1.2.

Understanding the Marketplace and Customer Needs

Customer value is the difference between the values the customer’s gain from
owning and using a product and the cost of obtaining the product.
(total customer satisfaction)
Customer satisfaction depends on a product’s perceived performance in
delivering value relative to a buyer’s expectations.
Satisfied customer buy again and tell others about their good experiences
Dissatisfied customers switch to competitors and disparage the product to
others.
A market is the set of actual and potential buyers of a product.
Marketing means managing markets to bring about profitable customer
relationships.
Suppliers  Company and Competitors  Marketing intermedianes 
Consumers
(company  consumers) (suppliers Major environmental forces consumers)

1.3. Designing a customer-driven marketing strategy

Marketing management is defined as the art and science of choosing target
markets and building profitable relationships with them.
Whom it will serve?
Dividing the market into segments of customers (market segmentation)
Selecting which segments it will go after (target marketing)
Why should I buy your brand rather than a competitor’s?
How can we serve these customers best?
How it will differentiate and position itself in the marketplace
A brand’s value proposition is the set of benefits or values it promises to
deliver to consumers to satisfy their needs.

The product concept holds that consumers wil favor products that are available
and highly affordable
Management should focus on improving production and distribution efficiency.
+ The demand for a product exceeds the supply
+ The product’s cost is too high
Risk: the company loses sight of sth else that customer’s want other than affordability
And the product concept holds that consumers will fvor products that offer the
most in quality, performance, and innovative features.
Marketing strategy focuses on marketing continuous product improvements.

The selling concept holds that consumers will not buy enough of the firm’s
products unless the firm undertackes a large-scale selling and promotion effort.
These industries must be good at tracking down prospects and selling them on
product benefits.
1.4.2 Capturing Value From Customers
Creating Customer Loyalty and Retention
Companies realize that losing a customer means losing the entire stream of
purchases the customer would have made over a lifetime of patronage. This is
known as customer lifetime value.

Buliding the Right Relationships with the Right Customers

“Strangers” ahow lơ potential profitablitity and little projected loyalty.
“Butterflies” are potential profitable but not loyal
“True friends” are both profitable and loyal
“Barnacles” are highly loyal but not very profitable

1.5. The changing marketing landscape

The Digital Age
The changing economic environment
Rapid Globalization
The growth of not-for-profit Marketing
Sustainable Mar-The call for more social Responsibility;;;;;;;;

The Company’s Microenvironment

All departments-from manufacturing and finance to legal and human resources-
share the responsibility for understanding customer needs and creating customer
value
+ Top management
+ Finance
+R&D
+ Purchasing
+ Operations
+ Accounting
The finance department of the Coca Cola company is responsible for financial
record keeping and markeing budget of the company.
The sales department of the Coca Cola company is to coordinate the selling
program.
Suppliers provide the resources needed by the company to provide its good and
services.
Marketing intermediarie help the company to promote, sell, and distribute
products to final buyers.
Resellers are distribution channel firms that helps the company find customers
or make sales to them. These include wholesalers and retailers.
Physical distribution firms help the company stock and move goods from their
pinots of origin to their destinations.
Marketing services agencies are the marketing research firms, advertising
agencies, media firms and marketing consulting firms that help the company
target and promote its products to the right markets.
THE PUBLIC’S MICROENVIRONMENT
A public is any group that has an actual or potential interest in or impact on an
organization’s ability to achieve its objectives.
Financial publics – influence the company’s ability to obtain funds
Media publics – the general public’s image of the company affects its buying
Government publics – carry news, features, and editorial opinions
Citizen-action publics – management must take government development into
account
Local publics – A compan’s marketing decisions may be questioned by
consumer organizations, environmental group, etc.
General publics – include neighborhood residents and community organizations
Internal publics – include workers, mangers, volunteers, and the board of
directors.

The Customers’ Microenvironment

Five types of customer markets:
- Consumer markets: individuals and households that buy goods and
services for personal consumption.
- Business markets: buy goods and services for further processing or for use
in their production process.
- Reseller markets: buy goods and services to resell at a profit.
- Government markets: consist of government agencies that buy goods and
services to produce public services.
- International markets: buyers in other countries, including cosumers,
producers, resellers, and governments
Consumer Market of Coke are the highest level, including individuals and
household
Reseller Market of Coke which buy the product from company and resell it at
profit is very large all over the world.
Ex: Mc Donals sells approximately 500-700 liters of coke daily to its customers.
International Market of coke is worldwide known product and every country
where coke is been sold has a manufacturing unit of its own.

MACROENVIRONMENT: ECONOMIC
Industrial economics – constitude rick markets for many different kinds of
goods.
Developing economics – offer outstanding marketing opportunities for ther right
kinds or products.
Subsistence economics – consume most of their own agricultural and industrial
ouput.
Ex: Coke is not an exception here, it is affected if there is inflation in the
country and as a result coke increases its price.

The natural environment invloves the natural resources that are needed as inputs
by marketers or that are affected by marketing activities.
Trends in the natural environment
+ Shortages of raw materials
+ Increased pollution
+ Increased government intervention
Companies are developing environmentally sustinable strategies.

The technological environment is the most dramatic force now shping our
destiny
Technology has released such wonders as antibiotics, robotic surgery,
miniaturized electronics, laptop computers, and the internet.
New technologies create new markets and oppurtunities; however, every new
technology replaces an old technology.

The political environment consists of laws, government agencies and pressure

groups that influence or litmit various organizations and individuals in a given
society.

The cultural environment is made up of institutions and other forces that affect a
society’s basic values, perceptions, preferences, and behaviors.

Marketing information and customer insights

Companies use such customer insights to develop competitive advantage.
To gain good customer insights, marketers must effectively manage marketing
infor from a wide range of sources.
The real value of mar research and mar infor lies in how it is used-in the
customer insihgts that it provides.
Customer insights groups collect customer and market infor from a wide variety
or sources.

Marketers don’t need more infor; they need better infor

And they need to make better use of the infor thay alreaady have.

Consumer Markets and consumer buyer behavior

Consumer buyer behavior refers to the buying behavior of final consumers –
individuals and households who buy goods and services for personal
consumption
All of these consumers combine to make up the consumer market.

Marketers can create targeted, actionable, personalized campaigns based on how

people consume and interact with brands and the world around them

The Buyer Decision Process