Chapter 1: Creating and Capturing Customer Value

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Chapter 1: Creating and Capturing Customer Value Objective 1: Define marketing and outline the steps in the marketing process. What Is Marketing? 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. - Marketing Defined Marketing is 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 Objective 2: Explain the importance of understanding customers and the marketplace and identify the five core marketplace concepts. Understanding the Marketplace and Customer Needs Five core customer and marketplace concepts: (1) needs, wants, and demands; (2) market offerings (products, services, and experiences); (3) value and satisfaction; (4) exchanges and relationships; and (5) markets. - Customer Needs, Wants, and Demands Human needs are states of felt deprivation. They include the needs of Maslow’s Hierarchy. Wants are the form human needs take as they are shaped by culture and individual personality. Demands are human wants that are backed by buying power. - Market Offerings—Products, Services, and Experiences Market offerings—some combination of products, services, information, or experiences offered to a market to satisfy a need or a want. They also include services— activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything. More broadly, market offerings also include other entities, such as persons, places, organizations, information, and ideas. Marketing myopia is the mistake of paying more attention to the specific products they offer than to the benefits and experiences produced by these

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