing, warmth, safety
Social needs belonging, affection
Individual needs self expression
Wants are the form human needs, shaped by culture and individual
personality
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One NEEDS breakfast but WANTS and large coffee
When backed by buying power wants demands
Marketers do this through research
2. Market offerings
Combination of products, sevices, information or experiences to satisfy needs
or wants
Also include persons, places organizations, information and ideas.
Marketing Myopia: Where sellers focus on specific products, rather than
benefits and experiences from these products they lose sight of underlying
customer needs because they are so amazed by their product. Only focus on
current customer needs
Smart marketers focus on attributes such as Brand experiences.
3. Value and satisfaction
Lots of products
Customer has perceived satisfaction
Satisfied customers will buy again if they have good experience
Marketers must be careful in giving the right amount of expectation. If set too
low it wont attract customers. If set too high customer will be
disappointed
This step is key to building and managing customer relationships
4. Exchanges and relationships
Exchange: the act of obtaining a desired object from someone by offering
something in return
Companies want to grow, and marketers must maintain customer relations
and built new ones
5. Markets
A market is a set of all actual and potential buyers of a product
Marketing means managing markets to bring about profitable customer
relationships
Buyers carry on marketing as well. Consumers do marketing by purchasing
the product
Marketing involves serving a market of final consumers vs competitors.
Research must be done in order to interact with consumers
Different groups add value to the system. Final consumers make a difference
in whether or not the marketing is successful
Designing a customer-driven marketing strategy
Marketing management (the art and science of building profitable
relationships) must design a customer driven marketing strategy.
The marketing managers aim to attract grow and keep target customers
by creating customer value
Selecting customers to serve
The company must first segment customers market segmentation: then
“attack” the target market
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