CHAPTER 1 Marketing - CHAPTER 1 Marketing Creating and Capturing Customer Value PREVIEWING THE CONCEPTS We start with the question What is marketing

CHAPTER 1 Marketing - CHAPTER 1 Marketing Creating and...

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CHAPTER 1 Marketing: Creating and Capturing Customer Value PREVIEWING THE CONCEPTS We start with the question “What is marketing?” Simply put, marketing is managing profitable customer relationships. The aim of marketing is to create value for customers and capture value from customers in return. Next, we discuss the five steps in the marketing process—from understanding customer needs, to designing customer-driven marketing strategies and integrated marketing programs, to building customer relationships and capturing value for the firm. Finally, we discuss the major trends and forces affecting marketing in this age of customer relationships. Understanding these basic concepts and forming your own ideas about what they really mean to you will give you a solid foundation for all that follows. 1 WHAT IS MARKETING? Marketing is managing profitable customer relationships. Marketing Defined 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. Broadly defined, marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. Marketing The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Figure 1.1 A Simple Model of the Marketing Process The Marketing Process Figure 1.1 presents a simple, five-step model of the marketing process. 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 rewards of creating superior customer value. By creating value for consumers, they in turn capture value from consumers in the form of
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sales, profits, and long-term customer equity. In this chapter and the next, we will examine the steps of this simple model of marketing. In this chapter, we review each step but focus more on the customer relationship steps: understanding customers, building customer relationships, and capturing value from customers In Chapter 2, we look more deeply at the second and third steps: designing marketing strategies and constructing marketing programs. 2 UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS We examine 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. market offerings Customer Needs, Wants, and Demands Human needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression. Marketers did not create these needs; they are a basic part of the human makeup Wants are the form human needs take as they are shaped by culture and individual personality.
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  • Spring '15
  • Marketing, Customer Relationships

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