CHAPTER 1. MARKETING: CREATING CUSTOMER VALUE & ENGAGEMENT

CHAPTER 1. MARKETING: CREATING CUSTOMER VALUE & ENGAGEMENT

1. What is marketing?

   • Definition: Marketing is engaging customers and managing profitable customer relationships.
   • Goals: Attract new customers by promising superior value and to keep and grow current customers by delivering value and satisfaction.
   • Marketing defined: Today, marketing must be understood not in the old sense of making a sale—“telling and selling”—but in the new sense of satisfying customer needs.
     • Marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others
       • the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return.
   • The marketing process: Its a five-step model 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 final step, companies reap the rewards of creating superior customer value.

2. Understanding the Marketplace and Customer Needs

   • Customer Needs, Wants, and Demands
     • Needs: They include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression.
     • Wants: Are the form human needs take as they are shaped by culture and individual personality.
     • Demands: Given their wants and resources, people demand products and services with benefits that add up to the most value and satisfaction.
   • Market Offerings—Products, Services, and Experiences
     • Market offerings: Combination of products, services, information, or experiences offered to a market to satisfy a need or a want.
   • Customer Value and Satisfaction
     • Customers form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly.
       • Satisfied customers buy again and tell others about their good experiences.
       • Dissatisfied customers often switch to competitors and disparage the product to others.
   • Exchanges and Relationships
     • Exchange is the act of obtaining a desired object from someone by offering something in return.
     • Marketing consists of actions taken to create, maintain, and grow desirable exchange relationships with target audiences involving a product, service, idea, or other object.
   • Markets
     • A market is the set 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.
     • Sellers must search for and engage buyers, identify their needs, design good market offerings, set prices for them, promote them, and store and deliver them.
     • Activities such as consumer research, product development, communication, distribution, pricing, and service are core marketing activities.

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

   • Customer Value–Driven Marketing Strategy
     • We define marketing management as the art and science of choosing target markets and building profitable relationships with them.
       • Selecting Customers to Serve
         • Choosing a Value Proposition
           • Marketing Management Orientations
   • Preparing an Integrated Marketing Plan and Program
     • The marketing program builds customer relationships by transforming the marketing strategy into action. It consists of the firm’s marketing mix, the set of marketing tools the firm uses to implement its marketing strategy.
     • The major marketing mix tools are classified into four broad groups, called the four Ps of marketing: product, price, place, and promotion.

4. Managing Customer Relationships and Capturing Customer Value

   • Engaging Customers and Managing Customer Relationships
     • The first three steps in the marketing process—understanding the marketplace and cus- tomer needs, designing a customer value–driven marketing strategy, and constructing a marketing program
       • Customer Relationship Management
       • Customer Engagement and Today’s Digital and Social Media
       • Consumer-Generated Marketing
       • Partner Relationship Management
   • Capturing Value from Customers
     • By creating superior customer value, the firm creates satisfied customers who stay loyal and buy more.
       • Creating Customer Loyalty and Retention
         • Growing Share of Customer
           • Building Customer Equity

5. The Changing Marketing Landscape

   • The Digital Age: Online, Mobile, and Social Media Marketing
     • Digital and social media marketing involves using digital marketing tools such as websites, social media, mobile ads and apps, online video, email, blogs, and other digital platforms to engage consumers anywhere, anytime via digital devices.
       • Social Media Marketing
       • Mobile Marketing
   • The Changing Economic Environment
     • Marketers are emphasizing the value in their value propositions. They are focusing on value for the money, practicality, and durability in their product offerIngs and marketing pitches.
   • The Growth of Not-for-Profit Marketing
     • The nation’s not-for-profits face stiff competition for support and membership. Sound marketing can help them attract membership, funds, and support.
   • Rapid Globalization
     • Today, almost every company, large or small, is touched in some way by global competition.
       • Today, companies are not just selling more of their locally produced goods in international markets; they are also sourcing more supplies and components abroad and developing new products for specific markets around the world.
   • Sustainable Marketing—The Call for More Environmental and Social Responsibility
     • Marketers are reexamining their relationships with social values and responsibilities and with the very earth that sustains us.
       • today’s marketers are being called on to develop sustainable marketing practices.
   • So, What Is Marketing? Pulling It All Together
     • The process of engaging customers and building profitable customer relationships by creating value for customers and capturing value in return.