welcome to chapter one in this video series on the principles of marketing
in this video we will discuss what is marketing and creating customer value and engagement
let's get started creating customer value and engagement for real world examples look no further
than amazon.com for a company with a passion for customer engagement value and relationships
their dedication makes them the world's largest online retailer they are a model for other
companies that focus on delivering exceptional customer value this chapter will review five
learning objectives objective one define marketing and outline the steps in the marketing process
objective two discuss the importance of understanding the marketplace and customers
and identify five core marketplace concepts objective three identify the key elements of
a customer driven marketing strategy and discuss marketing management orientations that guide the
marketing strategy objective 4 discuss customer relationship management and identify strategies
for creating value for customers and capturing value for customers in return and objective five
describe the major trends and forces that are changing the marketing landscape in this age of
relationships the following slides will review these objectives in more detail objective one
define marketing and outline the steps in the marketing process what exactly is marketing
marketing is a process where companies create value for customers and build strong
customer relationships in order to capture value from customers in return marketing attracts new
customers by promising superior value and grows a customer base for delivering satisfaction
the steps for the marketing process include understanding the marketplace and customer needs
design a marketing strategy construct an integrated marketing program build profitable
relationships and capture value from customers to create profits and customer equity in summary
marketing creates value for and captures value from customers learning objective two identify
the five core marketplace concepts that leads to understanding the marketplace and customer needs
needs are defined as states of deprivation wants are the forms that needs take
and demands are wants that are backed by buying power market offerings are a combination of
products services information or experiences offered to a market to satisfy a need or want
while marketing myopia focuses on existing wants and losing sight of underlying consumer needs
customers and marketers customers continually seek value and satisfaction in the marketplace
while marketers are responsible for setting the right level of expectations
exchanges and relationships an exchange is an act of obtaining a desired object from someone
by offering something in return marketing actions try to create maintain and grow desirable exchange
relationships this figure shows the process of how a product in the marketplace gets to the consumer
each party in a modern marketing system adds value to the next level and is affected by major
forces marketing means managing markets to bring about profitable customer relationships
outstanding marketing companies go to great lengths to learn about their customers
the five core marketplace concepts are customer needs wants and demands market offerings such as
products services and experiences customer value and satisfaction exchanges and relationships and
markets learning objective three identify the key elements of a customer driven marketing strategy
and discuss the marketing management orientations that guide that strategy this includes designing
a customer value driven marketing strategy and preparing an integrated marketing plan and program
marketing management is the art and science of choosing target markets
and building profitable relationships with them two primary questions that merit discussion are
what customers will we serve and how can we best serve them selecting customers to serve reviews
two key elements market segmentation which divides the markets into segments of customers
and target marketing which refers to which segments that are chosen to pursue choosing
a value proposition a brand's value proposition is a set of benefits or values it promises to deliver
to customers to satisfy their needs there are five different concepts associated with
marketing management orientations production concept product concept
selling concept marketing concept and societal marketing concept as shown in the diagram
in the production concept consumers will favor products that are both available
and highly affordable in the product concept consumers favor products that
offer the most quality performance and features additional emphasis is placed on continuous
product improvements in the selling concept consumers will not buy enough of the firm's
products unless the firm undertakes a large-scale selling and promotional effort in the marketing
concept you must know the needs and wants of the target markets and deliver satisfaction better
than your competitors in societal marketing the company's marketing decisions must consider the
consumer's wants the company's requirements the consumer's long-run interests and society's long
run interests this figure contrasts the selling concept and the marketing concept the selling
concept takes an inside out perspective it focuses on the factory and existing products and calls for
heavy selling and promotion to obtain profits the marketing concept takes an outside in perspective
it starts with a well-defined market focuses on customer needs and integrates marketing activities
that affect customers it generates profits by creating relationships with the right customers
this figure shows how companies should balance three concepts and setting strategies
company profits consumer wants and society's interests preparing an integrated marketing
plan includes a marketing mix which is a set of tools used to implement a marketing strategy
this is often called the four ps product price promotion and place
an integrated marketing plan communicates and delivers the intended value to selected customers
learning objective 3 summary creating value and engagement plays a critical role designing
a customer driven marketing strategy that selects your customers chooses your value proposition and
develops your marketing management orientations it is also important to prepare an integrated
marketing plan and platform learning objective 4 develop your customer relationship management plan
and identify strategies for creating value for customers and capturing value from customers
in return customer relationship management or crm is the overall process of building and maintaining
profitable customer relationships by delivering superior customer value and satisfaction
the crm building blocks include customer perceived value and customer satisfaction customer perceived
value is the difference between total customer perceived benefits and customer cost customer
satisfaction is the extent to which perceived performance matches a buyer's expectations
there are three customer relationship levels and tools
basic relationships which are low margin customers full partnerships which are high
level customers and frequency marketing programs which reward customers
customer engagement marketing makes the brand a meaningful part of consumers conversations and
lives by building direct and continuous customer involvement in shaping brand conversations
experiences and community engaging customers social media is a great way to attract customer
attention this advertisement is an example of the hertz rent-a-car share it up social media campaign
consumer generated marketing is when brand exchanges created by consumers both invited
and uninvited by which consumers are playing an increasing role in shaping their brand experiences
and those of other consumers an example of social engagement is the life is good campaign it starts
with a deeply felt engagement worthy sense of purpose in spreading the power of optimism
partner relationship management involves working closely with partners in other company departments
and outside the company to jointly bring value to customers creating customer loyalty and retention
is the value of an entire stream of purchases that the customer makes over a lifetime of patronage
capturing customer value the share of a customer is a portion of the customer's purchasing
that a company receives in its product categories building customer equity is
the total combined customer lifetime values of all the company's customers
this figure illustrates how companies can build the right relationships with the right customers
there are four customer relationship groups strangers who are customers with low potential
profitability butterflies who are potentially profitable but not loyal true friends who are
profitable and loyal and barnacles who are highly loyal but not very profitable
objective force summary marketing helps to identify strategies for creating customer value
for customers and capturing value from customers in return building customer relationships includes
customer relationship management engaging customers and partner relationship management
capturing value from customers involves creating customer value and retention growing customer
shares and building customer equity learning objective 5 describe the major trends and forces
that are changing the marketing landscape in this age of relationships it is all about the changing
marketing landscape digital and social media marketing involves using digital marketing tools
such as websites social media mobile ads and apps online videos email and
blogs that engage consumers anywhere at any time via their digital devices
social media provides exciting opportunities to extend customer engagement and get people
talking about a brand mobile marketing is perhaps the fastest growing digital marketing platform
the changing marketing landscape involves not-for-profit marketing growth rapid
globalization and competition and sustainable marketing objective 5 summary dramatic changes
are occurring in the marketing arena the digital age has created exciting new ways to learn about
and relate to customers as a result advances in digital and social media have taken the marketing
world by storm online mobile and social media marketing offer exciting new opportunities to
target customers more selectively and engage them more deeply the key is to blend the new
digital approaches with traditional marketing to create a smooth integrated marketing strategy
in summary this chart represents how far we've come in understanding marketing
principles in chapter one now that we've discussed all the steps in the process
this graph represents an expanded model that will help you put it all together
thank you for reviewing this video check out the other videos in this marketing series