Managing profitable customer relationships. The aim of marketing Is to create value for customers and capture the value from customers In return Five steps of marketing process: 1- understanding customer needs 2- Designing customer driven marketing strategies 3- Integrated marketing programs 4- Building customer relationship 5- Capture value fir the firm Capos:a passion for creating customers value and relationships: Example for customer focused and heavily committed to marketing. Understanding and satisfying customer needs in well defined target marketing's. What Is marketing: More than any other business function, deals with customers. Marketing Is managing profitable customer relationships. Twofold goals: I-attract the new customers, 2- keep and grow current customers by delivering satisfaction Save money. Live better. Marketing: for profit firms and not for profit organizations.
Today's marketing is not only about telling and selling, in the new sense of marketing: consumer needs, develops products that provide superior customer value and prices' distributes and promotes them effectively. Marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others.
The Marketing Process: Understand the marketplace and customer needs=Design a customer driven marketing strategyГ=construct an Integrated marketing program that delivers superior profitable relationship and create customer delight (create value for customers and build customer value from customers to create profits and customer equity(Capture value from customers in turn) Create value for customers and build customer relationship: 1- understand the marketplace and the customers needs and wants: Human needs are physical needs for food, clothing, warmth and safety.
Social needs for belonging and affection and individual needs for knowledge and self expression. American needs food but wants a Big Mac. When they backed by buying power wants become demands. 2- Market offerings: Products, services and experiences: customer needs and wants fulfilled by market offerings. Such as services, Information or experiences offered to a market to satisfy a need or a want. - Customer Value and Satisfaction: Customer form expectation about the value and satisfaction that various market offerings will deliver and buy accordingly-customer value and satisfaction are the key for developing and managing customer relationship. 4- Exchanges and Relationships: Exchange is the act of obtaining a desired object form someone by offering something in return. Marketing consist of actions taken to build and maintain service, idea or other object. Marketers want to build strong relationships by insistently delivering superior customer value. - Markets: Exchange and relationships lead to concept of a market. A market is the set of actual and potential buyers of a product or services. Designing a customer driven marketing strategy: Understands consumers and the marketplace, marketing management can design a customer driven marketing strategy. For best marketing strategy: What customers will we serve? ( target market) How can we serve these customers best? (what's our value proposition) I-selecting customers to serve: whom it will serve?
By dividing the market into segments of customers= market segmentation and target marketing(go after from market segmentation) not to serve all customers it will not well. The company wants to select only customers that it can serve well and profitably. 2- choosing a value proposition: How it serve to targeted customers. Differentiate and position itself in the marketplace. 3-Marketing management orientations:design strategies that will build profitable relationships with the targeted consumers. Five concept under this orientation: a- the production concept:(improving production and distribution) oldest orientation. Sky for focusing too narrow mom their operations, lack of real objective satisfying customer needs and building customer relationships. B- The product concept: marketing strategy focuses on making continuous product improvements. Problem: customers may look for a better solution not better quality of a particular product. Market myopia. C- The selling concept: consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort. Aggressive selling high risk: focuses on creating sales transaction rather than on building long term refutable customer relations. - The marketing concept: organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Customer focus and value are the paths to sales and profits. Not product centered concepts. Customer centered', right products for your customers. E- The societal marketing concept: questions, customers short term wants and long term welfare (possible conflicts). Focus on sustainable markets, profits,wants and society long run interests.