Today’s successful companies have one thing in common: they are strongly customer-focused and heavily committed to marketing. These companies share a passion for understanding and satisfying customer needs in well-defined target markets. They motivate everyone in the organization to help build lasting customer relationships based on creating value.
Customer relationships and values are especially important today. As the nation’s economy has recovered following the worst downturn since the Great Depression, more frugal consumers are spending more carefully and reassessing their relationships with brands. In turn, it’s more important than ever to build strong customer relationships based on real and enduring value. (Marketing Process)
What Is Marketing?
Marketing, more than any other business function, deals with customers. Although we will soon explore more-detailed definitions of marketing, perhaps the simplest definition is this one:
- Marketing is managing profitable customer relationships.
The twofold goal of marketing is to attract new customers by promising superior value and keep and grow current customers by delivering satisfaction.
For example, Walmart has become the world’s largest retailer and the world’s largest company by delivering on its promise, “Save money. Live better.” Nintendo surged ahead in the video-games market behind the pledge that “Wii would like to play,” backed by its wildly popular Wii console and a growing list of popular games and accessories for all ages. And McDonald’s fulfills its “I’m loving’ it” motto by being “our customers’ favorite place and way to eat” the world over, giving it a market share greater than that of its nearest three competitors combined.
Sound marketing is critical to the success of every organization. Large for-profit firms, such as Procter & Gamble, Google, Target, Toyota, and Marriott use marketing. But so do not-for-profit organizations, such as colleges, hospitals, museums, symphony orchestras, and even churches.
You already know a lot about marketing it’s all around you. Marketing comes to you in the good old traditional forms: You see it in the abundance of products at your nearby shopping mall and the ads that fill your TV screen, spice up your magazines, or stuff your mailbox. But in recent years, marketers have assembled a host of new marketing approaches, everything from imaginative Web sites and online social networks to your cell phone. These new approaches do more than just blasting out messages to the masses. They reach you directly and personally. Today’s marketers want to become a part of your life and enrich your experiences with their brands to help you live their brands.
At home, at school, where you work, and where you play, you see marketing in almost everything you do. Yet, there is much more to marketing than meets the consumer’s casual eye. Behind it, all is a massive network of people and activities competing for your attention and purchases. This book will give you a complete introduction to the basic concepts and practices of today’s marketing. In this chapter, we begin by defining marketing and the marketing process.
What is marketing? Many people think of marketing as only selling and advertising. We are bombarded every day with TV commercials, catalogs, sales calls, and e-mail pitches. However, selling and advertising is only the tip of the marketing iceberg.
Today, marketing must be understood not in the old sense of making a sale “telling and selling” but in the new sense of satisfying customer needs. If the marketer understands consumer needs; develops products that provide superior customer value, and prices distribute and promote them effectively, these products will sell easily. In fact, according to management guru Peter Drucker, “The aim of marketing is to make selling unnecessary.” Selling and advertising are only part of a larger “marketing mix” a set of marketing tools that work together to satisfy customer needs and build customer relationships.
Broadly defined, marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. In a narrower business context, marketing involves building profitable, value-laden exchange relationships with customers. Hence, we define marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
The Marketing Process
The figure presents a simple, five-step model of the marketing process. In the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. In the final step, companies reap the rewards of creating superior customer value. By creating value for consumers, they in turn capture value from consumers in the form of sales, profits, and long-term customer equity.
Understand the marketplace and customer needs and wants
|⇒||Design a customer-driven marketing strategy||⇒||Construct an integrated marketing program that delivers superior value||⇒||Build a profitable relationship and create customer delight||⇒||Capture value from customers to create profit and customer equity|
This post contain the content of book Principles of Marketing