What’s Marketing?• Traditional Definition• Is it telling and selling?• Managing profitable customer relationships• Value creation• Ex-Tide, Wal Mart, Walt Disney, Apple
Marketing Process• Understand the marketplace and customer needs and wants• Design a customer driven marketing strategy• Construct an integrated marketing program that delivers superior value• Build profitable relationships and build customer delight• Capture value from customers and create profits and customer equity
Understanding marketplace and customer needs• Needs, wants and demands• Market offerings• Customer value and satisfaction• Exchanges and relationships• Markets-Interactivity -Marketing System
Design a customer driven marketing strategy• What customers we will serve?• How can we serve these customers best?• Marketing Strategies Orientations-Production Concept-Product Concept-Selling Concept-Marketing Concept (Herb Kelleher-Customer Department not marketing department /Customer DrivenCustomer Driving “Our goal is to lead customers where they want to go before they know where they want to go”-A 3M-Societal Marketing Concept Conflict between short run wants and long term welfare needs to be addressed. Need to balance three considerations-Customer, Company and Society J&J Credo-not a social welfare program, but plain good business
Integrated Marketing Program• All marketing mix tools need to be blended into an IM program that communicates and delivers intended value to chosen customers.
Building Customer Relations• Relationship Marketing vs Transaction Marketing• CRM means building and maintaining profitable customer relationships by delivering-Value-Not accurate and objective. Its on perceived value-Satisfaction• CRM, PRM
Capture Value from Customers• Creating Customer Loyalty and Retention• CLTV