322 marketing concept
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The Marketing ConceptEvolving Perspectives
What Is Marketing?
Simple Definition: Marketing is managing profitable customer relationships.
Goals: 1. Attract new customers by promising
superior value. 2. Keep and grow current customers
by delivering satisfaction.
Marketing Management Philosophies
Production ConceptProduction Concept
Product ConceptProduct Concept
Selling ConceptSelling Concept
Marketing ConceptMarketing Concept
Societal Marketing ConceptSocietal Marketing Concept
The Production Concept
The Product Concept
Marketing and Sales Concepts Contrasted
Societal Marketing Concept
This Is a Need
Needs - state of felt deprivation including physical, social, and individual needs.
Maslow’s Hierarchy of Needs
This Is a Want
Wants - form that a human need takes, as shaped by culture and individual personality.
Need / Want Fulfillment
Needs and Wants Fulfilled through a Marketing Offer : Some combination of
products, services, information, or experiences offered to a market to satisfy a need or want.
ProductsAnything that can be Offered to a Market to Satisfy a Need or Want
ProductsAnything that can be Offered to a Market to Satisfy a Need or Want
PersonsPersons PlacesPlaces OrganizationsOrganizations
IdeasIdeasInformationInformation
What Satisfies Consumers’ Needs and Wants?
ServicesActivity or Benefit Offered for Sale That is Essentially
Intangible and Does Not Result in the Ownership of Anything
ServicesActivity or Benefit Offered for Sale That is Essentially
Intangible and Does Not Result in the Ownership of Anything
Marketing Myopia
Sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products.
They focus on the “wants” and lose sight of the “needs.”
This Is Demand
“Demand”
Wants Buying Power
What is a Market?
The set of actual and potential buyers of a product.
These people share a need or want that can be satisfied through exchange relationships.
Segmentation and Target Marketing
Market Segmentation:
Divide the market into segments of customers
Target Marketing:
Select the segment to cultivate
#1 #2
Customer Satisfaction
Dependent on the product’s perceived performance relative to a buyer’s expectations.
Value and Satisfaction
Expectation
Performance810
If performance is lower than expectations, satisfaction is low.
If performance is higher than expectations, satisfaction is high.
Expectation
Performance
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Customer Perceived Value
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 Relationship Levels
Basic Relationship
Full Partnershi
p
Continuum
Loyalty and Retention
Financial Benefits
Social Benefits
Structural Ties
Customer Relationship Management
The process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
Customer Lifetime Value The entire stream of
purchases that the customer would make over a lifetime of patronage.
Share of Customer The share a company
gets of the customers purchasing in their product categories.
Customer Loyalty & Retention