1. Marketing: Managing Profitable Customer Relationships. ROAD MAP: Previewing the Concepts. Define marketing and outline the steps in the marketing process. Explain the importance of understanding customers and the marketplace, and identify the five core marketplace concepts.
Managing Profitable Customer Relationships
Old view of marketing:
Making a sale -- “Telling and Selling”
New view of marketing:
Satisfying customer needs
A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
that delivers superior value
Understand the marketplace and customer needs and wants
Design a customer-driven marketing
Build profitable relationships and create
Capture value from customers to create profits and customer equity
A Simple Model of the Marketing Process
Create value for customers and build customer relationships
Capture value from customers in return
Needs - state of felt deprivation including physical, social, and individual needs.
Wants - form that a human need takes, as shaped by culture and individual personality.
Anything that can be Offered to a Market to Satisfy a Need or Want
Activity or Benefit Offered for Sale That is Essentially
Intangible and Does Not Result in the Ownership of Anything
Products do not have to be physical objects. Here the “product” is an idea—protecting animals.
Questions to ask:
What is our target market?
What is our value proposition?
It cleans and freshens like sunshine!
Societal Marketing Concept
How many of us would have thought to ask for a “wearable” PC? Marketers must often understand customer needs even better than customers themselves do.
Is FedEx’s service worth the higher price? FedEx thinks so. It promises reliability, speed, and peace of mind. FedEx ads say “Need to get it there or else? Don’t worry. There’s a FedEx for that.”
To keep customers coming back, Stew Leonard’s has created the “Disneyland of dairy stores.” Rule #1—the customer is always right. Rule #2—if the customer is ever wrong, reread Rule #1.
Good fit between company’s offerings and customer’s needs; high profit potential
Good fit between company’s offerings and customer’s needs; highest profit potential
Little fit between company’s offerings and customer’s needs; lowest profit potential
Limited fit between company’s offerings and customer’s needs; low profit potential
The recent technology boom has had a major impact on the ways marketers connect with and bring value to their customers.
Ethics & Social
New World of Marketing