chapter 1 ghb

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1- 1Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall

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Chapter 1Marketing:

Creating and Capturing Customer Value


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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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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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Customer Value and SatisfactionExpectations

Customers Value and

satisfaction

Marketers Set the right level of

expectations Not too high or low




Exchange is the act of obtaining a desiredobject from someone by offeringsomething in return

Understanding the Marketplace

and Customer Needs





Markets are the set of actual andpotential buyers of a product




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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Choosing a Value Proposition

Value proposition

Set of benefits orvalues a companypromises to deliver to

customers to satisfytheir needs


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Productionconcept

Productconcept

Sellingconcept

Marketingconcept

Societalconcept

Marketing Management Orientations


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Production concept is the idea thatconsumers will favor products that areavailable or highly affordable



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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.



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Selling concept is the idea that consumers

will not buy enough of the firms productsunless it undertakes a large scale sellingand promotion effort



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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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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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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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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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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



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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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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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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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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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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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Rapid Globalization

Sustainable Marketing

Not-for-Profit Marketing


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1 36C ight 2012 P Ed ti I

So, What Is Marketing?Pulling It All Together

chapter 1 ghb

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