CHAPTER REVIEW FOR THE FINAL

CHAPTER 1: MARKETING

I. WHAT IS MARKETING
1. Marketing defined
- Marketing is the process by which companies engage customers, build strong customer relationships,
and create customer value in order to capture value from customers in return.
- Two goals:
- Attract new customers by promising superior value
- Keep and grow current customers by delivering value and satisfaction

2. The marketing process

- This is a 5-step model of the marketing process for creating and capturing customer value:
- Step 1: Understand the marketplace and customer needs and wants
- Step 2: Design a customer value-driven marketing strategy (STDP)
tích hợp mang lại
- Step 3: Construct an integrated marketing program that delivers superior value (giá trị vượt trội)
- Step 4: Engage customers, build profitable relationships, and create customer delight ( sự hài lòng )
- Step 5: Capture value from customers to create profits and customer equity
thu thập

II. UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS

- The first process is the 5 core customer and marketplace concepts

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1. Customer needs, wants, and demands
- Human needs: states of felt deprivation (trạng thái cảm thấy thiếu thốn). Including:
- Physical needs: food, clothing, warmth, and safety
- Social needs: belonging and affection (yêu mến, cảm kích)
- Individual needs: knowledge, self expression
→ Marketers did not create these needs, they are a basic part of the human makeup (một phần nhu cầu
cơ bản của con người)
- Wants: the form taken by human needs as they are shaped by culture and individual personality and are
described in terms of objects that will satisfy those needs.
- E.g: Need food → Want instance noodles, ice-cream
- Demands: human wants that backed by buying power (khi được hỗ trợ bởi sức mua, want trở thành
demand). With their wants and resources, people demand products and services with benefits that add up
to the most value and satisfaction.

2. Market offerings (products, services, and experiences)

- Consumer needs and wants are fulfilled through 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, persons, places, organizations, information, and ideas
- Marketing myopia: the mistake of paying more attention to the specific products a company offers than
to the benefits and experiences produced by these products
nhìn xa hơn các thuộc tính
- Smart marketers look beyond the attributes of the products and services they sell. By
orchestrating (điều phối) several services and products, they create brand experiences for
customers.

3. Customer value and satisfaction

- Satisfied customers: buy again and tell others about their good experiences
- Dissatisfied customers often switch to competitors and disparage (chê) the product to others
- If expectation: nếu kì vọng
- Too low: satisfy buyers, but failed to attract customers
- Too high: dissatisfied
- Customer satisfaction: the extent to which perceived performance matches a buyer’s expectations.
- Customer-perceived value: the difference between total customer perceived benefits and customer cost.
- Customer value and customer satisfaction are key building blocks for developing and managing
customer relationships.

4. Exchanges and relationships

- Exchange is the act of obtaining a desired object from someone by offering something in return.
- Marketing consists of actions taken to create, maintain, and grow desirable exchange relationships with
target audiences involving a product service, idea or other object. đối tượng
- It is not only creating new customers or transactions, but also retaining customers and growing their
giao dịch
business

2
5. Markets
- Market is the set of actual and potential buyers of a product or service. These buyers share a particular
need or want that can be satisfied through exchange relationships.
thu hút
- Seller must search for and engage buyers, identify their needs, design good market offerings, set prices
for them, promote them, and store and deliver them
- Marketers must also deal effectively with customer-managed relationships. They must ask:
- How can we influence our customers?
- How can our customers influence us?
- How can our customers influence each other?
- Main elements in the marketing system:

trung gian

- Company + competitors research the market and interact with consumers to understand their
needs
- They create and exchange market offerings, messages and other marketing content with
consumers in either direct to final consumers or indirectly through marketing intermediaries
- Major environmental forces: demographic, economic, natural, technological, political, and
social/cultural

III. DESIGNING A CUSTOMER VALUE-DRIVEN MARKETING STRATEGY AND PLAN

- The expanded model of the marketing process

3
1. Customer value-driven marketing strategy (STDP)
- Marketing management is the art and science of choosing target markets and building profitable
relationships with them.
- To design a winning marketing strategy, the marketing manager must answer the 2 important questions:
- What customers will we serve (target market)?
- How can we serve these customers best (value proposition)?
- Step 1: Selecting customers to serve
- Decide whom it the company will serve
- Market segmentation: dividing the market into segments of customers
- Target marketing: selecting which segments it will go after
- Selecting only customers that it can serve well and profitably
- Step 2: Choosing a value proposition
- Decide how it will serve targeted customers
- Company’s differentiation
- Positioning itself in the marketplace
- Value proposition: the set of benefits or values it promises to deliver to consumers to satisfy
tập hợp
their needs
- Step 3: Marketing management orientation định hướng
- Marketing management wants to design strategies that will engage target customers and build
profitable relationships with them
- Five alternative concepts: Production, Product, Selling, Marketing, and societal marketing
concept có sẵn giá cả phải chăng
- Production concept: consumers will favor products that are available and highly affordable.
Thus, should focus on improving production and distribution efficiency phân phối
hiệu suất
- Product concept: consumers will favor products that offer the most in quality, performance, and
tính năng đổi mới innovative features. Focusing on making continuous product improvements
- Selling concept: consumers will not buy enough of the firm’s products unless it undertakes a
nỗ lực bán hàng large-scale selling and promotion effort. focuses on creating sales transactions rather than on
building long-term, profitable customer relationships
- Often sell products that buyers do not think of buying. They often sell what the company
makes rather than to make what the market want
- Marketing concept: achieving organizational
Văn bản
goals depends on knowing the needs and wants of
target markets and delivering the desired satisfactions better than competitors do. The job is not
to find the right customers for your product but to find the right products for your customers.
- This is a customer-centered sense-and-response philosophy triết lý cảm nhận và phản hồi
lấy khách hàng làm trung tâm

- Take an outside-in-perspective: starting with a well defined market, focuses on customer

needs, and integrates all the marketing activities that affect customers

4
 - Societal marketing concept: holds that generating customer satisfaction and long-run societal
phúc lợi xã hội well-being through sustainable marketing strategies is key to both achieving the company’s goals
and fulfilling its responsibilities.
- Shared value concept: focuses on creating economic value in a way that also creates
value for society
- Company should balance three considerations in setting their marketing strategies:
company profits: consumer wants, and society’s interests

2. Preparing an integrated marketing plan and program

- Marketing mix: the set of marketing tools firms use to implement its marketing strategy. Including:
product, price, place, and promotion

IV. MANAGING CUSTOMER RELATIONSHIPS AND CAPTURING CUSTOMER VALUE

1. Engaging customers and managing customer relationships

- Customer relationship management (CRM): the overall process of building and maintaining
mang lại vượt trội
profitable customer relationships by delivering superior customer value and satisfaction
- Customers ngày nay có khả năng tác động đến công ty và đến các khách hàng khác, vấn đề là
làm sao cty deal được với những tác động đó (nghiên về quản lý relationships hơn là marketing)
- The crucial part here is to create superior customer-perceived-value: the customer’s evaluation
of the difference between all the benefits and all the costs of a market offering relative to those of
competing offers
- Customer satisfaction: the extent to which a product’s perceived performance matches a
buyer’s expectation
- Customer delight: can be achieved by delivering more than promised
- Customer relationship levels: exist at many levels, depending on the nature of the target market

5
 - Basic relationship: used by company with low margin customers
- Full partner relationship: used in market with few customers, high margins
- Marketing tools: can be used to develop stronger bonds with customers. E.g: companies offer
“frequency marketing programs' that reward customers who buy frequently or in large amounts.
- Customer engagement marketing: aims to make a brand a meaningful part of consumers’
conversations and lives through direct and continuous customer involvement in shaping brand
conversations, experiences, and community.
- Today’s consumers are better informed, more connected, and more empowered than ever before
- Thus, marketers must embrace both CRM and customer-managed relationships, in which
customer connect with companies and with each other to help forge (hình thành) and share their
own brand experiences
- On form of customer engagement marketing is consumer-generated marketing (CGM) by
which consumers themselves play role in shaping their own brand experiences and those of
others. Brand sẽ phát triển ý tưởng, sản phẩm, và marketing theo ideas thu thập được từ khách
hàng.
- Some companies go directly to their customers for new product ideas and designs
- Others invite customers to play an active role in shaping ads and brand content
- Many brands incorporate user-generated social media content into their own traditional
marketing and social media campaigns
- Partner relationships management: working closely with others inside and outside the company to
jointly engage and bring more value to customers
- Marketing channels consists of distributors, retailers, and others who connect the company to its
nhà phân phối
buyers
- Supply chain describes a longer channel, stretching from raw materials to components to final
products that are carried to final buyers

2. Capturing value from customer

- The final step involves capturing value in return in the form of sales, market share, and profits.
- Customer lifetime value: the value of the entire stream of purchases a customer makes over a lifetime
of patronage sự bảo trợ
- Loyal customers spend more and stay longer
- Customer defections can be costly sự đào tẩu/ từ chối của khách hàng có thể gây tốn kém
- Customer delight creates an emotional relationship with a brand, which keep they come back
- Good CRM can help increase the company’s share of customers: the portion of the customer’s
purchasing that a company gets in its product categories.
sự gắn kết
- The aim of CRM and customer engagement is to produce high customer equity, the total combined
customer lifetime values of all of the company’s customers.
- The key to building lasting relationships is the creation of superior customer value and satisfaction.
- When building relationships, it is important to build the right relationships with the right customers. It’s
analyzed into 4 groups, which based on projected loyalty and potential profitability:
- Butterflies: potentially profitable but not loyal.
- Fit between the company’s offerings and their needs
- Company can enjoy them in short-term and they gone
6
 - True friends: both profitable and loyal
- Fit between the company’s offerings and their needs
- Should engage, nurture, retain, and grow them for a long-term relationship
- Barnacles: highly loyal but not very profitable
- Limited fit between the company’s offerings and their needs
- Most problematic customers
- Strangers: both low potential profitability and loyalty
- Little fit between the company’s offerings and their needs
- Don’t invest anything in them

V. THE CHANGING MARKETING LANDSCAPE

1. The digital age: online, mobile, and social media marketing
- Internet of Things (IoT): a global environment where everything and everyone is digitally connected to
everything and everyone else
- Digital and social media marketing involves using digital marketing tools such as web sites, social
media, mobile ads and apps, online videos, e-mail, and blogs that engage consumers anywhere, at any
time, via their digital devices
- Social media marketing: providing exciting opportunities to extend customer engagement and
get people talking about a brand
- Mobile marketing: fastest-growing digital marketing platform, it is ideal for engaging customers
anytime, anywhere

2. The changing economic environment

- The economic crisis resulted in an uncertain economic environment, where consumers are more careful
when spending their money.
- More than ever, marketers are emphasizing the value in their value propositions

3. The growth of Not-for-profit organizations tổ chức phi lợi nhuận

- Help those organizations to attract membership, funds, and support

4. Rapid globalization

7
 - Companies are not just selling more of their locally produced goods in international markets; they are
also sourcing more supplies and components abroad and developing new products for specific markets
around the world
5. Sustainable marketing: the call for more environmental and social responsibility
đạo đức
- Corporate ethics and social responsibility have become hot topics for almost every business
- The social responsibility and environmental movements will place even stricter demands on companies
in the future.
- Sustainable marketing presents both opportunities and challenges

6. So, what is marketing? Pulling it all together

- Harness marketing technology: khai thác tiếp thị thông qua công nghệ