Principles Of Marketing Lecture Notes PDF

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

Chapter One Creating and Capturing Customer Value Copyright © 2009 Pearson Education, Inc. Chapter 1- slide 1 Publishing as Prentice Hall  Creating and Capturing Customer Value Topic Outline Define marketing and outline the steps in the marketing process Understanding the Marketplace and Customer Needs Designing a Customer-Driven Marketing Strategy Preparing an Integrated Marketing Plan and Program Building Customer Relationships Capturing Value from Customers The New Marketing Landscape Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 2 Publishing as Prentice Hall  What Is Marketing? Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 3 Publishing as Prentice Hall  Understanding the Marketplace and Customer Needs Core Concepts Customer needs, wants, and demands Market offerings Value and satisfaction Exchanges and relationships Markets Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 4 Publishing as Prentice Hall  Understanding the Marketplace and Customer Needs Customer Needs, Wants, and Demands Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 5 Publishing as Prentice Hall  Understanding the Marketplace and Customer Needs 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 © 2010 Pearson Education, Inc. Chapter 1- slide 6 Publishing as Prentice Hall  Understanding the Marketplace and Customer Needs Customer Value and Satisfaction Expectations Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 7 Publishing as Prentice Hall  Understanding the Marketplace and Customer Needs Exchange is the act of obtaining a desired object from someone by offering something in return Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 8 Publishing as Prentice Hall  Understanding the Marketplace and Customer Needs Markets are the set of actual and potential buyers of a product Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 9 Publishing as Prentice Hall  Designing a Customer-Driven Marketing Strategy 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 © 2010 Pearson Education, Inc. Chapter 1- slide 10 Publishing as Prentice Hall  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 Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 11 Publishing as Prentice Hall  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 Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 12 Publishing as Prentice Hall  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 Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 13 Publishing as Prentice Hall  Designing a Customer-Driven Marketing Strategy Marketing Management Orientations Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 14 Publishing as Prentice Hall  Designing a Customer-Driven Marketing Strategy Marketing Management Orientations Production concept is the idea that consumers will favor products that are available or highly affordable Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 15 Publishing as Prentice Hall  Designing a Customer-Driven Marketing Strategy Marketing Management Orientations Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Organization should therefore devote its energy to making continuous product improvements. Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 16 Publishing as Prentice Hall  Designing a Customer-Driven Marketing Strategy Marketing Management Orientations 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 Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 17 Publishing as Prentice Hall  Designing a Customer-Driven Marketing Strategy Marketing Management Orientations 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 Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 18 Publishing as Prentice Hall  Designing a Customer-Driven Marketing Strategy Marketing Management Orientations Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers’ wants, the company’ s requirements, consumers’ long-term interests, and society’ s long-run interests Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 19 Publishing as Prentice Hall  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. Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 20 Publishing as Prentice Hall  Building Customer Relationships Customer Relationship Management (CRM) The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 21 Publishing as Prentice Hall  Building Customer Relationships Relationship Building Blocks: Customer Value and Satisfaction Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 22 Publishing as Prentice Hall  Building Customer Relationships Customer Relationship Levels and Tools Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 23 Publishing as Prentice Hall  Building Customer Relationships The Changing Nature of Customer Relationships Relating with more carefully selected customers uses selective relationship management to target fewer, more profitable customers Relating more deeply and interactively by incorporating more interactive two way relationships through blogs, Websites, online communities and social networks Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 24 Publishing as Prentice Hall  Building Customer Relationships Partner relationship management involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 25 Publishing as Prentice Hall  Building Customer Relationships Partner Relationship Management Partners inside the company is every function area interacting with customers – Electronically – Cross-functional teams Partners outside the company is how marketers connect with their suppliers, channel partners, and competitors Copyright © 2010 Pearson Education, Inc. by developing Chapter 1- slide 26 Publishing as Prentice Hall  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 Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 27 Publishing as Prentice Hall  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 © 2010 Pearson Education, Inc. Chapter 1- slide 28 Publishing as Prentice Hall  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 © 2010 Pearson Education, Inc. Chapter 1- slide 29 Publishing as Prentice Hall  Capturing Value from Customers Customer equity is the total combined customer lifetime values of all of the company’ s customers Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 30 Publishing as Prentice Hall  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 – Build the right relationship with the right customers Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 31 Publishing as Prentice Hall  The New Marketing Landscape Major Developments Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 32 Publishing as Prentice Hall  All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2010 Pearson Education, Inc. Chapter 1- slide 33 Publishing as Prentice Hall