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UnderstandingMarketingManagement2
DefiningMarketingfortheNewRealities13
LearningIssuesforChapterOne1.1 Whyismarketingimportant?1.2 Whatisthescopeofmarketing?1.3 Whataresomefundamentalmarketingconcepts?1.4 Howhasmarketingmanagementchanged?1.5 Whatarethetasksnecessaryforsuccessfulmarketingmanagement?TheImportanceofMarketingFinancialsuccessoftendependsonmarketingabilitySuccessfulmarketingbuildsdemandforproductsandservices,which,inturn,createsjobsMarketingbuildsstrongbrandsandaloyalcustomerbase,intangibleassetsthatcontributeheavilytothevalueofafirm.4TheImportanceofMarketingMarketing’sbroaderimportanceextendstosocietyasawhole.Marketinghashelpedintroduceandgainacceptanceofnewproductsthathaveeasedorenrichedpeople’slives.Marketingmanagers
mustdecidewhatfeaturestodesignintoanewproductorservice,whatpricestoset,wheretosellproductsorofferservices,andhowmuchtospendonadvertising,sales,theInternet,ormobilemarketing.5TheScopeofMarketingMarketingisaboutidentifyingandmeetinghumanandsocialneedsAMA’sformaldefinition:“Marketingisanorganizationalfunctionandasetofprocessesforcreating,communicating,anddeliveringvaluetocustomersandformanagingcustomerrelationshipsinwaysthatbenefittheorganizationanditsstakeholders.”6MarketingManagementMarketingmanagementistheartandscienceofchoosingtargetmarketsandgetting,keeping,andgrowingcustomersthroughcreating,delivering,andcommunicatingsuperiorcustomervalue.Thisisa“managerial”definitionofMarketing.7SocialversusManagerialDefinitionsofMarketingAsocialdefinitionofmarketingisthat“marketingisasocietalprocessbywhichindividualsandgroupsobtainwhattheyneedandwantthroughcreating,offering,andfreelyexchangingproductsandservicesofvaluewithothers.”8PeterDrucker’sviewofMarketing“Therewillalways,onecanassume,beneedforsomeselling.Buttheaimofmarketingistomakesellingsuperfluous.Theaimofmarketingistoknowandunderstandthecustomersowellthattheproductorservicefitshimandsellsitself.Ideally,marketingshouldresultinacustomerwhoisreadytobuy.Allthatshouldbeneededthenistomaketheproductorserviceavailable.”9Designingthe“right”productasaresultofcarefulmarketing10AppleintroduceditswatchforamorecompleteecosystemconsistingofitsiPod,iPhone,andiPadthatitscompetitorsfinddifficulttocompetewith.
TenEntitiesofMarketingMarketingpeopleareinvolvedinmarketingtentypesofentities:goods,services,events,experiences,persons,places,properties,organizations,information,andideas.Goods—PhysicalgoodsconstitutethebulkofproductionandmarketingeffortsServices—Agrowingportionofbusinessactivitiesarefocusedontheproductionofservices.Developedeconomiesusuallyhavea70–30servicestogoodsmix.Events—Marketerspromotetime-basedeventssuchastradeshows,artisticperformances,andtheOlympics.11ServicesMarketing12AtMaidreaminCafé,Japan,servicecomeswithpersonalizeddecorationofpancakesforcustomers.TenEntitiesofMarketing(cont’d)Experiences—Byorchestratingseveralservicesandgoods,afirmcancreateandmarketexperiencessuchasWaltDisneyWorld’sMagicKingdom.People—Celebritymarketingisamajorbusiness.Places—Cities,states,regions,andwholenationcompleteactivelytoattracttourists,factories,companyheadquarters,andnewresidents.Properties—Propertiesareintangiblerightsofownershipofeitherrealpropertyorfinancialproperty.13Marketingof“Experiences”14Singapore’sNightSafari,theworld’sfirstwildlifenightpark,offerswalkingtrailsandtramridesforitsvisitors.MarketingofPlaces—AsianTourismPlacemarketersincludenationaltourismagencies,economicdevelopmentspecialists,realestateagents,commercialbanks,localbusinessassociations,andadvertisingandpublicrelationsagencies.Forexample,Asiantourismpromotionboardsmarkettheirrespectivecountriestowooregionalandinternationalvisitors.Somecampaigntaglinesusedinclude:“Malaysia—TrulyAsia,”“AmazingThailand,”“HongKong:LiveIt.LoveIt!,”“YourSingapore,”Macau’s“AHeritageofTwoCultures,”andTaiwan’s“TheHeartofAsia.”15TenEntitiesofMarketing(cont’d)Organizations—Organizationsactivelyworktobuildastrong,favourable,anduniqueimageinthemindsoftheirtargetpublic.Information—Theproduction,packaging,anddistributionofinformationaremajorindustries.Ideas—Everymarketofferingincludesabasicsidea.AccordingtoCharlesRevson:Inthefactory,wemakecosmetics;inthestorewesellhope.16TheEightDemandStates17Negativedemand—Consumersdisliketheproductandmayevenpayapricetoavoidit.Non-existentdemand—Consumersmaybeunawareoruninterestedintheproduct.Latentdemand—Consumersmayshareastrongneedthatcannotbesatisfiedbyanexistingproduct.Decliningdemand—Consumersbegintobuytheproductlessfrequentlyornotatall.Irregulardemand—Consumerpurchasesvaryonaseasonal,monthly,weekly,daily,orevenhourlybasis.TheEightDemandStates186.Fulldemand—Consumersareadequatelybuyingallproductsputintothemarketplace.7.Overfulldemand—Moreconsumerswouldliketobuytheproductthancanbesatisfied.8.Unwholesomedemand—Consumersmaybeattractedtoproductsthathaveundesirablesocialconsequences.TheConceptofa‘Market’Economistsdescribeamarketasacollectionofbuyersandsellerswhotransactoveraparticularproductorproductclass.Marketersusetheterm“market”tocovervariousgroupsofcustomers.Thefivebasicmarketsare: ResourceMarkets GovernmentMarkets ManufacturerMarkets IntermediaryMarkets ConsumerMarkets19Figure1.1:StructureofFlowsinaModernExchangeEconomy20TheFlowsinaMarketSystemSellersandbuyersareconnectedbyfourflows:Sellersendsgoods,services,andcommunications(Ads,Directmail)tothemarket.Inreturntheyreceivemoneyandinformation(attitudeandsalesdata).Thereisanexchangeofmoneyforgoodsandservices.Thereisanexchangeofinformation.21Figure1.2:ASimpleMarketingSystem22KeyCustomerMarketsConsumerMarkets
Consumergoodsandservicessuchassoftdrinksandcosmetics,spendagreatdealoftimetryingtoestablishasuperiorbrandimage. BusinessMarkets
Companiessellingbusinessgoodsandservicesoftenfacewell-trainedandwell-informedprofessionalbuyerswhoareskilledinevaluatingcompetitiveofferings.23KeyCustomerMarkets(cont’d)GlobalMarkets
Companiesfacechallengesanddecisionsregardingwhichcountriestoenter,howtoenterthecountry,howtoadapttheirproducts/servicestothecountry,andhowtopricetheirproducts.NonprofitandGovernmentalMarkets
Companiessellingtothesemarketshavetopricecarefullybecausetheseorganizationshavelimitedpurchasingpower.24GlobalMarketingExample:McDonald’sMcDonald’s—With
theU.S.dininglandscapefulloffast-foodoutlets,McDonald’sislookingtoChinaforrevenueandprofits.In2016,ChinaaloneaccountedfornearlyaquarterofMcDonald’srevenuefromtheAsiaPacific.China’sinformalout-of-homeeatingindustryisexpandingandMcDonald’sispouncingonthisopportunitywithitsplantoopenanother1,300outletstoaddtothecurrent2,200outlets.Howwillitachievethis?Itisrelyingonacombinationofthetraditionalandthenewtocapturealargesliceofthemarket.Ithasa$2millioninnovationcenterinHongKongdedicatedtocomingupwithsuitableproducts.AlongsidetheBigMacfries,Chinesedinerscanchoosefromgreenpeapies,riceburgers,andamint-flavoredsodacalledBlueHaven.ItsChickenMcNuggetscomewithchiligarlicsauce.Italsooffersachicken-and-mushroompieintheshapeofapinwheelbecauseaccordingtoChinesefolklore,thepinwheelissupposedtobestowgoodluck.Whenthecompanyopeneditsfirstdrive-throughoutletinGuangzhou,itrealizedthatthisconceptwasforeigntotheChinese.Customerswoulddriveup,collecttheirfood,andthenparktheirautomobilesbeforeenteringtherestauranttoeattheirmeal.Yet,withtheanticipatedboomintheChineseautomarket,McDonald’sisopeningmoreautomobile-friendlyoutlets.IthasanagreementwithSinopec,thestate-ownedoilcompany,togiveitfirstrefusalonlocatingitsoutletsatanyofSinopec’s30,000fuelstationsacrossChina.25Marketplaces,Marketspaces,andMetamarketsThemarketplaceisphysical,Themarketspaceisdigital,Themetamarketisaclusterofcomplementaryproductsandservicesthatarecloselyrelatedintheconsumer’smindbutspreadacrossadiversesetofindustries.26CoreMarketingConceptsNeeds,wants,anddemandsTargetmarkets,positioning,segmentationOfferingsandbrandsValueandsatisfactionMarketingchannelsSupplychainCompetitionMarketingenvironment27Needs,Wants,andDemandsNeeds(basichumanrequirements,needsbecomewantswhentheyaredirectedtospecificobjectsthatmaysatisfytheneed).Marketersdonotcreateneeds,needspre-existmarketers.Marketersinfluencewants.28IWantIt,INeedIt…FiveTypesofNeedsStatedneeds(thecustomerwantsaninexpensivecar)Realneeds(thecustomerwantsacarwhoseoperatingcost,notitsinitialprice,islow)Unstatedneeds(thecustomerexpectsgoodservicefromthedealer)Delightneeds(thecustomerwouldlikethedealertoincludeanonboardnavigationsystem)Secretneeds(thecustomerwantstobe seenbyfriendsasasavvyconsumer)29FailuretoUnderstandCustomerNeeds—
BestBuyinChina30FailuretoUnderstandCustomerNeeds—
BestBuyinChina31BestBuy—The
world’slargestconsumerelectronicsretailer,BestBuy,enteredChinain2006whenittookcontrolofJiangsuFiveStarApplianceCompany,thenChina’sfourth-largestelectronicsretailer.However,in2011,BestBuyclosedallofitsnineBestBuybrandedstoresinChinatofocusonexpandingthemoreprofitabledomesticchainithadacquired.Why?WhileChineseconsumersappreciatedBestBuy’sreliabilityandthequalityofitsgoods,theyfoundthepricestoohigh.Further,itwaschallengingforBestBuytogainbrandrecognitionagainstFiveStar,whichhasbeenaroundforamuchlongertime.Thus,eventhoughtheremighthavebeenaneedforqualityproducts,wantswerelowbecauseofpoorbrandrecognition,anddemandsufferedbecauseoftheinabilityandinsomecases,unwillingness,topayahighprice.TargetMarkets,Positioning,andSegmentationIdentifyandprofiledistinctgroupsofbuyerswhomightpreferorrequirevaryingproductsandservicesmixesbyexaminingDemographicinformationPsychographicinformationBehavioralinformationTargetmarket:whichsegmentsdowefocuson?Marketoffering—whatdoweoffer?Whatpropositiontowemaketocustomers?32PositioningTheofferingispositionedinthemindsofthetargetbuyersasdeliveringsomecentralbenefit(s).Forexample,Volvodevelopsitscarsforbuyerstowhomautomobilesafetyisamajorconcern.Volvo,therefore,positionsitscarasthesafestacustomercanbuy.33OfferingsandBrandsValueproposition:asetofbenefitstheyoffertocustomerstosatisfytheirneedsTheBrand:isanofferingfromaknownsource34ValueandSatisfactionThebuyerchoosestheofferingheorsheperceivestodeliverthemostvalue,thesumofthetangibleandintangiblebenefitsandcoststoher.Valueisacentralmarketingconcept.Customervaluetriadisthecombinationofquality,service,andprices(QSP).Valueperceptionsincreasewithqualityandservicebutdecreasewithprice.35MarketingChannelsMarketingChannels:Toreachatargetmarket,themarketerusesthreekindsofmarketingchannels.CommunicationchannelsDistributionchannelsServicechannels36CreatingNewChannels—CoffeeVendinginJapan37CreatingNewChannels—CoffeeVendinginJapan38Coca-Cola—Coca-ColainJapanpopularizedtheideaofcanningcoffeeandmakingitavailablethroughvendingmachines.WhileAmericanscanenjoyahotcupofcoffeeinmostplaces,Japanesetraditionallydrinkochaorgreentea.However,Coca-ColafoundthattheJapaneseenjoycoffeebutjustcannotgetitreadily.Hence,inacountrywherevendingmachinesareacommonformofretailing,Coca-Cola’sGeorgia-brandcannedcoffeecanbeboughtfrommanyofthethousandsofvendingmachinestosuitJapaneselifestyleneeds.SupplyChainThesupplychainisalongerchannelstretchingfromrawmaterialstocomponentstofinishedproductscarriedtofinalbuyers.Thesupplychainforwoman’spursesstartswithhides,andmovethroughtanningoperations,cuttingoperations,andManufacturing,withthemarketingchannelsbringingtheproductstocustomer.39CompetitionIncludesalltheactualandpotentialrivalofferingsandsubstitutesabuyermightconsider.40Apple—WhenAppleintroducedtheiPad,ittookahugebiteoffthesalesofdedicatede-bookreaderssuchasAmazon’sKindleandSony’sReader.Applesoldover450,000iPadsinlessthanaweekwhenitwasfirstlaunched.WhentheiPad2waslaunchedin2011,saleswereestimatedintherangeof400,000to600,000unitsduringthefirstthreedaysonthemarket.AsurveyfoundthatmostofthosewhoboughttheiPad2didnotownthepreviousversion.TheintroductionoftheiPadthusposedasignificantcompetitiontotheKindle,forcingAmazontoimproveonitstabletdevice.Amazonrespondedbyintroducingamorefriendlyversion.Apple,inturn,introducedtheiPadMini.Apple’siPadchangedthee-bookreadinglandscapebyaffordingreadersanalternativetoAmazon’sKindleandSony’sReader.MarketingEnvironmentTaskenvironment:includestheactorsengagedinproducing,distributing,andpromotingtheoffering.Broadenvironmentincludesthefollowingaspects:DemographicEconomicPhysicalTechnologicalPolitical–legalSocial–cultural41MajorSocietalForcesNetworkinformationGlobalizationDeregulationPrivatizationHeightenedcompetitionIndustryconvergenceRetailtransformationDisintermediationConsumerbuyingpowerConsumerinformationConsumerparticipationConsumerresistanceMajorSocietalForcesNetworkinformation—ThedigitalrevolutionhascreatedanInformationAgethatpromisestoleadtomoreaccuratelevelsofproduction,moretargetedcommunications,andmorerelevantpricing.Globalization—Technologicaladvancesintransportation,shipping,andcommunicationshavemadeiteasierforcompaniestomarketinothercountriesandeasierforconsumerstobuyproductsandservicesfrommarketersinothercountries.Internationaltravelcontinuestogrowasmorepeopleworkandplayinothercountries.43MajorSocietalForcesDeregulation—Manycountrieshavederegulatedindustriestocreategreatercompetitionandgrowthopportunities.Companiesinthetelecommunications,domesticairtravel,andelectricalutilitiesindustriesmayfaceforeigncompetitionandmayenterotherlocalmarkets.Privatization—Manycountries,suchasChina,haveconvertedstate-ownedenterprisestoprivateownershipandmanagementtoincreasetheirefficiency.44MajorSocietalForcesHeightenedcompetition—Brandmanufacturersarefacingintensecompetitionfromdomesticandforeignbrands,whichisresultinginrisingpromotioncostsandshrinkingprofitmargins.Theyarefurtherbuffetedbypowerfulretailerswhocommandlimitedshelfspaceandareputtingouttheirownstorebrandsincompetitionwithnationalbrands.Manystrongbrandsareextendingintorelatedproductcategories,creatingmegabrandswithmuchpresenceandreputation.45MajorSocietalForcesIndustryconvergence—Industryboundariesareblurringatanincrediblerateascompaniesarerecognizingthatnewopportunitieslieattheintersectionoftwoormoreindustries.Thecomputingandconsumerelectronicsindustriesareconverging,forexample,AppleandSamsungreleaseastreamofdevicesfromMP3playerstophonestonotebooksandwatchesforacompleteentertainmentandfunctionalintegratedsystem.46MajorSocietalForcesRetailtransformation—Smallretailersaresuccumbingtothegrowingpowerofgiantretailersand“categorykillers.”Store-basedretailersarefacinggrowingcompetitionfromcataloghouses;direct-mailfirms;newspaper,magazine,andtelevisiondirect-to-customerads;home-shoppingtelevision;ande-commerceontheInternet.Disintermediation—Theamazingsuccessofearlyonlinedot-comssuchasAmazon,Yahoo!,eBay,E*Trade,anddozensofotherswhocreateddisintermediationinthedeliveryofproductsandservicesstruckterrorintheheartsofmanyestablishedmanufacturersandretailers.47MajorSocietalForcesConsumerbuyingpower—BuyerstodayareonlyaclickawayfromcomparingcompetitorpricesandproductattributesontheInternet.Theycanevennamethepricetheywanttopayforahotelroom,airlineticket,ormortgage,andseeifthereareanywillingsuppliers.Further,buyerscanjoinwithotherstoaggregatetheirpurchasestoachievedeepervolumediscounts—hencethepopularityofcouponsitessuchasGroupon.48ExampleofConsumerBuyingPower—Groupon49CouponsitessuchasGrouponallowconsumerstoaggregatetheirpurchasesfordeepervolumediscounts,hence,increasingtheirbuyingpower.MajorSocietalForcesConsumerinformation—Consumerscangetagoodbreadthanddepthofinformationonpracticallyanything.Theycanaccessinformationonline.Personalconnectionsanduser-generatedcontentthriveonsocialmediasuchasFacebook,Flickr(photos),Wikipedia(encyclopediaarticles),andYouTube(videos).Socialnetworkingsites—suchasTripAdvisorforardenttravelers—bringtogetherconsumerswithacommoninterest.50MajorSocietalForcesConsumerparticipation—ParticularlythroughtheInternet,consumershavefoundanamplifiedvoicetoinfluencepeerandpublicopinion.Inrecognition,companiesareinvitingthemtoparticipateindesigningandevenmarketingofferingstoheightentheirsenseofconnectionandownership.51MajorSocietalForces12.Consumerresistance—Manycustomersfeeltherearefewerrealproductdifferences.Sotheyshowlessbrandloyaltyandbecomemoreprice-andquality-sensitiveintheirsearchforvalue,andlesstolerantaboutundesiredmarketing.Onewaytoinvolveconsumersiscrowdsourcing,whichistheactofoutsourcingideasthroughanopencalltoacommunity.Consumerscangiveideasonproductimprovementorvoteonwhichproductdesigntheylikebest.52NewCompanyCapabilitiesMarketerscanusetheInternetasapowerfulinformationandsaleschannelResearcherscancollectfullerandricherinformationaboutmarkets,customers,prospectsandcompetitorsMarketerscantapintosocialmediatoamplifytheirbrandmessageMarketerscanfacilitateandspeedexternalcommunicationamongcustomersMarketerscansendads,coupons,samples,andinformationtocustomerswhohaverequestedthemorgiventhecompanypermissiontosendthem53NewCompanyCapabilitiesMarketerscanreachconsumersonthemovewithmobilemarketingCompaniescanproduceindividuallydifferentiatedgoodsCompaniescanimprovepurchasing,recruiting,training,andinternalandexternalcommunicationsCompaniescanfacilitateandspeedinternalcommunicationamongtheiremployeesbyusingtheInternetasaprivateIntranetCompaniescanimprovetheircostefficiencybyskillfuluseoftheInternet54MarketinginPracticeThenewmarketingrealities,organizationsarechallengingtheirmarketerstofindthebestbalanceofoldandnewandtoprovidedemonstrableevidenceofsuccess.MarketingMemo:ReinventingMarketingatCoca-Coladescribessomeofthemanydifferentwaysthattheorganizationhaschangeditsmarketing.55HowCoca-ColaHasChangeditsMarketing56MarketingBalanceCompaniesmustalwaysbemovingforwardwithmarketingprograms,innovatingproductsandservices,stayingintouchwithcustomerneeds,andseekingnewadvantagesratherthanrelyingonpaststrengths.Ourconsumersaremovingfasterthanmarketersdo,whetherintermsofruralorurbanchangesorthewaytheyconsumemediaandentertainment.ThisisespeciallytrueofincorporatingtheInternetintomarketingplans.Marketersmusttrytobalanceincreasedspendingonsearchadvertising,socialmedia,directemail,andtext/SMSmarketingeffortswithappropriatespendingontraditionalmarketingcommunications.57MarketingAccountabilityMarketersareincreasinglyaskedtojustifytheirinvestmentsinfinancialandprofitabilityterms,aswellasintermsofbuildingthebrandandgrowingthecustomerbase.Marketvaluecomesfromintangibleassets,particularlybrands,thecustomerbase,employees,distributorandsupplierrelations,andintellectualcapital.Theyarethusapplyingmoremetrics—brandequity,customerlifetimevalue,returnonmarketinginvestment(ROMI)58MarketingintheOrganizationThelateDavidPackardofHewlett-Packardobserved,“Marketingisfartooimportanttoleavetothemarketingdepartment.”AlthoughaneffectiveCMOiscrucial,increasinglymarketingisnotdoneonlybythemarketingdepartment.Becausemarketingmustaffecteveryaspectofthecustomerexperience,marketersmustproperlymanageallpossibletouchpoints.Marketingmustalsobeinfluentialinkeygeneralmanagementactivities.59TheImportanceofInter-DepartmentalTeamworkCompaniesnowknowthateveryemployeehasanimpactonthecustomerandmustseethecustomerasthesourceofthecompany’sprosperity.Companiesarebeginningtoemphasizeinterdepartmentalteamworktomanagekeyprocesses.Theemphasisisonthesmoothmanagementofcorebusinessprocessessuchasnew-productrealization,customeracquisitionandretention,andorderfulfilment.60CompanyOrientationsProductionConceptTheproductionconceptholdsthatconsumerswillpreferproductsthatarewidelyavailableandinexpensive.ProductConceptTheproductconceptholdsthatconsumerswillfavorthoseproductsthatofferthemostquality,performance,orinnovativefeatures.SellingConceptThesellingconceptholdsthatconsumersandbusinesses,willordinarilynotbuyenoughoftheorganization’sproducts,therefore,theorganizationmustundertakeaggressivesellingandpromotioneffort.61ProductionConcept62ThisorientationmakessenseindevelopingcountriessuchasChinawherethelargestPCmanufacturer,Lenovo,anddomesticappliancesgiant,Haier,takeadvantageofthecountry’shugeinexpensivelaborpooltodominatethemarket.Itisalsousedwhenacompanywantstoexpandthemarket.TheMarketingConceptThemarketingconceptholdsthatthekeytoachievingorganizationalgoalsconsistsofthecompanybeingmoreeffectivethancompetitorsincreating,delivering,andcommunicatingsuperiorcustomervaluetoyourchosentargetmarkets.MarketingisNOTselling!63TheMarketingConceptTheodoreLevittdrewaperceptivecontrastbetweenthesellingandmarketingconcepts:Sellingfocusesontheneedsoftheseller;marketingontheneedsofthebuyer.Sellingispreoccupiedwiththeseller’sneedtoconverthisproductintocash;marketingwiththeideaofsatisfyingtheneedsofthecustomerbymeansoftheproductandthewholeclusterofthingsassociatedwithcreating,delivering,andfinallyconsumingit.64HolisticMarketingConceptTheholisticmarketingconceptisbasedonthedevelopment,design,andimplementationofmarketingprograms,processes,andactivitiesthatrecognizetheirbreadthandinterdependencies.Holisticmarketingacknowledgesthateverythingmattersinmarketing—andthatabroad,integratedperspectiveisoftennecessary.Holisticmarketingrecognizesandreconcilesthescopeandcomplexitiesofmarketingactivities.65HolisticMarketingConceptHolisticmarketingembracesthefollowingmarketingpractices:InternalmarketingPerformancemarketingIntegratedmarketingPerformancemarketing66Figure1.3:HolisticMarketingDimensions67RelationshipMarketingAkeygoalofmarketingistodevelopdeep,enduringrelationshipswithpeopleandorganizationsthatdirectlyorindirectlyaffectthesuccessofthefirm’smarketingactivities.
Relationshipmarketingaimstobuildmutuallysatisfyinglong-termrelationshipswithkeyconstituentsinordertoearnandretaintheirbusiness.68RelationshipMarketingFourkeyconstituentsofrelationshipmarketingare:CustomersEmployeesMarketingpartnersMembersofthefinancialcommunityMarketersmustrespecttheneedtocreateprosperityamongalltheseconstituentsanddeveloppoliciesandstrategiestobalancethereturnstoallkeystakeholders.Todevelopstrongrelationshipswiththeseconstituentsrequiresanunderstandingoftheircapabilitiesandresources,aswellastheirneeds,goals,anddesires.69OutcomeofRelationshipMarketingTheultimateoutcomeofrelationshipmarketingisauniquecompanyassetcalledamarketingnetwork,consistingofthecompanyanditssupportingstakeholders.Theoperatingprincipleissimple:buildaneffectivenetworkofrelationshipswithkeystakeholdersandprofitswillfollow.70ImportanceofRelationshipBuildingintheAsianContextRelationshipsandnetworkstakeonaddedimportanceinAsianmarketing.InEastAsia,thecultivationofpersonalrelationshipsandtheuseofguanxi(personalconnections)inbusinessarestillevident.IncountrieslikeChina,whichhavealonghistoryofbeingexploitedbyothernations,personalrelationsareusefulindevelopingtrustamongbusinesspartners.71ImportanceofRelationshipBuildingintheAsianContextToconductbusinesssuccessfullyinAsia,hiringaconsultantoranintermediarytofosterguanximaybefruitful,andselectingajoint-venturepartnerwhohasvaluableconnectionswiththelocalgovernmentmayalsoprovebeneficial.72InEastAsia,guanxiorthecultivationofpersonalrelationshipsisanintegralpartofdoingbusiness.RelationshipMarketingMeansTargetingatKeyCustomerGroupsCompaniesareshapingseparateoffers,services,andmessagestoindividualcustomers,basedoninformationaboutpasttransactions,demographics,psychographics,andmediaanddistributionpreferences.Byfocusingontheirmostprofitablecustomers,products,andchannels,thesefirmshopetoachieve
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