Principles of marketing chp one Creating and capturing customer value

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

Chapter 1- slide 2
Creating and Capturing Customer
Value
• Define marketing and outline the steps in the
marketing process
• Understanding 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

Chapter 1- slide 3
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

Chapter 1- slide 4
Understanding the Marketplace
and Customer Needs
• Customer needs, wants, and demands
• Market offerings
• Customer Value and satisfaction
• Exchanges and relationships
• Markets
Core Concepts

Chapter 1- slide 5
and Customer Needs
Customer Needs, Wants, and Demands

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• 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

Chapter 1- slide 7
and Customer Needs
Customer Value and Satisfaction
Expectations

Chapter 1- slide 8
Exchange is the act of obtaining a
desired object from someone by offering
something in return
and Customer Needs

Chapter 1- slide 9
Markets are the set of actual and
potential buyers of a product or service
and Customer Needs

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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?

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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

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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

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Marketing Strategy
• The value proposition is the set of
benefits or values a company promises
to deliver to customers to satisfy their
needs
Choosing a Value Proposition

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Marketing Strategy
Marketing Management Orientations

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Marketing Strategy
Production concept is the idea that
consumers will favor products that are
available or highly affordable

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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.

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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

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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

Chapter 1- slide 19
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

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• 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

Chapter 1- slide 21
Building Customer Relationships
• The overall process of building and
maintaining profitable customer
relationships by delivering superior
customer value and satisfaction
Customer Relationship Management (CRM)

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Relationship Building Blocks: Customer Value and Satisfaction

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Customer Relationship Levels and Tools

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• 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

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Partner relationship management
involves working closely with partners in
other company departments and
outside the company to jointly bring
greater value to customers

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• 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

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• Supply chain is a channel that stretches
from raw materials to components to
final products to final buyers
• Supply management
• Strategic partners
• Strategic alliances
Partner Relationship Management

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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

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Share of customer is the portion of the
customer’s purchasing that a company
gets in its product categories
Growing Share of Customer

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

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• 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

Chapter 1- slide 32
The New Marketing Landscape
Major Developments

Principles of marketing chp one Creating and capturing customer value

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