CHAPTER 1 → Marketing: Creating Customer Value & Engagement
Marketing
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Marketing:
process by which companies engage customers, build strong customer relationships, and
create customer value in order to capture value from customers in return.
Marketplace & Customer Needs
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Needs:
states of felt deprivation
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Wants:
form human needs take as they are shaped by culture and individual personality
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Demands:
human wants that are backed by buying power
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Market offering:
some combination of products, services, information or experiences offered to a
market to satisfy a need or a want
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Marketing myopia
:
mistake of paying more attention to the specific products a company offers than
to the benefits and experiences produced by these products
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Exchange:
act of obtaining a desired object from someone by offering something in return.
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Market:
set of actual and potential buyers of a product or service
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Marketing management:
art and science of choosing target markets and building profitable
relationships with them
Customer-driven Marketing Strategy
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De-marketing:
marketing in which the task is to temporarily or permanently reduce demand
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Production concept:
consumers will favour products that are available and highly affordable →
organisation focus on improving production & distribution efficiency
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Product concept:
consumers will favour products that offer the most in quality, performance and
innovative features → organisation devote energy to making continuous product improvements
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Selling concept:
consumers will not buy enough of the firm's products unless it undertakes a
large-scale selling and promotion effort
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Marketing concept:
achieving organisational goals depends on knowing the needs and wants of
target markets and delivering the desired satisfactions better than competitors do.
