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Chapter 1, Lecture 1 2

Marketing is a social and managerial process that helps companies create value for customers through satisfying needs and wants via products and services. It involves creating and exchanging value with others. Key elements include social/managerial processes, needs/wants, and creating/exchanging value. Important terms are needs, wants, demands, marketing offers, marketing myopia, customer value, customer satisfaction, exchanges, markets, and the marketing mix.

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41 views3 pages

Chapter 1, Lecture 1 2

Marketing is a social and managerial process that helps companies create value for customers through satisfying needs and wants via products and services. It involves creating and exchanging value with others. Key elements include social/managerial processes, needs/wants, and creating/exchanging value. Important terms are needs, wants, demands, marketing offers, marketing myopia, customer value, customer satisfaction, exchanges, markets, and the marketing mix.

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drstrange2205
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter-1 (Introduction to Marketing)/ lecture-1+2

What is marketing?
The Process by which individuals and groups obtain what they need and want
through creating and exchanging products and value with others.

Processes that help companies create value for customers and build strong
customer relationships to get value in return from customers.

Key elements of Marketing Definition:

• Social and managerial process


• Needs and wants
• Creating and exchanging value with others.

Important terms of marketing:


 Needs - state of felt deprivation for basic items such as food and clothing
and complex needs such as for belonging. i.e. I am thirsty

 Wants - form that a human need takes as shaped by culture and individual
personality. i.e. I want a Coca-Cola.

 Demands - human wants backed by buying power. i.e. I have money to buy
a Coca-Cola

 Marketing offer: Combination of products, services, information or


experiences that satisfy a need or want. Offer may include services,
activities, people, places, information or ideas.

 Marketing myopia: Sellers pay more attention to the specific products


they offer than to the benefits and experiences produced by the products.
They focus on the “wants” and lose sight of the “needs.”
 Customer Value - benefit that the customer gains from owning and using a
product compared to the cost of obtaining the product.

 Customer Satisfaction - depends on the product’s perceived performance in


delivering value relative to a buyer’s expectations. Linked to Quality and
Total Quality Management (TQM). Customer satisfaction is the extent to
which a product’s perceived performance matches a buyer’s expectations

 Exchanges - act of obtaining a desired object from someone by offering


something in return.

 Market: The set of all actual and potential buyers.

 Marketing mix: The marketing mix is the set of tools (four Ps) the firm
uses to implement its marketing strategy.
 Customer Relationship Management (CRM): The overall process of
building and maintaining profitable customer relationships by delivering
superior customer value and satisfaction. It deals with all aspects of
acquiring, keeping and growing customers.

 Customer loyalty and retention: Customer delight leads to emotional


relationships and loyalty. Customer Lifetime Value shows true worth of a
customer. Customer retention measures a company's ability to turn
customers into repeat buyers and prevent them from switching to a
competitor

 Share of customer: Share of customer’s purchase in a product category.


Achieved through offering greater variety, cross-sell and up-sell strategies.

 Customer equity: The combined customer lifetime values of all current and
potential customers. Measures a firm’s performance, but in a manner that
looks to the future. Choosing the “best” customers is the key.

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