Chapter 01
Marketing: Creating Customer
Value and Engagement
#1 Gen Alpha Brand
TikTok Virality → Fan Engagement
Emotional Connection & Community
Fast, Nimble Marketing
Stores + Social = Omnichannel
What Is Marketing?
Marketing is the set of strategies
and activities by which
companies acquire and engage
customers, build strong
customer relationships, and
create superior customer value
in order to capture value from
customers in return.
Goals of Marketing
1
2
3
Attract new customers
by promising superior
value
Engage and grow
current customers by
delivering promised
value
Help drive long-term
company profitability
by recapturing some
delivered value from
satisfied customers.
The Marketing Process: Creating and Capturing
Customer Value
Customer Needs,
Wants, and Demands
• Needs
• States of felt deprivation
• Example: Need of communicating with friends and family
• Wants
• Form taken by human needs when shaped by culture
and individual personality
• Example: An iPhone 16 Pro Max Ultra Supreme
Legendary Limited NASA Edition
• Demands
• Human wants that are backed by buying power
• Example: Money+Willingness to purchase that iPhone
Market Offerings
The combination of products,
services, solutions, and
experiences offered to a market
to satisfy a need or a want.
Marketing Myopia
• Paying more attention to the
specific products than to the
benefits and experiences produced
• Forgetting that products are only a
tool to solve a consumer problem
Customer Value and Satisfaction
Satisfied customers buy again and share their good experiences
Dissatisfied customers switch to competitors and share their negative experiences
Low expectations may fail to attract buyers
High expectations may disappoint buyers
Exchanges and
Relationships
Exchange is the act of obtaining a
desired object by offering something
in return.
Strong relationships are
built by consistently
delivering superior
customer value.
Markets
The set of all actual
and potential buyers
of a product or service.
A Modern Marketing System
The Marketing Process: Creating and Capturing
Customer Value
Customer Value–
Driven Marketing
Strategy
Once a company fully
understands its consumers and
the marketplace, it must decide
which customers it will serve
and how it will bring them value.
Segmentation
Positioning
Targeting
Marketing Orientations
Production concept
Consumers will favor available and highly affordable products
Product concept
Consumers will favor products that offer the most in quality,
performance, and innovative features
Selling concept
Consumers will not buy enough of the firm’s products unless it
undertakes a large-scale selling and promotion effort
Marketing concept
Know the needs and wants of target markets, deliver the desired
offerings, and create more customer satisfaction than competitors
Societal marketing concept
Deliver value to customers in a way that maintains or improves both
the consumer’s and society’s well-being
Selling and Marketing Concepts Contrasted
Three Considerations Underlying the Societal Marketing Concept
The Marketing Process: Creating and Capturing
Customer Value
Preparing an
Integrated
Marketing
Mix
The Marketing Process: Creating and Capturing
Customer Value
Customer Relationship
Management
Delivering superior customer value and
satisfaction to build and maintain
profitable customer relationships
Customer-perceived value
Customer satisfaction
Customer’s evaluation of a
marketing offer relative to those of
competing offers
Extent to which a product’s
perceived performance matches a
buyer’s expectations
Customer
Relationship
Groups
The Changing Marketing Landscape
An
Expanded
Model of the
Marketing
Process