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Customer Value
1.
i t ’s
good and good for you Chapter 1 Marketing: Creating and Capturing Customer Value Copyright © 2012 Pearson Education 1- 1
2.
Creating and Capturing
Customer Value Topic Outline • What Is Marketing? • Understand 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 Changing Marketing Landscape Copyright © 2012 Pearson Education 1- 2
3.
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 © 2012 Pearson Education 1- 3
4.
What Is Marketing?
The Marketing Process Copyright © 2012 Pearson Education 1- 4
5.
Understanding the Marketplace
and Customer Needs Customer Needs, Wants, and Demands • States of deprivation • Physical—food, clothing, warmth, safety Needs • Social—belonging and affection • Individual—knowledge and self-expression • Form that needs take as they are shaped by culture Wants and individual personality Demands • Wants backed by buying power Copyright © 2012 Pearson Education 1- 5
6.
Understanding the Marketplace
and Customer Needs • Market offerings are some combination of products, services, informa tion, 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 © 2012 Pearson Education 1- 6
7.
Understanding the Marketplace
and Customer Needs Customer Value and Satisfaction Expectations Customers • Value and satisfaction Marketers • Set the right level of expectations • Not too high or low Copyright © 2012 Pearson Education 1- 7
8.
Understanding the Marketplace
and Customer Needs Exchange is the act of obtaining a desired object from someone by offering something in return Copyright © 2012 Pearson Education 1- 8
9.
Understanding the Marketplace
and Customer Needs Markets are the set of actual and potential buyers of a product Copyright © 2012 Pearson Education 1- 9
10.
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 © 2012 Pearson Education 1- 10
11.
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 © 2012 Pearson Education 1- 11
12.
Designing a Customer-Driven
Marketing Strategy Choosing a Value Proposition Value proposition Set of benefits or values a company promises to deliver to customers to satisfy their needs Copyright © 2012 Pearson Education 1- 12
13.
Designing a Customer-Driven
Marketing Strategy Marketing Management Orientations Production Product Selling Marketing Societal concept concept concept concept concept Copyright © 2012 Pearson Education 1- 13
14.
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 © 2012 Pearson Education 1- 14
15.
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 © 2012 Pearson Education 1- 15
16.
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 © 2012 Pearson Education 1- 16
17.
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 Copyright © 2012 Pearson Education competitors do 1- 17
18.
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 © 2012 Pearson Education 1- 18
19.
Designing a Customer-Driven
Marketing Strategy Copyright © 2012 Pearson Education 1- 19
20.
Preparing an Integrated
Marketing Plan and Program The marketing mix: set of tools (four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place. Integrated marketing program: comprehensive plan that communicates and delivers the intended value to chosen customers. Copyright © 2012 Pearson Education 1- 20
21.
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 © 2012 Pearson Education 1- 21
22.
Building Customer Relationships
Relationship Building Blocks: Customer Value and Satisfaction Customer- Customer perceived value satisfaction • The difference • The extent to between total which a customer value product’s and total perceived customer cost performance matches a buyer’s expectations Copyright © 2012 Pearson Education 1- 22
23.
Building Customer Relationships
Customer Relationship Levels and Tools Basic Relationships Full Partnerships Copyright © 2012 Pearson Education 1- 23
24.
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 © 2012 Pearson Education 1- 24
25.
Building Customer Relationships
The Changing Nature of Customer Relationships Customer-managed relationships Marketing relationships in which customers, empowered by today’s new digital technologies, interact with companies and with each other to shape their relationships with brands. Copyright © 2012 Pearson Education 1- 25
26.
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 © 2012 Pearson Education 1- 26
27.
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 by developing partnerships Copyright © 2012 Pearson Education 1- 27
28.
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 chain management Copyright © 2012 Pearson Education 1- 28
29.
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 © 2012 Pearson Education 1- 29
30.
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 © 2012 Pearson Education 1- 30
31.
Capturing Value from
Customers Customer equity is the total combined customer lifetime values of all of the company’s customers Copyright © 2012 Pearson Education 1- 31
32.
Capturing Value from
Customers Building Customer Equity • 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 Copyright © 2012 Pearson Education 1- 32
33.
The Changing Marketing
Landscape Uncertain Economic Environment • New consumer frugality • Marketers focus on value for the customer Copyright © 2012 Pearson Education 1- 33
34.
The Changing Marketing
Landscape Uncertain Economic Environment • New consumer frugality • Marketers focus on value for the customer Copyright © 2012 Pearson Education 1- 34
35.
The Changing Marketing
Landscape Digital Age • People are connected continuously to people and information worldwide • Marketers have great new tools to communicate with customers • Internet + mobile communication devices creates environment for online marketing Copyright © 2012 Pearson Education 1- 35
36.
The Changing Marketing
Landscape • Rapid Globalization • Sustainable Marketing • Not-for-Profit Marketing Copyright © 2012 Pearson Education 1- 36
37.
So, What Is
Marketing? Pulling It All Together Copyright © 2012 Pearson Education 1- 37
38.
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 © 2012 Pearson Education Copyright © 2012 Pearson Education 1- 38
Editor's Notes
This important figure shows marketing ina nutshell! By creating value for customers,marketers capture value from customers inreturn. This five-step process forms themarketing framework for the rest ofthe chapter and the remainder of the book.
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