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Chapter 1- slide 1
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter One
Creating and Capturing Customer
Value
Chapter 1- slide 2
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Creating and Capturing Customer Value
1. Define marketing and outline the steps in the
marketing process
2. Understanding the Marketplace and Customer
Needs
3. Designing a Customer-Driven Marketing Strategy
4. Preparing an Integrated Marketing Plan and
Program
5. Building Customer Relationships
Topic Outline
Chapter 1- slide 3
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
1. 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
Chapter 1- slide 4
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
2. Understanding the Marketplace
and Customer Needs
• Customer needs, wants, and demands
• Market offerings
• Customer Value and satisfaction
• Exchanges and relationships
• Markets
Core Concepts
Chapter 1- slide 5
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
2. Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands
Chapter 1- slide 6
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
• 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
2. Understanding the Marketplace
and Customer Needs
Chapter 1- slide 7
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
2. Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction
Expectations
Chapter 1- slide 8
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
2. Understanding the Marketplace
and Customer Needs
Chapter 1- slide 9
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Markets are the set of actual and
potential buyers of a product or service
2. Understanding the Marketplace
and Customer Needs
Chapter 1- slide 10
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
3. 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?
Chapter 1- slide 11
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
3. 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
Chapter 1- slide 12
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
3. 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
Chapter 1- slide 13
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
3. Designing a Customer-Driven
Marketing Strategy
• The value proposition is the set of
benefits or values a company promises
to deliver to customers to satisfy their
needs
Choosing a Value Proposition
Chapter 1- slide 14
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
3. Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
Chapter 1- slide 15
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Production concept is the idea that
consumers will favor products that are
available or highly affordable
Chapter 1- slide 16
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product concept is the idea that
consumers will favor products that offer
the most quality, performance, and
features. Organizations should
therefore devote its energy to making
continuous product improvements.
Chapter 1- slide 17
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
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
Chapter 1- slide 18
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
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
Chapter 1- slide 19
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
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
Chapter 1- slide 20
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.
4. Preparing an Integrated
Marketing Plan and Program
Chapter 1- slide 21
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
5. Building Customer
Relationships
• The overall process of building and
maintaining profitable customer
relationships by delivering superior
customer value and satisfaction
Customer Relationship Management
(CRM)
Chapter 1- slide 22
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Building Customer Relationships
Relationship Building Blocks: Customer
Value and Satisfaction
Chapter 1- slide 23
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Customer Perceived Value
Customer’s evaluation of the difference
between all of the benefits and all of
the costs of a marketing offer relative
to those of competing offers.
Chapter 1- slide 24
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Customer Satisfaction
Dependent on the product’s perceived
performance relative to a buyer’s
expectations.
– Customer satisfaction often leads to
consumer loyalty.
– Some firms seek to DELIGHT
customers by exceeding expectations.
Chapter 1- slide 25
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Building Customer Relationships
Customer Relationship Levels and Tools
Chapter 1- slide 26
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Customer Relationships
Loyalty and retention programs build
relationships and may feature:
– Financial Benefits
• EX: Frequency marketing programs
– Social Benefits
• EX: Club marketing programs
– Structural Ties
Focus is on relating directly to profitable
customers, for the long term.
Chapter 1- slide 27
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Partner Relationship Marketing
Marketing partners help create customer
value and assist in building customer
relationships.
Partners inside the firm:
– All employees customer focused
– Teams coordinate efforts toward customers
Partners outside the firm:
– Supply chain management
– Strategic alliances
Chapter 1- slide 28
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Customer Loyalty & Retention
• Customer
Lifetime Value
– The entire stream of
purchases that the
customer would
make over a lifetime
of patronage.
• Share of Customer
– The share a
company gets
of the customers
purchasing in their
product categories.
Chapter 1- slide 29
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
• The combined discounted customer
lifetime values of all the company’s
current and potential customers.
– Classify customers by loyalty and potential
profitability
– Manage accordingly
Customer Equity
Chapter 1- slide 30
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
• The New Digital Age
• Rapid Globalization
• Ethics and Social Responsibility
• Not-for-Profit Marketing
• New World of Marketing Relationships
New Marketing Landscape

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Creating and Capturing Customer Value

  • 1. Chapter 1- slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter One Creating and Capturing Customer Value
  • 2. Chapter 1- slide 2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Creating and Capturing Customer Value 1. Define marketing and outline the steps in the marketing process 2. Understanding the Marketplace and Customer Needs 3. Designing a Customer-Driven Marketing Strategy 4. Preparing an Integrated Marketing Plan and Program 5. Building Customer Relationships Topic Outline
  • 3. Chapter 1- slide 3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1. 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
  • 4. Chapter 1- slide 4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2. Understanding the Marketplace and Customer Needs • Customer needs, wants, and demands • Market offerings • Customer Value and satisfaction • Exchanges and relationships • Markets Core Concepts
  • 5. Chapter 1- slide 5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2. Understanding the Marketplace and Customer Needs Customer Needs, Wants, and Demands
  • 6. Chapter 1- slide 6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall • 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 2. Understanding the Marketplace and Customer Needs
  • 7. Chapter 1- slide 7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2. Understanding the Marketplace and Customer Needs Customer Value and Satisfaction Expectations
  • 8. Chapter 1- slide 8 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 2. Understanding the Marketplace and Customer Needs
  • 9. Chapter 1- slide 9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Markets are the set of actual and potential buyers of a product or service 2. Understanding the Marketplace and Customer Needs
  • 10. Chapter 1- slide 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 3. 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?
  • 11. Chapter 1- slide 11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 3. 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
  • 12. Chapter 1- slide 12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 3. 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
  • 13. Chapter 1- slide 13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 3. Designing a Customer-Driven Marketing Strategy • The value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs Choosing a Value Proposition
  • 14. Chapter 1- slide 14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 3. Designing a Customer-Driven Marketing Strategy Marketing Management Orientations
  • 15. Chapter 1- slide 15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Production concept is the idea that consumers will favor products that are available or highly affordable
  • 16. Chapter 1- slide 16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Organizations should therefore devote its energy to making continuous product improvements.
  • 17. Chapter 1- slide 17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
  • 18. Chapter 1- slide 18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
  • 19. Chapter 1- slide 19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
  • 20. Chapter 1- slide 20 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. 4. Preparing an Integrated Marketing Plan and Program
  • 21. Chapter 1- slide 21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 5. Building Customer Relationships • The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Customer Relationship Management (CRM)
  • 22. Chapter 1- slide 22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Building Customer Relationships Relationship Building Blocks: Customer Value and Satisfaction
  • 23. Chapter 1- slide 23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Customer Perceived Value Customer’s evaluation of the difference between all of the benefits and all of the costs of a marketing offer relative to those of competing offers.
  • 24. Chapter 1- slide 24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Customer Satisfaction Dependent on the product’s perceived performance relative to a buyer’s expectations. – Customer satisfaction often leads to consumer loyalty. – Some firms seek to DELIGHT customers by exceeding expectations.
  • 25. Chapter 1- slide 25 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Building Customer Relationships Customer Relationship Levels and Tools
  • 26. Chapter 1- slide 26 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Customer Relationships Loyalty and retention programs build relationships and may feature: – Financial Benefits • EX: Frequency marketing programs – Social Benefits • EX: Club marketing programs – Structural Ties Focus is on relating directly to profitable customers, for the long term.
  • 27. Chapter 1- slide 27 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Partner Relationship Marketing Marketing partners help create customer value and assist in building customer relationships. Partners inside the firm: – All employees customer focused – Teams coordinate efforts toward customers Partners outside the firm: – Supply chain management – Strategic alliances
  • 28. Chapter 1- slide 28 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Customer Loyalty & Retention • Customer Lifetime Value – The entire stream of purchases that the customer would make over a lifetime of patronage. • Share of Customer – The share a company gets of the customers purchasing in their product categories.
  • 29. Chapter 1- slide 29 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall • The combined discounted customer lifetime values of all the company’s current and potential customers. – Classify customers by loyalty and potential profitability – Manage accordingly Customer Equity
  • 30. Chapter 1- slide 30 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall • The New Digital Age • Rapid Globalization • Ethics and Social Responsibility • Not-for-Profit Marketing • New World of Marketing Relationships New Marketing Landscape