marketing basics

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
• Define marketing and outline the steps in the
marketing process
• Understanding the Marketplace and Customer
Needs
• Designing a Customer-Driven Marketing Strategy
• Preparing an Integrated Marketing Plan and
Program
• Building Customer Relationships
• The Changing Marketing Landscape
Topic Outline

3. Chapter 1- slide 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

4. Chapter 1- slide 4
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
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
Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands

6. Chapter 1- slide 6
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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
Understanding the Marketplace
and Customer Needs

7. Chapter 1- slide 7
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction
Expectations

8. Chapter 1- slide 8
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Publishing as Prentice Hall
Exchanges - is the act of obtaining a
desired object from someone by offering
something in return
• Transactions - trade of values between
parties. Usually involves money and a
response.
• Relationships - building long-term
relationships with consumers, distributors,
dealers, and suppliers.
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
Understanding the Marketplace
and Customer Needs

10. Chapter 1- slide 10
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?

11. Chapter 1- slide 11
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 segmentation.
Selecting Customers to Serve

12. Chapter 1- slide 12
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

13. Chapter 1- slide 13
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
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
Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

15. Chapter 1- slide 15
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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

16. Chapter 1- slide 16
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. Organizations should
therefore devote its energy to making
continuous product improvements.
Marketing Management Orientations

17. Chapter 1- slide 17
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

18. Chapter 1- slide 18
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Publishing as Prentice Hall
Marketing & Sales
Concepts Contrasted

19. Chapter 1- slide 19
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
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
Marketing Management Orientations

20. Chapter 1- slide 20
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
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
Marketing Management Orientations

21. Chapter 1- slide 21
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

22. Chapter 1- slide 22
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
• CRM is concerned with managing detailed
information about individual customers and
all customer “touch points” to maximize
customer loyalty.
Customer Relationship Management
(CRM)

23. Chapter 1- slide 23
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Publishing as Prentice Hall
Building Customer Relationships
Relationship Building Blocks: Customer
Value and Satisfaction

24. Chapter 1- slide 24
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The New Marketing Landscape
Major Developments