CHAPTER 1: MARKETING - Creating Customer Value and engagement

Objectives Outline
Objective 1-1 What Is Marketing?

Objective 1-2
Understanding the Marketplace and Customer Needs

Objective 1-3

Designing a Customer Value–Driven Marketing Strategy and Plan

Objective 1-4
Managing Customer Relationships and Capturing Customer Value

Objective 1-5
The Changing Marketing Landscape (pp 46–55)

1. What is Marketing
- Definition: Marketing is engaging customers and managing profitable customer
relationships
- Aim: create value for customers + capture value from customers in return
- Five steps in the marketing process
+ Understand the marketplace and customer needs and wants
+ Design a customer value - driven marketing strategy
+ Construct an integrated marketing program that delivers superior value
+ Engage customers, build profitable relationships, and create customer delight
→ Capture value from customers to create profits and customer equity

2. Marketplace and Customer needs

2.1 Customer Needs, Wants, and Demands
- Needs: states of felt deprivation
- Wants: the form human needs take as they are shaped by culture and individual
personality.
- Demands: are humans wants that are by buying power

2.2 Market Offerings—Products, Services, and Experiences

- Market Offerings: Some combination of products, services, information, or

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.
 2.3. Customer Value and Satisfaction
- Customer Value and Satisfaction are key building blocks for developing and
managing customer relationships.
- Satisfied customers: buy again and tell others about their good experiences
- Dissatisfied customers: switch to competitors and disparage the product to others.
→ Marketers must be careful to set the right level of expectations

3. Designing a Customer Value- Driven Marketing Strategy and Plan

- Marketing management: The art and science of choosing target markets and
building profitable relationships with them.
- Two important questions: What customers will we serve (what’s our target market)?
and How can we serve these customers best (what’s our value proposition)?
- Value proposition:
+ production concept
+ product concept
+ Selling concept
+ Marketing concept
- Preparing an Integrated Marketing Plan and Program
product, price, place, and promotion

4. Managing Customer Relationships and Capturing Customer Value

- Customer Relationships is the overall process of building and maintaining
profitable customer relationships by delivering superior customer value and
satisfaction
- Capturing Value from Customers
+ Creating Customer Loyalty and Retention
+ Growing Share of Customer
+ Building Customer Equity
→ Building the Right Relationships with the Right Customers

5. The Changing Marketing Landscape

5.1. The Digital Age: Online, Mobile, and Social Media Marketing
5.2. The Changing Economic Environment
5.3. The Growth of Not-for-Profit Marketing
5.4. Rapid Globalization
5.5. Sustainable Marketing—The Call for More Environmental and Social
Responsibility