customer relationship management and marketing
Post on 14-Apr-2018
220 Views
Preview:
TRANSCRIPT
-
7/30/2019 Customer relationship management and marketing
1/41
Chapter One
Marketing: Creating and Capturing
Customer Value
-
7/30/2019 Customer relationship management and marketing
2/41
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
-
7/30/2019 Customer relationship management and marketing
3/41
What Is Marketing?
Marketing is a process by which
companies create value for customers and
build strong customer relationships to
capture value from customers in return
-
7/30/2019 Customer relationship management and marketing
4/41
What Is Marketing?
Marketing is a process by which
companies create value for customers and
build strong customer relationships to
capture value from customers in return
-
7/30/2019 Customer relationship management and marketing
5/41
Understanding the Marketplaceand Customer Needs
Customer needs, wants, and demands
Market offerings Value and satisfaction
Exchanges and relationships
Markets
Core Concepts
-
7/30/2019 Customer relationship management and marketing
6/41
Understanding the Marketplaceand Customer Needs
Customer Needs, Wants, and Demands
-
7/30/2019 Customer relationship management and marketing
7/41
Given their wants and resources, people demand products or
services with benefits that add up to the most value and
satisfaction
The best marketing companies go to great lengths to learn andunderstand their customers' needs, wants and demands
Understanding the Marketplaceand Customer NeedsCustomer Needs, Wants, and Demands
-
7/30/2019 Customer relationship management and marketing
8/41
Needs and wants are fulfilled through MARKET OFFERINGS
Case in Point: The Dawn News advertisement
Strengthening the pillar of good governance upon which rests the
future of an enlightened state....
The offering here is reliable news which has a comprehensive
relationship with good governance and and enlightened state
Understanding the Marketplace
and Customer Needs
-
7/30/2019 Customer relationship management and marketing
9/41
Needs and wants are fulfilled through MARKET OFFERINGS
Case in Point: The Dawn News advertisement
Strengthening the pillar of good governance upon which rests the
future of an enlightened state....
The offering here is reliable news which has a comprehensive
relationship with good governance and and enlightened state
Understanding the Marketplace
and Customer Needs
-
7/30/2019 Customer relationship management and marketing
10/41
Understanding the Marketplace
and Customer NeedsMarket offerings are some combination of products,services, information, or experiences offered to a market tosatisfy a need or want. Eg. Banking, air-travel, hotel stays,
tourism, etc.
Marketing myopia is focusing only on existing wants andlosing sight of underlying consumer needs.
Eg. Lack of Innovation: Tape recorders Music systemsWalkman CDman iPod Live streaming music on theinternet.
-
7/30/2019 Customer relationship management and marketing
11/41
Customers form expectations about value and satisfaction that
various market offerings will deliver and buy accordinglyExpectation creation about value and satisfaction by marketers
must be judiciously decided
Satisfied customers buy again and again and spread a positive
word of mouth
Dissatisfied customers switch to competitors and disparage the
product to others
Understanding the Marketplace
and Customer Needs
Customer Value and SatisfactionExpectations
-
7/30/2019 Customer relationship management and marketing
12/41
Understanding the Marketplace
and Customer Needs
Customer Value and SatisfactionExpectations
Too low expectations
satisfy those who
consume but not attractnew consumers
Too high expectations
Customers / Consumers
might be disappointed
-
7/30/2019 Customer relationship management and marketing
13/41
Exchange is the act of obtaining a desired object from someone byoffering something in return
A marketer tries to bring about a response to some market offering. The
response may be more than buying or trading products and services
Political candidate Votes
Religious group Memberships
Musical troupe audience
Social action group acceptance (Jan Lokpal, Narmada
Bachao Andolan)
Understanding the Marketplace
and Customer Needs
Marketing occurs when people decide to satisfy
needs and wants through exchange relationships
-
7/30/2019 Customer relationship management and marketing
14/41
Understanding the Marketplace
and Customer Needs
Markets are the set of actual and potential buyers of a
product
SUPPLIERS
Competitors
Company
Marketing
IntermediariesCONSUMERS
Major Environmental Forces
(Demographic, economic, technological,
Politico-legal, socio-cultural)
-
7/30/2019 Customer relationship management and marketing
15/41
Assignments
1. Visit website of Maruti Udyog Ltd. And answer the following
questions:
A. What needs, wants and/or demands is Maruti attempting to fill
B. Describe their marketing offers
C. Describe the relationship that they have with their customers
D. What are their markets
2. Visit India website of eBay and answer the following questions
A. How is eBay providing value to its customers
B. Describe the relationships they have with their customers
C. What are their markets
-
7/30/2019 Customer relationship management and marketing
16/41
Designing a Customer-Driven
Marketing Strategy
Marketing management is the art and
science of choosing target markets andbuilding profitable relationships with them
What customers will we serve?
How can we best serve these customers?
-
7/30/2019 Customer relationship management and marketing
17/41
Designing a Customer-DrivenMarketing Strategy
Market segmentation refers to dividing the
markets into segments of customers
Target marketing refers to which segments to
go after
Selecting Customers to Serve
-
7/30/2019 Customer relationship management and marketing
18/41
Designing a Customer-DrivenMarketing Strategy
Demarketing is marketing to reduce demand temporarily or
permanently; the aim is not to destroy demand but to reduce
or shift it
(Amusement Parks, Goa in the Rains)
Selecting Customers to Serve
-
7/30/2019 Customer relationship management and marketing
19/41
Designing a Customer-DrivenMarketing Strategy
Choosing a Value Proposition
The value proposition is the set of benefits or values a
company promises to deliver to customers to satisfy their
needs
BMW promises the ultimate driving machine
Indica V2 promises more car per car
Such value propositions differentiate one brand from the
other
-
7/30/2019 Customer relationship management and marketing
20/41
Class Assignment
In groups of 4 develop a marketing plan for a
company producing and marketing organic
food.Who is your target market
How will you enable customers to get the
best value
Develop value proposition of your offering
for this target market
-
7/30/2019 Customer relationship management and marketing
21/41
Designing a Customer-DrivenMarketing Strategy
Marketing Management Orientations
-
7/30/2019 Customer relationship management and marketing
22/41
Designing a Customer-Driven
Marketing Strategy
Production concept is the idea that consumers will favor products that are
available or highly affordable
One of the oldest orientations that guides sellers
Useful in highly competitive and price sensitive markets (PC Markets of
Lenovo in China)
This concept can lead to marketing myopia
Companies adopting this orientation run a major risk of focussing too
narrowly on their own operations and losing sight of satisfying
customer needs and building customer relationships
Marketing Management Orientations
-
7/30/2019 Customer relationship management and marketing
23/41
Designing a Customer-Driven
Marketing Strategy
Product concept is the idea that consumers will favor products
that offer the most quality, performance, and features.
Organization should therefore devote its energy to makingcontinuous product improvements.
Here again, focus on the product may lead to marketing myopia
Even improved products might not sell if unless they are designed,
packaged and priced attractively.
Marketing Management Orientations
-
7/30/2019 Customer relationship management and marketing
24/41
Designing a Customer-DrivenMarketing Strategy
Selling concept is the idea that consumers will not buy enough of
the firms products unless it undertakes a large scale selling and
promotion effortSuch orientation is for products which are not sought popularly.
(Insurance)
Here prospects have to be tracked down and products sold on
benefits
The flaw is that this orientation focusses on sales transactions than
on building long-term, profitable customer relationships
Marketing Management Orientations
-
7/30/2019 Customer relationship management and marketing
25/41
Designing a Customer-DrivenMarketing Strategy
Marketing Management Orientations
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
Instead of a product-centered make & sell philosophy, the marketing
concept is a customer-centered sense and respond philosophy
The marketing concept starts with a well defined market, focusses on
customer needs and integrates all marketing activities that affect
customers
In turn, it yields profits by creating lasting relationships with the right
customers based on customer value and satisfaction
-
7/30/2019 Customer relationship management and marketing
26/41
Designing a Customer-DrivenMarketing Strategy
Marketing Management Orientations
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
long-run interests
Society (Human Welfare)
Consumers
(Satisfaction)
Company (Profits)
Societal
Marketing
Concept
-
7/30/2019 Customer relationship management and marketing
27/41
The Marketing Mix is the set of tools (four Ps) the firm uses to
implement its marketing strategy. It includes product, price,
promotion, and place.
To deliver on its value proposition, the firm must first create aneed satisfying market oferring (Product)
It must then decide how much it will charge for the offering (Price)
and how it will make the offering available to target customers
(Place)Finally, it must must communicate with target customers about
the offering and persuade them of its merits (Promotion)
Preparing an Integrated Marketing
Plan and Program
-
7/30/2019 Customer relationship management and marketing
28/41
Preparing an Integrated Marketing
Plan and ProgramIntegrated Marketing Communication (IMC)program is a
comprehensive plan that communicates and delivers the
intended value to chosen customers.
Communication channels include: Advertising, Personal selling,Public Relations (PR), Direct Marketing & Sales promotions
-
7/30/2019 Customer relationship management and marketing
29/41
Building Customer Relationships
CRM is the most important concept of modern marketing
The overall process of building and maintaining profitable customer
relationships by delivering superior customer value and
satisfaction
It deals with all aspects of acquiring, keeping & growing customers
Relationship building blocks: CUSTOMER VALUE & SATISFACTION
Customer Relationship Management (CRM)
-
7/30/2019 Customer relationship management and marketing
30/41
Building Customer Relationships
Relationship Building Blocks: Customer Value and
SatisfactionThe key to building lasting customer relationships is to create superior
customer value and satisfaction
Customer value: This is the customer's evaluation of the difference between
all the benefits and all the costs of a market offering relative too those ofcompeting offers.
Customers, often, do not judge values and costs accurately or objectively
Customers act on Customer Perceived Value
-
7/30/2019 Customer relationship management and marketing
31/41
Building Customer Relationships
Relationship Building Blocks: Customer Value and
Satisfaction
-
7/30/2019 Customer relationship management and marketing
32/41
Building Customer Relationships
Customer Relationship Levels and Tools
-
7/30/2019 Customer relationship management and marketing
33/41
Building Customer Relationships
Relating with more carefully selected customers uses selectiverelationship management to target fewer, more profitable
customers Relating more deeply and interactively by incorporating more
interactive two way relationships through blogs, Websites,online communities and social networks
The Changing Nature of CustomerRelationships
-
7/30/2019 Customer relationship management and marketing
34/41
Partner relationship management involves working closely with
partners in other company departments and outside the
company to jointly bring greater value to customers
Building Customer Relationships
-
7/30/2019 Customer relationship management and marketing
35/41
Building Customer Relationships
Partners inside the company is every function area interacting
with customers
Electronically
Cross-functional teams
Partners outside the company is how marketers connect with
their suppliers, channel partners, and competitors by
developing partnerships
Partner Relationship Management
-
7/30/2019 Customer relationship management and marketing
36/41
Building Customer Relationships
Supply chain is a channel that stretches from raw materials to
components to final products to final buyers
Supply management
Strategic partners
Strategic alliances
Partner Relationship Management
-
7/30/2019 Customer relationship management and marketing
37/41
Capturing Value from Customers
Customer lifetime value is the value of the entire stream of
purchases that the customer would make over a lifetime ofpatronage
Creating Customer Loyalty and Retention
-
7/30/2019 Customer relationship management and marketing
38/41
Capturing Value from Customers
Share of customer is the portion of the customers purchasing that
a company gets in its product categories
Growing Share of Customer
-
7/30/2019 Customer relationship management and marketing
39/41
Capturing Value from
CustomersCustomer equity is the total combined customer lifetime
values of all of the companys customers
-
7/30/2019 Customer relationship management and marketing
40/41
Capturing Value from Customers
Building the right relationships with the right customersinvolves treating customers as assets that need to be managed
and maximized Different types of customers require different relationship
management strategies
Build the right relationship with the right customers
Building Customer Equity
-
7/30/2019 Customer relationship management and marketing
41/41
The Changing Marketing
Landscape
Major Developments
top related