Marketing Final 4 6 Chapter 1 Creating and Capturing Customer Value 2 35 o Objective 1 Define marketing and outline the steps in the marketing process Marketing is the process by which companies create value for customer and build strong relationships in order to capture value from customers in return Marketing process has 5 steps 1 Marketers need to understand the marketplace and customer needs and wants 2 Marketers design a customer driven marketing strategy with the goal of getting keeping and growing target customers 3 Marketers construct a marketing program that actually delivers superior value 4 Building profitable customer relationships and creating customer delight 5 Company reaps rewards of strong customer relationship by capturing value from customers o Objective 2 Explain the importance of understanding customers and the marketplace and identify the five core marketplace concepts 6 8 Understanding helps them to design want satisfying market offerings and build value laden customer relationships by which they can capture customer lifetime value and greater share of customer Results in long term customer equity Core marketplace concepts Needs wants demands Market offerings products services experiences Value and satisfaction Exchange and relationships o Objective 3 Identify the key elements of a customer driven marketing strategy and discuss the marketing management orientations that guide marketing strategy 9 13 Company divides the marketing into segments of customers market segmentation and selecting which segments it will cultivate target marketing Marketing management can adopt one of 5 competing market orientations Marketing concept holds that management s task is to improve Product concept production efficiency Selling concept holds that consumers will not buy enough of an organization s products unless it undertakes a large scale selling and promotion effort holds that achievement organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors Societal marketing concept satisfaction and long run societal well being through sustainable holds that generating customer marketing strategies is key to both achieving the company s goals and fulfilling its responsibilities o Objective 4 Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return 13 23 Customer relationship management maintaining profitable customer relationships by delivering superior customer value and satisfaction is the process of building and Aim is to produce high customer equity the total combined customer lifetime values of all of the company s customers Must work with those inside and outside of company Must also be good at partner relationship management o Objective 5 Describe the major trends and forces that are changing the marketing landscape in this age of relationships 23 29 Great recession left consumers short of and confidence Marketers Boom in digital technology has created exciting new ways to learn about must now emphasize value individual consumers Marketers are now connected globally Now re examining their ethical and societal responsibilities More responsibilities in society and environment Now major part for non for profit organizations RELATIONSHIPS ever taking advantage of building relationships Chapter 2 Company and Marketing Strategy Partnering to Build Customer Relations key word in this chapter Marketers now more than 36 63 o Objective 1 Explain company wide strategic planning and its 4 steps sets the stage for the rest of the company s planning Strategic planning 38 41 Mission 1 Defining the company s mission 2 Setting objectives and goals 3 Designing a business portfolio 4 Developing functional plans and consistent with marketing environment o Objective 2 Discuss how to design business portfolios and develop growth should be market oriented realistic specific motivating Business portfolio strategies 41 46 the company Firms want portfolio to best fit its strengths and weaknesses collection of businesses and products that make up Company might use a formal portfolio planning method Popular now to design more customized portfolio planning for their unique situations o Objective 3 Explain marketing s role in strategic planning and how marketing works with its partners to create and deliver customer value 46 48 Major functional departments marketing finance accounting purchasing operations information systems hr and others must work together Marketing plays a key role in strategic planning by providing a marketing concept philosophy and inputs regarding attractive market opportunities o Objective 4 Describe the elements of a customer driven marketing strategy and mix and the forces that influence it 48 54 Through market segmentation targeting differentiation and positioning the company divides the total market into smaller segments Then designs an integrated marketing mix to produce the response it wants in the target market MARKETING MIX 4Ps Product price place and promotion decisions o Objective 5 List the marketing management functions including the elements of a marketing plan and discuss the importance of measuring and managing return on marketing investment 54 59 Company engages in marketing analysis planning implementation and control to find the best strategy and mix Main components of a marketing plan are the executive summary the current marketing situation threats and opportunities objectives and issues marketing strategies action programs budgets and controls Marketing departments can be organized in a variety of ways Functional marketing organization geographic organization product management organization or market management organization Marketing managers must ensure that their marketing dollars are being well spent Marketers are bringing better measures of return on marketing investment because of pressures of the bad economy Chapter 3 Analyzing the Marketing Environment 64 93 o Objective 1 Describe the environmental forces that affect the company s ability to serve its customers 67 70 Microenvironment value delivery network or that affect its ability to serve its customers actors close to the company that combine to form its Marketing channel firms its several departments and management Internal environment levels as it influences marketing decision making physical