Memo
Marketing management, summary chapter 1 (Marketing: creating and capturing customer value)
What is marketing
Marketing is managing profitable customer relationships.
Marketing defined
Marketing must be understood in the sense of satisfying customer needs.
Marketing = the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
Simple model of the marketing process:
Create value for customers and build customer relationships
Understand the marketplace and customer needs and wants.
Design a customer-driving marketing strategy.
Construct an integrated marketing program that delivers superior value.
Build profitable relationships and create customer delight.
Capture value from customers in return
Capture value from customers to create profits and customer equity.
Understanding the marketplace and customer needs
5 core customer and marketplace concepts:
1. Needs, wants, and demands.
2. Market offerings (products, services, and experiences).
3. Value and satisfaction.
4. Exchanges and relationships.
5. Markets
1. Customer needs, wants, and demands
Needs = states of felt deprivation (physical-, social- and individual needs).
Wants = the form human needs take as they are shaped by culture and individual personality.
Demands = human wants that are backed up by buying power
2. Market offerings – products, services, and experiences
Market offerings = some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
Market offerings are not limited to physical products. They also include: services, persons, places, organizations, information, and ideas.
Marketing myopia = the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.
3. Customer value and satisfaction
Customer value and
What is marketing
Marketing is managing profitable customer relationships.
Marketing defined
Marketing must be understood in the sense of satisfying customer needs.
Marketing = the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
Simple model of the marketing process:
Create value for customers and build customer relationships
Understand the marketplace and customer needs and wants.
Design a customer-driving marketing strategy.
Construct an integrated marketing program that delivers superior value.
Build profitable relationships and create customer delight.
Capture value from customers in return
Capture value from customers to create profits and customer equity.
Understanding the marketplace and customer needs
5 core customer and marketplace concepts:
1. Needs, wants, and demands.
2. Market offerings (products, services, and experiences).
3. Value and satisfaction.
4. Exchanges and relationships.
5. Markets
1. Customer needs, wants, and demands
Needs = states of felt deprivation (physical-, social- and individual needs).
Wants = the form human needs take as they are shaped by culture and individual personality.
Demands = human wants that are backed up by buying power
2. Market offerings – products, services, and experiences
Market offerings = some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
Market offerings are not limited to physical products. They also include: services, persons, places, organizations, information, and ideas.
Marketing myopia = the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.
3. Customer value and satisfaction
Customer value and