Marketing is all about creating value for customers and building strong relationships. It's the process of understanding what people need and want, then delivering products or services that meet those desires. This approach benefits businesses, consumers, and society as a whole.
The involves five key steps: understanding customer needs, designing strategies, creating marketing programs, building relationships, and capturing value. By following this process, companies can effectively connect with their target audience and achieve their business goals.
Understanding Marketing and Its Purpose
Core purpose of marketing
Top images from around the web for Core purpose of marketing
Putting It Together: Marketing Function | Principles of Marketing View original
Is this image relevant?
The Role of Customers in Marketing | Introduction to Business View original
Is this image relevant?
Creating the Marketing Strategy | Principles of Marketing View original
Is this image relevant?
Putting It Together: Marketing Function | Principles of Marketing View original
Is this image relevant?
The Role of Customers in Marketing | Introduction to Business View original
Is this image relevant?
1 of 3
Top images from around the web for Core purpose of marketing
Putting It Together: Marketing Function | Principles of Marketing View original
Is this image relevant?
The Role of Customers in Marketing | Introduction to Business View original
Is this image relevant?
Creating the Marketing Strategy | Principles of Marketing View original
Is this image relevant?
Putting It Together: Marketing Function | Principles of Marketing View original
Is this image relevant?
The Role of Customers in Marketing | Introduction to Business View original
Is this image relevant?
1 of 3
Marketing process creates, communicates, delivers, and exchanges offerings valuable to customers, clients, partners, and society
Identifies and profitably meets human and social needs (food, clothing, shelter)
Creates and satisfaction by understanding and fulfilling needs and wants
Core purpose builds strong customer relationships
Consistently provides value and satisfaction
Fosters and repeat business (Amazon Prime, Apple ecosystem)
Marketing focuses on creating value for customers
Understands customer needs and wants through research and insights
Develops products or services meeting those needs (smartphones, streaming services)
Communicates to customers through advertising and promotions
Delivers product or service in a satisfying manner (fast shipping, easy returns)
Benefits of effective marketing
Benefits businesses by:
Increasing sales and revenue through attracting and retaining customers
Gaining higher and competitive advantage over rivals (Coca-Cola vs Pepsi)
Improving and reputation in the minds of consumers
Better understanding customer needs and preferences for product development
Allocating resources and making decisions more efficiently based on market insights
Benefits consumers through:
Providing access to products and services meeting their needs and wants
Improving quality of life through innovative solutions (smartphones, home automation)
Offering greater choice and variety in the marketplace (numerous car brands and models)
Supplying better information for making informed purchasing decisions
Enhancing overall and satisfaction
Benefits society by:
Driving economic growth and creating jobs across industries
Improving standard of living through affordable and accessible products
Advancing technology and innovation to solve societal problems (electric vehicles, renewable energy)
Promoting important social causes and values (sustainability, diversity and inclusion)
Increasing global connectivity and cultural exchange (social media, international trade)
The Marketing Process
Key steps in marketing process
Understanding customer needs and wants
Conducts and gathers through surveys, focus groups, and data analytics
Identifies target markets and customer segments based on demographics, psychographics, and behavior
Analyzes customer decision-making processes and influences on purchasing behavior ()
Designing a customer-driven
Selects target customers to serve based on market potential and company strengths
Determines the value proposition and relative to competitors (luxury vs affordability)
Develops an mix of product, price, place, and promotion
Adopts a approach to align business objectives with customer needs
Constructing an integrated marketing program
Creates a product or service delivering value to customers (features, quality, design)
Sets a price capturing the value and remaining competitive in the market
Chooses distribution channels making the product available to customers (retail stores, online)
Develops promotional activities communicating the value proposition (advertising, sales promotions, public relations)
Building profitable relationships and creating customer delight
Focuses on to acquire, retain, and grow customers
Engages customers and fosters loyalty through personalized interactions and rewards programs
Continuously monitors and makes improvements based on feedback
Capturing value from customers to create profits and
Generates revenue through acquiring new customers and retaining existing ones
Manages and profitability by maximizing revenue and minimizing costs
Reinvests profits into marketing activities driving long-term growth and sustainability
Measures to evaluate the effectiveness of marketing efforts
Marketing Strategy and Environment
Analyzes internal and external factors influencing marketing decisions ()
Utilizes to efficiently distribute products and services to customers
Manages the from introduction to decline, adapting strategies accordingly
Builds and maintains to create long-term customer loyalty and competitive advantage
Key Terms to Review (27)
Brand Equity: Brand equity refers to the value a brand has accumulated over time, which manifests in the way consumers think, feel, and behave towards the brand. It encompasses the positive associations, loyalty, and perceived quality that customers attribute to a brand, ultimately influencing their purchasing decisions and the brand's overall market performance.
Brand Recognition: Brand recognition is the ability of a consumer to identify a particular brand or product by its distinctive characteristics, such as logo, packaging, or advertising. It represents the level of familiarity and awareness a consumer has with a brand, which can influence their purchasing decisions and brand loyalty.
Consumer Behavior: Consumer behavior refers to the study of how individuals, groups, and organizations select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires. It encompasses the factors that influence the decision-making process, from the initial recognition of a need to the post-purchase evaluation of a product or service.
Customer Equity: Customer equity refers to the total lifetime value of a company's customer base. It represents the sum of the discounted lifetime values of all of a firm's current and future customers. Customer equity is a key metric in customer relationship management (CRM) as it helps businesses understand the long-term value of their customer relationships and make strategic decisions to maximize that value.
Customer Experience: Customer experience refers to the overall impression and perception a customer has of a company or brand, based on their interactions and engagements throughout the customer journey. It encompasses the emotional, cognitive, and behavioral responses that a customer has during the pre-purchase, purchase, and post-purchase stages of the buying process.
Customer Insights: Customer insights refer to the deep understanding of a company's target customers, their needs, behaviors, preferences, and pain points. These insights are critical for developing effective marketing strategies and creating products or services that resonate with the target audience.
Customer Lifetime Value: Customer lifetime value (CLV) is a metric that measures the total worth of a customer to a business over the entire duration of their relationship. It represents the net present value of the future cash flows expected from a customer, taking into account factors such as customer acquisition costs, revenue generated, and the likelihood of retention. CLV is a crucial concept in marketing, as it helps businesses understand the long-term value of their customers and make informed decisions about customer acquisition, retention, and resource allocation.
Customer Loyalty: Customer loyalty refers to the commitment and positive attitude a customer has towards a brand, product, or service, leading to repeat business and advocacy. It is a critical concept in marketing as it directly impacts a company's long-term success and profitability.
Customer Relationship Management: Customer Relationship Management (CRM) is a strategy that companies use to manage their interactions and relationships with customers. It involves using technology and data to understand customer needs, preferences, and behaviors in order to provide a better customer experience and build long-term, profitable relationships.
Customer Satisfaction: Customer satisfaction refers to the degree to which a customer's expectations of a product or service are met or exceeded, resulting in a positive emotional response and a sense of fulfillment. It is a critical measure of a company's success and a key driver of customer loyalty, repeat business, and positive word-of-mouth.
Customer Value: Customer value is the perceived worth that a product or service holds for a customer, based on their assessment of the benefits received relative to the costs incurred. It is a critical concept in marketing that drives customer satisfaction, loyalty, and ultimately, a company's success.
Integrated Marketing: Integrated marketing is a strategic approach that aligns and coordinates all marketing communication channels, tactics, and messages to deliver a consistent, cohesive, and compelling brand experience for the customer. It involves the seamless integration of various promotional elements to create a unified and impactful marketing strategy.
Market Orientation: Market orientation is a strategic approach that focuses on understanding and satisfying customer needs and preferences in order to create superior value. It is a fundamental concept in the field of marketing that guides an organization's decision-making and resource allocation to better serve the market.
Market Research: Market research is the systematic process of gathering, analyzing, and interpreting data about a target market, consumer behavior, and competition. It provides valuable insights that help organizations make informed decisions to develop, market, and sell products or services that meet the needs and preferences of their customers.
Market Segmentation: Market segmentation is the process of dividing a broad consumer or business market into subsets of consumers or businesses that have, or are perceived to have, common needs, interests, and priorities. Marketers can then design and implement strategies to target these specific segments with offerings that match their unique needs and characteristics.
Market Share: Market share refers to the percentage of a company's sales or units in relation to the total sales or units in a given market. It is a key metric that indicates a company's competitive position and performance within its industry or market.
Marketing Channels: Marketing channels are the various pathways and networks through which products and services are distributed from producers to consumers. They represent the different routes and intermediaries involved in making goods and services available to the target market.
Marketing Environment: The marketing environment encompasses all the internal and external factors that influence a company's marketing decision-making and performance. It includes the microenvironment, which consists of the company itself, its suppliers, marketing intermediaries, customer markets, competitors, and publics, as well as the macroenvironment of broader societal forces such as demographic, economic, natural, technological, political, and cultural factors.
Marketing Mix: The marketing mix is a fundamental concept in marketing that refers to the combination of four key elements - product, price, place, and promotion - that a business uses to achieve its marketing objectives and satisfy the needs of its target market. These four elements, often referred to as the 4Ps, work together to create a cohesive and effective marketing strategy that helps a business differentiate itself, reach its customers, and ultimately drive sales and profitability.
Marketing Process: The marketing process is a structured approach to planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. It is a cyclical and iterative process that involves various stages and activities to effectively meet the needs and wants of target customers.
Marketing ROI: Marketing ROI (Return on Investment) is a metric that measures the effectiveness and efficiency of marketing efforts by quantifying the financial return generated from marketing investments. It is a crucial tool for evaluating the success of marketing strategies and making data-driven decisions to optimize marketing performance.
Marketing Strategy: Marketing strategy is the overarching plan that guides a company's marketing efforts to achieve its business objectives. It involves the strategic decisions and actions taken to create, communicate, and deliver value to customers in a way that aligns with the organization's goals and differentiates it from competitors.
Positioning: Positioning refers to the strategic process of creating a distinct and desirable image or perception of a product, brand, or organization in the minds of target consumers. It involves differentiating a company's offering from competitors and establishing a unique, favorable position in the market.
Product Lifecycle: The product lifecycle refers to the stages a product goes through from its introduction to the market to its eventual decline. This concept is crucial in understanding the marketing and strategic decisions surrounding a product throughout its existence.
Segmentation: Segmentation is the process of dividing a broad target market into more manageable, homogeneous subsets of consumers based on shared characteristics, needs, or behaviors. It is a fundamental marketing strategy that allows businesses to better understand and serve their customers by tailoring their offerings, messaging, and approach to the specific needs of each segment.
Target Market: The target market refers to the specific group of consumers or businesses that a company has identified as the primary focus of its marketing efforts. It is the segment of the population that a product or service is designed to appeal to and serve. Understanding the target market is crucial for developing effective marketing strategies and ensuring the success of a product or service.
Value Proposition: A value proposition is a clear, concise statement that describes the unique benefits a company's product or service offers to its target customers. It outlines how a company's offering solves a customer's problem or improves their situation, and why they should choose that company over competitors. The value proposition is a critical element in the marketing and strategic planning processes, as it helps a business differentiate itself and communicate its core value to potential customers.