Marketing

• Target marketing: The process of evaluating each market segment's attractiveness and selecting one or more segments to enter
• Designing customer Value- Driven Marketing Strategy


  Marketing Management is the art of choosing target markets and building profitable relationships with them
• Differentiation: The way that you make your business or product more desirable than all the others like it
• Market segmentation: Dividing the market into segments of customers with similar needs, characteristics, or behaviors
• Positioning: The process by which marketers try to create an identity in the minds of their target market for its product, brand, or organization. It is the image their product occupies in a given market as perceived by the target market.
• Integrated Marketing Plan transforms the marketing strategy into action and includes the marketing mix and 4 Ps of marketing: Product, Price, Place (Distribution), Promotion
• Value Proposition: Is the set of benefits or values a company promises to deliver to consumers to satisfy their needs. It answer the customer's question "Why should I buy your product rather than a competitor's?"
• Marketing Management Orientations

  • Production concept
  • Product concept
  • Selling concept
  • Marketing concept
  • Societal marketing concept
• Customer satisfaction


  • The extent to which a product’s perceived performance matches a buyer’s expectations
  • High levels of customer satisfaction often leads to consumer loyalty
  • Some firms seek to DELIGHT customers by exceeding expectations
  • Profitability must be considered
• Customer perceived value


  Customer’s evaluation of the difference between all of the benefits and all of the costs of a marketing offer relative to those of competing offers
• Customer relationship management


  1. The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

  2. CRM deals with all aspects of acquiring, keeping, and growing customers

  3. Customer value and satisfaction are key
• Building Customer Relationships

  1. Customer perceived value

  2. Customer satisfaction
• Customer Relationship Level and Tools


  1. Basic Relationship

  2. Full Partnership

  3. Frequency Marketing Programs
• Marketing mix and 4 Ps of marketing

  • Product
  • Price
  • Place (Distribution)
  • Promotion
• Capturing Value from Customer


  1. Value is captured from customers via current and future sales, market share, and profit

  2. Superior customer value leads to highly satisfied loyal customers who buy more

  3. Key outcomes of customer value include customer loyalty and retention, share of market, share of customer, and customer equity
• Partner Relationship Marketing


  1. Involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers

  2. Partners inside the company interact with customers electronically and through cross-functional teams

  3. Partners outside the company involve connecting with suppliers, channel partners, and competitors by developing partnerships
• Share of customer


  The portion of the customer’s purchasing that a company gets in its product categories
• Building Customer Equity


  • Building the right relationships with the right customers involves treating customers as assets that need to be managed and maximized
  • Different types of customers require different relationship management strategies
• Creating Customer Loyalty and Retention

  • Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage
• Customer Equity

  • the total combined customer lifetime values of all of the company's customers
• Building Customer Equity

  - Build the right relationship with the right customers involves treating customers as assets that need to be managed and maximized. - Different types of customers require different relationship management strategies. Build the right relationship with the right customers
• Production concept is the idea that consumers will favor products that are available or highly affordable.
• Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Organizations should therefore devote its energy to making continuous product improvements.
• Selling concept is the idea that consumers will not buy enough of the firm's products unless it undertakes a large scale selling and promotion effort.
• Marketing concept know the needs and wants of the target markets and deliver the desired satisfactions better than competitors.
• Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers' wants, the company's requirements, consumers' long-term interests, and society's long-run interests.
• Basic Relationship

  • low margin customer (normal customer)
  • tool advertising, public relations
• Full Partnership

  • high margin customer
  • tools like personal call, personal representative to customer
• Frequency Marketing Programs

  • extremely important customers
  • tools like patronage discounts, honor clients who make regular or significant purchases.
• Marketing Process

  • Understanding the marketplace and customer needs and wants.
  • Design a customer-driven marketing strategy
  • Construct marketing program that deliver superior value
  • Build profitable relationship and create customer delight
  • Capture value from the customers to create profits
• Expectations

  • Previous purchases
  • Friends advice
  • Marketers' / competitors
• choosing value proposition - The company then must decide how it will serve targeted customer-how it will differentiate and position itself.
• Differentiation: the way you make your business or product more desirable than all others like it.
• positioning: is the process by which marketers try to create an identity in the minds of their target market for its product, brand, or organization. It is the image their product occupies in a given market as perceived by the target market.
• Marketing management orientation concepts

  • Production concept
  • Product concept
  • Selling concept
  • Marketing concept
  • Societal concept
• Organizations design and carry out their marketing strategies under five alternative concepts - Marketing Management Orientation
• building customer relationships - customer relationship management: The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
• customer relationship management deals with all aspects of acquiring, keeping and growing customers.
• customer value and satisfaction are key.
• growing share of market - share of customer is the portion of the customer's purchasing that a company gets in its product categories