* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download LESSON 3 Importance of Marketing
Bayesian inference in marketing wikipedia , lookup
Consumer behaviour wikipedia , lookup
Sales process engineering wikipedia , lookup
Market penetration wikipedia , lookup
Ambush marketing wikipedia , lookup
Social media marketing wikipedia , lookup
First-mover advantage wikipedia , lookup
Neuromarketing wikipedia , lookup
Visual merchandising wikipedia , lookup
Marketing research wikipedia , lookup
Perfect competition wikipedia , lookup
Marketing communications wikipedia , lookup
Food marketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Product placement wikipedia , lookup
Service parts pricing wikipedia , lookup
Viral marketing wikipedia , lookup
Planned obsolescence wikipedia , lookup
Pricing strategies wikipedia , lookup
Target audience wikipedia , lookup
Digital marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Customer experience wikipedia , lookup
Product lifecycle wikipedia , lookup
Supermarket wikipedia , lookup
Marketing plan wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Value proposition wikipedia , lookup
Customer relationship management wikipedia , lookup
Multicultural marketing wikipedia , lookup
Predictive engineering analytics wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Direct marketing wikipedia , lookup
Target market wikipedia , lookup
Street marketing wikipedia , lookup
Advertising campaign wikipedia , lookup
Marketing channel wikipedia , lookup
Green marketing wikipedia , lookup
Customer engagement wikipedia , lookup
Services marketing wikipedia , lookup
Global marketing wikipedia , lookup
Product planning wikipedia , lookup
Marketing strategy wikipedia , lookup
Fundamentals of Marketing LESSON 3: Importance of Marketing Learning Objectives After completing this lesson, students will be able to: 1.Define the role of marketing within the organization 2.Illustrate the Market Myopia 3.Describe the importance of customer satisfaction Marketing serves as a bridge between the customer and the seller of products and services. Marketing makes buying easy for customers. Marketing creates new and improved products at lower prices. Utility The functions of marketing add value to a product The added value is called Utility Utilities are the attributes of a product or service that make it capable of satisfying consumer’s wants and needs There are 5 utilities involved with all products Form Time Place Possession Information Form Utility Involves changing raw material or putting parts together to make them more useful Form Utility deals with making or producing things An Example of Form Utility A Tree In its original state it has value as an object of beauty, supplies oxygen, prevents soil erosion, and provides a home for animals. When a tree is cut down and used in making other products its usefulness changes. The raw material becomes part of a new product that has a different value Form Utility takes place also when a manufacturer assembles parts into a product pieces of wood assembled into furniture Place Utility Having a product where customers can buy it Businesses study consumer shopping habits to determine the best sales outlets for their products Outlets include catalogs, the internet, retail stores Time Utility Having the product available at a certain time of the year or a convenient time of day The value of the product is increased by having it available when consumers want them Time Utility requires the marketer to plan ahead in order to have the right product at the right time Toy companies introduce new toys for Christmas every February at the Toy Fair in New York City Possession Utility The exchange of a product for some monetary value Alternatives to cash may be accepted these include: In business to business situations companies also grant customers credit Credit Cards Checks Installment Plans Layaway Possession Utility is involved every time legal ownership of a product changes hands Information Utility Involves communication with the consumer Examples of sources of information: Sales Associates Packaging Tags and Labels Advertising Owner’s Manuals Internet Sites Telephone Customer Service Benefits of Product Utility Added value Increases demand, increased demand allows manufacturers to produce in larger quantities which reduces the cost of each item When a product becomes popular the number of merchants offering the product will increase, this increases competition which reduces the price Competition also makes manufacturers improve products to better satisfy customer wants and needs Marketing Myopia • Theodore Levitt proposed market definitions of a business are superior to product or technological definitions. • Target Markets/Groups and Marketing Needs. • Every major industry was once a growth industry. • Railroads, Hollywood and others. Marketing Myopia • No guarantee against product obsolescence. Company’s own product research will, or another company will produce, product obsolescence. Marketing’s Role • The chief executive has the inescapable responsibility for creating this environment, viewpoint, attitude and inspiration. Sets the company’s style, direction and goals. Marketing’s Role • Marketing should try to mobilize the company’s resources to develop customer satisfaction. Requests from the marketing department sometime increase product design, material costs, disrupt production schedules, increase finance and accounting costs and create budget headaches. Customer Satisfaction Building Customer Relationships • CRM – Customer relationship management . . . “is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, keeping and growing customers.” 1-16 Relationship Building Blocks: Value and Satisfaction • Customer Perceived Value – The customers’ evaluation of the difference between benefits and costs. – Customers often do not judge values and costs accurately or objectively. • Customer Satisfaction – Product’s perceived performance relative to customers’ expectations. 1-17 Customer Relationship Levels and Tools • Basic relationships – low margin customers • Full partnerships – key customers • Frequency marketing programs – Reward customers who buy frequently or in large amounts • Club marketing programs – Offer members special discounts and create member communities 1-18 The Changing Nature of Customer Relationships • Relating with more Carefully Selected Customers • Relating for the Long-Term • Relating Directly 1-19