Business C150 : Chapter 1 Lecture - Overview
Marketing: Creating Satisfaction through Customer Relationships
"Customer loyalty has become the marketing watchword of the 21st Century."
- Businesses loose over half of their customers in five years
- More expensive to generate new customers
- Customer service and one-to-one marketing are key factors in today's business climate
"The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives."
What is the "utility" factor in marketing?
- It is the want-satisfying power of a good or service
- Types of utility include:
- all organizations must create utility to survive
- marketing managers are responsible for most of activities necessary to create the customers the organization desires
Marketing's historical four eras:
- the production era
1. philosophy stressing efficiency in producing a quality product
2. attitude of 'a good product will sell itself'
- the sales era
1. assumption consumers will resist purchasing nonessential goods and services
2. creative advertising including hard-sell approach plus personal selling accentuate this period
- the marketing era
1. emerged during the 1930's when incomes and consumer demands for goods declined
2. has been increasing steadily since WWII
-the relationship era
1. represents a major shift from the traditional concept of marketing to a simple exchange between buyer and seller
2. it involves developing long-term, value-added relationships over time with customers and suppliers
- the marketing concept
1. society changed from a market with a shortage of goods/services to one with an abundance of goods/services
2. it's an idea to determine unmet consumer needs