What is marketing: Marketing is managing profitable customer relationship. The twofold goal of marketing is to attract new customer by promising superior value and to keep and grow current customers by delivering satisfaction.
Marketing is the process by which companies create value for customer and build strong customer relationship in order to capture value from customer in return.
The Marketing Process
1) Understand the marketplace and customer needs and wants.
2) Design a customer driven marketing strategy
3) Construct an integrated marketing program that delivers superior value
4) Build profitable relationships and create customer delight.
5) Capture value from customers to create profits and customer equity
Proctor and Gamble CEO A.G Lafly goes in to customers homes to understand more indebt what the customer needs are.
Founder Jhon Stanton uses online forums to build more personal relationship with the customer
Market offerings-Products, service, and Experiences
Marketing offerings: fulfill the customer’s needs and wants. Marketing offerings include, places, people, information services ect.
Market Myopia: Many sellers make the mistake of paying attention to the actual product and not to the experience and gains of that product.
Market: A set of all actual and potential buyers of a product.
“How can we reach our customers” “How can our customers reach us” “How can our customers reach each other”
Suppliers – Company – Market intermediaries – Customer
Marketing Management The art and science of choosing target markets and building profitable relationship with them- What customers will we serve (Target market) and how will we serve them (Value proposition)
Selecting Customers To Serve
Target segmentation- The market must decide on who it will serve.
Target marketing- Selecting which segments it will go after
Choosing a value proposition
Value proposition- is a set of benefits and values that a market promises to its customers. Value proposition “The future is friendly” “Connecting people” “Makes luxury affordable”
This is how you differentiate yourself as a market from others.
Marketing Management Orientations
There are five alternative concepts under which organization design and carry out their marketing strategies:
The production concept- the production concept holds that consumer will favor that are available and highly affordable. Therefor management should focus on improving production and distribution effiecny.
The product concept- this holds that the consumer will favor product that are have high quality and more innovative features.
The selling concept holds that consumers will not buy enough products unless the company undergoes in a series of promotions and sales.
The market concept- This holds that achieving organizational goals depend on knowing the needs and wants of target markets and delivering the desired satisfaction better then competitors do.
The societal marketing concept: Holds that the market strategy should deliver value to customers in a way that maintains or improves both consumers and society well being.
Marketing Mix: The set of marketing tools the firm uses to implement its marketing strategy. The four p’s. Product, price, place and promotion.
Customer Relationship Management (CRM)
Broader term: is the overall process of building and maintain profitable cutomer relationship by delivering superior customer value and satisfaction. Deals with all aspects of acquiring, keeping and maintaining customer.…