M A R K E T I N G Part - 1 IM - KMM
MARKETING A HUMAN ACTIVITY DIRECTED AT SATISFYING NEEDS AND WANTS THROUGH EXCHANGE PROCESSES - PHILIP KOTLER IT IS THE PERFORMANCE OF BUSINESS ACTIVITIES THAT DIRECT THE FLOW OF GOODS AND SERVICES FROM PRODUCER TO CONSUMERS - AMERICAN MARKETING ASSOCIATION Another notable definition is that “ marketing is getting the right goods and services to the right people at the right place at the right time at the right price with the right communication and promotion ”. As a Managerial definition, marketing has often been described as “the art of selling products.” Marketing is managing profitable customer relationships Attracting new customers Retaining and growing current customers “Marketing” is NOT synonymous with “sales” or “advertising” The ultimate goal of marketing is to make selling nonessential./ superfluous.
But Peter Drucker says “the aim of marketing is to make selling superﬂuous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy.” The American Marketing Association offers this managerial definition: Marketing (management) is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. Marketing management is seen as the art and science of applying core marketing concepts to choose target markets and get, keep, and grow customers through creating, delivering, and communicating superior customer value. • Marketing management is “the art and science of choosing target markets and building profitable relationships with them.” – Creating, delivering and communicating superior customer value is key.
• CRM – Customer relationship management . “is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction .” • It costs 5 to 10 times MORE to attract a new customer than it does to keep a current customer satisfied. • Marketers must be concerned with the lifetime value of the customer.
Attracting, retaining and growing customers • Customer value/satisfaction – Perceptions are key – Meeting/exceeding expectations creates satisfaction • Loyalty and retention – Benefits of loyalty – Loyalty increases as satisfaction levels increase – Delighting consumers should be the goal • Growing share of customer – Cross-selling Building customer relationships and customer equity • Customer equity – The total combined customer lifetime values of all customers. – Measures a firm’s performance, but in a manner that looks to the future.
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