Textbook Notes (368,280)
Canada (161,762)
MGMA01H3 (184)
Chapter 1

Marketing - Chapter 1.docx

6 Pages
115 Views
Unlock Document

Department
Management (MGM)
Course
MGMA01H3
Professor
Tarun Dewan
Semester
Winter

Description
Chapter 1: Marketing: Creating and Capturing Customer Value 1) What is Marketing? • Marketing is managing profitable customer relationships • Promising superior value and deliver satisfaction • Help consumers live the brands Marketing Defined • Telling, selling, satisfying the consumer needs in social responsible and ethnical manner • Marketing Process: value to consumer (first four steps) = value to produce (final step) 2) Customer Needs, Wants, and Demands • Human needs: physical, social, individual • Wants (shaped by society) -> demands (value & satisfaction) Marketing Offerings – Products, Services & Experiences • Consumers want market offering • Producers suffer marketing myopia – product is a tool to solve consumer problems Customer Value & Satisfaction • Demand & supply – low $ = fail to attract but high $ disappoints • Customer value & satisfaction key to development & managing customer relationships Exchanges & Relationships • Build and maintain exchange relationships = customer value Markets • Managing markets = profitable customer relationships • Customer managed relationships • Company & competitors gain customer needs and send to marketing intermediaries o Affected by major environmental forces 3) Designing a Customer Driven Marketing Strategy Selecting Customer Service • Marketing management – customer & design management • Create market segmentation and then target accordingly Choosing a Value Proposition • Brans value proposition – value/benefit delivers to consumer (C.A?) Marketing Management Orientations The Production Concept • Improve production and distribution efficiency • May experience marketing myopia The Product Concept • Marketing strategy – product quality and improvement • May experience marketing myopia • Consumers looking for better solutions not alternatives The Selling Concept (inside-out Perspective) • Main focus: sale transactions – those unneeded products – consumer conquest • Large scale selling and promoting effort The Marketing Concept (outside-in perspective) • Customer focus and value – ‘sense and respond’ philosophy • Customer driven – understanding needs = customer department = profit The Societal Marketing Concept • Sustainable marketing – consumer and society’s well being o Socially and environmentally responsible marketing • Companies societal market concept – society, consumers, company • UPS – economic prosperity, social responsibility, environmental stewardship o Benefits in the short and long run for both producer and consumer Preparing and Integrated Marketing Plan and Program • Marketing mix tools: 4Ps = Price, Promoting, Place, Product o Integrated market program o Communicates and deliver intended value to chosen customers 4) Building Customer Relations • Marketing process: o Understanding marketplace and customer needs o Designing customer driven marketing strategy o Constructing a marketing program Customer Relationship Management (CRM) • Important in marketing – manage detail and touchpoints = customer loyalty Relationship Building Blocks: Customer Value and Satisfaction • Customer perceived value – customers’ perception of value o Benefit vs cost compared to competitors o Expensive/cheap could mean value (depends) • Customer satisfaction – company promise less so better product = higher satisfaction = loyalty = higher profits • Customer value profitably – customer value and satisfaction without lowering prices Customer Relationship Levels and Tools • Marketing tools = stronger bonds • Point cards and through website, branding, advertisements The Changing Nature of Customer Relationships Relation with more carefully Selected Customers • Customer profitability analysis – screening out unprofitable customers Relation more Deeply and Interactively • Two way customer relationships – social medial o Representative brand (co-creation – voice and role of brand) o Customer relationship management and customer managed relationships o Customers have more control then ever – brand = promote and attract o Success = relevant and genuine contributions to consumer conversation • Consumer generated marketing – expensive and time consuming o Significant market force – consumers has a say about product design, usage, and packaging to pricing and distribution Partner Relationship Management Partners Inside the Company • Marketing and be customer focused within the whole company • Companies creating cross-function customer teams = effective Marketing Partners Outside the Company • Supply chain management – relationship with suppliers, channel partners and competitors = success Creating Customer Loyalty and Retention • Emotional connection = satisfied customer =loyal = customer lifetime value Growing Share of Customers • Share of customer – greater product variety or programs to cross-sell and up-sell Building Customer Equity • Customer relationship management = long-term view What is Customer Equity? • Future value of the company’s customer base = customer lifetime value and equity • Market share and sales reflects
More Less

Related notes for MGMA01H3

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit