Marketing

Marketing is the process of identifying customers and "creating, communicating, delivering, and exchanging"
goods and services for the satisfaction of those customers. Marketing is engaging customers and managing
profitable customer relationships. The two-fold goal of marketing is to attract new customers and grow current
customers by delivering satisfaction
The Marketing Process
There are five-step of the marketing process for creating and capturing customer value. In the first four steps,
companies work to understand consumers, create customer value and build strong customer relationships. In
the last step, companies The advantages of creating larger customer value.
Understand marketplace and costumer need and want
As a first step, marketers need to understand customer needs and wants and the marketplace in which they
operate. We examine five core customer and marketplace concepts: (1) needs, wants, and demands; (2) market
(products, services, and experiences) (3) value and satisfaction (4) exchanges and relationships and (5)
markets.
i. Customer needs, wants and demands
The most basic concept of marketing is that of human needs. if a customer is willing and able to buy a need
or a want, it means that they have a demand for that need or a want. They include basic physical needs for
food, clothing, safety etc. and individual needs for knowledge and self-expression. Marketers did not create
these needs; they are a basic part of the human make-up.
ii. Market offerings – products, services and experiences
The products, services, or experiences offered to the customers in a market to meet their needs are known as
market offerings. Market offerings are not limited to physical products. They also include services – activities
or benefits
iii. Exchanges and relationships
Marketing increasing when people decide to satisfy their needs and wants through exchange relationships.
Exchange is the act of receiving something you want from someone by giving them something in exchange.
iv. Markets
The idea of a market is derived from the ideas of relationships and exchange. A market is group of actual and
potential buyers of a product or service. These buyers share a particular need or want that can be satisfied
through exchange relationships. Marketing is the management of markets to create successful customer
relationships.
Creating a customer-driven marketing strategy
When we understand consumers and the marketplace, marketing management can design a customer value-
driven marketing strategy. We define marketing management as the art and science of choosing target markets
and building profitable relationships with them. To design a winning marketing strategy, the marketing
manager must answer two important questions: (what’s our target market)? and How can we serve these
customers best.
i. Selecting customers to serve
The company must first decide whom it will serve. It does this by dividing the market into segments of
customers (market segmentation) and selecting which segments it will go after (target marketing).
ii. Choosing a value proposition
The company must also decide how it will serve its services to the targeted customers – how it will and position
itself in the marketplace. A brand value is the set of benefits to provide the customer to fulfill their needs.
Preparing an integrated marketing plan and programme
In this step actually provide the intended value to target customers. The marketing programmer builds
customer relationships by transforming the marketing strategy into action. It consists of the marketing mix,
Building customer relationships
The first three steps in the marketing process – understanding the marketplace and customer needs, designing
a customer value and make a marketing programme – These all steps help for fourth which is building and
managing profitable customer relationships.
Customer relationship management
Customer relationship management is the most important concept of modern marketing. Customer relationship
management, in the most general terms, is the process of creating and keeping successful customer
relationships by
Providing best customer value and satisfaction.
 i. Customer satisfaction
Customer satisfaction depends on the product’s perceived performance related to a buyer’s expectations. That
determine how the customer are happy with a company’ If the product’s performance falls short of
expectations, the customer is dissatisfied. If performance matches expectations, the customer is satisfied.
Customer relationship levels and tools
The company can build relationships with their customer at many levels that depending on the nature of
market. If a company has a great deal of low-margin customer, it can establish basic relationships with them.
Customer engagement and today’s digital and social media
Today in the digital age new customer relationship can build through digital tools, such as websites, online
adds and videos mobile ads, apps etc. today’s companies are using online, mobile and social media to improve
their targeting and to engage customers more deeply and working together.
Partner relationship management
company must work closely with a different marketing partners to share their product and service. For being
good at customer relationship management, marketers must also be good at partner relationship management
– working closely with others inside and outside the company
CAPTURING VALUE FROM CUSTOMERS
This step related capturing value in return in the form of sales, market share and profits. By creating superior
customer value, the company create satisfied customers who stay loyal and buy more.
customer equity?
The ultimate aim of customer relationship management is to produce high customer equity. 26 Customer
equity is the total combined customer lifetime values of all of the company’s current and potential customers
The company can classify customers according to their potential profitability and manage its
relationships
Butterflies
These are the high profitable customer for a short term it’s mean the butterflies customers are not loyal. There
is a good fit between the company’s offerings and their needs.
Stranger
These are the low profitable customer for a short term it’s mean the customers are not loyal. Little fit between
company’s offerings and customer’s needs.
True friend
True friends are both profitable and loyal. There is a strong fit between their needs and the company’s
offerings. They are the customers that not only bring in profit, but also speak highly of your products and
promote your business to others.
Barnacles
Barnacles are low profitable and long term customer. There is a limited fit between their needs and the
company’s offerings. If they cannot be made profitable, they should be ‘fired’
Create value for customers and build customer relationships
1. Understand the marketplace and customer needs and wants
Research customers and the marketplace Arrange Market information and customer data
2. Design a customer-driven marketing plan
Select customers and market segmentation and targeting differentiation and positioning
3. Construct an integrated marketing program that delivers superior value
 Product and service design: build strong brands
 Pricing: create real value
 Distribution: manage demand and supply chains
 Promotion: communicate the value proposition
4. Build profitable relationships and create customer delight
 build strong relationships with selected customers
 build strong relationships with marketing partners
Capture value from customers in return
5. Capture value from customers to create profits and customer equity
 Create satisfied, loyal customers
 Capture customer lifetime value
 Increase share of market and share of customer