CHAPTER 1: INTRODUCTION AND BASIC CONCEPTS
1. Marketing Defined.
Has to do with dealing with customers, they are an essential component of the marketing system.
Creating customer value and satisfaction.
Making a sale and satisfying customer needs.
Selling stars once the product is produced and marketing stars long before an organization has a product.
It is theway to asses needs, measure their extent and intensity and determine, whether a profitable opportunity exists; and continuous throughout the product´s life trying to find new customers and keep current customer by improving products appeal and performance, learning from product sales results and managing repeat performance.
If the marketer understands consumer needs, develops products andservices that provide superior customer value, and prices, distribution and promotes them effectively, these products will sell easily.
Marketing is managing profitable customer relationship-goal of marketing is to attract new customers by promising superior value and to keep a grow currents customers by delivering satisfaction.
The aim of marketing is to make selling unnecessary. Peter Drucker.
Theaim of marketing is to know and understands the customer so well that the product or service fits and sells itself.
Is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchange products and value with others.
|Marketing is the process by which companies create value for customers and build strong customer relationship in orderto |
|capture value from customer return. |
Social definition: it is a societal process by which individuals and groups obtain what they need and want trough creating, offering, and freely exchanging products and services of value with others.
Managerial definition: the art of selling products.What is marketed? Ideas, goods, services, experiences, events, persons, places, organizations, information, ideas...
Product: product variety, quality, design, features, brand name, size, package…
Price: discounts, allowance, payment period…
Promotion: sales promotion, advertising, sales force public relations…
Place: channels, coverage, locations, inventory…
What ismarketing? A managerial process deployed by an organization (individual or group).
What is its objective? To fulfill the needs and wants of the organization: maximize profits, change needs and wants of other individuals or groups; although the objective of commercial marketers is usually to achieve sales targets or market share objectives.
How is this achieved? A social process whereby otherindividuals or groups obtain needs and wants by creating and exchanging products and value- this limits how the deploying organizations behaves.
2. The Marketing Process
Step 1. Understanding the market place and customer needs.
1. Needs, wants and demands.
Needs: states of felt deprivation. Include:
-physical needs (food, clothing, safety…)
-social needs (belonging and affection)-individual needs (knowledge and self expression)
Wants: the form that human needs take as shaped by culture and individual personality- people narrow, basic needs but almost unlimited wants.
Demands: human wants that are backed up by buying power.
2. Marketing offerings (products, services and experiences).
Value proposition: a set of benefits that the company promise toconsumers to satisfy their needs.
It is fulfilled through a market offering.
Market offering: some combination of products, services, information or experiences offered by a market to satisfy a need or want.
3. Value, satisfaction and quality.
How do consumers choose among many marketing offerings?
Customers form expectations about the value and satisfaction.