Next marketers design a customer driven marketing strategy with the goal of

Next marketers design a customer driven marketing

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Next, marketers design a customer-driven marketing strategy with the goal of getting, keeping, and growing target customers. In the third step, marketers construct a marketing program that actually delivers superior value. All of these steps form the basis for the fourth step, building profitable customer relationships and creating customer
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delight. In the final step, the company reaps the rewards of strong customer relationships by capturing value from customers. LO2 Explain the Importance of Understanding Customers and the Marketplace, and Identify the Five Core Marketplace Concepts. Outstanding marketing companies go to great lengths to learn about and understand their customers’ needs, wants , and demands . This understanding helps them design want-satisfying market offerings and build value-laden customer relationships by which they can capture customer lifetime value and greater share of customer . The result is increased long-term customer equity for the firm. The core marketplace concepts are needs, wants, and demands; market offerings (products, services, and experiences); value and satisfaction; exchange and relationships; and markets. Wants are the form taken by human needs when shaped by culture and individual personality. When backed by buying power, wants become demands. Companies address needs by putting forth a value proposition, a set of benefits that they promise to consumers to satisfy their needs. The value proposition is fulfilled through a market offering, which delivers customer value and satisfaction, resulting in long-term exchange relationships with customers. LO3 Identify the Key Elements of a Customer-Driven Marketing Strategy and Discuss the Marketing Management Orientations that Guide Marketing Strategy. To design a winning marketing strategy, the company must first decide whom it will serve. It does this by dividing the market into segments of customers ( market segmentation ) and selecting which segments it will cultivate ( target marketing ). Next, the company must decide how it will serve targeted customers (how it will differentiate and position itself in the marketplace). Marketing management can adopt one of five competing market orientations. The production concept holds that management’s task is to improve production efficiency and bring down prices. The product concept holds that consumers favor products that offer the most in quality, performance, and innovative features; thus, little promotional effort is required. The selling concept holds that consumers will not buy enough of an organization’s products unless it undertakes a large-scale selling and promotion effort. The marketing concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. The societal marketing concept holds that generating customer satisfaction and long-run societal well-being through sustainable marketing strategies are key to both achieving the company’s goals and fulfilling its responsibilities.
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