principles of marketing
TRANSCRIPT
Principles of Marketing
Lecture-3
Summaryof
Lecture-2
Road MapUnderstanding Marketing
and Marketing ProcessCore Marketing Concepts
Core Marketing Concepts
Needs
Markets
Transactions
Wants
Demands
Exchange Products
Today’s Topics
Marketing Functions
Customer Relationship Management
Marketing Functions
Costs and Functions of Marketing
On the average, 50% of all product costs can be traced directly to marketing
What does the customer receive in exchange for the 50% marketing costs?
UniversalMarketingFunctions
Information Buying
Risk Taking Selling
Financing Transporting
Standardizingand Grading Storing
MarketingFunctions
Eight Universal Marketing Functions
1. Buying
2. Selling3. Transporting
4. Storing
5. Standardizing and grading
6. Financing
7. Risk Taking
8. Securing Marketing Information
Marketing ManagementMarketing management is “the
art and science of choosing target markets and building profitable relationships with them.”Creating, delivering and
communicating superior customer value is key.
Demarketing…Marketing to reduce
demand temporarily or permanently; the aim is not to destroy demand but only to reduce or shift it.
Relationship Marketing
The process of establishing and maintaining mutually beneficial exchange relationships with customer and other stakeholders
Two components:
Customer Focus
Competitive Advantage
Change In Perspective
Yesterday: Here is this great product. Don’t you want to buy it?
Today: Here is what I need. Can you make it?
Direct Marketing Channels
Ways to market to your customers on a one-to-one basis–Face-to-face channels–Direct Mail–Catalog–Telemarketing–On-line marketing
Customer Focused Marketing
Basic Philosophy:– It is more profitable to
keep loyal customers than to constantly be attracting new ones
Lifetime Value of a Customer
..the revenues and intangible benefits (referrals, customer feedback, etc.) that a customer brings to the seller over an average lifetime in the category, less the amount the company must spend to acquire, market to, and service the customer.
Customer Focused Marketing
How do I go about increasing the average lifetime value of my customers?
1. Identify your most valuable customers
2. Build a learning relationships with them so you can…
3. Provide a sustainable advantage over your competition (Create Value)
Customer Relationship Management
CRMCRM – Customer relationship
management . . .“is the overall process of building
and maintaining profitable
customer relationships by
delivering superior customer
value and satisfaction.”
…the new view is that marketing is the science and art of finding, retaining, and growing profitable customers.
CRM It costs 5 to 10 times MORE to attract a
new customer than it does to keep a current customer satisfied.
Marketers must be concerned with the lifetime value of the customer.
Relationship building blocks: Customer value and Satisfaction
What is CRM?Strategies focused on
increasing customer satisfaction, loyalty, and profitability by leveraging superior customer knowledge acquired, stored, and acted upon with the aid of information technology
What are the goals of CRM?
The idea of CRM is that it helps businesses use technology to gain insight into the behavior of customers and the value of those customers. If it works as hoped, a business can:
Provide better customer service Make call centers more efficient Help sales staff close deals faster Simplify marketing and sales
processes Discover new customers
Value of Loyalty Firms have realized the value of customer
retention -- Facts:
Winning a new customer is usually 5- 10 times more costly than retaining an existing customer
Customers are usually more profitable the longer you keep them.
Why?
The Value of Loyalty Goes
Beyond Single Customers
Loyal customers provide more and more credible referrals
But the angry gossip of disloyal customers can devastate a firm!
Let’s stop
it here
Next….
Marketing in Historical perspective and Evolution of Marketing