Mkt 531 Week 1 Study Guide

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1st Week: 1. Marketing: Managing Profitable Customer Relationships 1.1. What is Marketing? The basic goals of marketing are attracting new customers by promising superior value and keeping and growing current customers by satisfying them. For example, Wal-Mart’s promise is “Always low prices”, Disney theme parks promise to “make dreams come true”. It is known by successful companies that market share and profits will increase if they take care of their customers. In the new sense, marketing is about satisfying customer needs. Marketing can be defined as the process of creating value for customers and building strong customer relationships and in return capturing value from customers. 1.2. The Process of Marketing:…show more content…
These buyers have a common need or want and can be satisfied through exchange relationships. 1.2. 2. Designing a Customer Driven Marketing Strategy: Two important questions must be answered for a winning marketing strategy: What customers will be served? (target market), How can these customers be served best? (value proposition) -Selecting the Customers to Serve First of all, company must decide which customers it will serve. This is done by dividing the market into segments of customers (market segmentation) and selecting the segments it will enter (target marketing). - Choosing a Value Proposition After selecting the customers to serve, the company must decide how it will serve to its target market- how to differentiate and position in the marketplace. Value proposition can be defined as the company’s set of benefits and values it offers to customers. For example, Porsche offers driving performance and excitement whereas Mercedes offers comfort. Value propositions differentiate one brand from another. Marketing Management…show more content…
It is important to think whether it is always right to satisfy the immediate needs and wants of the target market for the consumers’ long-run well being. Good marketing decisions should be made both by considering the consumers’ wants, the company’s requirements, consumers’ long-run interests and society’s long-run interests. In setting marketing strategies, three considerations should be balanced: company profits, consumer wants, and society’s interests. For example, giant fast food chains offer tasty, and convenient food at reasonable prices. But is it good for the society’s health on the

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