Objective 1 Define marketing and outline the steps in the marketing process. Objective 2 Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. Objective 3 Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. Objective 4 Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return. Objective 5 Describe the major trends and forces that are changing the marketing landscape in this age of relationships.

1. MARKETING
C R E AT I N G C U S T O M E R VA L U E A N D E N G A G E M E N T

2. Whatwill
welearn?
•Define marketing and outline the steps in the marketing
process.
1
•Explain the importance of understanding the
marketplace and customers and identify the five core
marketplace concepts.
2
•Identify the key elements of a customer-driven
marketing strategy and discuss the marketing
management orientations that guide marketing strategy.
3
•Discuss customer relationship management and identify
strategies for creating value for customers and capturing
value from customers in return.
4
•Describe the major trends and forces that are changing
the marketing landscape in this age of relationships.
5

3. Define marketing and outline the
steps in the marketing process.

4. WhatisMarketing?
Marketing is a process by which companies create
value for customers and build strong customer
relationships in order to capture value from
customers in return.

5. Understanding the marketplace
and customers needs

6. Needs,Wants
andDemand
• States of deprivation
Needs
• Form that needs take
Wants
• Wants backed by buying
power
Demands

7. MarketOffering:
Product,Services
andExperiences
• some combination of products,
services, information, or
experiences offered to a market
to satisfy a need or want.
Market offerings
• the mistake of paying more
attention to the specific
products they offer than to the
benefits and experiences
produced by these products
Marketing myopia

8. CustomerValueandSatisfaction
Customers
• Value and
satisfaction
Marketers
• Set the right
level of
expectations
Customer value and customer satisfaction are key building
blocks for developing and managing customer relationships.
If marketer set expectations too high, buyers will be
disappointed.
If marketer set expectations too low, they may satisfy those
who buy but fail to attract enough buyers.

9. Market
 set of actual and potential buyers of a product or service. These buyers share a particular need or want that can be satisfied through
exchange relationships.

10. Designing a Customer Value-Driven
Marketing Strategy

11. Selecting
Customer
toServe
•Market segmentation
•dividing the markets into segments of customers
•Target marketing
•which segments to go after
What customers will we serve?
•Choosing a value proposition
•Deciding marketing management orientation
How can we best serve these customers?

12. Customer Relationship
Management

13. • the overall process of building and
maintaining profitable customer
relationships by delivering superior
customer value and satisfaction.
Customer relationship
management
• the customer’s evaluation of the
difference between all the benefits and all
the costs of a market offering relative to
those of competing offers
customer-perceived value
• the product’s perceived performance
relative to a buyer’s expectations.
Customer satisfaction
Customer relations
Levels and Tools
Basic
Relationships
– low-margin
customers
Full
Partnerships
– high-
margin
customers
Frequency
Marketing
Programs –
reward
customers

14. Relationship
Management
•goes beyond just selling a brand to consumers. Its goal is to make the brand a
meaningful part of consumers’ conversations and lives.
Customer-engagement marketing
•Starbucks collects ideas from customers on new products, store changes, and
just about anything else that might make their Starbucks experience better.
My Starbucks Idea site
•working closely with partners in other company departments and outside the
company to jointly bring greater value to customers.
Partner relationship management
•the value of the entire stream of purchases that the customer would make over
a lifetime of
patronage.
Customer lifetime value
•total combined customer lifetime values of all of the company’s customers.
Customer equity

15. The Changing Marketing Landscape

16. • using digital marketing tools such as web sites, social media,
mobile ads and apps, online videos, e-mail, blogs, and other
digital platforms that engage consumers anywhere, anytime
via their computers, smartphones, tablets, Internet-ready TVs,
and other digital devices.
Digital and social media marketing
•Not-for-profit marketing growth
Rapid globalization
Sustainable marketing
TrendinMarketing

17. Marketing– Summary