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Ch01

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mar

mar

Published in: Business, Technology
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Transcript

  • 1. Chapter 1 Marketing : Creating and Capturing Customer Value
  • 2. What is Marketing?
    • Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at-large.
    • More simply: Marketing is the delivery of customer satisfaction at a profit .
  • 3. What Motivates a Consumer to Take Action?
    • Needs – NOT invented by marketers. They are a basic parts of human makeup: states of felt deprivation including physical needs for food, social needs for belonging and individual needs for self-expression. E.g. I am thirsty.
    • Wants - form that a human need takes as shaped by culture and individual personality. E.g. I want a coca-cola.
    • Demands - human wants backed by buying power. E.g. I have money to buy a coca-cola.
  • 4. Marketing Offers
    • Products - anything that can be offered to a market to satisfy a need or want.
    • Products also include: Persons, Places, Organizations, Activities, and Ideas.
    • Services - activities or benefits offered for sale that are essentially intangible and don’t result in the ownership of anything.
    • Examples: banking, airlines, haircuts, and hotels.
    Marketing Offer : Some combination of products, services, information, Or experiences offered to a market to satisfy a need or want.
  • 5.
    • Experiences – marketers look beyond the attributes of the products and services they sell. They create brand meaning and brand experiences for customers.
    • Coca-Cola
    • Nike/Nike Town
    • Disney World
    Marketing Offers (Cont.)
  • 6. Market
    • “ Market” in marketing term: A set of all actual and potential buyers of a product or service.
    • “ Market” in financial term:
      • What is the“commodity market”?
  • 7. Marketing Management Philosophies(1) Production Concept
    • Demand exceeds supply
    • Consumers favor products that are available and highly affordable
    • Improve production and distribution
    • Run a risk of focusing too narrowly on their own operation
    • Texas Instrument: digital watch
  • 8. Marketing Management Philosophies(2) Product Concept
    • Increasing competition
    • Consumers favor products that offer the most quality, performance, and innovative features
    • Continuous product improvement
    • lead to Marketing Myopia
    • Railroad: trains vs. transportation
  • 9. Marketing Management Philosophies(3) Selling Concept
    • Over capacity
    • Consumers will not buy enough of the organization’s products unless the organization undertake a large-scale promotion/selling
    • Track down prospects and selling them on product benefits
    • Sell what they make rather than what the market want
    • focus on transactions not long-term relationship
    • Unsought goods: encyclopedias, insurance
  • 10. Marketing Management Philosophies(4) Marketing Concept
    • Focuses on needs/ wants of target markets & delivering satisfaction more effectively & efficiently than competitors
    • Total customer satisfaction
    • Procter & Gamble, Marriot, Nordstrom, L.L.Bean
    • Overlook conflicts between consumer short-run wants and long-run welfare
  • 11. Selling vs. Marketing Concepts Contrasted Starting Point Focus Means Ends The Selling Concept: inside-out The Marketing Concept: Outside-in Factory Existing Products Selling and Promoting Profits through Sales Volume Market Customer Needs Integrated Marketing Profits through Customer Satisfaction
  • 12. Marketing Management Philosophies (5) Society (Human Welfare) Consumers (Wants) Company (Profits) Societal Marketing Concept Fast-food industry: high in fat and salt; packages lead to waste & pollution Johnson & Johnson: supporting many community and employee programs recalled cyanide-laced Tylenol costing $240 million
  • 13. How do Consumers Obtain Products and Services?
    • Exchanges - act of obtaining a desired object from someone by offering something, such as money, another good, or a service, in return.
    • Transactions - trade of values between parties: one party gives X to another party and gets Y in return. A transaction is marketing’s unit of measurement.
    • Relationship Marketing – the process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.
  • 14. Relationship Building Blocks
    • Customers – refer to both end users and marketing intermediaries.
    • Customer Perceived Value - difference between the value the customer gains from owning and using a product and the cost of obtaining the product. (perceived benefits – perceived costs)
    • Customer Satisfaction - depends on the product’s perceived performance in delivering value relative to a buyer’s expectations. (perceived performance- perceived expectations)
  • 15. Customer Relationship Management
    • The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
    • Customer Relationship Levels
      • Basic Relationships with Low –margin customers
      • Full Partnership with high-margin customers
    • Customer Loyalty and Retention Programs
      • Adding financial benefits: frequent flier program
      • Adding financial benefits + social benefits: “Swatch: the Club”
      • Adding financial benefits + social benefits + Structural Ties: FedEx
  • 16. From Database Marketing to Customer Relationship Management (CRM)
    • Customer Relationship Management has been defined narrowly as a customer data management activity.
    • Attract new customers, and create transactions with them
    • Retain current customers, and build profitable, long-term relationships with current customers
    • Customer profitability analysis to weed out losing customers and target winning ones.
    • Connecting with customers more directly.
  • 17. Customer Relationship Groups Short-term Customers Long-term Customers High- Profit Low- Profit Butterflies Good fit between company’s offerings and customers’ needs; High profit potential True Friends Good fit between company’s offerings and customers’ needs; Highest profit potential Strangers Little fit between company’s offerings and customers’ needs; Lowest profit potential Barnacles Limited fit between company’s offerings and customers’ needs; Low profit potential
  • 18. Return on Marketing Investment (ROMI) from reading: “Drive ROMI by Tying Brand Equity to Consumers”
    • Financial performance
    • Market share
    • Profits
    • Sales
    • Customer Purchase Behavior
    • New purchase
    • Re-purchase
    • Segmentation
    • Brand Equity
    • Awareness
    • Attitude
    • Perceived quality
    • Loyalty
    • Associations
    • Marketing Activities
    • Rebate
    • Ad
    • Promotion
    • Sponsorship
    • Customer Services
    • New Products
    Before
  • 19. Partner Relationship Marketing
    • Working closely with partners in other company departments and outside the company to jointly bring greater value to customers.
    • Every employee must be customer focused.
    • Supply chain management
    • Strategic alliances
  • 20. Modern Marketing System Suppliers End User Market Marketing Intermediaries Competitors Company (Marketer) Environment Environment
  • 21. The Marketing Process
    • Understand the marketplace and customer needs and wants
    • Design a customer Driven marketing strategy
    • Construct a marketing program that delivers superior value
    • Build profitable relationships and create customer delight
    • Capture value from customers to create profits and customer quality
  • 22. New Marketing Challenges Emerging Challenges Nonprofit Marketing New Marketing Landscape & Information Technology Ethical Concerns Globalization Changing World Economy
  • 23. Corporate Social Responsibility (CSR)
    • What corporate actions can be qualified as CSR?
    • What are the motivations that motivate companies to behave as good corporate citizens?
    • How to evaluate the result of CSR?
      • What are the two tests of CSR?
      • What are the four types of CSR?
    • Do you agree with the following statements?
      • “ Corporate philanthropy is charity with other people’s money.”
      • “ Multinational companies should be responsible for their foreign workers’ benefits.”
    • What is the stance/position of this article?

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