Marketing Starts with the Needs of the Customers
“ Marketing starts with the needs of the Customers and ends with the satisfaction of the customers . ” Marketing : is the management of creating and exchanging products and value in order to satisfy the needs and wants. • Marketing satisfy customers at a profit. • The goal of marketing is (1) to attract new customers by promising superior value (e. g. Ritz-Carlton “memorable experiences”, “Always Coca Cola”) and (2) to keep current customers by delivering satisfaction. Needs, Wants, and Demands • Consumers have needs (physical, social, individual etc. ) wants, and demands to be satisfied.
Consumers view products as bundles of value (benefits) and choose products that give them the best value for their money. E. g. Honda Civic ( transportation, low price, fuel economy; Mercedes ( comfort, luxury, status Products • A product (persons, places, organizations, activities, ideas) is anything that can satisfy a need or want. Producers must see themselves as providing a solution to a need rather than just selling a product. Otherwise, when a new product satisfies the needs better or less expensively, they would not make money. • Research is a must to understand the needs and wants of the customers to produce the right product.
E. g. At Disney World, each manager spends a day in the park in a Mickey costume or work on the front line – taking tickets, selling pop-corn. Creating Customer Value and Satisfaction : Value, Satisfaction, and Quality How do customers choose among these many products? Consumers make choices based on; Value : is the difference between owning the product and the cost of obtaining the product, in an way “profit” to the customer. Customers do not judge product values objectively, on the contrary they act on perceived value. E. g. Is Hilton really the best hotel company?
Satisfaction: is the difference between the product’s performance and buyer’s expectations. If the product’s performance falls short of expectations, the buyer is dissatisfied. If the performance matches or exceeds expectations, the buyer is satisfied. Smart companies aim to satisfy customers by promising only what they can give, then giving more than they promise. Benefit of satisfying customers: Customer satisfaction create an emotional tie (customer loyalty) to a product. Highly satisfied customers make (1) repeat purchases, (2) are less price sensitive, (3) talk positively to their friends.
Quality: simply quality can be defined as “freedom from defects”. Today, most companies define quality in terms of customer satisfaction. E. g. according to Motorola “if the customer doesn’t like the product, it’s a defect”. Quality starts with customer needs and ends with customer satisfaction. The concept of “total quality management” is in a away “total customer satisfaction”. Improving the quality of a product that customers want increases customer satisfaction, therefore increases profit. Exchange, Transactions, and Relationships • Marketing occurs when people decide to satisfy needs and wants through exchange. Exchange (transaction) is the act of getting an object (product, service, idea …) from someone by giving something in return. • Marketing should create mutually beneficial relationships (good for both parties) to generate profitable transactions. • Marketing is the art of attracting and keeping profitable customers. Customer satisfaction Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Customer satisfaction levels can be measured using survey techniques and questionnaires.
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