Chapter 1 - Principles Of Marketing PDF

Chapter 1 Marketing: Creating and Capturing Customer Value Copyright © 2009 Pearson Education, Inc. Chapter 16 - slide 1 Publishing as Prentice Hall...

Chapter 1 Marketing: Creating and Capturing Customer Value Copyright © 2009 Pearson Education, Inc. Chapter 16 - slide 1 Publishing as Prentice Hall  Previewing the Concepts 1. Define marketing and the marketing process. 2. Explain the importance of understanding customers and identify the five core marketplace concepts. 3. Identify the elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide strategy. 4. Discuss customer relationship management and identify strategies for creating value for and capturing value from customers. 5. Describe the major trends and forces that are changing the marketing landscape.  Outline What is marketing? 5 changing marketing orientations What are the 5 steps in the marketing process? (Details of the marketing process will be given in the 10+ chapters of the textbook) Are there any new trends in marketing today?  What is marketing? Old View: New View: “Telling and Selling” Satisfying Needs What differences do you see between the two views?  Marketing Management Philosophies Five key marketing management philosophies: – the production concept – the product concept – the selling concept – the marketing concept – the societal marketing concept  Old views – Production Concept What matters: products that are available and affordable Focus: improving production and distribution – Product Concept What matters: products that offer the most in quality, performance, and innovative features Focus: continuous product improvement – The selling concept importance of selling and promotion efforts  Time to think – The Product Concept Focus: continuous product improvement Is product improvement always a good thing? After spending one Mid-Autumn Festival in Beijing, do you have suggestions about making BETTER mooncakes? So, is product improvement always a good thing?  Product innovation: possible pitfalls for companies. – Be aware: marketing myopia Marketing myopia occurs when sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products. They focus on the existing “wants” and lose sight of underlying customer “needs.” good example: SJ and iPhones Bad Example: ??? — the marketing Concept achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors. current vs. underlying wants — an inside-out vs. outside-in perspective Marketing Management Orientations Push vs. Pull approach — the societal marketing Concept awareness of the conflict between consumer short-run wants and consumer long-run welfare (society's well-being). delivering value to customers in a way that maintains and improves both the consumer’s and the society’s well-being. balance three considerations Is there such a conflict? Considerations Underlying the Societal Marketing Concept  What Is Marketing? Broadly defined, marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Simple Definition: Marketing is managing profitable customer relationships. A Simple Model of the Marketing Process “Needs, wants, demand” revisited Needs are basic human requirements. Wants are the form needs take as they are shaped by culture and individual personality. When backed by buying power, wants become demands. In other words, demands are wants for specific products backed by an ability and a willingness to buy. people ability willingness  Sony AIBO Discussion 1 What’s the need and want Sony AIBO tried to satisfy? Is there real demand for Sony AIBO? In Japan? In your country?  Be aware: Marketing Myopia Successful marketers avoid marketing myopia when constructing offers: – Marketing myopia occurs when sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products. They focus on the existing “wants” and lose sight of underlying customer “needs”. STEP 4: BUILDING CUSTOMER RELATIONSHIPS 21  Customer Relationship Management(CRM) ◆The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. ◆It deals with all aspects of acquiring, keeping and growing customers. ◆Relationship building blocks: customer value & customer satisfaction Customer Perceived Value Customer perceived value: – Perceptions may be subjective. – Consumers often do not judge values and costs “objectively”. It is not just about money. Customer Perceived Value Customers buy from the firm that offers the highest customer perceived value. Customer’s evaluation of the difference between all of the benefits and all of the costs of a marketing offer relative to those of competing offers. What costs? What benefits? Examples?  Customer Satisfaction Customer Satisfaction: – Dependent on the product’s perceived performance relative to a buyer’s expectations. – no/low satisfaction , if performance < expectations – high satisfaction, if performance > expectations。 Setting proper expectations is critical: – Some firms seek to DELIGHT customers by exceeding expectations (delivering ＞promise). –美团&饿了么  Marketing in Action Consumer Loyalty Apple enjoys an almost cult-like following of fanatically loyal users, dubbed “Macolytes,” who provide positive word of mouth, and are among the first to adopt new products. leads to consumer loyalty --- customer evangelists Changing Nature of Relationships Selective Relationship Management: – customer profitability analysis, targeting fewer but more profitable customers. – e.g, the banks in China? Relating directly – Relating more deeply and interactively via blogs, social network websites, email, and video sharing. – marketing by attraction vs. intrusion (ads).  CRM summarized Profitable customer relationships: customer value and satisfaction Changing Marketing Landscape (1) The Digital Age – more power for both the firm and customer – The Internet new communication, advertising and relationship building tools real empowerment for the customer： information & communication (with different parties) Rapid Globalization: convergence of consumer taste – customer choice of laptops, entertainment, sportswear, etc Changing Marketing Landscape (2) Call for More Ethics and Social Responsibility – Poisonous Apple? Growth of Not-for-Profit Marketing  Summary need, want, demand 5 marketing orientations CRM & the 2 building blocks