Summary
Marketing Book Summary Necessary Chapters!
- Course
- Institution
- Book
In this summary, the needed chapters are summarized for the exam at Radboud University.
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Test Bank for Principles of Marketing 17th Edition Kotler All Chapters 1 - 20 Fully Covered A+ Guide Complete 2025 Edition ISBN:9780134492513 Newest Version
-
Test Bank for Principles of Marketing 17th Edition By Kotler Armstrong (2024) | All Chapter’s Covered | Complete Guide A+
-
Test Bank for Principles of Marketing 17th Edition Kotler All Chapters 1 - 20 Full Complete 2024 Latest Newest Version Complete Solutions 9780134492513
Seller
Follow
daantjearts
Content preview
Chapter 1 – Marketing: creating customer value and engagement blz 26 t/m 62Marketing is engaging customers and managing profitable customer relationships.
Twofold goal of marketing is to attract new customers by promising superior value and to keep and
grow current customers by delivering value and satisfaction.
We define marketing as the process by which companies engage customers, build strong customer
relationships, and create customer value in order to capture value from customers in return.
The marketing process:
Customer needs (states of felt deprivation), wants (form human needs take as they are shaped by
culture and individual personality) and demands (when backed by buying power).
Consumers needs and wants are fulfilled through market offerings (combination of products,
services , info, or experiences offered to a market to satisfy a need or a want).
Many sellers make the mistake of paying more attention to the specific products they offer than to
the benefits and experiences produced by these products. These sellers suffer from marketing
myopia. They forget that a product is only a tool to solve a consumer problem.
Marketers must be careful to set the right level of expectations. If they set expectations too low, they
may satisfy those who buy but fail to attract enough buyers. If they set expectations too high, buyers
will be disappointed. Customer value and customer satisfaction are key building blocks for
developing and managing customer relationships.
Exchanges and relationships
Marketing occurs when people decide to satisfy their needs and wants through exchange
relationships. Exchange is the act of obtaining a desired object from someone by offering something
in return. So the marketer tries to bring about a response to some market offering. Marketing
consists of action taken to create, maintain and grow desirable exchange relationships with target
audiences involving a product, service, idea or other object. Companies want to build strong
relationships by consistently delivering superior customer value.
Markets
A market is the set of actual and potential buyers of a product or service. These buyers share a
particular need or want that can be satisfied through exchange relationships.
,Designing a customer value – driven marketing strategy plan
Marketing management is the art and science of choosing target markets and building profitable
relationships with them. The marketing manager’s aim to engage, keep and grow target customers
by creating, delivering, and communicating superior customer value. ‘’What will we serve? & How
can we serve these customers best?’’
Selecting customers to serve is the first step in progress. This is done by dividing the market into
segments of customers and selecting which segments it will go after.
Second step is to choose a value proposition, so how it will serve the targeted customers (how to
differentiate and position in the marketplace). Companies must design strong value propositions that
give them the greatest advantage in their target markets.
Next step is ‘’what philosophy should guide these marketing strategies? What weight should be given
to the interests of customers, the organization, and society?” There are five alternative concepts
under which organizations design and carry out their marketing strategies; the production, product,
selling, marketing, and societal marketing concepts.
The production concept holds that consumers will favor products that are available and highly
affordable. Under this concept, management should focus on improving production and sitrubtion
efficiency.
The product concept holds that consumers will favor products that offer the most in quality,
performance, and innovative features. Under this concept, marketing strategy focuses on making
continuous product improvements.
The selling concept holds that consumers will not buy enough of the firm’s products unless it
undertakes a large-scale selling and promotion effort. The selling concept is typically practiced with
unsought goods. Such aggressive selling carries high risks. It focuses on creating sales transactions
rather than on building long-term, profitable customer relationships.
The marketing concept holds that achieving organizational goals depends on knowing the needs and
wants of target markets and delivering the desired satisfactions better than competitors do.
Customer focus and value are the paths to sales and profits.
The societal marketing concept questions whether the pure marketing concept overlooks possible
conflicts between consumer short-run wants and consumer long-run welfare. It calls for sustainable
marketing, socially and environmentally responsible marketing that meets the present needs of
consumers and businesses while also preserving or enhancing the ability of future generations to
meet their needs.
After the marketing strategy outlines are clear, the marketer develops an integrated marketing
program that will actually deliver the intended value to target customers. The marketing program
builds customer relationships by transforming the marketing strategy into action. This consist of the
firm’s marketing mix (product, price, place, promotion).
,Managing customer relationships and capturing customer value
The fourth step of the marketing process is the most important step: engaging customers and
managing profitable customer relationships.
Customer relationship management is the overall process of building and maintain profitable
customer relationships by delivering superior customer value and satisfaction.
The key to building lasting customer relationships is to create superior customer value and
satisfaction. Satisfied customers are more likely to be loyal customers and give the company a larger
share of their business. A customer buys from the firm that offers the highest customer-perceived
value.
Customer satisfaction depends on the product’s perceived performance relative to buyer’s
expectations, the customer is dissatisfied. If performance matches expectations, the customer is
satisfied. If performance exceeds expectations, the customer is highly satisfied or delighted.
The new marketing is customer-engagement marketing – fostering direct and continuous customer
involvement in shaping brand conversations, brand experiences, and brand community. Customer-
engagement marketing goes beyond just selling a brand to consumers. Its goal is to make the brand a
meaningful part of consumers’ conversations and lives. The key to engagement marketing is to find
ways to enter targeted consumers’ conversations with engaging end relevant brand messages.
Successful engagement marketing means making relevant and genuine contributions to targeted
consumers’ lives and interactions.
One form of customer-engagement marketing is consumer-generated marketing, by which
consumers themselves play role in shaping their own brand experiences and those of others.
When it comes to creating customer value and building strong customer relationships, todays
marketers know that they can’t go it alone. They must work closely with a variety of marketing
partners. In addition to being good at customer relationship management, marketers must also be
good at partner relationship management – working closely with others inside and outside the
company to jointly engage and bring more value to customers.
marketers must also partner with other players in the supply chain. Through supply chain
management, companies today are strengthening their connections with partners all along the
supply chain.
Capturing value from customers
The final step of the marketing process (5 th) involves capturing value in return in the form of sales,
market share, and profits. By creating superior customer value, the firm creates satisfied customers
who stay loyal and buy more. This, in turn, means greater long-run returns for the firm. Here, we
discuss the outcomes of creating customer value: customer loyalty and retention, share of market
and share of customer, and customer equity.
Good customer relationship management creates customer satisfaction and in turn satisfied
customers remain loyal and talk favorably to others about the company and its products. Loyal
customers spend more and stay around longer.
Customer lifetime value is the value of the entire stream of purchases a customer makes over a
lifetime of patronage.
, Beyond simply retaining good customers to capture customer lifetime value, good customer
relationship management can help marketers increase their share of customer – the share they get
of the customer’s purchasing in their product categories.
The ultimate aim of customer relationship management is to produce high customer equity.
Customer equity is the total combined customer lifetime values of all of the company’s current and
potential customers. It’s a measure of the future value of the company’s customer base.
Companies should manage customer equity carefully. They should view customers as assets that
need to be managed and maximized. Nut not all good customers are good investments. Some loyal
customers can be unprofitable, and some disloyal customers can be profitable.
Strangers show low potential profitability and little
projected loyalty. There is little fit between the company’s
offering and their needs. The relationship management
strategy for these customers is simple: don’t invest
anything in them; make money on every transaction.
Butterflies are potentially profitable but not loyal. There is
a good fit between the company’s offering and their
needs. But enjoy butterflies for a short while and then
they’re gone.
True friends are both profitable and loyal. There is a strong fit between their needs and the
company’s offerings. The firm wants to make continuous relationships investments to delight these
customers and engage, nurture, retain and grow them. It wants to turn true friends in true believers
who come back regularly and tell others about their good experiences with the company.
Barnacles are highly loyal but not very profitable. There is a limited fit between their needs and the
company’s offering. Barnacles are perhaps the most problematic customers. The company might be
able to improve their profitability by selling them more, raising their fees or reducing service to them.
The changing marketing landscape
We examine the major trends and forces that are changing the marketing landscape and challenging
marketing strategy. We look at five major developments: the digital age, the changing economic
environment, the growth of not-for-profit marketing, rapid globalization, and the call for sustainable
marketing practices.
Digital and social media marketing involves using digital marketing tools such as websites, social
media, mobile ads and apps, online video, email, blogs, and other digital platforms to engage
consumers anywhere, anytime via their computers, etc. Mobile marketing is perhaps the fastest-
growing digital marketing platform. 4/5 mobile users use it to shop as well. The key for marketers is
to blend new digital approaches with traditional marketing to create a smoothly integrated
marketing strategy and mix.
Changing economies is a big deal for marketers. In adjusting to this, companies may be temped to cut
their marketing budgets and slash prices in an effort to coax customers into opening their wallets.
However, although cutting costs and offering selected discounts can be important marketing tactics,
smart marketers understand that making cuts in the wrong places can damage long-term brand
images and customer relationships. The challenge is to balance the brand’s value proposition with
the current times while also enhancing long-term equity. Thus, rather than slashing prices in
uncertain economic times, many marketers hold the line on prices and instead explain why their
brands are worth it.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller daantjearts. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.15. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now