marketing

• Marketing


  Engaging customers and managing profitable customer relationships
• Marketing (new sense)


  Satisfying customer needs
• Marketing (broad definition)


  A social and managerial process by which individuals and organisations obtain what they need and want through creating and exchanging value with others
• Marketing (business context)


  Building profitable, value-laden exchange relationships with customers
• The Marketing Process


  1. Understanding the Marketplace and Customer Needs

  2. Designing a Customer Value-Driven Marketing Strategy

  3. Constructing a Marketing Program

  4. Building and Managing Profitable Customer Relationships
• Needs


  States of felt deprivation
• Wants


  The form human needs take as they are shaped by culture and individual personality
• Demands


  Human wants that are backed by buying power
• Market offerings


  Some combination of products, services, information or experiences offered to a market to satisfy a need or want
• Customer value


  Customers form expectations about the value and satisfaction that various market offerings will deliver
• Customer satisfaction


  Satisfied customers buy again and tell others about their good experiences. Dissatisfied customers often switch to competitors and disparage the product to others.
• Exchange


  The act of obtaining a desired object from someone by offering something in return
• Market


  The set of all actual and potential buyers of a product or service
• Marketing management


  The art and science of choosing target markets and building profitable relationships with them
• Marketing management orientations


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


  The idea that consumers will favour products that are available and highly affordable; therefore, the organisation should focus on improving production and distribution efficiency
• Product concept


  The idea that consumers will favour products that offer the most quality, performance and features; therefore, the organisation should devote its energy to making continuous product improvements
• Selling concept


  The idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort
• Marketing concept


  A philosophy in which achieving organisational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
• Societal marketing concept


  The idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
• Marketing mix


  The set of marketing tools the firm uses to implement its marketing strategy
• Major marketing mix tools

  • Product
  • Price
  • Place
  • Promotion
• Customer relationship management


  The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
• Customer lifetime value


  The value of the entire stream of purchases a customer makes over a lifetime of patronage
• Share of customer


  The portion of the customer's purchasing that a company gets in its product categories
• Customer equity


  The total combined customer lifetime values of all of the company's current and potential customers
• Keeping customers loyal makes good economic sense. Loyal customers spend more and stay around longer. Research also shows that it's five times cheaper to keep an old customer than acquire a new one.
• Losing a customer means losing more than a single sale. It means losing the entire stream of purchases that the customer would make over a lifetime of patronage.
• To increase share of customer, firms can offer greater variety to current customers. Or they can create programmes to cross-sell and up-sell to market more products and services to existing customers.
• The ultimate aim of customer relationship management is to produce high customer equity.
• Customer equity may be a better measure of a firm's performance than current sales or market share.