Transcript Marketing: Creating Customer Value and Satisfaction

What’s Happening?
Marketing in Today’s World: Creating
Customers for Life
Chapter ONE
Defining Marketing – Your Words!
 If you were to tell a friend, “I’m taking a
marketing class,” and the friend were to ask,
“What’s marketing?” how would you answer?
What is Marketing?
 Attracting new customers by promising and
delivering superior value.
 Building long-term relationships with
customers by delivering continued customer
satisfaction.
 Creating, building and managing these
relationships profitably over time.
Defining Marketing,….
Marketing is an organizational function and a
set of processes for creating, communicating,
and delivering value to customers and for
managing customer relationships in ways that
benefit the organization and its stakeholders
(AMA, 2004)
Relationship Marketing

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
Marketing activities aimed to build
long-term relationships with:
a. the people (especially
customers)
b. organizations
that contribute to the company’s
success
The sale is the beginning of the
organization’s relationship with its
customers
Visit Exhibit 1-3, The Definition of Marketing:
Three Examples (page 8)
Discussion Question
 We are all consumers. Every one of us
makes purchases for our own use, and we’ve
been doing so for many years. As consumers,
we are exposed to the marketing efforts of the
companies we buy from nearly every day.
 Think about this, and give examples of how
you, as consumers, encounter marketing.
What Is a Market?
 The set of actual and potential
buyers of a product.
 These people share a need or
want that can be satisfied
through exchange
relationships.
 A market includes people or
groups with purchasing power
who are willing to exchange
their resources (money, time or
something of equal value) for
something else (product or
service).
Segmentation and Targeting
 Segmentation divides
the market into
groups of customers
with varying needs
and wants.
 Targeting selects
the right segment to
nurture.
The Marketing Mix: An Overview of the 4Ps
Controllable Variables
PRICE
PRODUCT
PLACE
PROMOTION
Environmental Forces
Uncontrollable variables that affect
1.
the consumer’s behaviour
2.
the organization’s development of an effective
marketing mix
The variables are grouped into six categories
Environmental Forces (Exhibit 1-5 (page 15)
Environmental Forces
 Within each variable marketers identify trends

Example – the Canadian population is aging
 Marketers react to the changing
trends by adjusting the
marketing mix
Business/Marketing Philosophies
 Production Orientation:
“As long as it’s black”
 Sales Orientation:
 “Focus on Transaction”
 Market Orientation:
 “Establishing and Maintaining Relationships”
 The Marketing Concept:
 “The Foundation of a Market Orientation”
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The Marketing Concept
The Marketing Concept is:
 A philosophy that emphasizes customer
orientation and coordination of marketing
activities to achieve both the organization's
performance objectives and the consumers
value proposition.
 An “outside – in” perspective
Ethics and Responsibility
 Worldwide consumerism and
environmentalism movements exert pressure
for greater responsibility
 Notion of “caring capitalism” tied to societal
marketing concepts.
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Seeking ways to make a profit by serving the
best long-run interests of customers and
communities.