Introduction to Marketing Ch1 Summary Essays

Chapter One: text notes

Amazon- “obsessed over customer” creating genuine value for customer: every decision is made with an eye toward improving Amazon.com cutomer experience.
Analyst predict by 2015 Amazon will become the youngest company in history to hit $100 billion in revenue ( walmart:34years). Nation’s second largest retailer. customer experience bar raiser: representing customer’s voice
Kindle: first original product-> no.1 selling product
First company to use “ collaborative filtering” which sifts through each customer’s past purchase to make personalized content
Customer feel compelled to stay for a while- leaning, looking, discovering

What is marketing marketing is managing profitable customer relationship
“ the aim of marketing is to make selling unnecessary” marketing is the process by which companies create value for customer and build strong customer relationships in order to capture value from customers in return understand the needs and want design a customer driven marketing strategy marketing program that deliver superior value build profitable relationship and create customer delight capture value from customers in return

Understanding market place and customer needs
5 core concepts
1. needs, want, and demands- an American needs food but wants a big Mac ( shaped by one’s society), when backed by buying power wants become demands
a. Alan Mulally, CEO of Ford, known for selling at dealership to understand needs
2. market offerings - some combination of products, services, information, or experiences offered to a market to satisfy a need or want
a. Marketing myopia: paying more attention to the specific products they offer than teh benefits produced by these product or services. ( ex, railroad industry)
b. customer need a hole but not a drill.
c. creating brand experience- walt disney “ in the heart of the magic”
d. HP ad “ your computer is your backup brain, it’s your lie, it’s your astonishing strategy, dazzling calculation, staggering proposal, it’s your connection to your world around you”
3. value and satisfaction - satisfied customer will buy again, dissatisfied customer switch to competitors
4. exchange and relationship- Exchange is the act of obtaining a desired object from someone by offering something in return
5. market - set if actual and potential buyers of a product or service
a. marketing means managing markets to bring about profitable customer relationships
b. asking both “ how can we reach out to our customer” and “ how can our customer reach us”
Designing customer-driven strategy marketing management as the art and science of choosing target market and building profitable relationship with them - find + attract + keep + grow target customer
2 important questions to ask: 1) what customer will we serve ( what’s our target market) 2) how can we serve these customer best ( what’s our value proposition)
Selecting customer to serve: The company must first decide whom it will serve. It does this by dividing the market into segments of customers (market segmentation) and selecting which segments it will go after (target marketing).----> Customer managment + demand management
Choosing value proposition: The company must also decide how it will serve targeted customers—how it will differentiate and position itself in the marketplace. A brand’s value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs. Facebook helps
Facebook help you “connect and share with the people in your life,” whereas YouTube “provides a place for people to connect, inform, and inspire others across the globe.” BMW promises “the ultimate driving machine,”
Market Management and Orientation: the 5 concepts
Production concept: The idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency. lenovo dominate highly competitive

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