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1- 1Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
i t s good andgood for you
Chapter 1Marketing:
Creating and Capturing Customer Value
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1- 2Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Creating and Capturing CustomerValue
What Is Marketing? Understand the Marketplace and Customer Needs
Designing a Customer-Driven Marketing Strategy Preparing an Integrated Marketing Plan and Program Building Customer Relationships Capturing Value from Customers The Changing Marketing Landscape
Topic Outline
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What Is Marketing?
Marketing is a process by whichcompanies create value for customers andbuild strong customer relationships tocapture value from customers in return
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What Is Marketing?The Marketing Process
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Understanding the Marketplaceand Customer Needs
States of deprivation Physical food, clothing, warmth, safety Social belonging and affection Individual knowledge and self-expression
Needs
Form that needs take as they are shaped by cultureand individual personality Wants
Wants backed by buying power Demands
Customer Needs, Wants, and Demands
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Understanding the Marketplaceand Customer Needs
Market offerings are somecombination of products,services, information, or
experiences offered to amarket to satisfy a need orwant
Marketing myopia isfocusing only on existing
wants and losing sight ofunderlying consumerneeds
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Publishing as Prentice Hall
Understanding the Marketplaceand Customer Needs
Customer Value and SatisfactionExpectations
Customers Value and
satisfaction
Marketers Set the right level of
expectations Not too high or low
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Publishing as Prentice Hall
Exchange is the act of obtaining a desiredobject from someone by offeringsomething in return
Understanding the Marketplace
and Customer Needs
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Publishing as Prentice Hall
Understanding the Marketplaceand Customer Needs
Markets are the set of actual andpotential buyers of a product
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Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
Marketing management is the art andscience of choosing target markets andbuilding profitable relationships with them What customers will we serve?
How can we best serve these customers?
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Designing a Customer-DrivenMarketing Strategy
Market segmentation refers to dividing themarkets into segments of customers
Target marketing refers to which segmentsto go after
Selecting Customers to Serve
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Designing a Customer-DrivenMarketing Strategy
Choosing a Value Proposition
Value proposition
Set of benefits orvalues a companypromises to deliver to
customers to satisfytheir needs
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Designing a Customer-DrivenMarketing Strategy
Productionconcept
Productconcept
Sellingconcept
Marketingconcept
Societalconcept
Marketing Management Orientations
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Designing a Customer-DrivenMarketing Strategy
Production concept is the idea thatconsumers will favor products that areavailable or highly affordable
Marketing Management Orientations
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Designing a Customer-DrivenMarketing Strategy
Product concept is the idea that consumerswill favor products that offer the mostquality, performance, and features.Organization should therefore devote its
energy to making continuous productimprovements.
Marketing Management Orientations
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Designing a Customer-DrivenMarketing Strategy
Selling concept is the idea that consumers
will not buy enough of the firms productsunless it undertakes a large scale sellingand promotion effort
Marketing Management Orientations
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Designing a Customer-DrivenMarketing Strategy
Marketing Management Orientations
Marketing concept is theidea that achievingorganizational goalsdepends on knowing theneeds and wants of the
target markets anddelivering the desiredsatisfactions better than
competitors do
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Designing a Customer-DrivenMarketing Strategy
Marketing Management Orientations
Societal marketing conceptis the idea that a company
should make good marketingdecisions by consideringconsumers wants, thecompanys requirements,consumers long -terminterests, and societys long -run interests
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Designing a Customer-DrivenMarketing Strategy
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The marketing mix: set of tools (four Ps) thefirm uses to implement its marketing
strategy. It includes product, price,promotion, and place.
Integrated marketing program:
comprehensive plan that communicatesand delivers the intended value to chosencustomers.
Preparing an Integrated Marketing
Plan and Program
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Building Customer Relationships
The overall process ofbuilding and maintaining
profitable customerrelationships by deliveringsuperior customer valueand satisfaction
Customer Relationship Management (CRM)
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Building Customer RelationshipsRelationship Building Blocks: Customer Value
and Satisfaction
Customer-perceived value
The differencebetween totalcustomer valueand totalcustomer cost
Customersatisfaction
The extent towhich aproductsperceivedperformancematches abuyersexpectations
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Building Customer RelationshipsCustomer Relationship Levels and Tools
BasicRelationships
FullPartnerships
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Building Customer Relationships
Relating with more carefully selected
customers uses selective relationshipmanagement to target fewer, moreprofitable customers
Relating more deeply and interactively by
incorporating more interactive two wayrelationships through blogs, Websites,online communities and social networks
The Changing Nature of CustomerRelationships
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Building Customer Relationships
Customer-managed relationshipsMarketing relationships in which
customers, empowered by todays new
digital technologies, interact withcompanies and with each other to shape
their relationships with brands.
The Changing Nature of CustomerRelationships
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Partner relationship management involvesworking closely with partners in other
company departments and outside thecompany to jointly bring greater value tocustomers
Building Customer Relationships
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Building Customer Relationships
Partners inside the company is everyfunction area interacting with customers
Electronically Cross-functional teams
Partners outside the company is how
marketers connect with their suppliers,channel partners, and competitors bydeveloping partnerships
Partner Relationship Management
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Building Customer Relationships
Supply chain is a channel that stretchesfrom raw materials to components to final
products to final buyers Supply chain management
Partner Relationship Management
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Capturing Value from Customers
Customer lifetime value is the value of theentire stream of purchases that the
customer wouldmake over alifetime of
patronage
Creating Customer Loyalty and Retention
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Capturing Value from Customers
Share of customer is the portion of thecustomers purchasing that a company getsin its product categories
Growing Share of Customer
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Capturing Value from
CustomersCustomer equity is
the total combined
customer lifetimevalues of all of thecompanys
customers
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Capturing Value from Customers
Right relationships with the right customersinvolves treating customers as assets that
need to be managed and maximized Different types of customers requiredifferent relationship managementstrategies
Building Customer Equity
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The Changing MarketingLandscape
Uncertain Economic Environment
New consumer frugality
Marketers focus on value for the customer
Th Ch gi g M k ti g
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The Changing MarketingLandscape
Digital Age
People are connected continuously to people
and information worldwide Marketers have great new tools to
communicate with customers
Internet + mobile communication devicescreates environment for online marketing
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The Changing MarketingLandscape
Rapid Globalization
Sustainable Marketing
Not-for-Profit Marketing
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So, What Is Marketing?Pulling It All Together