The art and science of choosing target markets and building profitable relationships with them.

Questions to ask:

1. What customers will we serve?What is our target market?

2. How can we best serve these customers?What is our value proposition?

Finding and increasing demand, also changing or reducing demand such as in demarketing.

DemandManagement

Temporarily or permanently reducing the number of customers or shifting their demand.

Demarketing

CustomerNeeds

Product Price

Promotion Distribution

CustomerNeeds

Product Price

Promotion Distribution

Production ConceptProduction Concept

Product ConceptProduct Concept

Selling ConceptSelling Concept

Marketing ConceptMarketing Concept

Societal Marketing ConceptSocietal Marketing Concept

The set of benefits or values a company promises to deliver to consumers to satisfy their needs.

It cleans and freshens like sunshine!

http://www.gainlaundry.com

Customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Dependent on the product’s perceived performance relative to a buyer’s expectations.

Customer Lifetime Value› The entire stream of

purchases that the customer would make over a lifetime of patronage.

Share of Customer›The share a company gets of the customers purchasing in their product categories.

Customer equity is the total combined customer lifetime values of all of the company’s customers.

Projected loyalty

High

Profitability

Low

Long-term customers

Short-term customers

Good fit between company’s offerings and customer’s needs; high profit potential

Limited fit between company’s offerings and customer’s needs; low profit potential

Little fit between company’s offerings and customer’s needs; lowest profit potential

Good fit between company’s offerings and customer’s needs; highest profit potential

Strangers

Butterflies True Friends

Barnacles

Market Segmentation:

Divide the market into segments of customers

Target Marketing:

Select the segment to cultivate

#1 #2

Rapid Globalization

Ethics & SocialResponsibility

New World of MarketingRelationships

Not-for-ProfitMarketing