To attract new customers by promising superior value.
To keep & grow current customers by delivering satisfaction
A simple model of the marketing process Understand the marketplace & customer needs & wants Design a customer driven marketing strategy Create value for customers & build customer relationships Capture value from customers in return Construct an integrated marketing program that delivers superior value Build profitable relationships & create customer delight Capture value from customers to create profits & customer equity.
The marketing management philosophy that achieving organizational goals depends on knowing the needs & wants of target markets & delivering the desired satisfactions better than competitors .
Sense & respond philosophy.
Finding right products for customers
Customer-driving marketing – understanding customer needs even better than the customers themselves.
Contrast between Sales Concept & Marketing Concept Factory Products Selling &Promoting Profits through sales volume a. THE SELLING CONCEPT b. THE MARKETING CONCEPT Target Customer Integrated Profits through Market Needs Marketing customer satisfaction Starting Point Focus Means Ends
Different types of customers require different relationship strategies, therefore goal is to :
“Build right relationships with the right customers”
Customer Relationship Groups Butterflies Good fit between company’s offerings & customer needs; High profit potential True Friends Good fit between company’s offerings & customer needs; Highest profit potential Strangers Little fit between company’s offerings & customer needs; Lowest profit potential Barnacles Limited fit between company’s offerings & customer needs; Low profit potential High Profitability Low Profitability Short- term customers Long-term customers Projected Loyalty