MKTG 311 1st Edition Lecture 1Outline of Last Lecture I. SyllabusOutline of Current Lecture I. What is marketing?II. Simple Model of the Marketing Process1. Understand the marketplace and customer needs and wants2. Design a customer-driven marketing strategy3. Construct an integrated marketing program that delivers superior value4. Build profitable relationships and create customer delight5. Capture value from customers to create profits and customer equityCurrent LectureI. What is marketing?- A form of promotion- Book Definition: Process by which companies create for the customer and build longterm relationships and capture value from customers in return.- Satisfaction of customer needs- Long term customer relationships- Profitable customer relationships- Creating value for customers* All about the customerII. Simple Model of the Marketing Process1. Understand the marketplace and customer needs and wants- Needs: The difference between a consumer’s actual state and an ideal state.*Different Needs: Physical needs (needs for clothing and shelter), Social needs (belonging and affection), and Individual needs (knowledge and self-expression)- Wants: A desire for a particular product to satisfy a need in specific ways that are culturally influenced. For example, need water but want coffee.- Benefits: Occurs when a product satisfies a need/want- Demand: Desire and ability/resources to purchase. These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Market: All of the consumers with the need and resources to make the exchange.- Exchange: Occurs when something is obtained for something else.*3 Conditions of an exchange:o At least 2 people/organizations must be willing to make a trade.o Both parties must agree on the value of exchange.o Both parties must be free to accept/reject the terms of the exchange.2. Design a Customer Driven Marketing Strategy- Mass Market: All possible consumers in the market regardless of their specific differences.- Market Segment: Distinct group of customers that are similar to each other, yet distinct from the rest of the market.- Target Market: Select which market segment/s we want to go after.- Value proposition: Involves differentiation (creating unique product), involves positioning (how your product fits with all other choices)*The Evolution of the Marketing concepto Production Era: Focus about efficient production and distribution of goods. Early 20th century to 1920’s marketing was insignificant. Firms viewed the market as homogenous (they went after everyone!)o Sales Era: About the hand sell. Aggressively pushing the product. 1920’s to 1980’s. Marketing was viewed as a sales function. Focus was on one time sales, not building a relationship. Example- used car sales.o Marketing Concept Era: Satisfying customer needs better than the competition. 1950’s to 1980’s. Satisfaction of customer needs. Tailor the product. Integrated marketing effort (Step 3. 4P’s)o Customer Relationship Era: Focus is on customer and societal long term well-being. 1980’s to Present day. Looking for ways to satisfy needs that benefit society and are profitable. One to one relationship marketing.3. Preparing an Integrated Marketing Program- Integrated marketing program are all tired together and are the controllable of marketing.- 4P’so Product: Goods, services, idea, place, person.o Price: Assignment of value.o Place: Channel of distribution. Involves desired time and location.o Promotion: Activities the market engages in.4. Building Profitable Relationships that Create Delight- Customer perceived value: Customer evaluates the benefits and costs of the offering compared to other offerings.- Customer satisfaction: Did the performance match or exceed customer expectations?5. Capturing Value from Customers*3 Major Areas of Concern:o Customer loyalty and Retention: Customer lifetime value. (Keep you!)o Share of Customer (Share of wallet). Example- Target Christmas Saleso Customer Equity: Total combined customer lifetime value of all