Marketing Terminologies Marketing


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Marketing Terminologies Marketing

  1. 1. Important Terminologies Marketing Management The art and science of choosing target markets and building profitable relationship with them. The marketing manager’s aim is to find, keep and grow target customers by creating, delivering and communicating superior customer value.
  2. 2. Important Terminologies Marketing Management Marketing management gives answer to two questions: (1) What customers will be served (target market) (2) How can these customers will be best served (value proposition)
  3. 3. Important Terminologies Value Proposition A company’s value proposition is the set of benefits or values it promises to deliver to customers to satisfy their needs. Value proposition differentiates one brand from another. They answer the question “Why should I buy your brand rather than a competitor’s? Companies must design strong value propositions that give them the greatest advantages in their target markets.
  4. 4. Important Terminologies Customer Relationship Management (CRM) The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It is the most important concept of modern marketing.
  5. 5. Important Terminologies Customer Relationship Management Earlier it was narrowly defined as a customer data management activity. Now it has a broader meaning and it deals with all aspects of acquiring, keeping and growing customers. According to Drucker, building customer relationships, which involve a series of interactions between individuals and a company over time, will produce more sales and profits than will focusing on sales transactions alone.
  6. 6. Important Terminologies Customer Perceived Value The difference between total customer value and total customer cost. Customer Cost The customer's perceived expenses that would be incurred in acquiring and using a product.
  7. 7. Important Terminologies Customer Satisfaction The extent to which a product’s perceived performance matches a buyer’s expectations. If performance matches expectations, the customer is satisfied and if performance exceeds expectations, the customer is delighted. Customer Lifetime Value The value of the entire stream of purchases the a customer would make over a lifetime of patronage.
  8. 8. Important Terminologies Customer Equity The total combined customer lifetime values of all of the company’s customers. The more loyal the firm’s profitable customers, the higher the firm’s customer equity. Customer equity may be a better measure of a firm’s performance than current sales or market share. Sales and market share reflect the past, customer equity suggests the future. Example: Cadillac Vs BMW
  9. 9. The Marketing Process The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
  10. 10. A Simple Model of Marketing Process Construct an integrated Build profitable relationship Capture value from marketing program and create customer customers to create that delivers superior delight profits and customers value equity. ies work to understand customers. fourth step companies value and build strong customer ies reap the rewards of creating . By creating value for customers ue from customers in the form of rm customer equity.