Marketing and Customer Essay

3089 Words Feb 10th, 2013 13 Pages
Chapter 1 Review Notes 1. Define marketing and discuss how it is more than just “telling and selling.”

Marketing is managing profitable customer relationships. The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. Hence, marketing is defined as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. 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. If the marketer understands consumer needs; develop products and services that provide superior
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Clearly, the more loyal the firm’s profitable customers, the higher the firm’s customer equity. Customer equity may be a better measure of a firm’s performance than current sales or market share. Whereas sales and market share reflect the past, customer equity suggests the future.

Understanding these concepts is important to marketers because developing marketing activities that create value for customers should, ultimately, create value in return, in the form of current and future sales, market share, and profits. By creating superior customer value, the firm creates highly satisfied customers who stay loyal and buy more. This, in turn, means greater long-run returns for the firm.

6. Discuss trends impacting marketing and the implications of these trends on how marketers deliver value to customers.

The major changes in the marketplace are:
(1) the uncertain economic environment: sudden economic downturn, beginning in 2008 in the United States, has left consumers short of both money and confidence, causing many of them to rethink their spending priorities. In response, companies have aligned their marketing strategies with the new economic reality, emphasizing the value in their value propositions. (2) growth of digital technologies: the recent technology boom has created a digital age, which has had a major impact on the ways companies bring

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