creating and capturing customer values i

Copyright © 2009 Pearson Education, Inc. Chapter 1- slide 1
Publishing as Prentice Hall
Chapter One
Creating and Capturing Customer
Value

What Is Marketing?
Chapter 1- slide 2
Marketing is a process by which
companies create value for customers
and build strong customer relationships
to capture value from customers in
return

Understanding the Marketplace
and Customer Needs
Chapter 1- slide 3
Core Concepts
• Customer needs, wants, and demands
• Market offerings
• Customer Value and satisfaction
• Exchanges and relationships
• Markets

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
Chapter 1- slide 4
Customer Needs, Wants, and Demands

and Customer Needs
• Market offerings are
some combination of
products, services,
information, or
experiences offered to a
market to satisfy a need
or want
• Marketing myopia is
focusing only on
existing wants and
losing sight of
underlying consumer
needs

and Customer Needs
Customer Value and Satisfaction
Expectations
Customers
• Value and
satisfaction
Marketers
• Set the right level of
expectations
• Not too high or low

Exchange is the act of obtaining a
desired object from someone by
offering something in return
and Customer Needs
Markets are the set of actual and
potential buyers of a product

Designing a Customer-Driven
Marketing Strategy
Chapter 1- slide 8
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?

creating and capturing customer values i

Marketing Strategy
Copyright © 2010 Pearson Education, Inc.
Chapter 1- slide 10
Selecting Customers to Serve
Market segmentation refers to dividing the
markets into segments of customers
Target marketing refers to which
segments to go after.
De- marketing is marketing to reduce
demand temporarily or permanently;
the aim is not to destroy demand
but to reduce or shift it

Marketing Strategy
Chapter 1- slide 11
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

• 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.
Preparing an Integrated Marketing Plan and
Program

Integrated marketing program is a comprehensive plan
that communicates and delivers the intended value to chosen
customers. it attempts to blend all aspects
of marketing communication such as advertising, sales promotion,
public relations, direct marketing, and social media, through their
respective mix of all mediums.
Preparing an Integrated Marketing Plan
and Program

Building Customer Relationships
Chapter 1- slide 14
Customer
Relationship
Management
(CRM)
• The overall process
of building and
maintaining
profitable customer
relationships by
delivering superior
customer value and
satisfaction

Relationship Building Blocks: Customer
Value and Satisfaction
Customer
perceived value
• The difference
between total
customer value
and total
customer cost
Customer
satisfaction
• The extent to
which a
product’s
perceived
performance
matches a
buyer’s
expectations

Chapter 1- slide 16
The Changing Nature of 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

Capturing Value from Customers
Chapter 1- slide 17
Creating Customer Loyalty and
Retention
• Customer lifetime value is the value of the entire stream of
purchases that the customer would make over a lifetime of
patronage

Capturing Value from Customers
Growing Share of Customer
Share of customer is the
portion of the
customer’s purchasing
that a company gets in
its product categories
What’s your favorite Brand?
What products would you like to
see your favorite brand come out
with?
The New Marketing Landscape
Major Developments
Marketing
development
Rapid
globalization
Ethics and
social
responsibility
Not- for profit
Marketing

creating and capturing customer values i

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