COMM 131 Chapter Notes - Chapter 1: Marketing Myopia, Market Segmentation, Marketing Management

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Published on 20 Apr 2013
School
Queen's University
Department
Commerce
Course
COMM 131
Professor
Marketing
Chapter 1: Creating and Capturing Customer Value
January 8, 2012
What is Marketing?
- Managing profitable customer relationships
- Goal is to attract new customers but promising superior value and to keep/grow current
customers by delivering satisfaction
Marketing Defined
- Marketing must be understood in the sense of satisfying customer needs
- The aim of marketing is to make selling unnecessary
- Marketing: the process by which companies create value for customers and build strong
customer relationships in order to capture value from customers in return
The Marketing Process
- Companies understand consumers, create customer value, and build strong relationships
- Companies reap rewards of creating superior customer value
Understanding The Marketplace and Customer Needs
Customer Needs, Wants, and Demands
- Needs: states of felt deprivation (physical, social, individual)
- Wants: the form human needs take as shaped by culture and individual personality
- Demands: human wants that are backed by buying power
Market Offerings Products, Services, and Experiences
- Consumer needs and wants are fulfilled through market offerings
- Market Offerings: some combination of products, services, information, or experiences
offered to a market to satisfy a need or want
- Include people, places, organizations, information, and ideas
- 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
- Brand Experiences: created by orchestrating several products and services
Customer Value and Satisfaction
- Customers form expectations about the value and satisfaction that various market
offerings will deliver
- Satisfied customers buy repeatedly and tell others about their good experiences
- Dissatisfied customers switch to competitors and disparage the product to others
Understand
the
marketplace
and customer
needs and
wants
Design a
customer-
driven
marketing
strategy
Construct an
integrated
marketing
program that
delivers
superior value
Build
profitable
relationships
and create
customer
delight
Capture value
from
customers to
create profits
and customer
equity
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Exchanges and Relationships
- Marketing occurs when people decide to satisfy needs and wants through exchange
relationships
- Exchange: the act of obtaining a desired object by offering something in return
- Marketing consists of actions taken to maintain desirable exchange relationships with
target audiences involving a product, service, idea, or object
Markets
- Market: the set of all actual and potential buyers of a product or service
- Buyers in a market share needs/wants
- Core marketing activities include research, product development, communication,
distribution, pricing, and customer service
- Marketers must deal with customer-managed relationships
- The company and competition research the market and interact with consumers to
understand their needs
- Companies create and send market offerings to consumers
Designing a Customer-Driven Marketing Strategy
- Marketing Management: choosing target markets and building profitable relationships
with them
- Marketing manager’s aim: find, attract, keep, and grow target customers by creating,
delivering, and communicating superior value
- Two Questions:
- What customers will we serve?
- How can we serve these customers best?
Selecting Customers to Serve
- Segment the market (market segmentation)
- Select segments the company will go after (target marketing)
- Marketing management is customer management and demand management
Choosing a Value Proposition
- Decide how to differentiate and position itself in the market
- Value Proposition: set of benefits or values it promises to deliver to consumers to
satisfy their needs
Marketing Management Orientations
- Design strategies that will build profitable relationships with target customers
- 5 Key Concepts: production, product, selling, marketing, and societal marketing
1. Production Concept
- Consumers will favor highly available and affordable products
- Focus on improving production and distribution efficiency
- eg. Lonovo Computers
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Document Summary

Goal is to attract new customers but promising superior value and to keep/grow current customers by delivering satisfaction. Marketing must be understood in the sense of satisfying customer needs. The aim of marketing is to make selling unnecessary. Marketing: the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Companies understand consumers, create customer value, and build strong relationships. Companies reap rewards of creating superior customer value. Understand the marketplace and customer needs and wants. Construct an integrated marketing program that delivers superior value. Capture value from customers to create profits and customer equity. Needs: states of felt deprivation (physical, social, individual) Wants: the form human needs take as shaped by culture and individual personality. Demands: human wants that are backed by buying power. Consumer needs and wants are fulfilled through market offerings.

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