Slide_R_A_A2 slide #4 by ra

1. Soft ware marketing
Chapter 1
Defining Marketing and the marketing
process

2. The marketing concept
 Its the marketing management philosophy that
achieving organizational goals depends on knowing
the needs and wants of target markets and
delivering the desired satisfactions better than
competitors do.
 Instead of a product centred ‘make and sell’
philosophy the marketing concept is a customer
centred ‘sense and respond’ philosophy.

3. The marketing concept
 The selling concept takes an ‘inside-out’ perspective.
 It starts with the factory, focuses on existing products
and calls for heavy selling and promotion to obtain
profitable sales.
 Focuses on short term sales with little concern about
who buys and why
 In contrast marketing concept takes an outside-in
perspective.
e.g. Ford executive said: ‘if we aren't customer driven,
our cars wont be either’.

4. The societal marketing concept
 This concept questions whether the pure marketing
concept over looks possible conflicts between
consumer short-run wants and consumer long-run
welfare.
 i.e. Is a firm that satisfies immediate needs and
wants of target markets always doing what’s best for
consumers in the long run?
 Hence the societal marketing concept holds that
marketing strategy should deliver value to customers
in a way that maintains or improves both the
consumer’s and the society’s well-being.

5. Building customer relationships
Customer relationship management:
CRM is perhaps the most important concept of modern
marketing.
“It is the over all process of building and maintaining
profitable customer relationships by delivering
superior customer value and satisfaction”
By this definition it involves managing detailed
information, about individual customers

6. Customer perceived value
 The customer’s evaluation of the differences between
all the benefits and all the costs of a market offering
relative to those of competing offers.
 Customer buys from the firm that offers the highest
perceived value.
e.g. Toyota prius hybrid owners gain a number of
benefits. Such as fuel efficiency, status and image
value, feel more environmentally responsible.

7. Customer satisfaction
 The extent to which a product’s perceived
performance matches a buyer’s expectations.
 If the products performance falls short of
expectations the customer is dissatisfied.
 If the performance matches expectations the
customer is satisfied.
 If performance exceeds expectations the customer is
highly satisfied or delighted.

8. Partner relationship management
 When it comes to creating customer value and building
strong customer relationships , today’s marketers know
that they cant do it alone.
 “Working closely with partners in other company
departments and outside the company to jointly bring
greater value to customers”
 Have to work closely with many marketing partners.
 This is why marketers must know good partner
relationship management.

9. Partners inside the company
 In a more connected world, marketers are no longer
the only people who take part in customer
interactions.
 Every functional area can interact with customers
especially electronically.
 The new thinking is : Every employee should be
customer focused.
 Today firms are linking all departments in the cause
of developing more customer value.

10. Partners outside the firm
 Most companies are networked companies, relying
heavily on partnerships with other firms.
 Marketing channels consist of distributors, retailers
and other that connect the company to its buyers.
 Suppliers are not just vendors and distributors
customers, they are considered as partners.

11. Partners outside the firm
 You work closely with selected suppliers to improve
quality and operations efficiency. And work with
franchise dealers to provide top-grade sales and
service support, that will customers to the door.
 In the new competitive globalized business world,
companies seek strategic partners for better
performances.
e.g. Dell joins forces with software creators such as
Oracle and Microsoft to help boost business sales of
its servers and their soft wares.