chapter 1.ppt
- 1. Chapter 1- slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter One Creating and Capturing Customer Value
- 2. Chapter 1- slide 2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
- 3. Chapter 1- slide 3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Understanding the Marketplace and Customer Needs • Customer needs, wants, and demands • Market offerings • Customer Value and satisfaction • Exchanges and relationships • Markets Core Concepts
- 4. Chapter 1- slide 4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Understanding the Marketplace and Customer Needs • States of deprivation • Physical—food, clothing, warmth, safety • Social—belonging and affection • Individual—knowledge and self-expression Needs • Form that human needs take as they are shaped by culture and individual personality Wants • Human wants backed by buying power Demands Customer Needs, Wants, and Demands
- 5. Chapter 1- slide 5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall • Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want Understanding the Marketplace and Customer Needs
- 6. Chapter 1- slide 6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Understanding the Marketplace and Customer Needs Customer Value and Satisfaction Expectations Customers • Value and satisfaction Marketers • Set the right level of expectations • Not too high or low
- 7. Chapter 1- slide 7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy Marketing management is the art and science of choosing target markets and building profitable relationships with them – What customers will we serve? – How can we best serve these customers?
- 8. Chapter 1- slide 8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing 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
- 9. Chapter 1- slide 9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy Demarketing is marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it Selecting Customers to Serve
- 10. Chapter 1- slide 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy Production concept Product concept Selling concept Marketing concept Societal concept Marketing Management Orientations
- 11. Chapter 1- slide 11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy Production concept is the idea that consumers will favor products that are available or highly affordable Marketing Management Orientations
- 12. Chapter 1- slide 12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Organizations should therefore devote its energy to making continuous product improvements. Marketing Management Orientations
- 13. Chapter 1- slide 13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy Selling concept is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort Marketing Management Orientations
- 14. Chapter 1- slide 14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy 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 Marketing Management Orientations
- 15. Chapter 1- slide 15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Designing a Customer-Driven Marketing Strategy Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long-run interests Marketing Management Orientations
- 16. Chapter 1- slide 16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall • 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. • Integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers. Preparing an Integrated Marketing Plan and Program
- 17. Chapter 1- slide 17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Building Customer Relationships • The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Customer Relationship Management (CRM)
- 18. Chapter 1- slide 18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Building Customer Relationships • Relating with more carefully selected customers uses selective relationship 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 Customer Relationships
- 19. Chapter 1- slide 19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Building Customer Relationships Partner relationship management involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers
- 20. Chapter 1- slide 20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
- 21. Chapter 1- slide 21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Building Customer Relationships • Supply chain is a channel that stretches from raw materials to components to final products to final buyers Partner Relationship Management
- 22. Chapter 1- slide 22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Capturing Value from Customers • Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage Creating Customer Loyalty and Retention
- 23. Chapter 1- slide 23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Capturing Value from Customers • Building the right relationships with the right customers involves 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