Creating Customer Value: A Journey in Marketing Management

Marketing, Creating and Capturing Customer Value, Chapter 1 Marketing is the management of successful client connections. Having two objectives: bringing in new clients by promising higher value and retaining/growing the current clientele by providing satisfaction - The satisfaction of meeting consumer needs. The goal of marketing is to eliminate the need for selling. States of felt deprivation are human needs. includes a person's physical, social, and personal requirements. Human requirements are expressed as desires, which are influenced by culture and personality. For example, I need food but want some crawfish from Kickin' Crab. When backed by purchasing power, wishes turn into demands. - Top-notch marketing firms are aware of the requirements and desires of their target audiences. Market offerings are combinations of goods, services, ideas, places, organizations, information, or experiences that are provided to a market in order to meet a need or a want. They are not just restricted to physical goods but they also include services. DON'T make the error of focusing more on the specific products than the advantages and experiences they provide. A product is merely a tool to address a customer issue. Choosing target audiences and developing lucrative partnerships with them is marketing management. What market will we serve as our target audience? What is our value offer, and how can we effectively serve these customers? - Customer and demand management are both components of marketing management. 1 Production Concept: argues that consumers will favor things that are readily available and extremely affordable - Run the serious risk of concentrating too intently on their own operations and overlooking the true goal of meeting customer demands and fostering long-term connections with them. Product Concept: asserts that consumers would favor items that provide the highest levels of quality, performance, and cutting-edge features. Marketing myopia can result from concentrating solely on the company's products. Customers can be searching for a better mousetrap but not necessarily a better solution to a "mouse" problem. Selling Concept: The idea that unless a company makes a significant effort to market and sell its products, consumers won't buy enough of them. internal viewpoint - Instead of producing what the market demands, the goal is frequently to sell what the corporation produces. High dangers come with concentrating on sales transactions rather than developing long-term customer relationships. According to the marketing concept, accomplishing organizational goals depends on being aware of the needs and desires of target markets and providing the desired satisfactions more effectively than rivals. an outside-in viewpoint - Our objective is to guide clients to their destinations even before they are aware of them. 2 Questions if the pure marketing idea ignores potential conflicts between consumers' short-term desires and their long-term welfare are raised by the sociological marketing concept.calls for ecologically friendly, socially conscious marketing that satisfies current demands while simultaneously conserving or improving the ability of future generations to meet their own needs. Markets are defined by shared value. The four Ps of marketing are used to categorize marketing mix tools: product, pricing, place, and promotion. Customers frequently lack the ability to "objectively" and "accurately" evaluate values and expenses. They respond to value perception. Businesses should strive to please clients by making only the promises they can keep and then going above and beyond to keep those promises. The "handbook" at Nordstrom states: "Always use your best judgment. There won't be any extra regulations. Relationships with every potential customer are not what you seek. evict consumers who are more expensive to serve than to keep. Due to increased consumer control, businesses must engage in marketing by attraction, developing products and communications that engage customers rather than interrupt them. - Encourage consumer-brand engagement Making pertinent and sincere contributions to customer dialogues is necessary for effective social media marketing. 3 With the use of consumer-generated marketing, customers may have a stronger impact on how others and they perceive their own brands. Customer lifetime value (CLV) is the sum total of all the purchases a customer makes over the course of their association with the business. Instead of just fostering a cognitive preference, delight fosters an emotional connection with a brand. They return because of the relationship. Customer equity is the sum of all past and future customer lifetime values for the entire organization. Don't just focus on the present and future market share and sales; customer equity predicts the future. The key metrics to focus on are customer equity and lifetime value. The goal is to build the right relationships with the right customers 4