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1. Ch # 1, Marketing, Creating and Capturing Customer Value.ppt
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1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter One Marketing: Creating and Capturing Customer Value Instructor: Muhammad Faraz Khan
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2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Creating and Capturing Customer Value • 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 Topic Outline
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3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
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4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What Is Marketing? The Marketing Process
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5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Understanding the Marketplace and Customer Needs • Customer needs, wants, and demands • Market offerings • Value and satisfaction • Exchanges and relationships • Markets Core Concepts
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6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Understanding the Marketplace and Customer Needs • States of deprivation • Physical—food, clothing, warmth, safety • Social—belonging and affection • Individual—knowledge and self-expression Needs • Form that needs take as they are shaped by culture and individual personality Wants • Wants backed by buying power Demands Customer Needs, Wants, and Demands
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7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Understanding the Marketplace and Customer Needs • Market offerings are some combination of products, services, information, 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
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8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
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9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Exchange is the act of obtaining a desired object from someone by offering something in return Understanding the Marketplace and Customer Needs
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10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Understanding the Marketplace and Customer Needs Markets are the set of actual and potential buyers of a product
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11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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?
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12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy Market segmentation refers to dividing the markets into segments of customers Target marketing refers to which segments to go after Selecting Customers to Serve
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13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy Demarketing is marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it Selecting Customers to Serve
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14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy Choosing a Value Proposition The value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs
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15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy Production concept Product concept Selling concept Marketing concept Societal concept Marketing Management Orientations
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16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy Production concept is the idea that consumers will favor products that are available or highly affordable Marketing Management Orientations
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17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy 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. Marketing Management Orientations
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18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy 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 Marketing Management Orientations
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19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 competitors do
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20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
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21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy
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22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The marketing mix is the set of tools (four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place. Integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers. Preparing an Integrated Marketing Plan and Program
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23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Building Customer Relationships • The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Customer Relationship Management (CRM)
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24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Building Customer Relationships Relationship Building Blocks: Customer Value and Satisfaction Customer- perceived value • The difference between total customer value and total customer cost Customer satisfaction • The extent to which a product’s perceived performance matches a buyer’s expectations
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25 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Building Customer Relationships Customer Relationship Levels and Tools Basic Relationships Full Partnerships
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26 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Building 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 The Changing Nature of Customer Relationships
27.
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27 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Partner relationship management involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers Building Customer Relationships
28.
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28 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Building Customer Relationships • 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 Partner Relationship Management
29.
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29 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Building Customer Relationships • Supply chain is a channel that stretches from raw materials to components to final products to final buyers • Supply management • Strategic partners • Strategic alliances Partner Relationship Management
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30 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Capturing Value from Customers • Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage Creating Customer Loyalty and Retention
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31 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Capturing Value from Customers Share of customer is the portion of the customer’s purchasing that a company gets in its product categories Growing Share of Customer
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32 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Capturing Value from Customers Customer equity is the total combined customer lifetime values of all of the company’s customers
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33 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Capturing Value from Customers • Building the 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 – Build the right relationship with the right customers Building Customer Equity
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34 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Changing Marketing Landscape Digital age Rapid globalization Ethics and social responsibility Not-for-profit marketing Major Developments
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35 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall So, What Is Marketing? Pulling It All Together
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36 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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