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Marketing: Managing Profitable Customer Relationships (Chapter 1) -…
Marketing: Managing Profitable Customer Relationships
(Chapter 1)
2. CORE CONCEPTS OF MARKETING
Exchange, transaction and relationship
Exchange is the act of obtaining a desired object from someone by offering something in return
Transactions consists of a trade of values between two parties
Relationships are built through delivering value and satisfaction
Keywords: relationships with exchanges are the goal and how you delivering value and satisfaction.
Market
Set of actual and potential buyers of a product
Marketers seek buyers that are profitable, the marketers try to fulfill customers’ needs and wants.
Value and Satisfaction
Marketers must deliver value to consumers
Customers form expectations about the value of various marketing offers
A satisfied customer will buy again and tell others about their good experience, dissatisfied customer will tell about she/he experiences to 11 person.
dissatisfied, satisfied and delighted customer.
Demands
Wants which are backed by buying power
Given their wants & resources, people demand product with benefits that add up to the most value and satisfaction
Example: Burger King vs Ramly Burger, MNG vs Petaling Street cloth.
Need
State of felt deprivation
Not created by marketer-it is basic part of human life
Example: Need food, cloth, safety
Wants
The form of needs as shaped by culture and the individual
Example: Want a Big Mac, fries and soft drinks
Marketing offers
Combination of products, services, information or experiences that satisfy a need or want
Keywords: Offer may include services, information or ideas (anti-smoking, drugs prevention)
4. MARKETING MANAGEMENT ORIENTATIONS
Product concept
Consumer: will favor products that offer the most quality, performance and innovative features.
Marketing strategies: making continuous product improvements. Ex: shampoo, mousetraps, cameras, handphones
Selling concept
Consumer: will not buy enough of firm’s product unless undertakes large-scale selling or more promotion effort
Practiced with unsought goods-insurance, blood donation-buyers do not normally think of buying/using,
Marketing strategies:if the company faces overcapacity, aim to sell what they make rather than the market wants.
From factory existing product selling/promoting profits through sales volume
The Societal-Marketing concept
See the conflicts between consumer short run wants and consumer long run welfare.
Ex: McDonalds-the company should balance the 3 consideration in marketing strategies: company profit, consumer wants and society interests.
Stress the honesty, integrity and putting the people (consumer first) before gain the profit
Marketing concept
Company goal: on knowing the needs/wants of target markets and delivering the desired satisfaction better than competitor’s do.
From market - customer needs - integrated marketing - profits through customer satisfaction
Production concept
Consumer: will favor products that available and highly affordable.
Management: focus on improving production/distribution efficiency.
Management should look for ways to increase production.
Example: mineral water,salt
3. MARKETING MANAGEMENT
Marketing management is the art and science of choosing target markets and building profitable relationships with them.
5. THE MARKETING MIX
Price
the amount of money customers have to pay to obtain the
product
Place
-company activities that make the product available to target
-consumers channels, locations, coverage
Product
-goods and services (combination) the company offers to the target markets
-quality, design, features, brand name
Promotion
-activities that communicate the merits of the product and persuade target customers to buy it
1. DEFINITION OF MARKETING
Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others”
9. MARKETING CHALLENGES
Ethics and social responsibility
Not-for-profit marketing
Globalization
Marketing relationships
Digital age
7. MANAGING CUSTOMER RELATIONSHIPS AND CAPTURING CUSTOMER VALUE
Customer-Engagement Marketing: fosters direct and continuous customer involvement in shaping brand conversations, experiences, and community.
Consumer-Generated Marketing:
Brand exchanges created by consumers themselves. Consumers are playing an increasing role in shaping brand experiences.
Partner relationship management:
involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers.
Customer lifetime value:
is the value of the entire stream of purchases that the customer would make over a lifetime of patronage.
Customer equity
: is the total combined customer lifetime values of all of the company’s customers
6. BUILDING CUSTOMER RELATIONSHIPS
CRM – Customer Relationship Management: the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.