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PMK Chap 1

The document discusses the key principles of marketing including: 1. Defining marketing as creating value for customers through strong customer relationships to capture value in return. 2. The roles of marketing are to close the gap between production and consumption through channels/regulations and manage customers/markets through collaboration. 3. Creating and capturing customer value involves understanding customer needs/wants, designing a customer value-driven strategy by choosing target markets and building relationships, constructing an integrated marketing program using the 4 P's, and engaging customers to build profitable relationships.

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62 views4 pages

PMK Chap 1

The document discusses the key principles of marketing including: 1. Defining marketing as creating value for customers through strong customer relationships to capture value in return. 2. The roles of marketing are to close the gap between production and consumption through channels/regulations and manage customers/markets through collaboration. 3. Creating and capturing customer value involves understanding customer needs/wants, designing a customer value-driven strategy by choosing target markets and building relationships, constructing an integrated marketing program using the 4 P's, and engaging customers to build profitable relationships.

Uploaded by

camlansuc09999
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PRINCIPLE OF MARKETING

I.1. Marketing: Creating Customer Value and Engagement


Purpose of Business: to gain profit, power
Definition:
Marketing is a process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return.
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at large. American
Marketing Association
Roles of Marketing:
Closing the gap between production and consumption via channels and regulations
Management of customers and markets
Collaboration with customers and third parties
1.2. Creating and Capturing Customer Value

A) Understand the marketplace and customer needs and wants:


Five core customer and marketplace concepts:
1. Needs, wants, and demands:
Needs are states of felt deprivation.
Wants are the form human needs take as they are shaped by culture and individual personality.
Demands are human wants that are backed by buying power.
2. Market Offerings (products, services, and experiences):
Market offerings are some combination of products, services, information, or experiences offered to a
market to satisfy a need or want.
Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs
3. Value and Satisfaction :
Customer-perceived value: The customer’s evaluation of the difference between all the benefits and all
the costs of a marketing offer relative to those of competing offers.
Customer satisfaction: The extent to which a product’s perceived performance matches a buyer’s
expectations.
4. Exchanges and Relationships:
Exchange is the act of obtaining a desired object from someone by offering something in return.
Marketing actions try to create, maintain, and grow desirable exchange relationships.
5. Markets :
A market is set of actual and potential buyers. Consumers market when they:

 search for products


 interact with companies to obtain information
 make purchases
B) Design a customer value-driven marketing strategy:
Marketing management is the art and science of choosing target markets and building profitable
relationships with them.

 What customers will we serve (target market)?


 How can we best serve these customers (value proposition)?
A brand’s value proposition is the set of benefits or values it promises to deliver to customers to satisfy
their needs.

1.3. Selling and Marketing Concepts Contrasted:

C) Construct an integrated marketing program that delivers superior value:


The marketing mix is comprised of a set of tools known as the four Ps:
 product
 price
 promotion
 place
Integrated marketing program - a comprehensive plan that communicates and delivers intended value
D) Engage customers, build profitable relationships and create customer delight:
Customer relationship management - the overall process of building and maintaining profitable
customer relationships by delivering superior customer value and satisfaction.

Customer-Engagement Marketing - fosters direct and continuous customer involvement in shaping


brand conversations, experiences, and community
Consumer-Generated Marketing
Brand exchanges created by consumers themselves.
Consumers are playing an increasing role in shaping brand experiences.
Partner relationship management involves working closely with partners in other company
departments and outside the company to jointly bring greater value to customers.

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