Chapter 1
Creating and Capturing
Customer Value
Understanding the Marketplace & Customer Needs (p.30)
Marketing Offers (P.31)
Marketing Defined (P.29)
The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
Customer Needs, Wants, and Demands (P.30)
Need State of felt deprivation including physical, social, and individual needs.Physical: Food, clothing, shelter, safety Social: Belonging, affection Individual: Learning, knowledge, self-expression
Wants + Buying Power = Demand
Want
Form that a human need takes,
as shaped by culture and individual personality.
Market offerings – some combination of products, services, information, or experiences offered to a market
Marketing myopia
is focusing only on existing wants and losing sight of underlying consumer needs
Customers’ needs and wants are fulfilled through market offers
Customer Value & Satisfaction (P.31)
Value and Satisfaction
If performance is lower than expectations, satisfaction is low.
If performance is higher than expectations, satisfaction is high.
Exchange & Relationships (P.33)
Marketing actions try to create, maintain, and grow desirable exchange relationships.
Market is a set of actual and potential buyers of a product or service. These buyers share a particular need or want
Exchange is the act of obtaining a desired object from someone by offering
Designing a Customer-Driven Marketing Strategy (P.34)
Marketing management is the art and science of choosing target markets and building profitable relationships with them
Selecting Customers to Serve (P.34)
Market Segmentation
Target Marketing:
refers to which segments to go after
Designing a Customer-Driven Marketing Strategy (P.35)
Value proposition
Set of benefits or values a company promises to deliver to customers to satisfy their needs
Designing a Customer-Driven Marketing Strategy (P.35-37)
Marketing Management Orientations
Marketing concept
Selling concept
Product concept
Societal concept
Production concept
Marketing Management Orientations (P.35)
Customers will favor products that are available and highly affordable
•Management focuses on improving production and distribution efficiency
•Can lead to marketing myopia and losing sight of the real objective—satisfying customer needs and building customer relationships.
Marketing Management Orientations (P.35)
Achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than the competitors do.
Marketing and Selling Concepts Contrasted (P.36)
Marketing Management Orientations (P.37)
concept is the idea that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long-run interests
Societal Marketing Concept (P.37)
Company
Society
Consumers
Selling takes an inside-out view that focuses on products.
Marketing takes out -side view that focuses on satisfying customer.