Principles of Marketing Global Edition - Kotler and Armstrong PDF

Principles of Marketing Global Edition Kotler and Armstrong Chapter 1: Marketing Creating Customer Value and Engagement Copyright © Pearson Education, Inc. 1-1  What Is Marketing? Marketing Defined Marketing is a process by which companies...

Principles of Marketing Global Edition Kotler and Armstrong Chapter 1: Marketing Creating Customer Value and Engagement Copyright © Pearson Education, Inc. 1-1  What Is Marketing? Marketing Defined Marketing is a process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Copyright © Pearson Education, Inc. 1-2 What Is Marketing? The Marketing Process Copyright © Pearson Education, Inc. 1-3 Understanding the Marketplace and Customer Needs Customer Needs, Wants, and Demands Needs States of deprivation Wants Form that needs take Demands Wants backed by buying power Copyright © Pearson Education, Inc. 1-4 Understanding the Marketplace and Customer Needs Market Offerings – Products, Services, and Experiences Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs. Copyright © Pearson Education, Inc. 1-5 Understanding the Marketplace and Customer Needs Customer Value and Satisfaction Customers Value and satisfaction Marketers Set the right level of expectations Copyright © Pearson Education, Inc. 1-6 Understanding the Marketplace and Customer Needs Exchanges and Relationships Exchange is the act of obtaining a desired object from someone by offering something in return. Marketing actions try to create, maintain, and grow desirable exchange relationships. Copyright © Pearson Education, Inc. 1-7 Understanding the Marketplace and Customer Needs Markets A market is the set of actual and potential buyers of a product or service. These buyers share a particular need or want that can be satisfied through exchange relationships. Copyright © Pearson Education, Inc. 8 What Is Marketing? The Marketing Process Copyright © Pearson Education, Inc. 1-9 Designing a Customer Value-Driven Marketing Strategy Selecting Customers to Serve Marketing management is the art and science of choosing target markets and building profitable relationships with them. What customers will we serve? How can we best serve these customers? Copyright © Pearson Education, Inc. 1-9 Designing a Customer Value-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 © Pearson Education, Inc. 1-10 Designing a Customer Value-Driven Marketing Strategy Choosing a Value Proposition A brand’s value proposition is the set of benefits or values it promises to deliver to customers to satisfy their needs. Copyright © Pearson Education, Inc. 1-12 Designing a Customer Value-Driven Marketing Strategy Marketing Management Orientations Societal Production Product Selling Marketing Marketing concept concept concept concept concept Copyright © Pearson Education, Inc. 1-13 Designing a Customer Value-Driven Marketing Strategy Marketing Management Orientations Production concept: Consumers will favor products that are available and highly affordable. Copyright © Pearson Education, Inc. 1-14 Designing a Customer Value-Driven Marketing Strategy Marketing Management Orientations Product concept: Consumers favor products that offer the most quality, performance, and features. The focus is on continuous product improvements. Copyright © Pearson Education, Inc. 1-15 Designing a Customer Value-Driven Marketing Strategy Marketing Management Orientations Selling concept: Consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort. Copyright © Pearson Education, Inc. 1-16 Designing a Customer Value-Driven Marketing Strategy Marketing Management Orientations Marketing concept: Know the needs and wants of the target markets and deliver the desired satisfactions better than competitors. Copyright © Pearson Education, Inc. 1-17 Designing a Customer Value-Driven Marketing Strategy Marketing Management Orientations Societal marketing: The company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests. Copyright © Pearson Education, Inc. 1-18 Designing a Customer Value-Driven Marketing Strategy Marketing Management Orientations Copyright © Pearson Education, Inc. 1-19 Designing a Customer Value-Driven Marketing Strategy Marketing Management Orientations Copyright © Pearson Education, Inc. 1-20 What Is Marketing? The Marketing Process Copyright © Pearson Education, Inc. 1-21 Preparing an Integrated Marketing Plan and Program The marketing mix is the set of tools (four Ps) the firm uses to implement its marketing strategy. This set includes product, price, place, and promotion. An integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers. Copyright © Pearson Education, Inc. 1-22 What Is Marketing? The Marketing Process Copyright © Pearson Education, Inc. 1-23  Building Customer Relationships Customer Relationship Management Customer relationship management (CRM) is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. 1-24 Copyright © Pearson Education, Inc. Building Customer Relationships Customer Relationship Management Relationship Building Blocks Customer- Customer perceived value satisfaction The difference The extent to between total which perceived customer performance perceived matches a benefits and buyer’s customer cost expectations Copyright © Pearson Education, Inc. 1-25 What Is Marketing? The Marketing Process Copyright © Pearson Education, Inc. 1-26  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 © Pearson Education, Inc. 1-27  Capturing Value from Customers Growing Share of Customer Share of customer is the portion of the customer’s purchasing that a company gets in its product categories. Copyright © Pearson Education, Inc. 1-28  Capturing Value from Customers Building Customer Equity Customer equity is the total combined customer lifetime values of all of the company’s customers. Copyright © Pearson Education, Inc. 1-29 What Is Marketing? The Marketing Process Copyright © Pearson Education, Inc. 1-30  Capturing Value from Customers Building Customer Equity Building the Right Relationships with the Right Customers FIGURE 1.5 The Customer Relationship Customer Groups Matrix classifies Relationship Groups customers into one of four relationship groups, according to their profitability and projected loyalty. Each group requires a different relationship management strategy. Copyright © Pearson Education, Inc. 1-31  Capturing Value from Customers Building Customer Equity Strangers show low potential profitability and little projected loyalty. Butterflies are potentially profitable but not loyal. True friends are both profitable and loyal. Barnacles are highly loyal but not very profitable. The point here is an important one: Different types of customers require different engagement and relationship management strategies. The goal is to build the right relationships with the right customers. Copyright © Pearson Education, Inc. 1-32