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Core concepts of marketing, 7P’s of Marketing Selling

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❶Journal of Strategic Marketing, Vol.

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What is Marketing? (Marketing Definition)
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When customers derive value from a product, they derive value from the attributes of the product as well as from the attribute performance and the consequence of achieving desired goals from the use of the product Woodruff, An entrepreneurial firm must deliver value along the dimensions that matter most to its customers.

For example, from a customer's perspective, the value of a cup of coffee enjoyed with a friend at a coffee shop might be greater than the value of a take-out cup of coffee. While the monetary cost of the cup of coffee in both cases might be the same, the value the customer extracts is different. To develop compelling customer value propositions, a supplier needs to keep in mind the following:.

For a complete view on the customer value creation strategies that managers, entrepreneurs, and leaders can implement to help distinguish themselves from competitors, Smith and Colgate provide a comprehensive framework. However, the challenge for suppliers is not just recognizing what value to create or what the benefits are, but to operationalize customer-facing processes to deliver value to customers. Table 1 synthesizes views from the extant literature pool on customer value creation and delivery; it shows how entrepreneurs can use their understanding of customer value to their advantage.

Points of value that matter to customers Anderson et al. Create customer value proposition with a resonating focus Anderson et al. Dimensions along which value is perceived Woodruff, Identify opportunities for new value creation propositions Smith and Colgate, Customer feedback Woodruff, Combine existing organizational capabilities market orientation, knowledge management, customer relationship management Landroguez et al. As an example application of the concepts in Table 1, consider an entrepreneur that has developed a new user interface for a point-of-sales system that can be used in a coffee shop.

Although the entrepreneur might think that the software solution provides value to the customer i. In this particular case, processes relating to the first and second row of Table 1 could be implemented by an entrepreneur and they could showcase the technical support plan as a point of value that would resonate with the customer; instead of focusing on advantages that other competitors could also potentially deliver.

Similarly, the third and fourth row of Table 1 could be used by entrepreneurs as a guideline to process customer value knowledge and anticipate changes in customer needs and improve existing value propositions.

Entrepreneurial firms focus their scarce resources on the dimensions of value e. However, delivering customer value is not a one-off event. Firms must continuously strive to better understand and anticipate what their customers will value and then keep delivering it. As Steve Jobs once said: By the time you get it built, they'll want something new. Delivering value always must come from the supplier consistently.

Expecting requests from customers and then react should be avoided. Loyalty action and talk i. For more on attitudinal vs. Consumers can be divided into four categories of loyalty program user: Never, Light, Heavy and Extreme. The following is a description of typical or commonly observed characteristics of each user type:. Never customers are those who are not affected by loyalty programs and their reward incentives in any way.

Light loyalty program users are ones defined as having reward program memberships and being influenced by their incentives, but only moderately. Heavy loyalty program users are consumers who are active and highly influenced members of reward programs. And finally, extreme loyalty program users are those consumers who are virtually addicted to or obsessed with loyalty programs.

For more on the differences and characteristics of Never, Light, Heavy and Extreme loyalty program users, click here. PR Loyalty Solutions can help. PR Loyalty Solutions is proud to use green natural gas and green wind powered electricity through Bullfrog Power. What is Customer Loyalty? Societal marketing can be defined as a "marketing with a social dimension or marketing that includes non-economic criteria".

Accordingly, Andreas Kaplan defines societal management as "management that takes into account society's overall welfare in addition to mere profitability considerations. Various attempts to define the objectives of societal marketing have been noted, [5] such as:. The concept of societal marketing emerged in the early s, promoting a more socially responsible, moral and ethical model of marketing in an effort to counter some of the more serious criticisms of marketing that had arisen out of the consumerist movement around that time.

Philip Kotler is generally credited with introducing the societal marketing concept to the literature in a article "What Consumerism Means for Marketers" in the Harvard Business Review of The societal marketing concept adopts the position that marketers have a greater social responsibility than simply satisfying customers and providing them with superior value. Instead, marketing activities should strive to benefit society's overall well-being.

Marketing organisations that have embraced the societal marketing concept typically identify key stakeholder groups including: They ensure that marketing activities do not damage the environment and are not hazardous to broader society.

Societal marketing developed into sustainable marketing. Kotler identified four categories of products, classified in terms of long term benefits and immediate satisfaction: Kotler's concept of societal marketing suggested that for the well-being of society, deficient products should be eliminated from the market, pleasing and salutary products should go through a product modification process to acquire desirable status, by incorporating missing short term benefits into salutary products and long term benefits into pleasing products, and the companies' ultimate goal should be to develop desirable products.

Rather than focusing on selling a products, which can be good or bad for the consumers, companies should focus on consumer and society's well-being.

Most companies recognize that socially responsible activities improve their image among customers, stockholders , the financial community , and other relevant publics. Ethical and socially responsible practices are simply good business, resulting not only in favorable image, but ultimately in increased sales.

Societal marketing should not be confused with social marketing. Societal marketing is a philosophy or mindset that informs marketing decisions whereas social marketing is a distinct branch within the marketing discipline. Societal marketing is concerned with the consideration of the social and ethical aspects of marketing planning. Social marketing is concerned with facilitating social change. A key difference is that the greater 'social good' is the principal consideration in social marketing while social benefits are one of a number of considerations in societal marketing.

On the other hand, social marketing is a sub-branch of marketing that began in , with the publication of an article by Kotler and Zaltman, emphasising a planned approach to achieving social change.

It is primarily concerned with encouraging pro-social behaviours e. Social marketing uses more traditional commercial techniques and strategies, focusing on persuasion, to achieve goals for the greater social good. Its campaigns can either encourage merit goods , as for example fund raising for not-for-profit organizations or dissuade the use of demerit goods promoting society's well being, as non-smoking campaigns or promote the use of seat belts.

Another characteristic of social marketing is that is planned to influence individual behaviour to improve well-being. It includes more than just advertising in traditional mass media, and may extend to educational programs and formal enforcement regimes in the case of road safety campaigns. A clear example that differentiates societal from social marketing is a marketing campaign on non-smoking. A smoking cessation advertisement is an example of social marketing, but if the marketing strategies and techniques used in that campaign focus on increasing the well-being of society, that same campaign can be an example of societal marketing.

The societal marketing concept was a forerunner of sustainable marketing in integrating issues of social responsibility into commercial marketing strategies. In contrast to that, social marketing uses commercial marketing theories, tools and techniques to influence social change.

Social marketing applies a "customer orientated" approach and uses the concepts and tools used by commercial marketers in pursuit of social goals like Anti-Smoking-Campaigns or fund raising for NGOs. Unlike societal marketing, CSR has existed for many years.

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The Customer concept is a 4 stage model which shows how the organization can achieve growth by capturing and retaining its customers. The customer concept model can be used to determine where the organization stands in terms of serving its customers.

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A marketing idea focused on satisfying client needs over those of the business that produces the goods and services they consume. The adoption by a business of various forms of customer concept related marketing objectives and philosophies helps them better serve their clients and typically increases their overall reputation and success.

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Recent developments in both marketing theory and marketing practice make it necessary to formulate a new marketing paradigm. This paradigm consists of three elements: (1) a concept, which is the core of the paradigm, (2) a set of activities, and (3) a domain. The customer concept is the new marketing concept. Five Marketing Concepts Explained with Examples. The marketing concept is the strategy that firms implement to satisfy customers needs, increase sales, maximize profit and beat the competition. There are five marketing concepts that organizations adopt and execute. The marketing concept is a customer-centered “sense and responds.

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Customer focused marketing is the process of determining customer needs and wants in order to drive the working force behind the company's products or services. Managers in the company must. After going through the marketing definitions and concepts, the core ideas contained are as follows: The main focal point in marketing is customer needs. In order to maintain long-term relations with customers, future needs have to be identified and predicted.