Chapter 1: Creating customer relationships and value through

marketing

Marketing: activity for creating, communication, delivering, and

exchanging offerings that benefit its customers, the
organization, its stakeholders, and society at large
Exchange: implies that both the seller and buyer are better off
after the trade
First objective: discovering the needs of prospective customers
o Then meet these needs with new products
o Marketers try to address both the needs and wants of
consumers
Market: Made up of potential consumers, with both the desire
and ability to buy a specific offering
Marketing Mix: 4 Ps
o Product, price, promotion, place
o Customer value proposition: Conveyed through the
marketing mix, cluster of benefits that an organization
promises customers to satisfy their needs
Environmental forces: consist of social, economic, technological,
competitive, and regulatory forces

The marketing problem: how customer relationships are built

Customer value: unique combination of benefits received by
targeted buyers that includes quality, convenience, on-time
delivery, and both before-sale and after-sale service at a specific
price vale through best price, best product, or best service
Relationship marketing: Links the organization to its individual
customers, employees, suppliers, and other partners
Marketing program: plan that integrates the marketing mix to
provide a good, service, or idea
Market segments; groups of homogenous buyers with similar
habits
Importance of Marketing:
Early 20th century, production era, buyers were willing to accept
goods the were available
Sales era, 1920 1960, manufacturers could produce more
goods than buyers could consume and competition grew
Marketing concept: Starting in the 1950s, an organization
should strive to satisfy the needs of consumers while trying to
achieve the organizations goals

Market Orientation: continuously collecting information about

customers needs, sharing this information across departments,
and using it to create customer value
Customer
relationship
management
(CRM):
important
outgrowth in the focus on the customer
o Customer experience: internal response that customers
have to all aspects of an organization and its offering

Ethics and social responsibility:

Societal marketing concept: Organizations should satisfy the
needs of consumers in a way that provides for societys wellbeing
Conclusion:
Ultimate consumers: people who use the products and services
purchased for a household
Organizational buyers: Businesses (B2B)
Marketing creates utility: the benefits or customer value
received by users of the product (form, place, time, possession)