A+ Notes: Ch 1

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Published on 1 Oct 2011
School
UTSC
Department
Management (MGM)
Course
MGMA01H3
Professor
Ch. 1 Marketing: Creating and Capturing Customer Value
What is Marketing?
P&G Tide: build meaningful customer connections can’t copy how consumers feel
about brand
marketing – activities, set of institutions & processes for creating, communicating,
delivering, exchanging offerings that have value for customers, clients, partners &
society
focus: customers & profitability
goal: attract new customers (with value) & keep old customers (satisfaction)
Walmart (Save $, Live Better), Disney (dream come true), Apple (Think Different)
take care of customers, part of their life market share, profits will follow
old way: telling & selling; new way: satisfy customer needs, socially responsible
Peter Drucker “aim of mkting is to make selling unnecessary”
marketing process: (1) understand n/w (2) customer-driven mkting strategy (3) deliver
value
(4) establish profitable rel’ns & customer satisfaction (5) profits & customer equity
Understanding the Marketplace and Customer Needs
1. customer n/w, demands
human needs – states of felt deprivation – physical (food), social (belonging, affection),
individual (knowledge, self-expression)
wants – the form human needs take as shaped by culture, indiv. personality, mkting
programs
demands – wants backed by resources (buying power)
2. market offerings – prod., services, experiences
market offerings – some combination of g/s, info, experiences offered to a mkt to
satisfy a n/w
marketing myopia – mistake of paying more attention to specific prod. of co. than
bene/exp produced by these prod. focus only on existing wants & not on underlying
needs
if new prod. better serves need or less expensive cust. same need will want new prod.
*create brand experience
3. Customer Value and Satisfaction
cust. form expectations of value & satis. of mkt offerings
satis. cust. will tell others, develop loyalty
careful about setting expectations too high/low
4. Exchanges and Relationships
exchange – act of obtaining a desired obj. from someone by offering something else in
return
actions to build/maintain desirable exch. rel’ns w/ target audience involving g/s, idea
goal: retain customer & grow their business with company
5. Markets
market – the set of all actual or potential buyers of a g/s
activities incl. research, development, comm’n, distrib., pricing, service
not just reaching to customers, how can customers reach us & each other?
marketing sys: suppliers co./competitors intermediaries customer
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affected by envir. forces (demographic, economic, physical, technology, etc)
each party in sys adds value; success dep. on all levels
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Document Summary

P&g tide: build meaningful customer connections can"t copy how consumers feel about brand. Marketing activities, set of institutions & processes for creating, communicating, delivering, exchanging offerings that have value for customers, clients, partners & society focus: customers & profitability goal: attract new customers (with value) & keep old customers (satisfaction) Walmart (save $, live better), disney (dream come true), apple (think different) take care of customers, part of their life market share, profits will follow old way: telling & selling; new way: satisfy customer needs, socially responsible. Peter drucker aim of mkting is to make selling unnecessary . Marketing process: (1) understand n/w (2) customer-driven mkting strategy (3) deliver value (4) establish profitable rel"ns & customer satisfaction (5) profits & customer equity. Understanding the marketplace and customer needs: customer n/w, demands human needs states of felt deprivation physical (food), social (belonging, affection), individual (knowledge, self-expression)