Chapter One

Marketing:CreatingandCapturing CustomerValue
Chapter 1- slide 1

Creating and Capturing Customer Value

TopicOutline
WhatIsMarketing? UnderstandtheMarketplaceandCustomerNeeds DesigningaCustomerDrivenMarketingStrategy PreparinganIntegratedMarketingPlanandProgram BuildingCustomerRelationships CapturingValuefromCustomers TheChangingMarketingLandscape

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 1- slide 2

What Is Marketing?
Marketing isaprocessbywhich companiescreatevalueforcustomersand buildstrongcustomerrelationshipsto capturevalue fromcustomersin return

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Chapter 1- slide 3

What Is Marketing?
TheMarketingProcess

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Chapter 1- slide 4

Understanding the Marketplace and Customer Needs

CoreConcepts

Customerneeds,wants,anddemands Marketofferings Valueandsatisfaction Exchangesandrelationships Markets

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Chapter 1- slide 5

Understanding the Marketplace and Customer Needs

CustomerNeeds,Wants,andDemands

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Chapter 1- slide 6

Understanding the Marketplace and Customer Needs

Marketofferingsaresome combinationofproducts, services,information,or experiencesofferedtoa markettosatisfyaneedor want Marketingmyopiais focusingonlyonexisting wantsandlosingsightof underlyingconsumer needs

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 1- slide 7

Understanding the Marketplace and Customer Needs

CustomerValueandSatisfaction Expectations

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Chapter 1- slide 8

Understanding the Marketplace and Customer Needs Exchange istheactofobtainingadesired

objectfromsomeonebyoffering somethinginreturn

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 1- slide 9

Understanding the Marketplace and Customer Needs

Markets arethesetofactualand potentialbuyersofaproduct

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 1- slide 10

Designing a Customer-Driven Marketing Strategy

Marketingmanagementistheartand scienceofchoosingtargetmarketsand buildingprofitablerelationshipswiththem
Whatcustomerswillweserve? Howcanwebestservethesecustomers?

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Chapter 1- slide 11

Designing a Customer-Driven Marketing Strategy

SelectingCustomerstoServe

Marketsegmentationreferstodividingthe marketsintosegmentsofcustomers Targetmarketingreferstowhichsegments togoafter

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Chapter 1- slide 12

Designing a Customer-Driven Marketing Strategy

SelectingCustomerstoServe

Demarketing ismarketingtoreducedemand temporarilyorpermanently;theaimisnot todestroydemandbuttoreduceorshiftit

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Chapter 1- slide 13

Designing a Customer-Driven Marketing Strategy

ChoosingaValueProposition The value proposition is the set of

benefits or values a company promises to deliver to customers to satisfy their needs

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Chapter 1- slide 14

Designing a Customer-Driven Marketing Strategy

MarketingManagementOrientations

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Chapter 1- slide 15

Designing a Customer-Driven Marketing Strategy

MarketingManagementOrientations

Productionconceptistheideathat consumerswillfavorproductsthatare availableorhighlyaffordable

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Chapter 1- slide 16

Designing a Customer-Driven Marketing Strategy

MarketingManagementOrientations

Productconceptistheideathatconsumers willfavorproductsthatofferthemost quality,performance,andfeatures. Organizationshouldthereforedevoteits energytomakingcontinuousproduct improvements.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 1- slide 17

Designing a Customer-Driven Marketing Strategy

MarketingManagementOrientations

Sellingconceptistheideathatconsumers willnotbuyenoughofthefirmsproducts unlessitundertakesalargescaleselling andpromotioneffort

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Chapter 1- slide 18

Designing a Customer-Driven Marketing Strategy

MarketingManagementOrientations

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 Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall

Chapter 1- slide 19

Designing a Customer-Driven Marketing Strategy

MarketingManagementOrientations Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers wants, the companys requirements, consumers long-term interests, and societys longrun interests
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Chapter 1- slide 20

Designing a Customer-Driven Marketing Strategy

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 1- slide 21

Preparing an Integrated Marketing Plan and Program

Themarketingmixisthesetoftools(fourPs) thefirmusestoimplementitsmarketing strategy.Itincludesproduct,price, promotion,andplace. Integratedmarketingprogramisa comprehensiveplanthatcommunicates anddeliverstheintendedvaluetochosen customers.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 1- slide 22

Building Customer Relationships

CustomerRelationshipManagement(CRM) Theoverallprocessof buildingandmaintaining profitablecustomer relationshipsbydelivering superiorcustomervalue andsatisfaction

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Chapter 1- slide 23

Building Customer Relationships

RelationshipBuildingBlocks:CustomerValue andSatisfaction

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Chapter 1- slide 24

Building Customer Relationships

CustomerRelationshipLevelsandTools

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Chapter 1- slide 25

Building Customer Relationships

TheChangingNatureofCustomer Relationships

Relatingwithmorecarefullyselected customersusesselectiverelationship managementtotargetfewer,moreprofitable customers Relatingmoredeeplyandinteractivelyby incorporatingmoreinteractivetwoway relationshipsthroughblogs,Websites,online communitiesandsocialnetworks

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Chapter 1- slide 26

Building Customer Relationships

Partnerrelationshipmanagementinvolves workingcloselywithpartnersinother companydepartmentsandoutsidethe companytojointlybringgreatervalueto customers

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 1- slide 27

Building Customer Relationships

PartnerRelationshipManagement

Partnersinsidethecompanyisevery functionareainteractingwithcustomers
Electronically Crossfunctionalteams

Partnersoutsidethecompanyishow marketersconnectwiththeirsuppliers, channelpartners,andcompetitorsby developingpartnerships

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 1- slide 28

Building Customer Relationships

PartnerRelationshipManagement

Supplychainisachannelthatstretches fromrawmaterialstocomponentstofinal productstofinalbuyers Supplymanagement Strategicpartners Strategicalliances

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Chapter 1- slide 29

Capturing Value from Customers

CreatingCustomerLoyaltyandRetention

Customerlifetimevalueisthevalueofthe entirestreamofpurchasesthatthe customerwould makeovera lifetimeof patronage

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Chapter 1- slide 30

Capturing Value from Customers

GrowingShareofCustomer

Shareofcustomeristheportionofthe customerspurchasingthatacompanygets initsproductcategories

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Chapter 1- slide 31

Capturing Value from Customers

Customerequityis thetotalcombined customerlifetime valuesofallofthe companys customers

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 1- slide 32

Capturing Value from Customers

BuildingCustomerEquity

Buildingtherightrelationshipswiththe rightcustomersinvolvestreating customersasassetsthatneedtobe managedandmaximized Differenttypesofcustomersrequire differentrelationshipmanagement strategies

Buildtherightrelationshipwiththeright customers
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Chapter 1- slide 33

The Changing Marketing Landscape

MajorDevelopments

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Chapter 1- slide 34

So, What Is Marketing? Pulling It All Together

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Chapter 1- slide 35

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 1- slide 36