Class Introduction/chapter 1 Reading

Front 1

1987 Air Jordans

Back 1

What made it so successful?

Front 2

Deep thoughts on marketing (quotes from great biz leaders)

Back 2

We all live by selling something

Any business enterprise has 2 functions--Marketing & Innovation.

marketing is everything and everything is marketing

Front 3

What is marketing?

Back 3

Business:
Creating and capturing customer value

General:
Influencing others by understanding them

Front 4

Successful businesses influence customers/clients

Back 4

to turn needs into wants.

You must understand your consumer in order to do this.

Front 5

Finding the customer's UNARTICULATED needs is where the money is

Back 5

true.

don't just serve the known customers that have articulated needs.

find the unserved segment in addition to the known and meet not only articulated needs but the issues they haven't even thought of yet. solve that and they'll love you.

Front 6

Marketing:

Back 6

<b>The process by which companies create value for customers</b> and build strong customer relationships<b> in order to capture value from them in return.</b>

The aim of marketing is to make selling unnecessary.

Exchange of Value

Front 7

5 Step Marketing Process

Back 7

1. Understand the marketplace and customer needs and wants

2. Design a customer driven marketing strategy

3. Construct an integrated marketing program that delivers superior value

4. Build profitable relationships and create customer delight (experience > expectations)

5. Capture value from customers to create profits and customer equity

Front 8

Step 1 = Understanding the marketplace and customer needs

Back 8

Marketers need to understand needs and wants and the marketplace within which they operate

Front 9

5 core customer and marketplace concepts (essential for achieving step 1 in the Marketing Process)

Back 9

1. Needs, Wants, Desires

2. Market Offerings (products, services, experiences)

3. Value & Satisfaction

4. Exchanges & Relationships

5. Markets

Front 10

Customer Needs, Wants, Demands

Back 10

<b>Needs</b>: states of felt deprivation that are a part of the human makeup

<b>Wants</b>
The form human needs take as shaped by culture and individual personality. Resolved by objects/services that fulfill needs.

<b>Demands</b>:
When backed by buying power <b>wants become demands</b> and people then demand the products with benefits that add up tot he most value and satisfaction

Front 11

Step 2. Market Offerings-Product, services, experiences

Back 11

<b> Market Offering </b>
Some combination of products, services, information, or experiences offered to a market to satisfy a need or want

<b>Marketing Myopia</b>
The mistake of paying more attention to the specific products a company offers<i> than to the benefits and experiences produced by these products</i>

Front 12

Smart marketers look beyond the attributes of the products and services they sell

Back 12

they orchestrate several services and products to create a brand experience for consumers.

Front 13

Step 3. Customer Value & Satisfaction

Back 13

Marketers must be careful to set the right level of expectations.

Customer value and customer satisfaction are key building blocks for developing and managing customer relationships

<b>UNDER promise & OVER deliver

Front 14

Step 4. Exchange & Relationships

Back 14

Marketing occurs when people decide to satisfy needs and wants through <i>exchange</i> relationships

An <b>Exchange</b> is the act of obtaining a desired object/service by offering them something in return.

<b>marketing consists of actions taken to build and maintain desirable exchange relationships</b> with target audiences involving a product, service, idea or other object.

Front 15

Step 5. Markets

Back 15

The concepts of exchange and relationships lead to the concept of a market.

A <b>market</b> is the set of actual and potential buyers of a product.

Marketing means managing markets to bring about profitable customer relationships

Front 16

Marketing is made of of these activities

Back 16

Consumer research

Prod. dev.

Communication

Distribution

Pricing

Service

Front 17

Review Fig 1.2 pg. 8

Back 17

now!

marketing involves serving a market of final consumers in the face of competitors.

Each party in a marketing system adds value for the next level.

Front 18

Designing a Customer-Driven Marketing Strategy

Back 18

<b>Marketing Management</b>
The art and science of choosing target markets and building profitable relationships with them.

The marketing manager's aim is to find attract keep and grow target customers by creating, delivering, and communicating superior customer value

Front 19

In order to design a winning marketing strategy a manager must answer 2 important questions:

Back 19

1. What customers will we serve (what's our target market)

2. How can we serve these customers best (what's our value proposition?)

Front 20

Designing a Customer-Driven Marketing Strategy:Selecting Customers to serve

Back 20

The company must first decide WHO it will serve. It does this by segmenting the market of customers and selectin which segments it will go after (target marketing).

Some people think of marketing management as finding as many customers as possible and increasing demand. But marketing managers know that they cannot serve all customers in every way.

Front 21

Some marketers at time may seek fewer customers and reduced demand

Back 21

this is done through <b>demarketing</b>

Front 22

Marketing management is:

Back 22

Customer management

Demand management

Front 23

Designing a Customer-Driven Marketing Strategy:<b>Choosing a value proposition</b>

Back 23

The company must also decide how it will serve target customers--how it will DIFFERENTIATE AND POSITION itself in the marketplace.

A company's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs

Front 24

Designing a Customer-Driven Marketing Strategy:<b>Marketing Management Orientations</b>

5 alternative concepts under which organizations design, carry out their marketing strategies:

Back 24

Production Concept

Product Selling

Societal Marketing Concepts

Front 25

Production Concept:

<b>focus on improving production, distribution, and efficiency.</b>

Back 25

one of the concepts of the oldest orientations that guide sellers.

The idea that consumers will favor products that are available and highly affordable and that the organization should therefore <b>focus on improving production, distribution, and efficiency.</b>

risk of marketing myopia is high here.

Front 26

Product Concept:

<b>devote its energy to making continuous product improvements</b>

Back 26

The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore <b>devote its energy to making continuous product improvements</b>

can also lead to marketing myopia (better mousetrap example)

Front 27

Selling Concept:

<b>undertakes a large-scale selling and promotion effort--inside out approach</b>

Back 27

The idea that consumers will not buy enough of the firm's products unless it <b>undertakes a large-scale selling and promotion effort</b>

usually used in industries with unsought goods (insurance, blood donations).

Such aggresive selling can be dangerous as it focuse on creating sales transactions as opposed to long-term customer relationships

The aim is often to sell what the company makes as opposed to making what the market wants.

inside out approach that looks at the company needs and then tries to find customer needs that can be met.

hmmm.

Front 28

Marketing Concept

<b>knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Outside In approach</b>

Back 28

The marketing management philosophy that holds that achieving organizational goals depends on <b>knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.</b>

the job is not to find the right customers for your products but the right products for your customers

takes an outside-in approach starting with the looking at the market needs.

Front 29

Customer driving marketing

Back 29

understanding customer needs better than the customers do.

think Apple.

Front 30

Societal Marketing Concept

Back 30

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

holds that marketing strategy should deliver value to customers in a way that maintains or improves both the consumer's and society's well-being.

Front 31

The societal markting triangle

Back 31

Society (Human Welfare)

Consumers (Want satisfaction)

Company (profits)

Front 32

Preparing an Integrated Marketing Plan and Program

Back 32

The company's marketing strategy outlines which customers the company will serve and how it will create value

Next thing to do is to develop an integrated marketing program that will actually deliver the intended value to target customers

Front 33

the marketing program builds customer relationships by executing the marketing strategy

Back 33

made up of the MARKETING MIX:

4 P's

Product

Price

Place

Promotion

Front 34

Step 4. Building (profitable ) Customer Relationships

Back 34

CRM is perhaps the most important concept of modern marketing.

Front 35

Customer relationship management

Back 35

overall process of building and <b>maintaining profitable customer relationships by delivering superior customer value and satisfaction.</b>

deals with all aspects of acquiring keeping and growing customers

Front 36

Customer Perceived Value

Back 36

The customer's evaluation of the difference between all the benefits and all the costs of a marketing offer<b> relative to those of competing offers.

Front 37

Customer Satisfaction

Back 37

The extent to which a product's perceived performance matches a buyer's expectations

depends on the product's perceived performance relative to a buyer's expectations.

If performance exceeds expectations the buyer is delighted and will most likely return

Front 38

Smart companies aim to delight customers by promising only what they can deliver:

Back 38

then delivering more than they promised

Front 39

Changing nature of customer relationships

Back 39

Relating with More Carefully Selected Customers

Relating more deeply and interactively

Front 40

Consumer generated marketing

Back 40

Marketing messages, ads, and other brand exchanges created by consumers themselves both invited an uninvited.

Front 41

Partner Relationship Management

Back 41

Working closely with partners in other company departments outside the company to jointly bring greater value to customers

Partners Inside the Company

Marketing Partners Outside the Firm

Front 42

The aim of CRM is to create not just customer satisfaction but

Back 42

customer delight!

Front 43

customer lifetime value

Back 43

the value of the entire stream of purchases that the customer would make over a lifetime of patronage

Front 44

Growing Share of Customer

Back 44

The portion of the customers purchasing that a company gets in its product categories.

Front 45

Customer Equity

Back 45

The total combined customer lifetime values of all of the company's current and potential customers

May be a better measure of a firm's performance than current sales or market share.

sales/marketing reflect the past--customer equity suggests the future!

Front 46

Companies should view customers as assets

Back 46

true

they need to be managed and maximized