Partielo | Defining Marketing and the Marketing Process Chapter 1

Chapter 1: Marketing

Marketing is dealing with customers.

Examples

* Amazon and there online world class online buying experience.

* Facebook and the 2.9 billion monthly users that they keep connected from anywhere around the world. “connect and share with the people in their lives.”

* Starbuck and the out of home coffee marking by making “creating a culture of warmth and belonging, where everyone is welcome.”

Sound Marketing is the success of every organization.

You see it in the abundance of products at your nearby shopping mall and the ads that fill your TV screen, spice up your magazines, or stuff your mailbox. In recent years, marketers have assembled a host of newer marketing approaches, everything from imaginative websites and smartphone apps to online videos and social media.

Marketing Defined

What is marketing?

*Selling and advertising is the tip of marketing iceberg.

* The aim of marketing is to make selling unnecessary

Definitions

Marketing

Set of strategies and activates by which companies acquire and engage customers, build strong customer relationships and create superior customer value in order to capture value from customers in return .

The Marketing process.

Five step model- creating and capturing customer value.

Understanding the Marketing and Customers Needs

5 step process

Needs, wants and demands
Market Offerings
Value and satisfaction
Exchange and relationships
Markets

Needs, wants and demands

Needs- Basic physical needs for food-clothing-warmth and safety.-State of felt deprivation

Wants- Human needs take as they are shaped by culture and individual personality

Demands- Human wants that are backed by buying power

Definitions

Market Offerings

Some combination of products, services, solutions and experiences offered to a market to satisfy a need or want

Marketing myopia

The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.

Exchange

The act of obtaining a desired object from a person or an organization by offering something in return.

Market

The set of all actual and potential buyers of a product or service.

Production concept

The idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency.

Definitions

Product concept

The idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements.

Selling concept

The idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort.

Marketing concept

A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

Definitions

Societal marketing concept

The idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.

Definitions

Customer relationship management

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Customer-perceived value

The customer’s evaluation of the difference between the benefits delivered by and the costs of obtaining and using a market offering, relative to those of competing offerings.

Customer satisfaction

The sense of pleasure a buyer feels when a product’s perceived performance matches or exceeds their expectations.

Customer-engagement marketing

Making the brand a meaningful part of customers’ conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community.

Customer brand advocacy

Actions by which satisfied customers initiate favorable interactions with others about a brand.

Customer-generated marketing

Brand exchanges created by customers themselves—both invited and uninvited—by which customers play a role in shaping their own brand experiences and those of other customers.

Definitions

Partner relationship management

Working closely with partners in other company departments and outside the company to jointly bring greater value to customers.

Customer lifetime value

The value of the entire stream of purchases a customer makes over a lifetime of patronage.

Share of customer

The portion of the customer’s spending in its product categories that a company captures.

Discussion Questions

1-1 What is marketing, and what is the goal of the marketing process? (AACSB: Written and Oral Communication)

1-2 What are the five marketing orientations, and what do marketing managers prioritize when operating under each? (AACSB: Written and Oral Communication)

1-3 Marketers calculate and track customer-centered metrics to assess their performance, such as customer lifetime value customer equity. How are these two measures related? (AACSB: Written and Oral Communication; Reflective Thinking)

1-4 What are the two important questions a marketing manager must answer to design a customer value–driven marketing strategy? Briefly describe why the answer to each question is important. (AACSB: Written and Oral Communication; Reflective Thinking)

1-5 What is consumer-generated marketing? What are the challenges associated with consumer-generated marketing? (AACSB: Written and Oral Communication; Reflective Thinking)

1-6 What is customer brand advocacy? Why is it important to brand managers? (AACSB: Written and Oral Communication; Reflective Thinking)

Chapter 1: Marketing

Marketing is dealing with customers.

Examples

* Amazon and there online world class online buying experience.

* Facebook and the 2.9 billion monthly users that they keep connected from anywhere around the world. “connect and share with the people in their lives.”

* Starbuck and the out of home coffee marking by making “creating a culture of warmth and belonging, where everyone is welcome.”

Sound Marketing is the success of every organization.

Marketing Defined

What is marketing?

*Selling and advertising is the tip of marketing iceberg.

* The aim of marketing is to make selling unnecessary

Definitions

Marketing

The Marketing process.

Five step model- creating and capturing customer value.

Understanding the Marketing and Customers Needs

5 step process

Needs, wants and demands
Market Offerings
Value and satisfaction
Exchange and relationships
Markets

Needs, wants and demands

Needs- Basic physical needs for food-clothing-warmth and safety.-State of felt deprivation

Wants- Human needs take as they are shaped by culture and individual personality

Demands- Human wants that are backed by buying power

Definitions

Market Offerings

Some combination of products, services, solutions and experiences offered to a market to satisfy a need or want

Marketing myopia

The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.

Exchange

The act of obtaining a desired object from a person or an organization by offering something in return.

Market

The set of all actual and potential buyers of a product or service.

Production concept

The idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency.

Definitions

Product concept

The idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements.

Selling concept

The idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort.

Marketing concept

A philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

Definitions

Societal marketing concept

The idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.

Definitions

Customer relationship management

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Customer-perceived value

The customer’s evaluation of the difference between the benefits delivered by and the costs of obtaining and using a market offering, relative to those of competing offerings.

Customer satisfaction

The sense of pleasure a buyer feels when a product’s perceived performance matches or exceeds their expectations.

Customer-engagement marketing

Making the brand a meaningful part of customers’ conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community.

Customer brand advocacy

Actions by which satisfied customers initiate favorable interactions with others about a brand.

Customer-generated marketing

Brand exchanges created by customers themselves—both invited and uninvited—by which customers play a role in shaping their own brand experiences and those of other customers.

Definitions

Partner relationship management

Working closely with partners in other company departments and outside the company to jointly bring greater value to customers.

Customer lifetime value

The value of the entire stream of purchases a customer makes over a lifetime of patronage.

Share of customer

The portion of the customer’s spending in its product categories that a company captures.

Discussion Questions

1-1 What is marketing, and what is the goal of the marketing process? (AACSB: Written and Oral Communication)

1-2 What are the five marketing orientations, and what do marketing managers prioritize when operating under each? (AACSB: Written and Oral Communication)

1-5 What is consumer-generated marketing? What are the challenges associated with consumer-generated marketing? (AACSB: Written and Oral Communication; Reflective Thinking)

1-6 What is customer brand advocacy? Why is it important to brand managers? (AACSB: Written and Oral Communication; Reflective Thinking)