Customer-Driven Strategic Marketing

Chapter 1 Customer-Driven Strategic trade Lecture Outline I. specify merchandising We define merchandise as the work on of creating, distributing, promoting, and de edgeine goods, services, and ideas to avail come acrossing convince races with guests and to get around and maintain favorable relationships with stakeholders in a dynamic environment. A . selling Focuses on Customers 1 . As the purchasers of the productions that governments scram, promote, distribute, and wrong, customers are the focal point of both market activities. 2 .The essence of trade is to develop satisfying exchanges from which both customers and marketers benefit. 3 . Organizations generally focus their make outing efforts on a specific group of customers, or target market. B . Marketing Deals with harvestings, Distribution, Promotion, and Price 1. Marketing is more than simply advertising or selling a product it involves developing and managing a product, making the product useab le in the right place and at a price acceptable to buyers, and communicating information to help customers determine if the product go out satisfy their inevitably. 2.These activitiesproduct, distribution, promotion, and pricingare known as the merchandise change integrity in because marketers decide what type of each element to use and in what amounts. 3. The Product inconstant a )The product variable of the trade rumple allots with researching customers assumes and pauperizations and designing a product that satisfies them. b )A product screw be a good, a service, or an idea. ( 1 )Gooda physical entity ( 2 )Servicethe application of human and mechanical efforts to the great unwashed or objects to permit intangible benefits to customers ( 3 )Ideaconcept, philosophy, image, or issue c )The product variable admits the innovation or modification of brand names and packaging. It may likewise embarrass decisions regarding warranty and repair services. d )Product v ariable decisions and relate activities are burning(prenominal) because they directly impact the institution of products that meet customers needs and wants. 4. The Distribution Variable In dealing with the distribution variable, a market manager makes products available in the quantities desired to as many target market customers as possible, keeping total inventory, transportation, and storage costs as low as possible. . The Promotion Variable The promotion variable relates to activities used to inform undivideds or groups about an organization and its products. a)Promotion ignore be aimed at change magnitude usual awareness of an organization and mod or existing products. b) Promotional activities give the sack also educate customers about product features or urge spate to take a particular stance on a governmental or social issue. 6. The Price Variable a)The price variable relates to decisions and actions associated with establishing pricing objectives and policies a nd determining product prices. )Price is a critical component of the selling mix because customers are concerned about the value obtained in an exchange. 7. Marketing mix variables are often viewed as controllable because they can be circumscribed however, economic conditions, competitive structure, or government regulations may limit a merchandising managers influence. C . Marketing Builds Relationships with Customers and Other Stakeholders 1. Individuals and organizations rent in market to drive on exchangesthat is, the provision or transfer of goods, services, or ideas in return for something of value. 4 .Four conditions must exist for an exchange to conk a)Two or more individuals, groups, or organizations must participate, and each must feature something of value desired by the other ships guild. b)The exchange should provide a benefit or satisfaction to both parties involved in the transaction. c)Each party must wee-wee confidence in the promise of the something of value held by the other. d)To build trust, the parties to the exchange must meet expectations. 5 . An exchange go away non necessarily take place just because these conditions exist market activities can occur even without an actual transaction or sale.Figure 1. 2 depicts the exchange process. 6. Marketing activities should attempt to effect and maintain satisfying exchange relationships. 7 . Marketers are also concerned with building relationships with relevant stakeholders who have a stake, or claim, in some aspect of a go withs products, operations, markets, indus sift, and outcomes these may include customers, employees, investors and shareholders, suppliers, governments, communities, and many others. D . Marketing Occurs in a Dynamic Environment . The merchandising environment, which includes competitive, economic, legal and regulatory, technological, and socio-cultural forces, surrounds the customer and actuates the marketing mix as shown in Figure 1. 1. 2. The forces of the marketing environment affect a marketers ability to facilitate exchanges in lead ways a)They affect customers lifestyles, standards of living, and preferences and needs for products. b)They help determine whether and how a marketing manager can perform certain marketing activities. )They affect a marketing managers decisions and actions by influencing buyers reactions to the organizations marketing mix. 3. Marketing environment forces can fluctuate quickly and dramatically. 4. Changes in the marketing environment produce uncertainty for marketers and at times hurt marketing efforts, but they also create opportunities. 5. Marketing mix elementsproduct, distribution, promotion, and priceare factors over which an organization has control the forces of the environment, however, are subject to far less(prenominal) control. II.Understanding the Marketing Concept A. According to the marketing concept, an organization should try to provide products that satisfy customers needs throu gh a coordinated set of activities that also allows the organization to achieve its finishings. 1. Customer satisfaction is the major focus of the marketing concept. a)To implement the marketing concept, an organization focuses on customer analysis, competitor analysis, and integration of the organizations resources to provide customer value and satisfaction, as puff up as long-term moolahs. )The organization must also continue to alter, adapt, and develop products to keep pace with customers changing desires and preferences. 8 . The marketing concept is non a second definition of marketing. It is a management philosophy command an organizations overall activities. 9 . It is weighty for marketers to consider not only current buyers needs, but also the long-term needs of society. B. development of the Marketing Concept 1. The Production Orientation )During the second half of the nineteenth century, the Industrial Revolution was in full swing in the coupled States. b)As a re sult of new technology and new ways of use labor, products poured into the marketplace, where consumer demand for the new manufactured goods was strong. 2. The Sales Orientation a)Between the mid mid-twenties and the archeozoic 1950s, businesspeople viewed sales as the major subject matter of increasing profits. b)During this era, businesspeople believed that the major marketing activities were personal selling, advertising, and distribution. 3.The Marketing Orientation a)By the early 1950s, some businesspeople recognized they must first determine what customers want and then produce it, rather than make products and try to persuade customers that they need what is produced. b)A marketing orientation requires the organization-wide generation of market intelligence pertaining to current and future tense customer needs, dissemination of the intelligence across departments, and organization-wide responsiveness to it. c)Today, businesses want to satisfy customers and build meaning ful, long-term buyer-seller relationships.C. Implementing the Marketing Concept To implement the marketing concept, a marketing-oriented organization must accept some general conditions and recognize and deal with several problems. 1. Management must first establish an information establishment to discover customers real needs and then use the information to create satisfying products. 2. To satisfy customers objectives as well as its own, a company must also coordinate all its activities. III. Managing Customer Relationships A.Achieving the full profit potential of each customer relationship should be the fundamental goal of every marketing strategy. 1. At the about basic level, profits can be obtained through relationships in the following ways a)By acquiring new customers b)By enhancing the profitability of existing customers c)By extending the duration of customer relationships 2. Implementing the marketing concept means optimizing the exchange relationshipthe relationship bet ween a companys financial investment in customer relationships and the return generated by customers doing to that investment.B. The term relationship marketing refers to long-term, mutually beneficial arrangements in which both the buyer and seller focus on value provement through the creation of more satisfying exchanges. 1. Relationship marketing continually deepens the buyers trust in the company, and as the customers confidence grows, this in turn increases the organizations understanding of the customers needs. 10 . Eventually this interaction becomes a solid relationship that allows for cooperation and mutual dependence. C.Customer-centric marketing requires developing collaborative relationships with customers ground on focusing on their individual needs and concerns. 1. It adopts the view that customers buy offerings which provide value and prefer a relationship rather than a transactional orientation. 2. Collaborating with and learning from customers leads to a sense and respond approach rather than a produce and sell approach. D. Customer relationship management (CRM) uses information about customers to create marketing strategies which develop and harbour desirable customer relationships. 1.By increasing customer value over time, organizations try to retain and increase long-term profitability through customer loyalty. 2. Managing customer relationships requires identifying patterns of buying behavior and using that information to focus on the most promising and profitable customers. IV. Value-Driven Marketing A. To manage customer relationships, organizations must develop marketing mixes that create value for customers. Value is a customers subjective assessment of benefits relative to costs in determining the value of a product (customer value = customer benefits customer costs). . Customer benefits include anything a buyer receives in an exchange. 2. Customer costs include anything a buyer must give up to obtain the benefits provided by the product. cost include the monetary price of the product as well as less obvious nonmonetary costs, such as time and effort. B. The process people use to determine the value of a product is not super scientific. C. In developing marketing activities, it is important to recognize that customers receive benefits based on their experiences. D. The marketing mix can be used to enhance perceptions of value. V. Marketing ManagementA. Marketing management is the process of planning, organizing, implementing, and controlling marketing activities to facilitate effective and efficient exchanges. 1. Effectiveness is the degree to which an exchange helps achieve an organizations objectives. 2. Efficiency refers to minimizing the resources an organization must spend to achieve a specific level of desired exchanges. B. Planning is a systematic process of assessing opportunities and resources, determining marketing objectives, and developing marketing strategy and plans for implementation and control.C. Organizing marketing activities involves developing the internal structure of the marketing unit. D. Proper implementation of marketing plans hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication deep down the unit. E. The marketing control process consists of establishing operation standards, comparing actual performance with established standards, and reducing the difference between desired and actual performance. VI. The splendour of Marketing in Our Global deliveryA. Marketing Costs Consume a Sizable Portion of Buyers Dollars 1. About one-half of a buyers dollar goes to the costs of marketing. 2. Because marketing expenses consume significant portions of each dollar, it is important to know how this money is used. B. Marketing Is Used in Nonprofit Organizations 1. Marketing is also important in organizations working to achieve goals other than ordinary business objectives such as profit. 2. Government agenc ies engage in marketing activities to fulfill missions and goals. . In the private sector, nonprofit organizations also employ marketing activities to create, distribute, promote, and even price programs that benefit particular segments of society. C. Marketing Is Important to melodic phrase and the Economy 1. Businesses must sell products to survive and grow, and marketing activities help sell their products. 2. Marketing activities help produce profits which are essential to the selection of individual businesses and the health and ultimate survival of the global economy. D.Marketing Fuels Our Global Economy 1. Profits from marketing products contribute to the development of new products and technologies. 2. Advances in technology, along with falling political and economic barriers, and the universal desire for a higher(prenominal) standard of living, have made marketing across national borders customary while stimulating global economic growth. E. Marketing Knowledge Enhances Consumer knowingness 1. The study of marketing allows a more effective assessment of a products value and flaws. 2.An understanding of marketing enables evaluation of nonindulgent measures (such as laws, regulations, and industry guidelines) which could stop unfair, damaging, or unethical marketing practices. F. Marketing Connects People through Technology 1. New technology, especially technology related to computers and telecommunications, helps marketers understand and satisfy more customers than ever before. 2. The Internet is a critical tool for marketing to consumers and other businesses. G. Socially Responsible Marketing can Promote the Welfare of Customers and Society 1.The success of our economic system depends on marketers whose values promote trust and cooperative relationships in which customers are tempered with respect. 2. By managing concern about the impact of marketing on society, a organization can protect the interests of the general public and the natural enviro nment. H. Marketing Offers Many Exciting Career Prospects 1. From 25 to 33 percent of all civilian workers in the U. S. perform marketing activities. 2. Whether a person earns a living through marketing activities or performs them voluntarily in non-business projects, marketing knowledge and skills are valuable assets.