...Marketing and the Marketing Process Marketing deals with customers more than any other business functions. Marketing is managing profitable customer relationships. Marketing has a twofold goal. They are to attract new customers by promising superior value, and keep and grow current customers by delivering satisfaction. The American Marketing Association defines marketing as “The Process of planning and executing the conception, pricing, promotion, and distribution of ideas, good, and services to create exchanges that satisfy individual and organizational objective”. The Marketing process is the method of evaluating openings, choosing the proposed customer, addressing the consumer needs and wants, describing the price, product, place and promotion and addressing the marketing campaign. The marketing process takes major responsibility to control overall marketing strategy. The marketing process has 5 steps that lead to a successful advertising campaign. In the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. In the final step, companies reap the reward of having superior customer value. Now, we will explore the steps of the marketing process. Step 1 is marketers need to understand the market place and the needs and wants of customers. There are five core customer and market place concepts. Needs, wants, and demands is one. Human needs are states of felt deprivation. Human wants are the form human needs...
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...an export department with a sales manager and a few assistants (and limited marketing services). As they go after global business more aggressively, they can create an international division with functional specialists (including marketing) and operating units structured geographically, according to product, or as international subsidiaries. Finally, companies that become truly global organizations have top corporate management and staff plan worldwide operations, marketing policies, financial flows, and logistical systems. In these organizations, the global operating units report directly to top management, not to the head of an international division. Evaluating and Controlling the Marketing Process To deal with the many surprises that occur during the implementation of marketing plans, the marketing department has to monitor and control marketing activities continuously. Table 1.1 lists four types of marketing control needed by companies: annualplan control, profitability control, efficiency control, and strategic control. The Fourteenth Edition of Principles of Marketing! Still Creating More Value for You! The goal of every marketer is to create more value for customers. So it makes sense that our goal for the fourteenth edition is to continue creating more value for you—our customer. Our goal is to introduce new marketing students to the fascinating world of modern marketing in an innovative and comprehensive yet practical and enjoyable way. We’ve poured ...
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...Chapter 1 **marketing is managing profitable customer relationships. aim to create value for customers in order to capture value from customers in return. create customer value in order to capture value in return. amazon opened 1995 selling books founder jeff bezos's garage in seattle. sales rose from 150$mil in 97 to 48$+ bil today. 173 mil Wwide cust perchase 110items per second. "obsess over customers." most influential to amazon in meeting is "the empty chair" "customer experience bar raiser" amazon was first company to use "collaborative filtering" technology which sifts through each customer's past purchases an the purchaseing patterns of customers with similar profiles to come up with personalized site content. amazon began allowing competing retailers from mom and pop operations to mark and spencer depart stores to offer their products on amazon.com[->0] today's marketers want to become a part of your life and enrich your experiences with their brands--to help you live their brands. **5 core customer and marketplace concepts: needs wants and demands market offerings (products, services, and experiences) value and satisfaction exchanges and relationships markets Wants are shaped by one's society and are described in terms of objects that will satisfy those needs. When backed by buying power, wants become demands. Given their wants and resources, people demand products with benefits that add up to the most value and satisfaction. ...
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...AB1501 Principles of Marketing Chapter 1 Marketing: Managing Profitable Customer Relationships Marketing * Goal: Attract new customers by promising superior value and keep and grow current customers by delivering satisfaction * Involves satisfying customer needs * Definition: Process by which companies create value for customers and build strong customer relationships in order to capture value for customers in return * Process 1. Understand the marketplace and customer needs 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity | Understanding the marketplace and customer needs | 1. Customer needs, wants and demands * Needs: States of felt deprivation * Wants: The form human needs take as they are shaped by culture and individual personality * Demands: Human wants that are backed by buying power * Given their wants and resources, people demand products with benefits that add up to the most value and satisfaction * Outstanding marketing companies conduct marketing research to learn and understand their customers’ needs, wants and demands. | 2. Market Offerings – Products, Services, and experiences * Customers’ needs and wants are fulfilled through a market offering * Market offering: Some combination of products, services, information, or...
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...Defining Marketing Candice Daigneault MKT/421 Susan Tomaski March 10, 2014 Defining Marketing doesn’t seem like a task that is impossible. We each see different forms of marketing in our daily lives. Each of us could easily name different examples of marketing we have seen, but examples do not completely define the term or process of marketing itself. Perhaps the very simplest of definitions of marketing is “managing profitable customer relationships” (Kerin). As simple as this definition is, there is real power in its simplicity. Marketing does develop not only a focus on, but a relationship with customers. Without someone to market to and buy the products, there isn’t much of a point to marketing. One of the main goals of marketing is to appeal to and attract customers and that cannot be done without first forming the relationship that is required. Once there is an attraction and a relationship with customers, the marketing will in turn become profitable for the company. The American Marketing Association claims (2013) “marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” The American Marketing Association believes that information is the key to linking companies with the public. Information is what is put out by the company as well as the feedback that is provided by the market and customers. Without information connecting...
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...2010.10.07. CRM – Customer Relationship Management Bianka Parragh, Phd Óbuda University Keleti Károly Faculty of Business and Management Institute of Enterprise Management • Approaches of Customer Relationship Management • The origins of CRM • The rise of CRM • The role of CRM • Types of CRM 1 2010.10.07. RE-INVENTING CRM In the late 1990s and early year of the 21th century, CRM was offered up as the next wave of marketing. The tools and techniques that would make traditional marketing obsolete. The automated approaches that would make customer relationships automatic and would enable the marketing organization to shell anything to anyone they chose. CRM was the single solution that would solve every marketing problem. Simply install the software, plug in the customer data and sit back and watch the profils roll in. But it wasn’t that simple. It wasn’t that easy. And, it simply didn’t work that way. Millions of dollars anp pounds and yen and Euros were spent on CRM systems, software and structures but, not enough seemed to come back. The five important things are about the book’s approach to CRM 1.Strategic, not more tactics. CRM is a business decision, made by business managers to achieve business goals. So, most of all, this approach to CRM is strategic. 2. Customers, not companies. Payne’s approach puts the company and the customer in perspective. If there is no benefits to the customer, there can be no benefit to the company. CRM is reciprocal process...
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...Chapter 1 Marketing: Managing Profitable Customer Relationships Multiple Choice 1. Marketing seeks to create and manage profitable customer relationships by delivering _____ to customers. a. competitive prices b. superior value c. superior service d. superior promotion (b; Easy; p. 5) 2. The marketing manager at Sunshine Car Washes is holding a training session for new employees. She stresses that perhaps the most important concept of modern marketing is _____. a. customer relationship management b. e-mail advertising c. a quality Web site d. properly trained sales people (a; Moderate; p. 15) 3. This business is now the best-known name on the Net. a. Barnes and Noble b. Microsoft c. Amazon.com d. America Online (c; Easy; p. 3) 4. Jeff Bezos, founder of Amazon.com, wants to deliver a _____ to every customer. a. special experience b. superior value c. wide selection of products d. none of the above (a; Easy; p. 4) 5. Amazon.com delivers all of the following benefits except one. Choose it. a. huge selection b. good value c. convenience d. no refund, credit only policy (d; Challenging; p. 3) 6. Selling on the Web presents serious challenges. Amazon.com has made large initial investments in computer systems, distribution centers, and _____. a. customer acquisition b. inventory c. employee training d. employee benefits (a; Moderate; p. 4) 7. Many...
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...According to Philip Kotler's book "Principles of Marketing" , the most important TOP 5 concept in order to understand the meaning of Marketing , in my point of view are : 1) Customer's values and relationship 2) Marketing Strategy 3) Customers relation Management (CRM) 4) Partering 5) Managing the Marketing Effort The first thing that every company needs to do is approach the customer , respect his values and slowly start making relationship with him . From the simple meaning of Marketing : " Marketing is a managing profitable customer relationships " , we can understand that the relation with the customer is the most crucial thing for a business . Marketing is about satisfying customer need and build strong relationships with them in order to capture value in return . Building a strong and healthy relationship with the customers may lead you to loyal customers-lifetime customers. " Which is the marketing strategy that we must follow? " This question is a typical question that the marketing management "asks" in order to design a marketing strategy . The answer of course is a customer-driven marketing strategy . In that way , the company will decide who is the target market and whats their value proposition . They set goal and objectives which they try to achieve with any cost . Furthermore , the company;s marketing manager aims to find ,attract,keep and grow target customers . After selecting the customers , the company need to choose a value proposition...
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...Literature Review Customer relationship management has become very popular now days due to increase in competition among all type of business. Customer relationship management always demands from the companies to create the values for the customers by delivering them the products and should expect the profitable returns in exchange. Customer relationship management is mainly focusing on how the business can retain its existing customers in this competitive environment. Customer relationship management means that managing and fulfilling the expectations of the customers via delivering them best product and services than its competitors in that industry. Effective CRM brings profits in the company and helps in improvements of overall financial position of the business via continuous profits. Any organization of the world can easily manage the customer relationship management by delivering their customers the business products at the low prices with the best possible quality than its competitors can deliver. The organizations customer relationship management can be measured that how much company has brand loyal customers and is it retaining its customers or not. Customer relationship management always demands from the companies to create the values for the customers by delivering them the products and should expect the profitable returns in exchange. Customer relationship management is mainly focusing on how the business can retain its existing customers in this competitive environment...
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...Chapter 1 Marketing: Managing Profitable Customer Relationships GENERAL CONTENT: Multiple-Choice Questions 1. Central to any definition of marketing is _____. a. demand management b. transactions c. customer relationships d. making a sale e. making a profit (Answer: c; p. 5; Easy) 2. All of the following are accurate descriptions of modern marketing today, except which one? a. Marketing is creation of value for customers. b. Marketing is customer satisfaction at a profit. c. Selling and advertising are synonymous with marketing. d. Marketing involves building and managing profitable customer relationships. e. None of the above statements is true. (Answer: c; p. 5; Easy) 3. Like NASCAR, successful companies recognize a crucial dimension of an outstanding marketing company to be _____. a. a strong customer focus b. a relentless pursuit of customer needs c. customer relationships built by everyone in the organization d. all of the above e. none of the above (Answer: d; p. 5; Moderate) 4. _____ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation. a. Selling b. Advertising c. Barter d. Marketing e. None of the above is correct. (Answer: d; p. 5; Challenging) 5. Society and culture shape the basic form of human needs called _____. a. needs b. wants c. demands d. value ...
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...What is marketing? Including a short discussion of: (a) Why marketing is an important function within organisations; (b) The core concept of marketing; (c) The major marketing activities of an organisation. In our daily life, it is easy to see that tradesmen sell simple and tangible goods such as soap and shampoo, as well as luxury product such as LV handbags. Where there is a transaction, there is a marketing. Many people think of marketing only as selling and advertising, while selling and advertising are only the tip of the marketing iceberg. In general, working in services such as hairdressing, airlines, hospitality, or even education can also be considered as a marketing. Since marketing is an essential part of our life, more and more people is likely to know its function. Within organisations, marketing is important in building customers relationship as well as creating product awareness. This essay will provide the definition of marketing and explore why marketing is an important function within organisations; then it will describe the major marketing activities of an organisation. The core concept of marketing is communicating the value of a product or service to customers. There are many alternative definitions of marketing given by different experts. Virtually, each particular explanation of the marketing reflects respective concerns of individual authors, while most have certain basic features in common. Kotler and Armstrong (2010) consider that Marketing is managing...
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...Capturing Customer Value Marketing: creating value for customers and building strong relationships to capture from customers in return - All about managing profitable customer relationships (satisfying customer needs) Core Customer and Marketplace Concepts 1. Needs wants and demands * Needs: states of felt deprivation * Wants: the form human needs take as shaped by culture and individual personality * Demands: human wants that are backed by buying power 2. Market offerings – products, services, info or experiences offered to satisfy a market need * Marketing myopia: mistake of paying more attention to the products itself than to the benefits and experiences produced by these products (brand experience) 3. Value and satisfaction – must set smart and realistic product expectations for customers 4. Exchanges and relationships – the act of obtaining a desired object from someone by offering something in return 5. Markets – the set of all actual and potential buyers of a product or service Marketing Process 1. Understand the marketplace and customer needs and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity Marketing Management: choosing target markets and building relationships with them - Composed of customer management...
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...in Padini. The proposed system conceptual framework including Customer Relationship Management (CRM), Information system strategies for dealing with competitive forces and Supply Chain Management System 1) Customer Relationship Management (CRM) Based on the problems faced by Padini, our information system team had decided to apply customer relationship management system to solve the problem that Padini had failed to build a strong relationship between its products and customers. In addition, modules that including in CRM system can helps Padini increasing their sales. Customer relationship management system is a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. Good customer relationships are at the heart of business success. This strategy depends on bringing together lots of pieces of information about customers and market trends so enterprise can sell and market their products and services more effectively. Customer Relationship Management system examine customers from a multifaceted perspective. These system use a set of integrated applications to address all aspects of the customer relationship, including customer service, sales and marketing. Customer Service Padini is a large brand clothing store in Asian countries. Padini might face the myriad of phone call from the customers for asking problems and inquiries in every day. Customer service modules in CRM system provides information and tools...
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...to define? It can apply to different levels of customers—for example, distributors, dealers, and lateral partners, as well as final consumers. 2. Most agree that CRM systems must do what three things well? Gather customer data from all touch points, o Warehouse the data providing easy access for all who need it, o Deliver useable information based on the data. 3. CRM systems enable organizations to focus on relationships as opposed to transactions. What is meant by this? Many companies focus on the opposite of "relationship"; i.e., on the transaction itself. This is a short-term view that merely focuses on the exchange of a company's product or service, broadly defined, for money. Transactions are one-shot exchanges without any concern for the future. Transaction marketing views the sale as the end of the relationship, whereas relationship marketing views the sale as the beginning of the relationship. In today's business world relationships are, in fact, possible, given advances in information and telecommunications systems. Relationships require two-way communications between customers and the organization. Further, information from these communications, when integrated, recorded, and managed, enables relationships to be developed and maintained 4. Comment on the correctness or incorrectness of the following statement: “Companies should make it their goal to attract the greatest number of customers. After all, every customer counts; and growing market share is an important...
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...Chapter One: text notes Amazon- “obsessed over customer” * creating genuine value for customer: every decision is made with an eye toward improving Amazon.com cutomer experience. * Analyst predict by 2015 Amazon will become the youngest company in history to hit $100 billion in revenue ( walmart:34years). Nation’s second largest retailer. * customer experience bar raiser: representing customer’s voice * Kindle: first original product-> no.1 selling product * First company to use “ collaborative filtering” which sifts through each customer’s past purchase to make personalized content * Customer feel compelled to stay for a while- leaning, looking, discovering What is marketing * marketing is managing profitable customer relationship * “ the aim of marketing is to make selling unnecessary” * marketing is the process by which companies create value for customer and build strong customer relationships in order to capture value from customers in return understand the needs and want | design a customer driven marketing strategy | marketing program that deliver superior value | build profitable relationship and create customer delight | capture value from customers in return | Understanding market place and customer needs 5 core concepts 1. needs, want, and demands- an American needs food but wants a big Mac ( shaped by one’s society), when backed by buying power wants become demands a. Alan Mulally, CEO of...
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