Marketing: Managing Profitable Customer Relationships
<ul><li>Marketing is THE key business function.  Marketing is so basic that it cannot be considered a separate business fu...
What is Marketing? <ul><li>Marketing is managing profitable customer relationships </li></ul><ul><ul><li>Attracting new cu...
What is Marketing? <ul><li>Kotler’s social definition: </li></ul><ul><ul><li>“ Marketing is a social and managerial proces...
<ul><li>Goods </li></ul><ul><li>Services </li></ul><ul><li>Experiences </li></ul><ul><li>Events </li></ul><ul><li>Persons ...
<ul><li>Needs, wants, and demands </li></ul><ul><li>Marketing offers: including products, services and experiences </li></...
Marketing Satisfies Needs <ul><li>Marketing Concept </li></ul><ul><li>Identify needs and provide  products, service, ideas...
Marketing Satisfies Needs <ul><li>Need is the difference between a consumer’s actual state and some ideal or desired state...
Needs vs Wants <ul><li>A need is a desire for a particular product used to satisfy that need </li></ul><ul><ul><li>Wants a...
Marketing is an Exchange of Value <ul><li>Exchange is the heart of every marketing activity </li></ul><ul><li>What is valu...
Market <ul><li>Market is all available buyers who share common needs satisfied by specific products </li></ul><ul><ul><li>...
Marketing Management <ul><li>Marketing management  is “the art and science of choosing target markets and building profita...
Marketing Management <ul><li>Production concept </li></ul><ul><li>Product concept </li></ul><ul><li>Selling concept   </li...
Figure 1-3:   The Selling and Marketing  Concepts Contrasted
Figure 1-4:   Considerations Underlying the Societal Marketing Concept
What does this ad represent?
CRM <ul><li>CRM   –  Customer relationship  management   . . . “is the overall process of building and maintaining profita...
CRM <ul><li>It costs 5 to 10 times MORE to attract a new customer than it does to keep a current customer satisfied. </li>...
CRM <ul><li>Attracting, retaining and growing customers </li></ul><ul><li>Building customer relationships and customer equ...
CRM <ul><li>Customer equity </li></ul><ul><ul><li>The total combined customer lifetime values of all customers. </li></ul>...
CRM <ul><li>Customer relationship levels and tools </li></ul><ul><ul><li>Target market typically dictates type of relation...
Marketing Challenges <ul><li>Technological advances, rapid globalization, and continuing social and economic shifts are ca...
Marketing Challenges <ul><li>Via technology </li></ul><ul><li>With customers </li></ul><ul><li>With marketing partners </l...
Marketing Challenges <ul><li>Selective relationship management is key. </li></ul><ul><ul><li>Customer profitability analys...
Marketing Challenges <ul><li>Partner relationship management involves: </li></ul><ul><ul><li>Connecting inside the company...
Marketing Challenges <ul><li>Globalization </li></ul><ul><ul><li>Competition </li></ul></ul><ul><ul><li>New opportunities ...
 
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March 20 present 1

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March 20 present 1

  1. 1. Marketing: Managing Profitable Customer Relationships
  2. 2. <ul><li>Marketing is THE key business function. Marketing is so basic that it cannot be considered a separate business function. It is the whole business seen from the point of view of its final result the customer’s point of view _- Peter Drucker </li></ul>
  3. 3. What is Marketing? <ul><li>Marketing is managing profitable customer relationships </li></ul><ul><ul><li>Attracting new customers </li></ul></ul><ul><ul><li>Retaining and growing current customers </li></ul></ul><ul><li>“ Marketing” is NOT synonymous with “sales” or “advertising” </li></ul>
  4. 4. What is Marketing? <ul><li>Kotler’s social definition: </li></ul><ul><ul><li>“ Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.” </li></ul></ul>
  5. 5. <ul><li>Goods </li></ul><ul><li>Services </li></ul><ul><li>Experiences </li></ul><ul><li>Events </li></ul><ul><li>Persons </li></ul><ul><li>Places </li></ul><ul><li>Properties </li></ul><ul><li>Organizations </li></ul><ul><li>Information </li></ul><ul><li>Ideas </li></ul>What is Marketing? Many Things Can Be Marketed!
  6. 6. <ul><li>Needs, wants, and demands </li></ul><ul><li>Marketing offers: including products, services and experiences </li></ul><ul><li>Value and satisfaction </li></ul><ul><li>Exchange, transactions and relationships </li></ul><ul><li>Markets </li></ul>Core Marketing Concepts What is Marketing?
  7. 7. Marketing Satisfies Needs <ul><li>Marketing Concept </li></ul><ul><li>Identify needs and provide products, service, ideas, etc that satisfy those needs. </li></ul>
  8. 8. Marketing Satisfies Needs <ul><li>Need is the difference between a consumer’s actual state and some ideal or desired state </li></ul><ul><li>Physical, Social, Pyschological </li></ul>
  9. 9. Needs vs Wants <ul><li>A need is a desire for a particular product used to satisfy that need </li></ul><ul><ul><li>Wants are culturally based </li></ul></ul><ul><ul><li>Wants + Buying Power =Demand </li></ul></ul>
  10. 10. Marketing is an Exchange of Value <ul><li>Exchange is the heart of every marketing activity </li></ul><ul><li>What is value? </li></ul>
  11. 11. Market <ul><li>Market is all available buyers who share common needs satisfied by specific products </li></ul><ul><ul><li>Sellers – Industry </li></ul></ul><ul><ul><li>Size </li></ul></ul><ul><li>Marketplace – where buyers and sellers come together </li></ul><ul><ul><li>Marketspace </li></ul></ul>
  12. 12. Marketing Management <ul><li>Marketing management is “the art and science of choosing target markets and building profitable relationships with them.” </li></ul><ul><ul><li>Creating, delivering and communicating superior customer value is key. </li></ul></ul>
  13. 13. Marketing Management <ul><li>Production concept </li></ul><ul><li>Product concept </li></ul><ul><li>Selling concept </li></ul><ul><li>Marketing concept </li></ul><ul><li>Societal marketing concept </li></ul>Management Orientations Marketing Management
  14. 14. Figure 1-3: The Selling and Marketing Concepts Contrasted
  15. 15. Figure 1-4: Considerations Underlying the Societal Marketing Concept
  16. 16. What does this ad represent?
  17. 17. CRM <ul><li>CRM – Customer relationship management . . . “is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.” </li></ul>
  18. 18. CRM <ul><li>It costs 5 to 10 times MORE to attract a new customer than it does to keep a current customer satisfied. </li></ul><ul><li>Marketers must be concerned with the lifetime value of the customer. </li></ul>
  19. 19. CRM <ul><li>Attracting, retaining and growing customers </li></ul><ul><li>Building customer relationships and customer equity </li></ul><ul><li>Customer value/satisfaction </li></ul><ul><ul><li>Perceptions are key </li></ul></ul><ul><ul><li>Meeting/exceeding expectations creates satisfaction </li></ul></ul><ul><li>Loyalty and retention </li></ul><ul><ul><li>Benefits of loyalty </li></ul></ul><ul><ul><li>Loyalty increases as satisfaction levels increase </li></ul></ul><ul><ul><li>Delighting consumers should be the goal </li></ul></ul><ul><li>Growing share of customer </li></ul><ul><ul><li>Cross-selling </li></ul></ul>Key Concepts
  20. 20. CRM <ul><li>Customer equity </li></ul><ul><ul><li>The total combined customer lifetime values of all customers. </li></ul></ul><ul><ul><li>Measures a firm’s performance, but in a manner that looks to the future. </li></ul></ul>Key Concepts <ul><li>Attracting, retaining and growing customers </li></ul><ul><li>Building customer relationships and customer equity </li></ul>
  21. 21. CRM <ul><li>Customer relationship levels and tools </li></ul><ul><ul><li>Target market typically dictates type of relationship </li></ul></ul><ul><ul><ul><li>Basic relationships </li></ul></ul></ul><ul><ul><ul><li>Full relationships </li></ul></ul></ul><ul><ul><li>Customer loyalty and retention programs </li></ul></ul><ul><ul><ul><li>Adding financial benefits </li></ul></ul></ul><ul><ul><ul><li>Adding social benefits </li></ul></ul></ul><ul><ul><ul><li>Adding structural ties </li></ul></ul></ul><ul><li>Attracting, retaining and growing customers </li></ul><ul><li>Building customer relationships and customer equity </li></ul>Key Concepts
  22. 22. Marketing Challenges <ul><li>Technological advances, rapid globalization, and continuing social and economic shifts are causing marketplace changes. </li></ul><ul><li>Major marketing developments can be grouped under the theme of Connecting . </li></ul>
  23. 23. Marketing Challenges <ul><li>Via technology </li></ul><ul><li>With customers </li></ul><ul><li>With marketing partners </li></ul><ul><li>With the world </li></ul><ul><li>Advances in computers, telecommunications, video-conferencing, etc. are major forces. </li></ul><ul><ul><li>Databases allow for customization of products, messages and analysis of needs. </li></ul></ul><ul><li>The Internet </li></ul><ul><ul><li>Facilitates anytime, anywhere connections </li></ul></ul><ul><ul><li>Facilitates CRM </li></ul></ul><ul><ul><li>Creates marketspaces </li></ul></ul>Connecting
  24. 24. Marketing Challenges <ul><li>Selective relationship management is key. </li></ul><ul><ul><li>Customer profitability analysis separates winners from losers. </li></ul></ul><ul><li>Growing “share of customer” </li></ul><ul><ul><li>Cross-selling and up-selling are helpful. </li></ul></ul><ul><li>Direct sales to buyers are growing. </li></ul><ul><li>Via technology </li></ul><ul><li>With customers </li></ul><ul><li>With marketing partners </li></ul><ul><li>With the world </li></ul>Connecting
  25. 25. Marketing Challenges <ul><li>Partner relationship management involves: </li></ul><ul><ul><li>Connecting inside the company </li></ul></ul><ul><ul><li>Connecting with outside partners </li></ul></ul><ul><ul><ul><li>Supply chain management </li></ul></ul></ul><ul><ul><ul><li>Strategic alliances </li></ul></ul></ul><ul><li>Via technology </li></ul><ul><li>With customers </li></ul><ul><li>With marketing partners </li></ul><ul><li>With the world </li></ul>Connecting
  26. 26. Marketing Challenges <ul><li>Globalization </li></ul><ul><ul><li>Competition </li></ul></ul><ul><ul><li>New opportunities </li></ul></ul><ul><li>Greater concern for environmental and social responsibility </li></ul><ul><li>Increased marketing by nonprofit and public-sector entities </li></ul><ul><ul><li>Social marketing campaigns </li></ul></ul><ul><li>Via technology </li></ul><ul><li>With customers </li></ul><ul><li>With marketing partners </li></ul><ul><li>With the world </li></ul>Connecting

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