Marketing and the Marketing Process
Marketing deals with customers more than any other business functions. Marketing is managing profitable customer relationships. Marketing has a twofold goal. They are to attract new customers by promising superior value, and keep and grow current customers by delivering satisfaction. The American Marketing Association defines marketing as “The Process of planning and executing the conception, pricing, promotion, and distribution of ideas, good, and services to create exchanges that satisfy individual and organizational objective”.
The Marketing process is the method of evaluating openings, choosing the proposed customer, addressing the consumer ...view middle of the document...
Customer value and satisfaction are the key building blocks for developing and managing customer relationships. Exchanges and relationships is four. Exchange is the act of obtaining an object from someone by offering something in return. Marketing consists of actions taken to create, maintain, and grow desirable exchange relationships with target audiences involving a product, service, idea, or other object. Companies want to build strong relationships by consistently delivering superior customer value.
Five is markets are the set of actual and potential buyers, who share a need or want that can be satisfied through exchange relationships, of a product or a service. Marketing means managing markets to bring out profitable customer relationships. Consumer research, product development, distribution, communication, pricing, and servicing are core marketing activities. Although marketing is thought of as being carried out by seller, buyers also carry out marketing.
Step 2 is marketing management can design a customer driven marketing strategy once it understands consumers and the market place. Marketing management is the art and science of choosing target markets and building profitable relationships with them. Marketing managers are to find, attract, keep, and grow target customers by creating, delivering, and communicating superior customer values. There are two questions a marketing manager must ask. What customers will we serve? The company decides what customers to serve by segmenting the customers and deciding which segment to go after. What is the best way we can serve these customers? The company decides how it will differentiate and position itself in the marketplace to go after its segment of customers. The set of benefits and values a company promises to deliver to its customers to satisfy their needs is the value proposition. Companies must design strong value propositions that give them the greatest advantage.
There are five alternative concepts which organizations design and carry out their marketing strategies. The production concept holds that consumers will favor available and highly affordable products. Management focuses on improving production and distribution efficiency. The product concept whereas consumers will favor products that offer the most in quality, performance, and innovative features. Marketing strategy focuses on making continuous product improvements. The selling concept says consumers will not buy enough of the firm’s production, unless the firm undertakes a large scale selling and promotion effort. The marketing concept states that achieving organization goals depend on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors. Customer focus and value are the paths to sales and profits. The societal marketing concepts questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run...