Principles Of Marketing, Arab World Edition PDF

Principles of Marketing, Arab World Edition Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed Tolba Presentation prepared by Annelie Moukaddem Baalbaki CHAPTER ONE Marketing: Creating and...

Principles of Marketing, Arab World Edition Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed Tolba Presentation prepared by Annelie Moukaddem Baalbaki CHAPTER ONE Marketing: Creating and Capturing Customer Value Lecturer: Sarah Alrabeeah Ch 1 -1 Copyright © 2011 Pearson Education  Creating and Capturing Customer Value Topic Outline 1.1 What Is Marketing? 1.2 Understand the Marketplace and Customer Needs 1.3 Designing a Customer-Driven Marketing Strategy 1.4 Preparing an Integrated Marketing Plan and Program 1.5 Building Customer Relationships 1.6 Capturing Value from Customers 1.7 The Changing Marketing Landscape 1.8 So, What is Marketing? Pulling It All Together Ch 1 -2 Copyright © 2011 Pearson Education  What Is Marketing? Marketing Defined Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return. Ch 1 -3 Copyright © 2011 Pearson Education  What Is Marketing? The Marketing Process Ch 1 -8 Copyright © 2011 Pearson Education 1- Understanding the Marketplace and Customer Needs * Customer Needs, Wants, and Demands Ch 1 -9 Copyright © 2011 Pearson Education Foo d 1- 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 its needs or wants. Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs. Ch 1 -11 Copyright © 2011 Pearson Education 1- Understanding the Marketplace and Customer Needs * Customer Value and Satisfaction Ch 1 -12 Copyright © 2011 Pearson Education 1- 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. Marketers aim at building strong relationships by consistently delivering superior customer value. Ch 1 -14 Copyright © 2011 Pearson Education 1- Understanding the Marketplace and Customer Needs A market is the set of actual and potential buyers of a product. Ch 1 -15 Copyright © 2011 Pearson Education  What Is Marketing? The Marketing Process Ch 1 -16 Copyright © 2011 Pearson Education 2- Designing a Customer-Driven Marketing Strategy * Marketing Management Marketing management is the art and science of choosing target markets and building profitable relationships with them. * And to achieve this, the organization must know: What customers will we serve? How can we best serve these customers? Ch 1 -17 Copyright © 2011 Pearson Education 2- 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. Ch 1 -18 Copyright © 2011 Pearson Education 2- Designing a Customer-Driven Marketing Strategy * Selecting Customers to Serve Demarketing is marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it. Ch 1 -19 Copyright © 2011 Pearson Education 2- Designing a Customer-Driven Marketing Strategy * Choosing a Value Proposition The value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs. Ch 1 -20 Copyright © 2011 Pearson Education 2- Designing a Customer-Driven Marketing Strategy * Marketing Management Orientations Ch 1 -21 Copyright © 2011 Pearson Education 2- Designing a Customer-Driven Marketing Strategy Marketing Management Orientations 1- Production concept is the idea that consumers will favor products that are available and highly affordable. Ch 1 -22 Copyright © 2011 Pearson Education 2- Designing a Customer-Driven Marketing Strategy *Marketing Management Orientations 2- Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. An organization should therefore devote its energy to making continuous product improvements. Ch 1 -23 Copyright © 2011 Pearson Education 2- Designing a Customer-Driven Marketing Strategy *Marketing Management Orientations 3- Selling concept is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort. Ch 1 -24 Copyright © 2011 Pearson Education 2- Designing a Customer-Driven Marketing Strategy *Marketing Management Orientations 4- Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do. Ch 1 -25 Copyright © 2011 Pearson Education 2- Designing a Customer-Driven Marketing Strategy The Selling and Marketing Concepts Contrasted Ch 1 -26 Copyright © 2011 Pearson Education 2- Designing a Customer-Driven Marketing Strategy *Marketing Management Orientations 5- The societal marketing concept is the idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long-term interests. Ch 1 -27 Copyright © 2011 Pearson Education 2- Designing a Customer-Driven Marketing Strategy Ch 1 -28 Copyright © 2011 Pearson Education  What Is Marketing? The Marketing Process Ch 1 -29 Copyright © 2011 Pearson Education 3- 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. It includes product, price, promotion, and place. Integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers. Ch 1 -30 Copyright © 2011 Pearson Education 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. Ch 1 -31 Copyright © 2011 Pearson Education 4- Building Customer Relationships Relationship Building Blocks: Customer Value and Satisfaction ? Ch 1 -32 Copyright © 2011 Pearson Education 4- Building Customer Relationships Customer Relationship Levels and Tools Ch 1 -33 Copyright © 2011 Pearson Education 4- Building Customer Relationships The Changing Nature of Customer Relationships Relatingwith more carefully selected customers uses selective relationship management to target fewer, more profitable customers. Relatingmore deeply and interactively by incorporating more interactive, two way relationships through blogs, websites, online communities and social networks. Ch 1 -34 Copyright © 2011 Pearson Education 4- 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. Ch 1 -35 Copyright © 2011 Pearson Education 4- Building Customer Relationships Partner Relationship Management Partners inside the company refer to every function area interacting with customers: electronically cross-functional teams Partners outside the company refer to how marketers connect with their suppliers, channel partners, and competitors by developing partnerships. Ch 1 -36 Copyright © 2011 Pearson Education 4- Building Customer Relationships Partner Relationship Management Supply chain is a channel that stretches from raw materials to components to final products to final buyers: Supply management Strategic partners Strategic alliances Ch 1 -37 Copyright © 2011 Pearson Education  What Is Marketing? The Marketing Process Ch 1 -38 Copyright © 2011 Pearson Education 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. Ch 1 -39 Copyright © 2011 Pearson Education 5- Capturing Value from Customers 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. Ch 1 -40 Copyright © 2011 Pearson Education 5- Capturing Value from Customers * Building Customer Equity Customer equity is the total combined customer lifetime values of all of the company’s customers. Ch 1 -41 Copyright © 2011 Pearson Education 5- Capturing Value from Customers Capturing Value from Customers Building Customer Equity Building the right relationships with the right customers involves treating customers as assets that need to be managed and maximized. Different types of customers require different relationship management strategies. Ch 1 -42 Copyright © 2011 Pearson Education  The Changing Marketing Landscape Major Developments Ch 1 -43 Copyright © 2011 Pearson Education  So, What Is Marketing? Pulling It All Together Ch 1 -44 Copyright © 2011 Pearson Education