Based on the philosophy that buyers and sellers should develop a long term relationship. The lifetime of the relationship is what what matters, not how much money is made during the transaction.
Example: If a consumer electronics store collects information in order to offer better service, as opposed to no service at all, it has an relational orientation.
Customer Relationship Management
A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers.
Why do firms use CRM?
To collect information info about the customers' needs and then use that info to target their best customers with the products, services, and special promotions.
The buyer-seller relationship is a series of individual transactions, so anything that happened before or after any transaction is of little importance.
Benefits of Staying at a Hotel
Service quality, convenience, and merchandise quality.
Customers can act as collaborators to create the product or service.
Ex: Nike allowing customers to submit designs, they co-create their sneakers.
Supply Chain Management (1)
Seeks to create a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time; While minimizing system-wide costs, and satisfying the service levels required by customers.
What adds to Marketing's Global presence?
Cheap foreign travel
Promotion (Marketing Mix)
Communicating the Value Proposition
- Generally enhances a product's value.
- Communication by a marketer that informs, persuades, and reminds potential buyers about a product to influence their opinions and elicit a response.
Price (Marketing Mix)
- Price is everything the buyer gives up: Money, time, and energy.
Place (Marketing Mix)
Delivering the Value Proposition
- Represents all activities necessary to get the product to the right customer when that customer wants it.
Supply Chain Management (2)
Without a strong and efficient supply chain system, merchandise isn't available when customers want it. Therefore, customers are disappointed, and sales and profits suffer.
Product (Marketing Mix)
Goods (part of product)
Items that you can physically touch.
Ex.: Nike shoes, Kraft cheese, Tide, the iPad.
Services (part of product)
Intangible customer benefits that are produced by people or machines and cannot be separated from the producer.
Ex: Hotels, insurance agencies, and spas.
- Buying a plane ticket is NOT a service.
When a consumer is agreeable to paying a higher price for a product in order to receive additional convenience.
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