Lecture 1 - Value
1. Define marketing, employing key elements such as value, products, markets, customer relationships, needs, wants and demands.
Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
Needs are states of felt deprivation.
Wants are the form human needs take as shaped by culture and individual personality.
Demands are human wants that are backed by buying power.
Market offering and a combination of products, services, information or experiences offered to a market to satisfy a need or want.
Customer-perceived value is the customer’s evaluation of the difference between all the benefits and all the costs pf a market offering relative to those of competing offers.
Customer satisfaction is the extent to which a products perceived performance matches buyer’s expectations.
Exchange is the act of obtaining a desired object from someone by offering something in return.
Transaction is a trade between two parties that involves at least two things of value, agreed-upon conditions and a time and place of agreement.
2. Discuss the marketing process.
The marketing process involves five steps. The first four steps create value for customers. First, marketers need to understand the marketplace and customer needs and wants. Next, marketers design a customer-driven marketing strategy with the goal if getting, keeping and growing target customers. In the third step, marketers construct a marketing program that actually delivers superior value. All of these steps from the basis for the fourth step, building profitable customer relationships and creating customer delight. In the final step, the company reaps the rewards of strong customer relationships by capturing value from customers.
3. Identify the marketing mix elements.
4. Understand basic ideas of demand management and building profitable customer relationships.
Customer relationship management is the process of building and maintaining profitable customer relations by delivering, superior customer value and satisfaction. The aim of customer relationship management is to produce high customer equity, the total combined customer lifetime values of all of the company’s customers. The key to building lasting relationships is the creation of superior customer value and satisfaction.
Companies want not only to acquire profitable customers but also to build relationships that will keep them and grow share of customer. Different types of customers require different customer relationship management strategies. The marketers aim is to build the right relationships with the right customers. In return for creating value for targeted customers, the company captures value from customers in the form of profits and customer equity.
In building customer relationships, good marketers realise that they cannot go it alone. They must work closely with marketing partners inside the company. In addition to being good at customer relationship management, they must also be good at partner relationship management.
5. Understand the key marketing challenges of this century and reflect on the ways these might be overcome.
There are dramatic changes occurring in the marketing arena. The recent economic meltdown has left many consumers short of both money and confidence, creating a new age of consumer frugality. More than ever, marketers must now emphasise the value in their value propositions. The challenge is to balance a brands value proposition with the current times while also enhancing its long-term equity.
The boom in the computer, telecommunications, information, transportation and other technologies has created exciting new ways to learn about and relate to…