2012 Carl-Johan Rosenbrijer

What is marketing?
Dr.Sc. (Econ.) Carl-Johan Rosenbrijer Department of Economy, Media and Engineering ARBIT Applied Research in Business an IT carl-johan.rosenbroijer@arcada.fi arbit.arcada.fi

2012 Carl-Johan Rosenbrijer

Customer Relationship Management: 30.81.9.2012

What is marketing Introduction to CRM - development of marketing Business and CRM strategy The nature and complexity of customer relationships The network approach Group assignment part 1 Customer loyalty Customer value and the value creation process Group assignment part 2 Future of CRM
2012 Carl-Johan Rosenbrijer

What is marketing social definition

Marketing deals with identifying and meeting human and social needs or shorter.. Meeting needs profitably
Kotler (2003)

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2012 Carl-Johan Rosenbrijer

What is marketing managerial definition

The art of selling products

however Drucker (1973) states

the aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy.
Kotler (2003)

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2012 Carl-Johan Rosenbrijer

What is marketing managerial definition

The American Marketing Association: Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. Kotler (2003) see marketing management as the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

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Kotler (2003)

What do marketing people market?

Goods Services Experiences Events Persons Places Properties Organizations Information Ideas Etc?
Kotler (2003)

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Core Marketing Concepts

1) The firm identifies different buyers Market Segments Marketing Mix Product Price Place Promotion

2)and decides which segments present greatest business opportunity

4) The market offering is developed based on a certain marketing mix

Market Offering
Kotler (2003)

Target Markets

3) For each chosen target market the firm develops a .

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2012 Carl-Johan Rosenbrijer

Four Ps and four Cs

: - ))

Sellers view
Product Price Place

Customers view
Customer solution Customer cost

Convenience
Communication

: - ((
2012 Carl-Johan Rosenbrijer

Promotion

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Company orientations toward the marketplace

Company orientation
The production concept The product concept

Company assumes that .

the customer want widely available and affordable products the customer want products with the most quality, performance or innovative features the customer will not buy enough products without an aggressive selling and promotion effort the firm must be better than competitors in creating, delivering, and communicating customer value to its chosen target markets. the company will achieve profitable growth and capture long-term share and loyalty by shaping offers and activities to individual customers the firm must satisfy customers more effectively and efficiently than competitors while still preserving the consumers and societys wellCarl-Johan Rosenbrijer being

The selling concept

The marketing concept

The customer concept

The societal marketing concept

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The development of marketing thought

What? How? Product / brand: Service Production oriented Production and consumption often simultaneous Technical quality Functional quality Capacity The customer encounter Price (moment of truth) Distribution Different services connected to Advertising and the product other sales Service concept = way of promotion operating / way of life E.g.: Presidentti E.g.: Robert Paulig Coffee coffee, Coca Cola, Company, IKEA, Kone, etc. Scania etc. 11

2012 Carl-Johan Rosenbrijer

The development of marketing thought

Where? Place of purchase Distribution central Understanding the customer process is vital Where is the customer customer flow? Offer existing products/services in new places E.g.: Esso and groceries, R-kioski and Post, Internet, home etc.

When? Timing time: 24 hx7, life-cycle Seasons: Summer, autumn,winter and spring Seasons: christmas,eastern etc. The customers perception of time, changes (e.g. computers,mobile phones etc.) E.g. Fazer Bakerys, Teleoperators,Banks etc.

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2012 Carl-Johan Rosenbrijer

The marketing concept is dynamic

New

PRODUCT/ SERVICE
Old

X X

Whats next?

X X X X X
New

Old

TARGET MARKETS
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The traditional push role of marketing

Marketing Mix: product price place sales promotion
SP SP SP SP

C
U S T O M E

S U P L I E R

Efficient sales: Take it or leave it principle

SP=Sales person

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2012 Carl-Johan Rosenbrijer

Purchasing and competitive buying

S
Marketing mix

S
Efficient purchasing: Competitive buying I have the power principle

C U S T O B M E R

S
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B=BUYER

2012 Carl-Johan Rosenbrijer

Marketing is not a function in a company

OPERATIVE MANAGEMENT

PRODUCTION

LOGISTICS

ACCOUNTING

MARKETING

IT

Marketing as an isolated function!

THE ACTIVITIES ORGANISED AS INDEPENDENT FUNCTIONS NO COORDINATION AND COMMUNICATION
THE COMPANY IS A PRISONER OF ITS FUNCTIONS AND CUSTOMER GETS WHAT IS PRODUCED!

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2012 Carl-Johan Rosenbrijer

Marketing is not a function in a company

PRODUCTION

MANAGEMENT
LOGISTICS ACCOUNTING

IT

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From product to customer focus

Product focus
Production Technical quality Product development dominates Very transparent
price functional comparisons easy

First produced then sold

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From product to customer focus

The problems of the product focus
The customer is in a minimal role or not taken into consideration at all What is the role of the customer? Consumer not a producer of value The victim of sales dependent on the supplier A comparer of different product and a competitive buyer What does the customer get? A product that perhaps does not create the value he could get A product without any service A product that is produced on the suppliers terms

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From product to customer focus

Customer focus
The customer is the starting point Time perspective important Focus on the customers perceived value The customer is unique The customer relationship and understanding it in focus Trust Customer loyalty - commitment

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The development of marketing thought

Network Customer Relationship

2000-

Network Management
Customer Relationship Management (CRM) Service Marketing Traditional Marketing
Product Customer encounter Personnel Core competence The companys resources Innovativeness, learning

Customer Contact

1990-

Episode

19801970-

Transaction

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Competitive Base

Source: Tore Strandvik (2000)

2012 Carl-Johan Rosenbrijer

A Framework for Customer Relationship Management (Winer, 2001)

Discuss the following questions in your group (4 groups)
What is the main purpose of the article? What is CRM according to the article? Have you any experiences of this type of approach from a professional or consumer perspective?

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Thank You!
carl-johan.rosenbroijer@arcada.fi

2012 Carl-Johan Rosenbrijer