Chapter 1: Marketing - Creating and Capturing Customer Value PDF

CHAPTER 1 MARKETING: CREATING AND CAPTURING CUSTOMER VALUE Copyright ©2014 by Pearson Education  CREATING AND CAPTURING CUSTOMER VALUE Topic Outline LO1 What Is Marketing? LO2...

CHAPTER 1 MARKETING: CREATING AND CAPTURING CUSTOMER VALUE Copyright ©2014 by Pearson Education  CREATING AND CAPTURING CUSTOMER VALUE Topic Outline LO1 What Is Marketing? LO2 Steps In The Marketing Process -Core Concepts Of Marketing -Marketing Management Orientations LO3 The Changing Marketing Landscape LO4 Marketing Challenges In This New Millennium Copyright ©2014 by Pearson Education  Marketing is A process by which companies create value for customers and build LO1: WHAT IS strong customer MARKETING? relationships to capture value from customers in return. Copyright ©2014 by Pearson Education LO2: STEPS IN THE MARKETING PROCESS LO2: MARKETING PROCESS 1  STAGE 1: UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS Customer Needs, Wants, and Demands States of deprivation Needs Physical—food, clothing, warmth, safety Social—belonging and affection Individual—knowledge and self-expression Wants Form that needs take as they are shaped by culture and individual personality Demands Wants backed by buying power Copyright ©2014 by Pearson Education  UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS Customer Value and Satisfaction Expectations Customers Value and satisfaction Marketers Set the right level of expectations Copyright ©2014 by Pearson Education Not too high or low  UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS Exchange the act of obtaining a desired object from someone by offering something in return Marketing actions try to create, maintain, grow exchange relationships. Copyright ©2014 by Pearson Education  UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS Markets are the set of actual and potential buyers of a product Copyright ©2014 by Pearson Education LO2: MARKETING PROCESS 2  STAGE 2: DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY Marketing management is the art and science of choosing target markets and building profitable relationships with them (Create, deliver, communicate) What customers will we serve? How can we best serve these customers? Copyright ©2014 by Pearson Education  MARKETING ICEBERG https://www.youtube.com/watch?v=lVqfqwWQ8m4&t=123s&ab_channel=MarketingBusinessNetwork  DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY Selecting Customers to Serve Market segmentation refers to dividing the markets into segments of customers Target marketing refers to which segments to go after Copyright ©2014 by Pearson Education MARKET https://www.youtube.com/watch?v=IlQtjaLyW-w&ab_channel=EllieEvans  DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY Choosing a Value Proposition Brand’s Value Proposition Set of benefits or values a company promises to deliver to customers to satisfy their needs Copyright ©2014 by Pearson Education  DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY Marketing Management Orientations Productio Product Selling Marketing Societal n concept concept concept concept concept Copyright ©2014 by Pearson Education  DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY Marketing Management Orientations Production concept consumers will favor products that are available and highly affordable Copyright ©2014 by Pearson Education  DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY Marketing Management Orientations Product concept consumers favor products that offer the most quality, performance, and features. Focus is on continuous product improvements. Copyright ©2014 by Pearson Education  DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY Marketing Management Orientations Selling concept consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort Copyright ©2014 by Pearson Education  DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY Marketing Management Orientations Marketing concept knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do Copyright ©2014 by Pearson Education  DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY Marketing Management Orientations Societal marketing make good marketing decisions by considering consumers’ wants and long-term interests company’s requirements society’s long-run interests Copyright ©2014 by Pearson Education  DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY Copyright ©2014 by Pearson Education LO2: MARKETING PROCESS 3  STAGE 3: PREPARING AN INTEGRATED MARKETING PLAN AND PROGRAM The marketing mix: set of tools (four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place. Integrated marketing program: comprehensive plan that communicates and delivers the intended value to chosen customers. Copyright ©2014 by Pearson Education LO2: MARKETING PROCESS 4  STAGE 4: BUILDING CUSTOMER RELATIONSHIPS Customer Relationship Management (CRM) The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Copyright ©2014 by Pearson Education  BUILDING CUSTOMER RELATIONSHIPS Relationship Building Blocks: Customer Value and Satisfaction Customer- Customer perceived satisfaction value The difference The extent to between total which a customer product’s value and total perceived customer cost performance matches a buyer’s expectations Copyright ©2014 by Pearson Education  BUILDING CUSTOMER RELATIONSHIPS The Changing Nature of Customer Relationships Customer-managed relationships Customers, empowered by today’s new digital technologies, interact with companies and each other to shape their relationships with brands. Copyright ©2014 by Pearson Education  BUILDING CUSTOMER RELATIONSHIPS The Changing Nature of Customer Relationships https://www.youtube.com/watch?v=ZSiXZxVpVhs&ab_channel=TechMagelanic Copyright ©2014 by Pearson Education  BUILDING CUSTOMER RELATIONSHIPS Partner relationship management involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers Copyright ©2014 by Pearson Education  BUILDING CUSTOMER RELATIONSHIPS Partner Relationship Management Marketers connect with their suppliers, channel partners, and competitors by developing partnerships Supply chain is a channel that stretches from raw materials to components to final products to final buyers Copyright ©2014 by Pearson Education LO2: MARKETING PROCESS 5  STAGE 5: CAPTURING VALUE FROM CUSTOMERS Creating Customer Loyalty and Retention Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage Copyright ©2014 by Pearson Education  CAPTURING VALUE FROM CUSTOMERS Growing Share of Customer Share of customer the portion of the customer’s purchasing that a company gets in its product categories Copyright ©2014 by Pearson Education  CAPTURING VALUE FROM CUSTOMERS Customer equity the total combined customer lifetime values of all of the company’s customers Copyright ©2014 by Pearson Education  LO3: THE CHANGING MARKETING LANDSCAPE Changing Economic Environment New consumer frugality Marketers focus on value for the customer Copyright ©2014 by Pearson Education  THE CHANGING MARKETING LANDSCAPE DIGITAL AGE Online marketing is the fastest-growing Click- and- mortar companies evolved Copyright ©2014 by Pearson Education  THE CHANGING MARKETING LANDSCAPE Not-for-profit marketing growth Rapid Globalization Sustainable marketing Copyright ©2014 by Pearson Education  LO4: MARKETING CHALLENGES?? PULLING IT ALL TOGETHER Copyright ©2014 by Pearson Education