Mantra of Marketing Marketing’s job is to create, communicate and deliver value to a target marketat a profit. Market Mana...
Marketing Vs. SellingSELLING                        MARKETING1 Emphasis is on the product   1 Emphasis on consumer needs w...
Marketing Vs. SellingSelling                      Marketing7 Emphasis on staying with   7 Emphasis on innovation on every ...
Marketing Mix        Marketing Mix is the combination of fourelements, called the 4P’s (Product, Price, Promotion and     ...
Marketing Mix - A mixture of several ideas and plans followed by a marketingrepresentative to promote a particular product...
Marketing Mix
Product Mix• Set of all product offered for sale by a  company.• It consist of various product line.• Any company’s produc...
Product Mix• Width : Number of different product lines  carries by the company.• Length : Total number of items in the pro...
Product Mix (P&G)
5        Creating Customer Value,                     Satisfaction,                      and LoyaltyMarketing Management, ...
Chapter Questions• What are customer value, satisfaction, and loyalty,  and how can companies deliver them?• What is the l...
What is Customer Perceived Value?        Customer perceived value is the difference           between the prospective cust...
Figure 5.2 Determinants of                             Customer Perceived Value                        Total customer bene...
Steps in a Customer Value Analysis    • Identify major attributes and benefits that      customers value    • Assess the q...
What is Loyalty?     Loyalty is a deeply held commitment to re-buy      or re-patronize a preferred product or service    ...
Top Brands in Customer Loyalty• Avis                          •   Land’s End• Google                        •   Coors• L.L...
Measuring Satisfaction•    Periodic surveys•    Customer loss rate•    Mystery shoppers•    Monitor competitive performanc...
What is Quality?                 Quality is the totality of features and                   characteristics of a product or...
Maximizing Customer Lifetime Value• Customer profitability• Customer equity• Lifetime valueCopyright © 2009 PearsonEducati...
What is Customer Relationship Management?          CRM is the process of carefully managing            detailed informatio...
Framework for CRM• Identify prospects and customers• Differentiate customers by needs and value to  company• Interact to i...
Customer Retention• Acquisition of customers can cost 5 times more than  retaining current customers.• The average custome...
Customer Life time Value     customer lifetime value (CLV), lifetime     customer value (LCV), or user lifetime   value (L...
Customer Lifetime ValueAdvantages of CLV:•   management of customer relationship as an asset•   monitoring the impact of m...
Mantra of marketing,mix,customer values
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Mantra of marketing,mix,customer values

  1. 1. Mantra of Marketing Marketing’s job is to create, communicate and deliver value to a target marketat a profit. Market Management needs to “Create Value,” “Communicate Value,” and “Deliver Value.”There are three businesses here: Product Management; Brand Management; and Customer Management. (Kotler at London Business Forum)
  2. 2. Marketing Vs. SellingSELLING MARKETING1 Emphasis is on the product 1 Emphasis on consumer needs wants2 Company Manufactures the 2 Company first determines customersproduct first needs and wants and then decides out3 Management is sales how to deliver a product to satisfy thesevolume oriented wants4 Planning is short-run- 3 Management is profit orientedoriented in terms of today’s 4 Planning is long-run-oriented in today’sproducts and markets products and terms of new5 Stresses needs of seller products, tomorrow’s markets6 Views business as a good and future growthproducing process 5 Stresses needs and wants of buyers 6 Views business as consumer producing process satisfying process
  3. 3. Marketing Vs. SellingSelling Marketing7 Emphasis on staying with 7 Emphasis on innovation on every existingexisting technology and technology and reducing every sphere, onreducing costs providing better costs value to the customer by adopting a superior technology8 Different departmentswork as in a highly separate 8 All departments of the business integratedwater tight compartments manner, the sole purpose being generation of consumer satisfaction9 Cost determines Price 9. Consumer determine price, price determines cost10 Selling views customeras a last link in business 10. Marketing views the customer last link in business as the very purpose of the business
  4. 4. Marketing Mix Marketing Mix is the combination of fourelements, called the 4P’s (Product, Price, Promotion and Place), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy. (Philip Kotler)
  5. 5. Marketing Mix - A mixture of several ideas and plans followed by a marketingrepresentative to promote a particular product or brand is called marketing mix. Severalconcepts and ideas combined together to formulate final strategies helpful in making abrand popular amongst the masses form marketing mix.Elements of Marketing MixThe elements of marketing mix are often called the four P’s of marketing.• Product- Goods manufactured by organizations for the end-users are called products. (Tangible Product and Intangible Product -Services)• Price - The money which a buyer pays for a product is called as price of the product.• Place - Place refers to the location where the products are available and can be sold or purchased.• Promotion - Advertising, Print media, Television, radio , Billboards, hoardings, banners, Taglines , Word of mouth.Lately three more P’s have been added to the marketing mix. Theyare as follows:• People - The individuals involved in the sale and purchase of products or services come under people.• Process - Process includes the various mechanisms and procedures which help the product to finally reach its target market• Physical Evidence - With the help of physical evidence, a marketer tries to communicate the USP’s and benefits of a product to the end users
  6. 6. Marketing Mix
  7. 7. Product Mix• Set of all product offered for sale by a company.• It consist of various product line.• Any company’s product mix has four dimension :1. Width,2. Length,3. Depth,4. Consistency.
  8. 8. Product Mix• Width : Number of different product lines carries by the company.• Length : Total number of items in the product mix of the company.• Depth : Assortment of size, color and models offered in each item of a product line.• Consistency : It refers to the relationship of various product line either in their end use, production requirement, distribution channel or other way.
  9. 9. Product Mix (P&G)
  10. 10. 5 Creating Customer Value, Satisfaction, and LoyaltyMarketing Management, 13th ed
  11. 11. Chapter Questions• What are customer value, satisfaction, and loyalty, and how can companies deliver them?• What is the lifetime value of customers?• How can companies cultivate strong customer relationships?• How can companies both attract and retain customers?• What is database marketing? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
  12. 12. What is Customer Perceived Value? Customer perceived value is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives.Copyright © 2009 PearsonEducation, Inc. Publishing asPrentice Hall
  13. 13. Figure 5.2 Determinants of Customer Perceived Value Total customer benefit Total customer cost Product benefit Monetary cost Services benefit Time cost Personal benefit Energy cost Image benefit Psychological costCopyright © 2009 PearsonEducation, Inc. Publishing asPrentice Hall
  14. 14. Steps in a Customer Value Analysis • Identify major attributes and benefits that customers value • Assess the qualitative importance of different attributes and benefits • Assess the company’s and competitor’s performances on the different customer values against rated importance • Examine ratings of specific segments • Monitor customer values over timeCopyright © 2009 PearsonEducation, Inc. Publishing asPrentice Hall
  15. 15. What is Loyalty? Loyalty is a deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.Copyright © 2009 PearsonEducation, Inc. Publishing asPrentice Hall
  16. 16. Top Brands in Customer Loyalty• Avis • Land’s End• Google • Coors• L.L. Bean • Hyatt• Samsung (mobile • Marriott phones) • Verizon• Yahoo! • KeySpan Energy• Canon (office copiers) • Miller Genuine Draft • AmazonCopyright © 2009 PearsonEducation, Inc. Publishing asPrentice Hall
  17. 17. Measuring Satisfaction• Periodic surveys• Customer loss rate• Mystery shoppers• Monitor competitive performanceCopyright © 2009 PearsonEducation, Inc. Publishing asPrentice Hall
  18. 18. What is Quality? Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.Copyright © 2009 PearsonEducation, Inc. Publishing asPrentice Hall
  19. 19. Maximizing Customer Lifetime Value• Customer profitability• Customer equity• Lifetime valueCopyright © 2009 PearsonEducation, Inc. Publishing asPrentice Hall
  20. 20. What is Customer Relationship Management? CRM is the process of carefully managing detailed information about individual customers and all customer touch points to maximize customer loyalty.Copyright © 2009 PearsonEducation, Inc. Publishing asPrentice Hall
  21. 21. Framework for CRM• Identify prospects and customers• Differentiate customers by needs and value to company• Interact to improve knowledge• Customize for each customerCopyright © 2009 PearsonEducation, Inc. Publishing asPrentice Hall
  22. 22. Customer Retention• Acquisition of customers can cost 5 times more than retaining current customers.• The average customer loses 10% of its customers each year.• A 5% reduction to the customer defection rate can increase profits by 25% to 85%.• The customer profit rate increases over the life of a retained customer.Copyright © 2009 PearsonEducation, Inc. Publishing asPrentice Hall
  23. 23. Customer Life time Value customer lifetime value (CLV), lifetime customer value (LCV), or user lifetime value (LTV) is a prediction of the net profitattributed to the entire future relationship with a customer.
  24. 24. Customer Lifetime ValueAdvantages of CLV:• management of customer relationship as an asset• monitoring the impact of management strategies and marketing investments on the value of customer assets• determination of the optimal level of investments in marketing and sales activities• encourages marketers to focus on the long-term value of customers instead of investing resources in acquiring "cheap" customers with low total revenue value• implementation of sensitivity analysis in order to determinate getting impact by spending extra money on each customer.• optimal allocation of limited resources for on going marketing activities in order to achieve a maximum return• a good basis for selecting customers and for decision making regarding customer specific communication strategies• measurement of customer loyalty (proportion of purchase, probability of purchase and repurchase, purchase frequency and sequence etc.

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