Example

Suppose you love drinking coffee. You often go to Starbucks or a local café.
They give you a warm environment, write your name on the cup, offer loyalty
points, and treat you like a friend.Why do they do all this?Because they want
to attract you, make you feel valued, and keep you coming back. That’s
marketing in action.

Definition of Marketing:

Marketing is the process by which companies engage customers, build strong

relationships, and create customer value in order to capture value from
customers in return.

It is not just about selling and advertising. It focuses on understanding

customer needs, creating products that offer value, and maintaining long-
term customer relationships.Marketing is about creating and exchanging
value to satisfy human needs and wants.

The Five Steps in the Marketing Process:

1. Understand the marketplace and customer needs and wants

→ Research and understand what customers truly need and desire.

2. Design a customer value-driven marketing strategy

→ Choose a target market and decide how to serve them better than
competitors.

3. Construct an integrated marketing program that delivers superior

value

→ Develop the right product, price, place, and promotion (4Ps) to offer value.

4. Engage customers and build strong relationships

→ Build trust and satisfaction so customers stay loyal.

5. Capture value from customers in return

→ Get sales, profits, and customer loyalty (customer equity) from happy
customers.

✅ Importance of Understanding the Marketplace and Customer:

Understanding the marketplace and customer is the first and most important
step in marketing. It helps a company to offer the right product, to the right
people, at the right time, and in the right way.

🔑 Key Reasons Why It's Important:

1. Identify Real Needs and Wants

→ Helps marketers understand what people truly need, not just what they
say they want.

Example: A student needs to pass exams (need), but wants a fast, easy
study app (want).

2. Create the Right Products and Services

→ Understanding customer desires helps create market offerings that truly

solve problems.

Example: Grameenphone offers student packs after realizing students want

affordable internet.

3. Avoid Marketing Myopia

→ Companies that focus only on selling a product (not solving a need) may
fail.

Example: A drill machine company must remember customers want holes,

not just drills.

4. Build Long-Term Customer Relationships

→ Knowing what satisfies the customer helps build trust and loyalty.

Example: Pathao adds tracking and rider reviews because customers want
safety and control.

5. Stay Ahead of Competitors

→ When you understand your customers better than competitors do, you win
their hearts and money.

✅ Five Core Marketplace Concepts:c

1️⃣Customer Needs, Wants, and Demands

Needs are basic human requirements — food, safety, love, education.Wants

are shaped by culture and personality — one may want pizza, another may
want rice.Demands are wants backed by the ability and willingness to pay.
🧠 Example:

You need food → you want a burger → if you have money to buy it, it
becomes demand.

2️⃣Market Offerings (Products, Services, and Experiences)

Market offerings are the combination of products, services, and experiences

offered to satisfy needs/wants.These can be physical products (like a
smartphone), services (like online classes), or experiences (like visiting
Disney World).Market offerings are not limited to physical products . they
also includes services - activities are benefits offered for sale that are
essentially intensible and do not result in the ownership of anything.
Examples include banking, airline, hotel , retailing and home repair services.

🧠 Example:

A university offers not just education (service) but also campus life
(experience).

Marketing Myopia

Marketing Myopia is a short-sighted and narrow-minded approach to

marketing where a company focuses only on selling its products rather than
understanding and satisfying customer needs. Companies that suffer from
marketing myopia may succeed in the short run but fail in the long run.They
ignore changes in customer preferences, technology, and market trends.

✅ Examples:

1. Kodak:

Focused only on selling film-based cameras.Ignored the growing need for

digital photography.

Result: Lost market leadership.

2. Railroad industry:

Thought they were in the "rail business."Forgot that they were in the
transportation business.Did not adapt to competition from cars, buses,
planes.

3️⃣Customer Value and Satisfaction

Customer value is the benefit the customer gets vs. What they give (money,
time, effort).Customer satisfaction is how happy they feel after using the
product or service. Satisfied customers return and promote the brand;
unsatisfied ones switch to competitors.

🧠 Example:

If you buy a t-shirt from Aarong and feel it’s worth the price and quality, you
are satisfied and may buy again.

4️⃣Exchange and Relationships

Exchange is giving something to get something in return.Marketing is about

creating, maintaining, and growing exchange-based relationships with
customers. Marketing consist of actions taken to create, maintain and grow
desirable exchange relationship with target audiences involving a
product ,service , Idea or other object . companies want to be strong
relationships by consistently delivering the superior customer value.

🧠 Example:

You give money to bKash for mobile recharge — they give you the service in
return.

5️⃣Markets

A market is the group of all actual and potential buyers who share a common
need or want.

Marketers manage markets by finding customers, understanding their needs,

and offering solutions better than competitors.

🧠 Example:

The market for mobile phones includes everyone looking to buy a phone —
students, professionals, elderly people, etc.
Imagine PRAN Group wants to launch a new fruit juice in
Bangladesh. They have many options:
Who should they sell it to? (kids, teenagers, office workers?)
What kind of juice? (mango, orange, mixed fruit?)
How will they promote it? (TV ads, social media, free samples?)

To make the right decisions, PRAN needs to understand what

customers want and how to offer it better than competitors.That
whole planning and decision-making process is called Marketing
Management.
✅ Definition of Marketing Management:
Marketing Management is the art and science of choosing target
markets and building profitable relationships with them by
creating, delivering, and communicating superior customer value.
👉 In short, it’s about:
1. Knowing who your customers are
2. Understanding what they need
3. Designing the right product/service for them
4. Promoting and delivering it in a way that satisfies them
5. Making sure the company benefits too (profit)

🔑 Key Elements of a Customer Value–Driven

Marketing Strategy:
1. Selecting Customers to Serve

The company chooses which group of customers to serve.

This is done through:

Market Segmentation: Dividing the market into smaller groups.Target

Marketing: Selecting which group(s) to focus on. Market segmentation is the
process of dividing a broad consumer or business market into sub-groups of
consumers based on some shared characteristics.

Example:

PRAN Group in Bangladesh produces different types of juices. They offer kids'
juices in small colorful packs (targeting children), large healthy juices
(targeting adults), and sugar-free juices (targeting diabetic people). This is
market segmentation based on age and health condition.

2. Choosing a Value Proposition

The company must decide how it will serve those chosen customers.A value
proposition is the set of benefits it promises to deliver to satisfy customer
needs.Differentiates a brand from competitors.Creates strong customer
perception and preference.Guides marketing strategy and positioning.Helps
in attracting, retaining, and growing customers.

3. Creating Profitable Customer Relationship.

The goal is to engage, satisfy, and retain customers by delivering superior

value.This leads to customer loyalty, which results in long-term profits.
4. Marketing Mix (4 Ps)

Product: Create offerings that satisfy customer needs.

Price: Decide how much to charge.

Place: Decide where and how to deliver the product.

Promotion: Communicate the value to the target customers.

🎯 Marketing Management Orientations

(Philosophies):
1. Production Concept

Focus: High efficiency and wide availability.

Assumption: Customers prefer cheap and easily available products.

2. Product Concept

Focus: Quality, features, and innovation.

Risk: Marketing myopia (ignoring actual customer needs).

3. Selling Concept

Focus: Aggressive promotion and selling.

Assumption: Customers won’t buy unless pushed.

Risk: Short-term sales, weak customer relationships.

4. Marketing Concept

Focus: Understanding and satisfying customer needs better than

competitors.

Goal: Long-term relationships and customer satisfaction.

5. Societal Marketing Concept

Focus: Balancing company profits, customer wants, and society’s well-being.

Idea: Serve customers in a way that maintains both short-term satisfaction

and long-term welfare.
Discuss customer relationship management and identify
strategies for creating value for customers and capturing
value from customers in return.

🔑 Key Terms with Definitions & Examples

1. Customer Relationship Management (CRM)

CRM is the overall process of building and maintaining profitable customer

relationships by delivering superior customer value and satisfaction.

🔹 Example: Amazon uses CRM to personalize recommendations and support.

2. Customer-Perceived Value

The customer’s evaluation of the difference between total benefits and total
costs of a product compared to competitors.

🔹 Example: A Patek Philippe watch, although costly, is considered great value

due to its luxury, quality, and emotional connection.

3. Customer Satisfaction

The level of satisfaction depends on how a product’s performance matches

the buyer’s expectations.

🔹 Below expectations → Dissatisfaction

🔹 Matches expectations → Satisfaction

🔹 Exceeds expectations → Delight

4. Customer Delight

Occurs when a product exceeds expectations and emotionally connects with

the customer.

🔹 Example: LL.Bean’s exceptional return policy delights customers.

5. Customer Evangelists
Highly satisfied customers who voluntarily promote and advocate the brand.

🔹 Example: Apple users often recommend iPhones to others.

🧠 Short Questions (with answers)

1. What is CRM?

CRM is the process of building and maintaining profitable customer

relationships by delivering superior value and satisfaction.

2. What is customer-perceived value?

It is the customer’s evaluation of benefits vs. costs compared to competitors.

3. What is customer satisfaction?

It refers to how a product’s performance meets customer expectations.

4. What is the result of customer delight?

Delighted customers show loyalty and promote the brand.

5. Give one company that uses CRM.

Amazon.

✅ Broad Questions with Answers

1. Explain CRM and its importance in modern marketing.

Answer:

Customer Relationship Management (CRM) is the process of creating and

maintaining profitable customer relationships by delivering value and
satisfaction. In modern marketing, CRM helps companies understand
customer needs, personalize interactions, build trust, increase loyalty, and
enhance long-term profitability.

2. Discuss how customer value and satisfaction build customer

loyalty.

Answer:

When a company provides products that deliver high customer-perceived

value and meet or exceed expectations, customers feel satisfied. Satisfied
customers return for repeat purchases and become loyal. Loyalty increases
retention, reduces marketing costs, and boosts word-of-mouth promotion.

3. Explain how companies create and capture customer value with

examples.

Answer:

Companies create customer value by offering quality, convenience,

personalization, emotional benefits, or competitive pricing. For example,
Patek Philippe creates value through luxury, heritage, and emotional
meaning. Companies capture value by gaining customer loyalty, brand
advocacy, and increased lifetime value.

4. Analyze the impact of perceived value on buying decisions.

Answer:

Customers buy products based on perceived value, not actual cost. A high-
priced item may seem more valuable if it offers long-term use, emotional
satisfaction, or prestige. Perceived value affects brand preference,
willingness to pay more, and customer trust.

5. Describe the customer engagement and relationship management

process.

Answer:

Customer engagement starts with understanding needs, then delivering

value through tailored offerings. CRM tools track behavior and preferences to
build strong relationships. Satisfied customers become loyal and often
promote the brand, creating a feedback loop of trust and retention.

🎨 Creative Questions with Answers

1. Design a loyalty program for a fashion store that ensures

satisfaction.

Answer:

Program Name: Style Rewards Club

Earn 1 point per $1 spent

Free gifts on birthdays

Exclusive early access to sales

Free shipping for members

VIP tier for frequent buyers with 10% lifetime discountThis ensures
satisfaction by offering rewards, recognition, and convenience.

2. How would you create value like Patek Philippe in your own
luxury brand?

Answer:

I would focus on craftsmanship, storytelling, and emotional branding. Each

product would be handmade, with a certificate of heritage. I would link
purchases to life milestones and promote it as a symbol of legacy, just like
Patek Philippe promotes “You never actually own it, you look after it for the
next generation.”

3. Suggest 3 ways to turn satisfied customers into brand promoters.

Answer:

1. Offer referral bonuses for sharing the brand.

2. Feature loyal customers in brand stories and social media.

3. Provide exceptional post-sale service to build emotional connection and

trust.

🔍 Analytical Questions with Answers

1. Why do people sometimes buy expensive items instead of cheap

ones?

Answer:

Because they perceive higher value in the expensive item—better quality,

prestige, emotional satisfaction, or long-term benefits. For instance, a luxury
watch may symbolize achievement or become a family heirloom, making it
more appealing despite the cost.

2. How does customer satisfaction impact business profit?

Answer:

Satisfied customers are likely to return, refer others, and require less
marketing effort. This increases customer lifetime value and reduces churn,
which directly boosts revenue and reduces acquisition cost—thereby
improving profit.
3. Compare satisfaction and delight in terms of loyalty.

Answer:

Satisfaction keeps customers coming back, but delight makes them

emotionally attached. Delighted customers are more likely to become
evangelists who not only return but also recommend the brand to others,
building stronger long-term loyalty.

🔗 Relational Questions with Answers

1. How does customer satisfaction lead to loyalty?

Answer:

When customers are consistently satisfied, they begin to trust the brand.
This trust leads to repeat purchases, emotional connection, and eventually
loyalty, where customers stick with the brand despite competitors.

2. What is the link between CRM and customer evangelism?

Answer:

CRM helps companies understand and serve customers better. Satisfied

customers from this process often become brand evangelists who voluntarily
promote the brand, increasing its reputation and market presence without
extra cost.

3. How does perceived value help in customer retention?

Answer:

When customers believe they are getting more value than the cost they pay,
they are less likely to switch to competitors. This perception fosters trust,
satisfaction, and long-term loyalty, thus improving retention.

Here is a complete and standard study note on Customer Relationship Management (CRM)
including all the subtopics you mentioned—each clearly explained with English and Bangla
sections, examples, and organized points.
📘 English Version
Customer Relationship Management (CRM):

Customer Relationship Management is the process of building and maintaining profitable

customer relationships by delivering superior value and satisfaction.

🔹 1. Relationship Building Blocks

CRM is built on two key building blocks:

 Customer Value: The difference between what the customer gains

and what they give up.
 Customer Satisfaction: The extent to which a product’s performance
meets customer expectations.

🔹 2. Customer-Perceived Value

Definition:
Customer-perceived value is the customer’s evaluation of the difference between all the benefits
and all the costs of a market offering.

Example:
If a phone costs $300 but offers great camera and battery life, the customer may see it as high
value.

🔹 3. Customer Satisfaction

Definition:
Customer satisfaction is how well a product’s performance meets or exceeds expectations.

Implications:

 High satisfaction leads to loyalty and repeat purchases.

 Dissatisfaction leads to switching to competitors.
🔹 4. Customer Relationship Labels and Tools

Marketers label customers based on their relationship strength and use different tools
accordingly:

Label Description

Strangers Low potential, no loyalty

Butterflies Profitable but not loyal

True Profitable and loyal (priority

Friends customers)

Barnacles Loyal but not profitable

Tools:

 Loyalty programs
 Email marketing
 Customer service platforms (e.g., Zendesk, HubSpot)

🔹 5. Customer Engagement and Today’s Digital, Mobile, and Social

Media

Modern CRM uses digital tools to create engagement beyond transactions.

 Digital media: Websites, blogs, emails

 Mobile apps: Instant access and notifications
 Social media: Facebook, Instagram, YouTube for interactions

Goal: Make customers feel involved with the brand.

🔹 6. Customer Engagement Marketing

Definition:
Fostering direct and continuous customer involvement in shaping brand conversations,
experiences, and community.
Example:
Nike's fitness app engages users by tracking workouts, sharing stories, and inviting them to
challenges.

🔹 7. Customer Brand Advocacy

Definition:
When satisfied customers voluntarily promote a brand to others.

Examples:

 Posting reviews
 Recommending to friends
 Sharing brand content online

🔹 8. Consumer-Generated Marketing

Definition:
Marketing created by consumers themselves, often through social media.

Examples:

 TikTok videos featuring a product

 Unboxing or review videos on YouTube
 Memes or brand mentions on X (Twitter)

🔹 9. Partner Relationship Management (PRM)

Definition:
Working closely with partners (suppliers, channel partners, etc.) to deliver superior customer
value.

Goals:

 Improve supply chain efficiency

 Collaborate on customer experience
 Maintain unified branding
✅ Summary Table
Topic Key Idea

Managing profitable relationships with

CRM
customers

Building Blocks Customer value & satisfaction

Perceived Value Benefits vs. costs

Satisfaction Meeting/exceeding expectations

Relationship Labels Strangers, Butterflies, True Friends, Barnacles

Engagement & Digital Tools Social media, apps, websites

Engagement Marketing Involving customers continuously

Brand Advocacy Happy customers promote the brand

Consumer-Generated Customers create and share marketing

Marketing content

Collaborating with partners for better

PRM
customer value