Marketing and Customer Value Essay

Submitted By sgerloff
Words: 2273
Pages: 10

Study Guide
Marketing: the activity for creating and delivering offerings that benefit the organization, its stakeholders, and society For marketing to occur you need: two or more parties with unsatisfied needs, a desire and ability on their part to be satisfied, a way for parties to communicate, and something to exchange TO SERVE BOTH BUYERS AND SELLERS, and achieving the marketing objectives EXCHANGE must happen: trade of things of value b/w a buyer and a seller so that each is better off (bi-directional: exchanges of things w. value) Marketing Objectives: 1. Discovering Consumer Needs
a. Consumer needs and consumer wants: (effective marketing can shape a person’s wants) - Need occurs when a person feels deprived of basic necessities such as food, clothing and shelter - Want is a need that is shaped by a person’s knowledge, culture, and personality b. Market: people with both the ability and the desire to buy a specific offering: “buy” an idea like if your marketing someone to save energy 2. Satisfy Consumer Needs a. After you discover consumer needs, you cant stop there because an organization can not possibly satisfy all consumer needs so it needs to concentrate its efforts on a specific group or groups of potential consumers, this is the Target Market b. After choosing target market you must satisfy their needs by creating a Marketing Mix, the 4 P’s, and all CONTROLLABLE factors Product: a good, service or idea to satisfy consumer’s needs Price: what is exchanged for the product Promotion: means of communication b/w seller and buyer Place: means of getting the product to the consumer c. An effective marketing mix conveys a clean customer value proposition: cluster of benefits that an organization promises its customers to satisfy their needs: ex- Wal-Mart’s quote, “everyday low prices for a broad range of products that are always in stock in convenient locations” d. Environmental Forces: UNCONTROLLABLE social, economic, technological, competitive, and regulatory forces that affect the results of a marketing decision

Customer Relationships
Customer Value: buyer’s benefits, including quality, convenience, on-time delivery, and before and after sale service at a specific price
Loyal, satisfied customers are likely to repurchase more over time
Loyalty and satisfaction are not always linked: if you are the only company that sells that products then consumers will continue to buy your product even though that are not satisfied
Noncompetitive zone: where you’re the monopoly and have to buy from you/ Competitive zone:
Marketing Relationship: linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit: connection with customers using the 4 P’s
Evolution of Marketing Orientation:
1. Production Orientation: bought anything really because there were not a lot of good available and they were scarce
2. Sales Orientation: manufacturers could produce more goods than buyers could consumer, competition grew, salespeople hired
3. Marketing orientation:
Marketing Concept: the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organizations goals (understood the objectives of marketing in this era)
Market Orientation: focusing organizational efforts to collect and use information about customer needs to create customer value
4. Customer Relationship Orientation:
Focus on customers led to Customer Relationship Management (CRM): process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace
Foundation of CRM: customer experience: the internal response customers have to all aspects of an organization and its offering
The internal response includes direct and indirect contacts