Marketing Definition

The Social and Managerial PROCESS by which Organizations Create VALUE for CUSTOMERS and Build STRONG Customer Relationships in order to Capture VALUE from customers in RETURN.

Exchange The act of OBTAINING a desired

object from someone by offering something in return.

Marketing Mix: Product Price Promotion Placement

Evolution of Marketing

Production Concept (mass production + low prices)

Product Concept (Product Quality) Selling Concept (Promotion + Push) Marketing Concept (Market Needs)

Evolution of Marketing

Production Concept:The idea that consumers will favor products that are AVAILABLE and highly AFFORDABLE.

Evolution of Marketing

Product Concept: The idea that consumers will favor products that offer the most in QUALITY, PERFOERMANCE and FEATURES; therefore, the Organization should DEVOTE its ENERGY to making continuous PRODUCT IMPROVEMENTS.

Evolution of Marketing

Selling Concept:The idea that consumers will NOT buy enough of the firm’s products unless it undertakes a LARGE-SCALE SELLING and PROMOTION EFFORT.

Evolution of Marketing

Marketing Concept:The idea that achieving Organizational GOALS depends on knowing the NEEDS and WANTS of TARGET MARKETS and DELIVERING the desired SATISFACTION better than the COMPETITORS do.

Customer Life-time Value

The VALUE of entire STREAM of PURCHASES that the customer would make over a LIFE-TIME of patronage.

Share of Customer

The PORTION of the customer’s PURCHASING that a company gets in its product categories.

Banks want more “share of wallet” Restaurants want more “share of

stomach” Airlines want more “share of travel”

Some TERMS

De-Marketing Customer Value Customer Satisfaction Societal Marketing Concept

Marketplaces

Marketspaces

Metamarkes

Marketing Process

Create value for customers and Capture value from

customers in return

Understand the

Market Place and Customer

needs and wants

Design a Customer-

Driven Marketing

strategy

Capture value from customers

to create profit and customer

equity

Build profitable

relationships and create

customer delight

Construct an

integrated Marketing

Program that

delivers superior

value