The process by which companies creat value for customers and build strong customer relationships in order to capture value from customers in return.

Goals:

Attract new customers by promising superior value

Keep and grow customers by delivering satisfaction

Marketers must understand five core customer and marketplace concepts:

1. needs, wants and demands

2. market offerings(products, services, and experiences

3. value and satisfaction

4. exchanges and relationships

5. markets

Physical needs: food, clothing, warmth and safety

Social needs: belonging and affection

Individual needs: learning, knowledge and self expectations

Not limited to physical products

Includes entities such as persons, places, organizations, information and ideas

***anything can be marketed

Customer Value and Satisfaction and why

Marketing Myopia is not good

Customers form expectations about the value and satisfaction that various market offerings will deliver

If marketers set expectations too low, they may satisfy those who buy but fail to attract enough buyers

If marketers set expectations too high buyers will be dissappointed

Markets are the set of all actual and potential buyers of a product or service

1. Market segmentation: dividing the market into segments of customers
2. Target marketing: selecting one or more segments to cultivate 

Value propostion: The set of benefits or values a company promises to deliver to consumers to satisfy their needs

example: " The smart car is positioned as compact, yet comfortable; agile, yet economical; and safe, yet ecological"

Organizations design and carry out their marketing strategies under five alternate concepts:

1. production concept
2. product concept
3. selling concept
4. marketing concept
5. societal marketing concept 

Consumers will favor products that are available and highly affordable

The organization should focus on imporving production and distribution efficiency

You want to produce at lowest cost possible