Kotler 2020 Marketing PDF

1 kap. Marketing: creating customer value and engagement What is marketing The aim of marketing – to create value for customers and to capture value from customers in return. 1) The simplest definition of marketing – managing profitable customer relationships. Marketing, more than any oth...

1 kap. Marketing: creating customer value and engagement What is marketing The aim of marketing – to create value for customers and to capture value from customers in return. 1) The simplest definition of marketing – managing profitable customer relationships. Marketing, more than any other business funktion deals with customers. 2) Broad definition of marketing – the activity, set of institutions aND PROCESSES FOR Creating, communicating, delivering, and exchanging offerings that have a value for customers, other stakeholders and society at large. 3) Narrower business context – involves building profitable, value laden exchange relationships with customers. 4) Most used definition in business – “the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.“ The twofold goal of marketing – to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. These cannot be separated. Making the distinction between existing and new customers is becoming increasingly difficult. Customers remember bad experiences and they also remember extraordinary service. Sound marketing is critical to the success of every organization. The marketing process A - Create value → → → B - Capture for customers value from and build customers in customer return relationships 1) Understand 2) Design a 3) Construct an 4) Build 5) Capture value the marketplace customer-driven integrated profitable from customers and customer marketing marketing relationships to create profits needs and wants strategy programme that and create and customer delivers superior customer delight equity value 1. Understanding the customers needs and wants Five core marketplace concepts: 1) Needa, wants and demands ➔ Needs – states of felt deprivation, includes a) physical needs for food, clothes, warmth and safety. b) social needs for belonging and affection c) individual needs for knowledge and expression ➔ Wants – The form of human needs take as shaped by culture and individual personality. These are shaped by one society, and are described in terms of objects that will satisfy needs. When backed with buying power wants become demands. 2) Market offering (products, services and experiences) ➔ Marketing offering – Some combination of products, services, information or experiences offered to a market to satisfy a need or want. Services – activities or benefits offerd for sale that are intagiuable and do not result in ownership of anything. ➔ Marketing myopia – The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by those products. The customer will have the same need but will want the new product from the competitor. 3) Value and satisfaction ➔ Customers form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly. Marketers must be careful to set the right level of expectations. 4) Exchanges and relationships ➔ Exchanges – the act of obtaining a desired object from someone by offering something in return. ➔ Relationships – marketing consists of actions taken to build and maintain desirable exchange relationships with target audiences involvning a product, service, idea or other object. 5) Markets ➔ Markets – the set of all actual and potential buyers of a product or service. These buyers share a particular need or want that can be satisfied through exchange relationships. Managing markets is needed to bring about profitable customer relationships. Designing a customer value-driven marketing strategy Marketing management – the art and science of choosing target markets and building profitable relationships with them. To design a winning marketing strategy two questions must be answered: 1) What customers will we serve (who) – target market? ➔ a) Market segmentation – dividing the market into segments of customers ➔ b) Target marketing – selecting which segment(s) to go after. ➔ OBS: firm needs to select only customers that it can serve well and profitably. Marketing managers must decide which customers they want to target and on the level, timing and nature of their demand. Marketing management = customer and demand management. 2) How can we serve them (how) – value proposition? ➔ Company must differentiate and position itself in the marketplace → competitor advantage. They do this through the guidance of five key philosophical concepts: Production – the concept/idea that consumers will favour products that are available and highly affordable and that the organization should therefor focus on improving production and distribution efficiency. → OBS: May leed to marketing myopia. Product – the concept/idea that consumers will favoru products that offer the most quality, performance and features and that the organization should therefore devote its energy to making continuous product improvements. → OBS: May leed to marketing myopia. Selling – the idea that consumers will not buy enough of the firms products unless it undertakes a large-scale selling and promotion effort. Marketing – idea that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do.  Societal marketing – the idea that a companies marketing decisions should consider consumers wants (satisfaction), the companies requirements (profits), consumers long-term interests and society’s long term interests (human welfare). Calls for sustainable marketing practices. → Economic sustainability → Environmental sustainability → Social sustainability The four Ps of marketing (VIKTIGT) Product – need-satisfying market offering Price – the monetary charge of the product place (marketing channels) – how it will make offering available to target consumers promotion (marketing communications) – the firm must communicate with target customers about the offering and persuade them of its merits OBS: a firm must blend them together in an integrated marketing programme. Managing customer relationships and capturing customer value Customer relationship management (CRM) – “customer data management activity”: Involves managing detailed information about individual customers and carefully managing customer “touch-points” in order to maximize customer loyalty. Is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects acquiring, keeping and growing customers. The relationship building blocks are: ➔ Customer perceived value – the customers evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. ➔ Customer satisfaction – the extent to which a products perceived performance matches a buyers expectations. Positive if performance exceeds expectations. Customer-engagement marketing – making the brand a meaningful part of consumers conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences and community. Its goal is to make the bran a meaningful part of consumers conversations and lives. ➔ A form of customer-engagement marketing is Consumer-generated marketing – Brand exchanges created by consumers themselves - both invited and uninvited- by which customers are playing an increasing role in shaping their own brand experiences and those of other consumers. Partner relationship management – Working closely with partners in other company departments and outside the company to jointly bring together value to customers. ➔ Example supply chain management – strengthening their connections with partners along the supply chain. Capturing value from customers Good customer relationship management creates customer delight. In turn delighted customers remain loyal and talk favouribly to others about the company and its products. ➔ Customer lifetime value – the value of the entire stream of purchases a customer makes over a lifetime of patronage. Losing a customer means more than losing a sigle sale, it means losing the entire stream of purchases that the customer would make over a lifetime of patronage. Unhappy customers can also influence others of a negative view of the company. ➔ Share of customer – the portion of the customers purchasing that a company gets in its product categories. To increase share of customer firms can offer greater variety to current customers. Or they can create programmes to cross-sell and upp-sell in order to market more products and services to existing consumers. ➔ Customer equity is the total combined customer lifetime values of all of the companies current and potential customers. Building the right relationships with the right customers Butterflies – potentially profitable but not loyal. Enjoy while one can, then cease investment until next time around. True friends – both profitable and loyal. The firm wants to make continuous relationship investments to delight these customers, and nurture, retain and grow them. Barnacles – highly loyal but not very profitable. Strangers – not loyal and not very profitable. The changing marketing landscape Social media marketing – provides exciting new opportunities to extend customer engagement and get people talking about a brand. Online social media provide a digital home where people can connect and share important information and movements in their lives. As a result, they offer an ideal platform for real-time marketing, by which marketers can engage consumers in the moment by linking brands to important trending topics, real-world events causes, personal occasions, or other important happenings in consumers lives. Mobile marketing is perhaps the fastest-growing digital marketing platform. Globalization – managers in countries around the world need to take a global, not just local, view of the companies industry, competitors and opportunities. Urbanization and polarization – segmentation as a tool for marketers facilitates marketing, but at the same time it may contribute to categorizing and putting labels on consumers. Segmentation in many cases contributes to polarization. Polarization is associated with the segregation within a society that may emerge from income inequality, different opportunities in the labour market (eg to earn money) and different social environments, which may be tolerant and represent people with various backgrounds or the opposite. The call for sustainability: more ethics and social responsibility Increase in not-for-profit marketing – marketing strategies for non-profit organizations, examples universities, schools, hospitals, museums and churches. Utvecklad version av “the simplistic marketing process” ovan (UTANTILL)