Marketing 201

Chapter 1

Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return.

Needs: States of deprivation
Wants: Form that needs take as they are shaped by culture and individual personality
Demands: Wants backed by buying power

Segmentation, targeting, demarketing.

* Production concept is the idea that consumers will favour products that are available or highly affordable. * Product concept is the idea that consumers will favour products that offer the most quality, performance, and features. * 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 is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do. * Societal marketing long-term interests, and society’s long-run interests.

Marketing mix: Place, promotion, product, price * An integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers.
Customer Relationship Management (CRM) : building and maintaining profitable customer relationships by delivering superior customer value and satisfaction * Customer’s perceived value * Customer satisfaction: product’s perceived performance matches a buyer’s expectations

* Customer Relationship Levels and Tools * Basic relationships: many low margins customers. * Full partnerships: Few customers and high margins. * Frequency marketing program: rewards for customers who buy frequently or large amounts. * Club marketing program: Special benefits, member communities (Harley Davidson) * Selective relationship