Creating Customer Relationships and Value through Marketing 01 19 2013 As a consumer you ve been involved in thousands of marketing decisions but mostly on the buying and not on the selling side Marketing affects all individuals all organizations all industries and Small businesses are the source of the majority of new U S jobs Marketing delivering benefits to the organization its stakeholders and What is marketing Marketing and your career all countries society Marketing o The activity of creating communicating delivering and exchanging offerings that benefit its customers the organization its stakeholders and society at large Stresses the need to deliver genuine benefits in the offerings of goods services and ideas marketed to customers The organization doing the marketing the stakeholders affected and society should all be affected To serve both buyers and sellers marketing seeks to o Discover the needs and wants of prospective customers o To satisfy them The key to achieving these two objectives is the idea of exchange o Which is the trade of things of value between buyer and seller so that each is better off after the trade The diverse factors influencing marketing activities An organizations marketing activity focuses on assessing and satisfying consumer needs countless other people groups and forces interact to shape the nature of its activates The organization itself whose mission and objectives determine what business it is an what its goals it seeks o Within the organization management is responsible for establishing these goals The marketing department works closely with a network of other departments and employees to help provide the customer satisfying products required for the organization to survive and prosper o The marketing department is responsible for facilitating relationships partnerships and alliances with the organizations customers its shareholders its suppliers and other organizations An organizations marketing decisions are affected by and in turn often have an important impact on society as a whole What is needed for marketing to occur For marketing to occur at least 4 factors are required o Two or more parties with unsatisfied needs o A desire and ability on their part to be satisfied o A way for the parties to communicate o Something to exchange Discovering consumer needs The first objective in marketing is discovering the needs of prospective customers o But these prospective customers may not always know or be able to describe what they need and want The challenge meeting consumer needs with new products New product experts generally estimate that 94 of the more than 40 000 new consumable products introduced in the U S annually don t succeed in the long run o 1 focus on what the customer benefit is o 2 learn from the past the solution to preventing products failures seems obvious o first find out what consumers need and want o second produce what they need and want and don t produce what they don t need and want consumer needs and consumer wants should marketing try to satisfy consumer needs and consumer wants o marketing tries to do both a need occurs when a person feels deprived of basic necessities such as food clothing and shelter a want is a need that is shaped by a persons knowledge culture and personality effective marketing in the form of creating an awareness of good products at convenient locations can clearly shape a persons wants a principal activity if a firms marketing department is to scrutinize its consumers to understand what they need and want the forces that shape those needs and wants what a market is potential consumers make up a market o which is people with both the desire and the ability to buy a specific offering all markets ultimately are people satisfying consumer needs because the organization obviously cant satisfy all consumer needs it must concentrate its efforts on certain needs of a specific group of potential consumers Target market o One or more specific groups of potential consumers toward which an organization directs its marketing The four P s controllable marketing mix factors Someone in the organizations marketing department often the marketing manager must develop a complete marketing program to reach consumers by using a combination of 4 tools often called the four p s o Product o Price o Promotion buyer o Place A good service or idea to satisfy the consumer needs What is exchanged for the product A means of communication between the seller and A means of getting the product to the consumer Marketing mix these 4 elements are the controllable factors that can be used by the marketing manager to solve a marketing problem The marketing mix elements are called controllable factors because they are under the control of the marketing department in an organization Customer value proposition which is a cluster of benefits that an organization promises customers to satisfy their needs The uncontrollable environmental forces Environmental forces in a marketing decision those involving social economic technological competitive and regulatory forces The marketing program how customer relationships are built An organizations program connects it with its customers Customer value and customer relationships American managers are seeking new ways to achieve success in more intense level of global competition o This has prompted many successful U S firms to focus on customer value Customer value o Is the unique combinations of benefits received by targeted buyers that include quality convenience on time delivery and both before sale and after sale service at a specific price Firms must find ways to build long term customer relationships to provide unique value that they alone can deliver to targeted markets Relationship marketing and the marketing program A firm achieves meaningful customer relationships by creating connections with its customers through careful coordination of the product its price the way its promoted and how its placed Relationship marketing easy to understand hard to do Relationship marketing o Links the organization to its individual customers employees suppliers and other partners for their mutual long term benefit In terms of selling a product relationship marketing involves a personal ongoing relationship between the organization and its individual customers that begins before and continues after the sale The marketing program Effective relationship marketing strategies help marketing managers