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Chapter 1

MGCR 352 Chapter Notes - Chapter 1: Ecrm, Customer Experience, Infor


Department
Management Core
Course Code
MGCR 352
Professor
Neville Sancho
Chapter
1

Page:
of 4
Marketing Textbook Notes
Chapter 1
Marketing: an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer
relationships in way that benefit the organization and its stakeholders.
- seeks to discover the needs and wants of prospective customers
- and to satisfy them
4 Factors required for marketing to occur
- 2 or more individuals or organizations with unsatisfied needs
- a desire and an ability on their part to be satisfied
- a way for the parties to communicate
- something to exchange
market: people with the desire and ability to buy a specific product -- > ultimately
all people
who markets everyone!
What is marketed goods, services, and ideas
Social marketing is prevelant today designed to influence the behavior of
individuals by which benefits accrue to those individuals or to society in general and
not to the marketer. EG antismoking campaigns
Who buys and uses what is marketed both individuals and organizations
- Ultimate consumers: people who use the goods and services purchased for
a household.
- Organizational buyers: units such as manufacturers, retailers or
government agencies that buy goods and services for their own use or for
resale.
Who benefits:
1. consumers who buy
a. access to free competition in Canadian society so we can benefit
greatly from the best products
2. organizations that sell
a. provide good products + effective marketing = doing awesome
b. lots of organizations fail that don’t compete effectively
3. society as whole
a. enhances competition, improves quality of products and services and
lowers their prices
It is very important to discover and satisfy consumer needs:
- discover the needs of prospective customers
o hard b/c most of the time customers don’t even know what they want
(ie Apple)
o want to prevent product failures obviously
solution: focus on what the customer benefit is what they
need and want
produce what they need and want, and do not product what
they don’t need and want
this is way easier said then done.
o Should be both needs and wants
- Satisfying customer needs
o Target market: one or more specific groups of potential consumers
toward which an organization directs its marketing program
o Look at the marketing mix (four Ps) to identiy the group we are
targeting our product b/c obviously its impossible to target
everyone
product
price
promotion
place
o these are all controllable factors
o uncontrollable, environmental factors also exist:
social
economic
technological
competitive
regulatory forces
marketing program: a plan that integrates the marketing mix to provide a good,
service, or idea to prospective buyers
Discover
consumer needs
Satisfy consumer needs
by finding the right
combination of:
Product
Price
Promotion
Place
Goods, services, ideas
Potential consumers: The market
Info about needs
The Evolution of North American Businesses
Production era (1860 1920)
Sales era (1920 1960s): produce more goods than their buyers would onsumer
competition grew
Marketing concept era (1960s-2000): the idea that an organztion should strive to
satisfy the needs of consumers, while also trying to achieve the organization’s goals.
Focused on the consumer.
Market Orientation Era (mid 1900s mid 2000s): focused on 1. Confinuousy
collecting info about customers’ needs and competitiors’ capabilities, 2. Sharing this
infor throughout the organization, and 3. Using the information to create value,
ensure customer satisfaction, and develop customer relationships.
- customer value: the unique combo of benefits received by the cusomer that
incl quality, price, convenience, on-time delievery, and both before-sale and
after-sale service.
- customers have come to value quality and the experience a lot, or simply the
best of something
- EG Starbucks attempts to offer the best produt, Wal-mart attempts to offer
the best prices
- this results in customer satisfaction important way of measuring the
firm’s ability to succesfully meet the needs of the consumer.
- Firms with a market orientation engage in customer relationship
management the process of building and developing long-term
relationships with customrs by deleiverin customer value and satisfaction.
Want to retain customers over a long period of time.
o Requires commitment by workers in the company to be successful
o Technology enables CRM as well
o eCRM exists now personalized approach online to managing
customer relationships.
Includes interactive marketing: two way buyer-seller
electronic communication in which the buyer can control the
kind and amount of information recived from the seller.
Customer experience management (2010-) : good reationships result from good
experiences, so must mange both not just IT is nough to get that .. managing the
customers’ interactions with the organization at all levels and at all touchpoints so
that the customer has a positive impression of the organization, is satisfied with the
experience, and will remain loyal to the organization.
- Recent study suggested that 60% of executives believed that improving
customer experience was critical to the future growth of their companies.
- Customer lifetime value is the profit generate by the customer’s purhase of
an organization’s produc tor service over the customer’s lifetime.