Fundamental of Marketing Notes

In: Business and Management

Submitted By han2019
Words 2701
Pages 11
CHAPTER 1

MARKETING: CREATING AND CAPTURING CUSTOMER VALUE

A. WHAT IS MARKETING?

A simple definition of marketing is managing profitable customer relationships.

Marketing must both attract new customers and grow the current customers.

Every organization must perform marketing functions, not just for-profit companies.

Non-profits (colleges, hospitals, churches, etc.) also must also perform marketing.

Marketing Defined

Most people think of marketing as selling and/or advertising—“telling and selling.”

Marketing must focus on satisfying customer needs.

We define marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

The Marketing Process

Figure 1.1 shows the five-step marketing process. 1. Understand the marketplace and customer needs and wants. 2. Design a customer-driven marketing strategy. 3. Construct a marketing program that delivers superior value. 4. Build profitable relationships and create customer delight. 5. Capture value from customers to create profits and customer quality.

In the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. In the final step, companies reap the rewards of creating superior customer value. By creating value for consumers, they in turn capture value from consumers in the form of sales, profits, and long-term customer equity.

B. UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS

Five core customer and marketplace concepts are critical: (1) needs, wants, and demands; (2) marketing offers (products, services, and experiences); (3) value and satisfaction; (4) exchanges and relationships; and (5) markets.

Customer Needs, Wants, and Demands

The most basic concept underlying marketing is that of human needs.

Human needs are…...

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