Learning Goals1. Define marketing and the marketing process.2. Explain the importance of understanding customers and identify the five core marketplace concepts3. Identify the elements of a customer-driven marketing strategy and discuss the marketing management orientations.4. Discuss customer relationship management and creating value for and capturing value from customers5. Describe the major trends and forces changing the marketing landscape 2
Case Study NASCAR – What is its secret? Creating Value• Create compelling blend of Capturing Value live racing events, media • Fans spends nearly $700 a coverage and Web sites. year on NASCAR• Go out of its way to show merchandise the customer a good time. • Second highest regular• Create wholesome family- season sport on TV oriented environment • NASCAR attracts over 250 big-name sponsors 3
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 profitable customer relationships Attracting new customers Retaining and growing current customers 4 Goal 1: Define marketing and the marketing process.
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 5 Goal 1: Define marketing and the marketing process.
Understanding the Marketplace• Needs, wants, and demands Need• Core Concepts Marketing offers: including State of felt deprivation products, services and Example: Need food experiences Wants• Value and satisfaction The form of needs as shaped• Exchange, transactions and by culture and the individual relationships Example: Want a Big Mac• Markets Demands Wants which are backed by buying power 6 Goal 2: Identify the five core marketplace concepts.
Understanding the Marketplace• Needs, wants, and demands Marketing offer• Core Concepts Marketing offers: including Combination of products, products, services and services, information or experiences experiences that satisfy a• Value and satisfaction need or want Offer may include services,• Exchange, transactions and activities, people, places, relationships information or ideas• Markets 7 Goal 2: Identify the five core marketplace concepts.
Understanding the Marketplace• Needs, wants, and demands Value• Core Concepts Marketing offers: including Customers form products, services and expectations regarding value experiences Marketers must deliver• Value and satisfaction value to consumers• Exchange, transactions and Satisfaction relationships A satisfied customer will• Markets buy again and tell others about their good experience 8 Goal 2: Identify the five core marketplace concepts.
Understanding the Marketplace• Needs, wants, and demands Exchange• Core Concepts Marketing offers: including The act of obtaining a products, services and desired object from experiences someone by offering• Value and satisfaction something in return One exchange is not the• Exchange, transactions and goal, relationships with relationships several exchanges are the• Markets goal Relationships are built through delivering value and satisfaction 9 Goal 2: Identify the five core marketplace concepts.
Understanding the Marketplace• Needs, wants, and demands Market• Core Concepts Marketing offers: including Set of actual and potential products, services and buyers of a product experiences Marketers seek buyers that• Value and satisfaction are profitable• Exchange, transactions and relationships• Markets 10 Goal 2: Identify the five core marketplace concepts.
Marketing Management Marketing management is the art and science of choosing target markets and building profitable relationships with them. This definition must include answers to two questions: What customers will we serve? How can we serve these customers best? 11Goal 3: Identify elements of a customer-driven strategy.
Selecting Customers and Creating Value Customer Management What customers will we serve? Marketers select customers that can be served profitably Value 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 12 Goal 3: Identify elements of a customer-driven strategy.
Marketing Management Marketing Orientations• Production concept • Selling concept• Product concept • Marketing concept • Societal marketing concept 13 Goal 3: Identify elements of a customer-driven strategy.
The Marketing Plan Transforms the marketing strategy into action Includes the marketing mix and the 4P’s of marketing Product Price Place Promotion 14 Goal 3: Identify elements of a customer-driven strategy.
Building Customer Relationships CRM – Customer relationship management The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, keeping and growing customers. 15 Goal 4: Discuss CRM and capturing value.
Value and Satisfaction Perceived 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. 16 Goal 4: Discuss CRM and capturing value.
Not All Customers are Equal Basic Relationships Low-margin customers Full Partnerships Key customers Selective relationship management Weeding out unprofitable customers 17 Goal 4: Discuss CRM and capturing value.
Capturing Value from Customers Customer Loyalty Customer delight Key Concepts and Retention leads to emotional Share of Customer relationships and Customer Equity loyalty Customer Lifetime Value shows true worth of a customer 18 Goal 4: Discuss CRM and capturing value.
Capturing Value from Customers Customer Loyalty Share of customer’s Key Concepts and Retention purchase in a Share of Customer product category. Customer Equity Achieved through offering greater variety, cross-sell and up-sell strategies. 19 Goal 4: Discuss CRM and capturing value.
Capturing Value from Customers Customer Loyalty • The combined customer Key Concepts and Retention lifetime values of all current and potential customers. Share of Customer • Measures a firm’s performance, but in a Customer Equity manner that looks to the future. • Choosing the “best” customers is key 20 Goal 4: Discuss CRM and capturing value.
Marketing Landscape Digital age Growth of the Internet Challenges Globalization Advances in telecommunications, Ethics and social information, responsibility transportation Customer research and Not-for-profit tracking Product development marketing Distribution Marketing New advertising tools 24/7 marketing through the relationships Internet 21 Goal 5: Discuss trends and forces.
Marketing Landscape Digital age Geographical and Challenges Globalization cultural distances have Ethics and social shrunk Greater market coverage responsibility More options for purchasing Not-for-profit and manufacturing Increased competition from marketing foreign competitors Marketing relationships 22 Goal 5: Discuss trends and forces.
Marketing Landscape Digital age Marketers need to take Challenges Globalization great responsibility for Ethics and social the impact of their responsibility actions Caring capitalism is a way Not-for-profit to differentiate your marketing company Marketing relationships 23 Goal 5: Discuss trends and forces.
Marketing Landscape Digital age Many organizations are Challenges Globalization realizing the Ethics and social importance of strategic responsibility marketing Performing arts Not-for-profit Government agencies marketing Colleges Hospitals Marketing Churches relationships 24 Goal 5: Discuss trends and forces.
Marketing Landscape Digital age Profits through Challenges Globalization managing long-term Ethics and social customer equity Improve customer responsibility knowledge Not-for-profit Target profitable customers Keep profitable customers marketing Marketing relationships 25 Goal 5: Discuss trends and forces.
What is Marketing The process of building profitable customer relationships by creating value for customers and capturing value in return 26