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BUAD 307—MARKETING FUNDAMENTALS. MARKETING OVERVIEW . Learning Objectives. Understanding The scope and basic objectives of the marketing function Customer value Relationship marketing. 2007 American Marketing Association (AMA) Definition.

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Learning objectives
Learning Objectives

  • Understanding

    • The scope and basic objectives of the marketing function

    • Customer value

    • Relationship marketing


2007 american marketing association ama definition
2007American Marketing Association (AMA) Definition

Marketing: “The (1) activity, (2) set of institutions, and (3) processes for (4) creating, (5) capturing, (6) communicating, (7) delivering, (8) and exchanging (9) offerings that have (10) value for (11) customers, (12) clients, (13) partners, and (14) society at large.” (Numbering added.)

Definition not needed for the exam!


ACTIVITY

INSTITUTIONS

PROCESSES

MARKETING

CREATION

COMMUNICATION

DELIVERY

EXCHANGE

CUSTOMERS

OFFERINGS

VALUE

CLIENTS

PARTNERS

SOCIETY


Marketing as an exchange
Marketing As an Exchange

  • Each side receives something more valuable than what it gave up  “win-win” deal

  • Part of the value may be assurance of continued quality over time (value of the brand)


Usage and reach of marketing

Who markets?

Businesses

Government units

Non-profit organizations

Cause related organizations

What is marketed?

Goods

Services

Ideas

Who buys?

Ultimate consumers

Organizational buyers

For internal use

For resale (wholesalers, retailers)

Manufacturers (components)

Customer benefits?

Utility

Consumption

Convenience

Usage and Reach of Marketing


Value
Value

  • Benefits—examples

    • Convenience

      • In delivery

      • In usage

    • Reliability

    • Durability

    • Performance

    • Style/aesthetics

    • Prestige

    • Service component

  • Costs—examples

    • Money

    • Time

    • Risk


Customer value part i
Customer Value, Part I

  • Value is the ratio of the benefits received (usually goods or services) to what is given up (usually money)

  • For a transaction to take place, the benefits received must usually be greater than the sacrifice

  • Note that a high price product may be a good value to the customer even if a high price is paid if the perceived benefits received are higher


Customer value part ii
Customer Value, Part II

  • A low priced product may not represent value to a customer if the benefits received are perceived to be low, too.

  • Different customer segments will have different value perceptions

  • A product which is adapted to the needs of a particular segment can be very valuable to that segment even if the overall “quality” is not seen as superior by most other consumers

  • Cost may be in terms of money or other sacrifice








Value implications
Value: Implications

  • A low quality, low price product represents poor value for many customers

  • A very high benefit product at a high price can represent value for some segments

  • Customer segments differ in what they find valuable


Relationship marketing
Relationship Marketing

  • Selling (selling existing products with whatever methods are necessary) vs. marketing orientation (serving customer needs whether in current or new forms)

  • Maintaining a relationship with the customer over time rather than just focusing on immediate sales

    • Anticipating customer needs

    • Providing solutions

    • Investing in products and services optimized for the customer


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