Chapter 1: What Marketing’s All About. It’s All About Satisfaction Marketing today is applied to virtually all aspects of a company’s operation that.

Chapter 1:What Marketing’s All About

It’s All About Satisfaction Marketing today is applied to virtually all

aspects of a company’s operation that has the potential to influence customer satisfaction

Whenever things of value are being exchanged, marketing principles apply: consider exactly what is being exchanged (it’s “give” and “get”)

The ultimate goal is customer satisfaction, which leads to long-term profitability and success

Marketing principles apply in all organizations

Figure 1-1 here

…and Creating ValueSuccessful marketing involves meeting or

exceeding customer expectationsWhen expectations are exceeded, customer

satisfaction or delight resultsMarketing is very much about adding value

through a broadly-defined value propositionValue may be created by marketers in many

different ways: value is not only about price

What’s Involved in Marketing? Marketing is the total system of activities

designed to plan, price, promote, and distribute need-satisfying products, services, and ideas to target markets in order to achieve the objectives of both the consumer and the organization.

It involves all aspects of how the organization interacts with the customer that have the potential to influence the customer’s satisfaction with the organization and its value proposition.

Key Words in the Definition

total system: not an ad hoc approach business activities: but not just for businesses plan, price, promote, distribute: the application

of the marketing mix need-satisfying: meeting customers’ needs products, services, ideas: not just products target markets: not a broad-brush approach objectives: the customer’s as well as the firm’s

The Marketing Mix

The conventional view of the marketing mix consisted of four components: product, price, distribution and promotion.

Generally acknowledged that this is too narrow today; now includes service, processes, technology and employees.

Marketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers.

The Focus of Marketing

Marketing involves the exchange of things of value with various target groups.

Much of marketing’s focus today is on the creation of value for customers; those who are best at creating value earn customer loyalty.

Ultimately, successful marketers develop a close relationship with customers and others. This is a long-term strategy that guarantees the future success of the company.

Drivers of Customer Satisfaction

Many aspects of the firm’s value proposition contribute to customer satisfaction: The core product or service offered Support services and systems The technical performance of the firm Interaction with the firm and it employees The emotional connection with customers

Ability to add value and to differentiate as a firm focuses more on the top levels

Figure 1-2 here

Marketers and Markets Marketers are focused on stimulating exchanges

with customers who make up markets – B2C or B2B.

The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers.

It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants.

Much happens before and after the sale to affect customer satisfaction

Figure 1-3 here

Evolution of Marketing Thinking

Marketing has evolved through five stages: in the product-focus stage, emphasis is on producing

more and better products at the sales-orientation stage, focus shift to selling,

moving product from warehouse to customer at the customer-interest stage, emphasis shifts to the

customer and the satisfaction of needs the customer-service stage places emphasis on

customer service as well as good products the customer-relationship stage sees a much longer-

term focus on building relationships with customers

Figure 1-4 here

It’s All About ValueIf we create value for the customer, the

firm and its shareholders benefitValue may be created in many ways – it’s

much more than priceThe value proposition comprises

everything the company offers its customers – must be defined very broadly

Linked to stages of marketing thinking

Figure 1-5 here

Figure 1-6 here

Customer-Relationship ThinkingThe customer-relationship view of

marketing requires some new thinking:It is very much a long-term strategyRequires that management take the

customer’s viewThe value proposition must be defined

very broadlyDifferent measures of success are needed

The New View of MarketingThe marketing emphasis today is on

keeping existing customers as well as getting new ones

Four principles guide marketing: retention: keeping them coming back referrals: encourage them to recommend us relationships: build an emotional connection recovery: solve problems as they arise

The Modern Marketing Concept All planning and operations are designed to create long-

term customer satisfaction: “everyone in the firm is involved in marketing”

All of the marketing activities of the organization should be consistently designed and delivered, and should be coordinated across departments

All of the organization’s planning and operations are customer-oriented, meeting customer needs and achieving profitability

All activities are focused on the long-term and designed to create an emotional connection with customers

Figure 1-7 here