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

Marketing - Chapter 1.docx

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Management (MGM)
Tarun Dewan

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
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