Principles of Marketing Essay

Learning ObjectivesAfter studying this chapter, you should be able to 1. Define market and outline the steps in the market puzzle out 2. Explain the importance of understanding guests and the marketplace, and identify the five pump marketplace imaginations 3. Identify the key elements of a client-driven marketing dodging and establish the marketing man be onment orientations that guide marketing strategy 4. Discuss customer relationship anxiety, and identify strategies for creating value for customers and capturing value from customers in return 5. pass the major tr shuttings and forces that argon changing the marketing landscape in this age of relationships1-2Chapter Concepts1. 2. 3. 4. 5. 6. 7. 8.What Is merchandising? apprehending the Marketplace and customer inescapably calculative a Customer-Driven selling strategy Preparing an Integrated merchandising cast and Program structure Customer Relationships Capturing grade from Customers The new-sprung(prenominal ) merchandising landscape painting So, What Is merchandising? pull It All Together1-3What Is Marketing?Marketing Defined Marketing is the process by which companies piddle value for customers and build strong customer relationships to grab value from customers in return1-4What Is Marketing?The Marketing Process1. 2. 3. 4. 5.Understand the marketplace and customer wants and needs Design a customer-driven marketing strategy Construct a marketing plan that delivers premium value crap productive relationships and create customer satisfaction dumbfound value from customers to create profit and customer equity 1-5Marketing processDetermine needs and wants Design customer driven marketing strategy Construct marketing broadcast that delivers superior value Build relationships and delight the customer Capture value from customer to achieve profitsFigure 1.1 Core Marketing Concepts need, Wants & DemandsMarketsCore Marketing ConceptsMarketing OffersExchange & Relationships determine & S atisfaction sense the Marketplace and Customer NeedsCustomer Needs, Wants, and DemandsNeeds are states of passing Physicalfood, clothing, warmth, safety companionablebelonging and affection Individual companionship and selfexpression1-6 intellectual the Marketplace and Customer NeedsCustomer Needs, Wants, and Demands Wants are the socio-economic class that needs take as they are shaped by nette and individual personality Demands are wants backed by buying berth1-7Understanding the Marketplace and Customer NeedsMarket Offerings growths, Services, and Experiences Market cristalings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want1-8Understanding the Marketplace and Customer NeedsMarket OfferingsProducts, Services, and Experiences Marketing myopia is focusing only on quick wants and losing sight of underlying consumer needs Exchange is the act of obtaining a desired object from someone by offering somethin g in return 1-9Understanding the Marketplace and Customer NeedsCustomer entertain and SatisfactionExpectations Customers jimmy and satisfaction Set the right level of expectationsMarketersNot too spunky or too low1-10Understanding the Marketplace and Customer NeedsExchanges and Relationships Exchange is the act of obtaining a desired object from someone by offering something in return Relationships consist of actions to build and maintain suited relationships 1-11Understanding the Marketplace and Customer NeedsMarkets are the set of veritable and potential vendees of a product Marketing system consists of all of the actors (suppliers, family, competitors, intermediaries, and end users) in the system who are affected by major surroundingsal forces Demographic Economic Physical Technological Politicallegal Socio-cultural 1-12Designing a Customer-Driven Marketing systemMarketing prudence Marketing solicitude is the art and science of choosing identify markets and buil ding profitable relationships with them What customers will we take care? How can we best serve these customers?1-13Designing a Customer-Driven Marketing StrategySelecting Customers to Serve Market segmentation Dividing the markets into segments of customers Target marketing Which segments to go after(prenominal)1-14Designing a Customer-Driven Marketing StrategySelecting Customers to Serve De-marketing Marketing to stiffen demand temporarily or permanently the aim is not to abate demand but to reduce or shift it.1-15Designing a Customer-Driven Marketing StrategySelecting Customers to Serve Marketing forethought is Customer instruction Demand management1-16Designing a Customer-Driven Marketing StrategyChoosing a Value Proposition The value proposition is the set of benefits or set a fellowship promises to deliver to customers to satisfy their needs1-17Designing a Customer-Driven Marketing StrategyMarketing concern Orientations end product concept Product concept merc handising concept Marketing concept Societal concept 1-18Designing a Customer-Driven Marketing StrategyMarketing Management Orientations Production concept is the idea that consumers will favor products that are available or highly affordable1-19Designing a Customer-Driven Marketing StrategyMarketing Management Orientations Product concept is the idea that consumers will favor products that offer the most quality, performance, and features for which the organization should therefore devote its energy to making straight improvements1-20Designing a Customer-Driven Marketing StrategyMarketing Management Orientations Selling concept is the idea that consumers will not buy enough of the watertights products unless it undertakes a large scale selling and promotion motion1-21Designing a Customer-Driven Marketing StrategyMarketing Management Orientations Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and deli vering the desired satisfactions better than competitors do1-22Designing a Customer-Driven Marketing Strategy Selling Versus MarketingDesigning a Customer-Driven Marketing StrategyMarketing Management Orientations Societal marketing concept is the idea that a company should draw good marketing decisions by considering consumers wants, the companys requirements, consumers semipermanent interests, and societys long-run interests1-23Societal Marketing Concept orderliness (human welfare)Consumers (want satisfaction)Company (profits)Preparing an Integrated Marketing Plan and ProgramMarketing fluff The marketing mix is the set of tools (four Ps) the firm usesto implement its marketing strategy Product Price Promotion Place 1-24Preparing an Integrated Marketing Plan and ProgramIntegrated Marketing Program Integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers1-25 make Customer RelationshipsCustomer Relationship Manag ement (CRM) Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior value and satisfaction1-26 edifice Customer RelationshipsCustomer Relationship Management (CRM)Customer perceived value is the difference between total customer value and total customer cost Customer satisfaction is the intent to which a products perceived performance matches a buyers expectations 1-27Building Customer RelationshipsCustomer Relationship Management (CRM) Customer Relationship Levels and Tools Basic relationship Full relationships Frequency marketing programs familiarity marketing programs 1-28Building Customer RelationshipsThe Changing Nature of Customer RelationshipsRelating with more carefully selected customers uses selective relationship management to target fewer, more profitable customers Relating for the long term uses customer relationship management to retain underway customers and build profitable, l ong-term relationships Relating directly uses directmarketing tools (telephone, mail order, kiosks, Internet) to make direct connections with customers 1-29Building Customer Relationships follower Relationship Management Partner relationship management refers to working closely with partners in other company departments and outside the company to jointly bring greater value to customers1-30Building Customer RelationshipsPartner Relationship ManagementPartners inside the company is any function area interacting with customers Electronically Cross-functional teams Partners outside the company is how marketers connect with their suppliers, guide partners, and competitors by developing partnerships 1-31Building Customer RelationshipsPartner Relationship Management Supply chain is a channel that stretches from raw materials to components to final products to final buyers Supply management Strategic partners Strategic alliances 1-32Capturing Value from CustomersCreating Customer f aithfulness and Retention Customer lifetime value is the value of the entire germinate of purchases that the customer would make over a lifetime of patronage1-33Capturing Value from CustomersGrowing Share of Customer Share of customer is the portion of the customers purchasing that a company gets in its product categories1-34Capturing Value from CustomersBuilding Customer Equity Customer equity is the total combine customer lifetime values of all of the companys customers1-35Capturing Value from CustomersBuilding Customer Equity Building the right relationships with the right customers involves treating customers as assets that need to be managed and maximized Different types of customers require different relationship management strategies Build the right relationship with the right customers 1-36The New Marketing adornMajor Developments Digital age Globalization Ethics and well-disposed indebtedness Not-for-profit marketing1-37The New Marketing LandscapeThe New Digital te rmRecent technology has had a major impact on the ship canal marketers connect with and bring value to their customers Market research Learning well-nigh and tracking customers Create new customized products Distribution CommunicationVideo conferencing Online data services1-38The New Marketing LandscapeThe New Digital fester Internetcreates marketplaces and marketspaces Information Entertainment Communication1-39The New Marketing LandscapeRapid Globalization The world is smaller Think globally, act topically1-40The New Marketing LandscapeThe Call for More Ethics and Social province Marketers are being called upon to take greater responsibility for the social and environmental impact of their actions in a global economy1-41The New Marketing LandscapeThe Call for More Ethics and Social Responsibility Social marketing campaigns encourage energy conservation and concern for the environment or discourage smoking, excessive drinking, and drug use1-42The New Marketing LandscapeThe Growth for Not-for-Profit Marketing Colleges Hospitals Museums Zoos Orchestras Religious groups1-43