Summary: chapter no 1: Marketing: Creatingcustomer value and engagementBook: Principle of marketing (philip kotler) Marketing is a process that isinitiated by companies in order to create value for customer by providingsolution in the form of products and services for customer.
The companies tryto build long lasting profit and relationship with customer. The marketerdoesn’t limit their self for only single transaction. They design product whichmay become an essential component of consumer life.
The relationship withcustomer is based on the interest of organization that is right level ofrelationship with right customer.Themarketing operation involves following steps. First, the company or marketersshould select its target market. After that company should identify customerneeds and wants. Next, company or marketers design product in best of customerrequirements. The company should divide whole market into segments and targetits segment effectively. In the last, the company gets the rewards of buildingstrong customer relationships and capturing value fromcustomers. Effectivemarket strategy depends upon that the company must decide whom it is going toserve.
For this purpose the market is divided into two segments of customers.First is the market segmentation inwhich the market is divided into segments of customers. Second is the target marketing in which the companyselects the market segment for development. After this division the companywill decide how it is going to serve the customers.
Marketingmanagement can utilize five different market orientations. The productionconcept focuses on how to improve production and at the same time keep theprice minimum. The second market orientation deals with product concept. In product concept the company focuses on theproduct quality and performance, for this purpose promotion is required.Thirdly selling concept requires the company to focus on large-scale promotionand selling otherwise it will not be able to attract enough customers. The marketing concept primary goal is todeliver keeping in mind the need and wants of the target market moreefficiently than the competitor. The lastly, the societal marketing conceptbelieves that in the order to achieve the company goals the customer’ssatisfaction and wellbeing should be considered and a sustainable marketingstrategy should be adopted.
Customer relationshipmanagement is about creating a maintainable and profitable relationshipwith the customer. Customer is involved and encouraged to participate in makingbrand conversation and community. In order to increase the number of permanentprofitable customers the company should aim to build right relationship withthe right customer, because each customer’s requirement is different. Thereare big changes that are occurring in the field of marketing.
Digital era hasopened up hundreds of new ways to know about the customers need and wants onindividual bases. In order to make the marketing more effective and successfulthe company should know how to mix the conventional marketing techniques with thedigital world and social media.