Or What Are We Buying And Why Are We Buying It 02 01 23 2209 Chp 1 1 Marketing is the activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large Managing profitable customer relationships Delivering satisfaction 02 01 23 2209 Chp 1 2 The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return Text 02 01 23 2209 Chp 1 3 It s an Exchange that involves need and satisfaction Requires 1 Identifying consumer Needs states of felt deprivation Need for water or food 1 2 Wants the form human needs take as they are shaped by culture and individual personality Demands human wants that are backed by buying power 3 4 When does a want become a demand When its backed by purchasing power 2 Creating satisfier s Satisfier means Goods services ideas experiences Consumer chooses based on his her perception of value offered versus alternatives Market offerings some combination of products services information or experiences offered to a market to satisfy a need or want Companies must manage customer expectations create brand experience and avoid marketing myopia the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products 4 3 It s an on going Process not just a one off Continued satisfaction leads to repeat purchase and creates a relationship Part of Societal Marketing Concept Satisfying customers in a way that contributes to both society and firm s profitability 02 01 23 2209 Chp 1 5 competitors Two or more parties consumers suppliers Each party has something of potential value to the other Way to communicate deliver Desire to enact an exchange Exchange the act of obtaining a desired object from someone by offering something in return 02 01 23 2209 Chp 1 6 Marketing Management the art and science of choosing target markets and building profitable relationships with them The manager s aim is to find attract keep and grow target customers by creating delivering and communicating superior customer value 1 Select Customers to Serve One market or many Market segmentation dividing the market into segments Target marketing selecting which segments it will go after Select customers that they can serve well and profitably 2 Choosing a Value Proposition The set of benefits or values it promises to deliver to consumers to satisfy their needs Evaluate competitive offerings Determine unique value proposition Combination of benefits offered and price 3 Utilize a marketing orientation Production Product Sales Marketing Societal 02 01 23 2209 Chp 1 7 When looking at needs of marketplace and possible exchanges marketers are looking to identify potential markets Groups of people w similar needs wants interests or problems Actual or potential users Who can use our product and Are able to buy 02 01 23 2209 Chp 1 8 Within the overall market we can t satisfy everyone so we may need to identify potential subsets or target markets Target markets are more specific segments towards whom you direct a specific tailored marketing program 02 01 23 2209 Chp 1 9 One Market or Many Total Market maximum product demand in a given market environment Available or Served Market Set of consumers with interest income and access to a particular offering Target Market Particular set of consumers company intends to pursue with its offering s Penetrated Market Current customer base Company Demand Company s estimated market share in a specific time period at alternate levels of marketing effort 02 01 23 2209 Chp 1 10 Consumers view products as bundles of benefits They choose product s that give them the best bundle s for the money i e gives them the most satisfaction for their available funds What do we seek Benefit satisfier outcome sought reason for purchase Value benefits offered unique combination differentiates from competition 02 01 23 2209 Chp 1 11 Create a Value Proposition The set of benefits or values it promises to deliver to consumers to satisfy their needs Determine benefit s customer seeks values Evaluate competitive offerings Establish your unique value proposition Combination of benefits offered and price Why Buy from us 02 01 23 2209 Chp 1 12 To find create a unique value proposition to satisfy consumers Value Proposition Reason for purchase Also the point of differentiation that sets our offering apart from competition Difference between benefits gained and cost to acquire Satisfaction buyer s perceived product performance versus expectations 02 01 23 2209 Chp 1 13 To specific target market Product is the brand kind of Category that Benefit Point of Differentiation Because it has attributes benefits Example To people who value clean laundry and the economy of cold water washing Tide Coldwater is the brand of detergent that saves energy and money because it provides the cleaning power of Tide for use in cold water 02 01 23 2209 Chp 1 14 Production Selling Societal Product Marketing 02 01 23 Solomon Marshall Chp 1 15 5 alternative concepts under which organizations design and carry out their marketing strategies 1 The production concept idea that consumers will favor products that are available and highly affordable therefore the organization should focus on improving production and distribution efficiency 2 The product concept the idea that the consumers will favor products that offer the most quality performance and features therefore the organization should devote its energy to making continuous product improvements 3 The selling concept consumers will not buy enough of the firm s products unless the firm undertakes a large scale selling and promotion effort 4 The marketing concept a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do 5 The societal marketing concept the idea that a company s marketing decisions should consider consumers wants the company s requirements consumers long run interests and society s long run interests 02 01 23 2209 Chp 1 16 Product good service idea to satisfy consumer Price what is exchanged for the product Promotion the means of communication Place Distribution means of getting product to consumer 02 01 23 2209 Chp 1 17 The challenge is to continually create value and satisfaction