Kotler01 marketing managing profitable customer relationships.pptxa

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Kotler01 marketing managing profitable customer relationships.pptxa

  1. 1. Marketing: ManagingProfitable Customer Relationships Chapter 1
  2. 2. What is Marketing?Marketing Defined: “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others”Marketing is about managing profitablecustomer relationships  Attracting new customers  Retaining and growing current customers 1-1 Goal 1: Define marketing and the marketing process.
  3. 3. The Marketing Process A Five-Step Process1. Understand the marketplace and customer needs and wants2. Design a customer-driven marketing strategy3. Construct a marketing program that delivers superior value4. Build profitable relationships and create customer delight5. Capture value from customers to create profits and customer quality 1-2 Goal 1: Define marketing and the marketing process.
  4. 4. Core Marketing Concepts 1-3
  5. 5. Understanding the Marketplace Core Concepts Need  State of felt deprivationNeeds, wants, and  Example: Need food demands WantsMarketing offers:  The form of needs as including products, shaped by culture and services and the individual experiences  Example: Want a BigValue and satisfaction MacExchange, transactions Demands and relationships  Wants which are backedMarkets by buying power 1-4 Goal 2: Identify the five core marketplace concepts.
  6. 6. Understanding the Marketplace Core Concepts Marketing offer  Combination ofNeeds, wants, and products, services, info demands rmation or experiencesMarketing offers: that satisfy a need or including products, want services and  Offer may include experiences services, activities, peoValue and satisfaction ple, places, informatio n or ideasExchange, transactions and relationshipsMarkets 1-5 Goal 2: Identify the five core marketplace concepts.
  7. 7. Understanding the Marketplace Core Concepts Value  Customers formNeeds, wants, and expectations demands regarding valueMarketing offers:  Marketers must including products, deliver value to services and consumers experiences SatisfactionValue and satisfaction  A satisfied customerExchange, transactions will buy again and tell and relationships others about their good experienceMarkets 1-6 Goal 2: Identify the five core marketplace concepts.
  8. 8. Understanding the Marketplace Core Concepts Exchange  The act of obtaining aNeeds, wants, and desired object from demands someone by offeringMarketing offers: something in return including products,  One exchange is not the services and goal, relationships with experiences several exchanges areValue and satisfaction the goal  Relationships are builtExchange, transactions through delivering value and relationships and satisfactionMarkets 1-7 Goal 2: Identify the five core marketplace concepts.
  9. 9. Understanding the Marketplace Core Concepts Market  Set of actual andNeeds, wants, and potential buyers of a demands productMarketing offers:  Marketers seek buyers including products, that are profitable services and experiencesValue and satisfactionExchange, transactions and relationshipsMarkets 1-8 Goal 2: Identify the five core marketplace concepts.
  10. 10. Elements of aModern Marketing System 1-9
  11. 11. Marketing ManagementMarketing management is the art andscience of choosing target markets andbuilding profitable relationships withthem.  This definition must include answers to two questions: • What customers will we serve? • How can we serve these customers best? 1 - 10Goal 3: Identify elements of a customer-driven strategy.
  12. 12. Selecting Customers and Creating ValueCustomer Management  What customers will we serve?  Marketers select customers that can be served profitablyValue Proposition  How can we serve these customers best?  Includes the set of benefits or values a company promises to deliver to consumers to satisfy their needs 1 - 11 Goal 3: Identify elements of a customer-driven strategy.
  13. 13. Marketing ManagementProduction Management Product Concept Orientations Concept Selling Marketing Concept Concept Societal Marketing Concept 1 - 12
  14. 14. Marketing Management Philosophies • Consumers favor products that are available and highly affordable. Production Concept • Improve production and distribution. • Consumers favor products that offer the most quality, performance, and Product Concept innovative features. • Consumers will buy products only if Selling Concept the company promotes/ sells these products. Practice at overcapacity. • Focuses on needs/ wants of target Marketing Concept markets & delivering satisfaction better than competitors. • Focuses on needs/ wants of targetSocietal Marketing Concept markets & delivering superior value. - 13 1 Improve society’s well-being.
  15. 15. The Selling and Marketing Concepts Contrasted 1 - 14
  16. 16. The Marketing PlanTransforms the marketing strategyinto action.Includes the marketing mix and the4P’s of marketing  Product  Price  Place  Promotion 1 - 15 Goal 3: Identify elements of a customer-driven strategy.
  17. 17. Building Customer RelationshipsCRM – Customer relationshipmanagementThe overall process of building andmaintaining profitable customerrelationships by delivering superiorcustomer value and satisfaction. Itdeals with all aspects of acquiring,keeping and growing customers. 1 - 16 Goal 4: Discuss CRM and capturing value.
  18. 18. Relationship Building Blocks: Value and SatisfactionPerceived Value  The customer’s evaluation of the difference between benefits and costs.  Customers often do not judge values and costs accurately or objectively.Customer Satisfaction  Product’s perceived performance relative to customer’s expectations. 1 - 17 Goal 4: Discuss CRM and capturing value.
  19. 19. Customer Relationship Levels & Tools: Not All Customers are EqualBasic Relationships  Low-margin customersFull Partnerships  High-margin & key customersTools: Frequency MarketingPrograms, Frequent Flier Programs, VeryImportant Customers, Club Marketing Programs 1 - 18 Goal 4: Discuss CRM and capturing value.
  20. 20. The Changing Nature of Customer RelationshipsRelating with Selected Customers:  Selective relationship management • Using customer profitability analysis for weeding out unprofitable customersRelating for the Long-Term  Retaining & building long-term relationships with customersRelating Directly  Direct marketing using online platforms 1 - 19
  21. 21. Partner Relationship Management Working with others inside & outside the company to jointly bring more value to customers.Partners Inside the Company  Forming cross-functional customers teams for creating customer valuePartners Outside the Company  Connecting with suppliers, channel partners & competitors  Forming strategic alliances 1 - 20
  22. 22. Capturing Value from Customers Key Concepts • Customer delight leads toCustomer Loyalty emotionaland Retention relationships andShare of loyaltyCustomer • CustomerCustomer Equity Lifetime Value shows true worth of a customer 1 - 21 Goal 4: Discuss CRM and capturing value.
  23. 23. Capturing Value from Customers Key Concepts • Share of customer’sCustomer Loyalty purchase in aand Retention product category.Share of • Achieved throughCustomer offering greaterCustomer Equity variety, cross-sell and up-sell strategies. 1 - 22 Goal 4: Discuss CRM and capturing value.
  24. 24. Capturing Value from Customers Key Concepts • The combined customer lifetime values of all currentCustomer Loyalty and potentialand Retention customers. • Measures a firm’sShare of performance, but in aCustomer manner that looks toCustomer Equity the future. • Choosing the “best” customers is key 1 - 23 Goal 4: Discuss CRM and capturing value.
  25. 25. Customer Relationship Groups Butterflies: True Friends: Good fit between Good fit between High company’s offering & company’s offering & Profitability customers needs; high customers needs; highest profit potential profit potential Potential Strangers: Barnacles:Profitability Good fit between Good fit between Low company’s offering & company’s offering & Profitability customers needs; high customers needs; high profit potential profit potential Short-term Customers Long-term Customers 1 - 24
  26. 26. Marketing Landscape Challenges Growth of the InternetDigital age Advances inGlobalization telecommunications, i nformation, transportEthics and social ationresponsibility  Customer research and trackingNot-for-profit  Product developmentmarketing  Distribution  New advertising toolsMarketing  24/7 marketing through the Internetrelationships 1 - 25 Goal 5: Discuss trends and forces.
  27. 27. Marketing Landscape Challenges Geographical and cultural distancesDigital age have shrunkGlobalization  Greater marketEthics and social coverageresponsibility  More options for purchasing andNot-for-profit manufacturingmarketing  Increased competition from foreignMarketing competitorsrelationships 1 - 26 Goal 5: Discuss trends and forces.
  28. 28. Marketing Landscape Challenges Marketers need to take greatDigital age responsibility for theGlobalization impact of theirEthics and social actionsresponsibility  Caring capitalism is aNot-for-profit way to differentiate your companymarketingMarketingrelationships 1 - 27 Goal 5: Discuss trends and forces.
  29. 29. Marketing Landscape Challenges Many organizations are realizing theDigital age importance ofGlobalization strategic marketingEthics and social  Performing artsresponsibility  Government agencies CollegesNot-for-profit   Hospitalsmarketing  ChurchesMarketingrelationships 1 - 28 Goal 5: Discuss trends and forces.
  30. 30. Marketing Landscape Challenges Profits through managing long-termDigital age customer equityGlobalization  Improve customerEthics and social knowledgeresponsibility  Target profitable customersNot-for-profit  Keep profitablemarketing customersMarketingrelationships 1 - 29 Goal 5: Discuss trends and forces.
  31. 31. What is MarketingThe process of building profitablecustomer relationships by creating valuefor customers and capturing value inreturn 1 - 30

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