P.O.M

• Marketing is the delivery of customer satisfaction at a profit
• According to the American Marketing Association, marketing is defined as the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large
• The 5 core concepts in marketing are:

  A. Customer Preferences

  B. Market Offer

  C. Identifying Customer value

  D. Exchange

  E. Market
• Customer needs are physiological necessities required for human survival, wants are more psychological preferences that can improve the consumer’s life condition, and demands are human wants backed by purchasing capability or power
• Market offers can include goods, services, events, experiences, persons, places, properties, organizations, information, and ideas
• Value in marketing is determined by the benefits buyers receive that meet their needs, and the personal value equation is: Value = benefits received – [price + hassle]
• Identifying customer value involves aspects like form, place, time, possession, and information
• Exchange in marketing involves at least 2 parties, each having something of potential value to the other, with communication, delivery, freedom to accept or reject the offer, and trust between parties
• The market is composed of all individuals that can potentially purchase a value offer, while the target market refers to the specific group of individuals or organizations that a company aims to reach with its products or services
• The actual market represents the portion of the target market that the company is currently serving or reaching with its products or services, while the captured market is the portion of the target market that a company has successfully attracted and retained as customers
• Goals of marketing include understanding the market and its consumers, introducing innovative products and services, designing effective customer-driven marketing strategies, building and maintaining profitable customer relationships, capturing customer value to create profits, and promoting value transactions with regard to society’s well-being
• The traditional marketing approaches include the production concept, product concept, selling concept, marketing concept, and societal marketing concept
• The contemporary marketing approach includes relationship marketing, focusing on customer satisfaction and relations by profiling and monitoring habits and preferences
• The marketing mix, often referred to as the 4Ps, includes Product, Price, Place, and Promotion
• Product in marketing can be goods, services, or virtual products, and can be classified based on use, differentiation, durability, and type
• Price in marketing refers to the amount of money customers are willing to pay for a product or service, influenced by factors like cost, competition, demand, perceived value, and pricing objectives
• Place, also known as distribution, refers to the channels through which a product or service is made available to customers, involving decisions about distribution channels, logistics, inventory management, retail location, and online presence
• Promotion in marketing includes activities like advertising, sales promotions, public relations, personal selling, and direct marketing, aimed at communicating the value of products or services to the target audience
• A customer is an individual or entity that purchases goods or services from a business in exchange for payment
• Consumers use the product, while customers are the ones who actually buy the product
• Customers are crucial in a business organization as they provide the money that keeps the business alive, their needs and wants drive design, production, and marketing activities, they provide feedback, and their opinions form the firm's brand recognition and position in the market
• Relationship Marketing is a strategy focused on building long-term relationships with customers, emphasizing creating and maintaining strong connections, trust, and loyalty over time, recognizing that retaining existing customers can be more cost-effective and beneficial than constantly acquiring new ones
• Acquiring a new customer can cost five times more than retaining an existing customer
• Customer satisfaction is the feeling a person experiences when an offering meets his or her expectations, and it can be improved by establishing appropriate expectations and delivering on them
• Key principles of Relationship Marketing include a customer-centric approach, personalization, communication and engagement, trust and credibility, focusing on customer lifetime value, loyalty programs and incentives, and community building