Lesson 1 - Lesson 1 Chapter 1 Marketing Creating and Capturing Customer Value Marketing is managing profitable customer relationships The aim of

Lesson 1 - Lesson 1 Chapter 1 Marketing Creating and...

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Lesson 1: Chapter 1 - Marketing: Creating and Capturing Customer Value Marketing is managing profitable customer relationships The aim of marketing is to create value for customers and capture value from customers in return The deep connections cultivated among the owner and company, customers, and the broader community are the driving force behind Running Room’s success. Today’s successful companies have one thing in common: Like Running Room, they are strongly customer focused and heavily committed to marketing. The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. The aim of marketing is to make selling unnecessary; selling and advertising are only part of a larger “marketing mix”—a set of marketing tools that work together to satisfy customer needs and build customer relationships. Marketing: The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. The Marketing Process: Five 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; and (5) markets. Outstanding marketing companies go to great lengths to learn about and understand their customers’ needs, wants, and demands. Market offerings : Some combination of products, services, information, or experiences offered to a market to satisfy a need or want. 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. Customer value and customer satisfaction are key building blocks for developing and managing customer relationships Market: The set of all actual and potential buyers of a product or service. Marketing management : The art and science of choosing target markets and building profitable relationships with them. A brand’s value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs There are five alternative concepts under which organizations design and carry out their marketing strategies: the production, product, selling, marketing, and societal marketing concepts. Production concept: The idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency.
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Product concept: The idea that consumers will favour products that offer the most in quality, performance, and innovative features and that the organization should therefore devote its energy to making continuous product improvements.
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