Week 1 - Introduction to Marketing PowerPoint

Principles of Marketing Kotler and Armstrong Chapter 1: Marketing Creating Customer Value and Engagement Copyright...

Principles of Marketing Kotler and Armstrong Chapter 1: Marketing Creating Customer Value and Engagement Copyright © 2016 Pearson Education, Inc. 1-1 Marketing: Creating Customer Value and Engagement Learning Objectives  Objective 1: Define marketing and outline the steps in the marketing process.  Objective 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.  Objective 3: Identify the key elements of a customer- driven marketing strategy and discuss the marketing management orientations that guide marketing strategy.  Objective 4: Discuss customer relationship management and identify strategies for creating value for customers and Copyright © 2016 Pearson Education, Inc. 1-2 capturing value from customers in return. Marketing: Creating Customer Value and Engagement Learning Objectives  Objective 5: Describe the major trends and forces that are changing the marketing landscape in this age of relationships. Copyright © 2016 Pearson Education, Inc. 1-3 Marketing: Creating Customer Value and Engagement Learning Objective 1  Define marketing and outline the steps in the marketing process. What Is Marketing? Copyright © 2016 Pearson Education, Inc. 1-4  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. 1 - Copyright © 2016 Pearson Education, Inc. 5 What Is Marketing? The Marketing Process 1- Copyright © 2016 Pearson Education, Inc. 6 Marketing: Creating Customer Value and Engagement Learning Objective 2  Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. Understanding the Marketplace and Customer Needs Copyright © 2016 Pearson Education, Inc. 1-7 Understanding the Marketplace and Customer Needs Customer Needs, Wants, and Demands Needs States of deprivation Wants Form that needs take Demand Wants backed by buying power s Copyright © 2016 Pearson 1-8 Education, Inc.  9 This Photo by Unknown Author is licensed under CC BY-SA-NC Copyright © 2016 Pearson Education, Inc. 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 1- underlying consumer needs. Copyright © 2016 Pearson Education, Inc. 10 Understanding the Marketplace and Customer Needs Customer Value and Satisfaction Customer s Value and satisfacti on Marketers Set the right level 1 of - expectation s 1 Copyright © 2016 Pearson Education, Inc. 3  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. 1 - Copyright © 2016 Pearson Education, Inc. 1  Understanding the Marketplace and Customer Needs Markets 1- Copyright © 2016 Pearson Education, Inc. 1 Marketing: Creating Customer Value and Engagement Learning Objective 3  Identifythe key elements of a customer- driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. Designing a Customer Value-Driven Marketing Strategy Preparing an Integrated Marketing Plan and Program Copyright © 2016 Pearson Education, Inc. 1-14 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 © 2016 Pearson Education, Inc. 1-18 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 © 2016 Pearson Education, Inc. 1-19  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. Discussion: How well does Apple deliver on its Value proposition? – “Think Different” How well does Clarks shoes Twitter, Inc. deliver on its Value proposition?- “Then. Now. Copyright © 2016 Pearson Education, Inc. 1-17  Designing a Customer Value-Driven Marketing Strategy Marketing Management Orientations Societal Producti Marketi Product Selling Marketi on ng concept concept ng concept concept concept Copyright © 2016 Pearson Education, Inc. 1-18  Designing a Customer Value-Driven Marketing Strategy Marketing Management Orientations Production concept: Consumers will favor products that are available and highly affordable. Copyright © 2016 Pearson Education, Inc. 1-19  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. e.g. Apple, Microsoft, Gucci Copyright © 2016 Pearson 1-20 Education, Inc.  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 © 2016 Pearson Education, Inc. 1-21  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. e.g. Samsung company Copyright © 2016 Pearson Education, Inc. 1-22  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 © 2016 Pearson Education, Inc. 1-23 Designing a Customer Value-Driven Marketing Strategy Marketing Management Orientations Copyright © 2016 Pearson 1-24 Education, Inc.  Designing a Customer Value-Driven Marketing Strategy Marketing Management Orientations 1- Copyright © 2016 Pearson Education, Inc. 25 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, promotion, and place. An integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers. Copyright © 2016 Pearson Education, Inc. 1-26  27 Activity - Marketing Management Orientations Quatar Airways Copyright © 2016 Pearson Education, Inc. Marketing: Creating Customer Value and Engagement Learning Objective 4  Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return. Building Customer Relationships Capturing Value from Customers Copyright © 2016 Pearson Education, Inc. 1-28  Building Customer Relationships Customer Relationship Management Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. 1-29 Copyright © 2016 Pearson Education,  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 © 2016 Pearson Education, Inc. 1-30  Building Customer Relationships Customer Relationship Management Customer Relationship Levels and Tools Frequency Basic Full Partnerships Marketing Relationships – – high-margin Programs – low-margin customers reward customers customers Copyright © 2016 Pearson Education, Inc. 1-31  Building Customer Relationships Engaging Customers Customer-Engagement and Today’s Digital and Social Media Customer-Engagement Marketing makes the brand a meaningful part of consumers’ conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community.  Discussion Question  How have marketers used Facebook, Tik Tok, Linkedin, or other social networks for marketing purposes Copyright © 2016 Pearson 1-32  Building Customer Relationships Engaging Customers Consumer-Generated Marketing  Brand exchanges created by consumers themselves —both invited and uninvited—by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers. Copyright © 2016 Pearson 1  Building Customer Relationships Partner Relationship Management Partner relationship management involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers. Copyright © 2016 Pearson Education, Inc. 1-34  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 © 2016 Pearson 1-35  Capturing Value from Customers Building Customer Equity Customer equity is the total combined customer lifetime values of all of the company’s customers. 1- Copyright © 2016 Pearson Education, Inc. 3  Capturing Value from Customers Building Customer Equity Building the Right Relationships with the Right Customers FIGURE 1.5 Customer Relationshi p Groups Copyright © 2016 Pearson Education, Inc. 1-37 Marketing: Creating Customer Value and Engagement Learning Objective 5  Describe the major trends and forces that are changing the marketing landscape in this age of relationships. The Changing Marketing Landscape Copyright © 2016 Pearson Education, Inc. 1-38  The Changing Marketing The Digital Age:Landscape Online, Mobile, and Social Media Marketing Digital and social media marketing involves using digital marketing tools such as web sites, social media, mobile ads and apps, online videos, e-mail, and blogs that engage consumers anywhere, at any time, via their digital devices. 1-39 Copyright © 2016 Pearson  The Changing Marketing Landscape The Digital Age: Online, Mobile, and Social Media Marketing This Photo by Unknown Author is licensed under CC BY-SA-NC Copyright © 2016 Pearson Education, Inc. 1-40 So, What Is Marketing? Pulling It All Together Copyright © 2016 Pearson Education, Inc. 1-41  Principles of Marketing PowerPoint Copyright Page Copyright © 2016 Pearson Education, Inc. 1-52