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    Marketing: Creating and Capturing Customer Value

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    Ali Hashmi
    This document provides an overview of marketing principles and concepts across 7 chapters: 1) Defining marketing and distinguishing it from selling; 2) Understanding customer needs, wants, and market offerings; 3) Designing a customer-driven strategy including market segmentation and value propositions; 4) Preparing an integrated marketing program and mix; 5) Building customer relationships through relationship management; 6) Capturing customer value through loyalty and share of customer; and 7) New developments in digital marketing, globalization, and ethics.

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    Marketing: Creating and Capturing Customer Value

    Uploaded by

    Ali Hashmi
    416 views44 pages
    This document provides an overview of marketing principles and concepts across 7 chapters: 1) Defining marketing and distinguishing it from selling; 2) Understanding customer needs, wants, and market offerings; 3) Designing a customer-driven strategy including market segmentation and value propositions; 4) Preparing an integrated marketing program and mix; 5) Building customer relationships through relationship management; 6) Capturing customer value through loyalty and share of customer; and 7) New developments in digital marketing, globalization, and ethics.

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    Marketing: Creating and Capturing Customer Value

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    Marketing: Creating and Capturing Customer Value

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    This document provides an overview of marketing principles and concepts across 7 chapters: 1) Defining marketing and distinguishing it from selling; 2) Understanding customer needs, wants, and market offerings; 3) Designing a customer-driven strategy including market segmentation and value propositions; 4) Preparing an integrated marketing program and mix; 5) Building customer relationships through relationship management; 6) Capturing customer value through loyalty and share of customer; and 7) New developments in digital marketing, globalization, and ethics.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    416 views44 pages

    Marketing: Creating and Capturing Customer Value

    Uploaded by

    Ali Hashmi
    This document provides an overview of marketing principles and concepts across 7 chapters: 1) Defining marketing and distinguishing it from selling; 2) Understanding customer needs, wants, and market offerings; 3) Designing a customer-driven strategy including market segmentation and value propositions; 4) Preparing an integrated marketing program and mix; 5) Building customer relationships through relationship management; 6) Capturing customer value through loyalty and share of customer; and 7) New developments in digital marketing, globalization, and ethics.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 44

    Principles of Marketing

    Marketing: Creating and Capturing Customer Value

    Chapter Concepts

    1.
    2. 3. 4. 5. 6. 7.

    What Is Marketing? 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 New Marketing Landscape

    1-3

    What Is Marketing?
    Marketing Defined Marketing is the process by which companies create
    value for customers and build strong customer relationships to capture value from customers in return

    Sales When a company makes a product and then tries to persuade customers to buy it, thats Selling.
    1-4

    Selling

    Marketing

    Emphasis is on the product. Company first makes the product and then figures out how to sell it. Management is sales volume oriented.

    Planning is short run oriented, in terms of todays products and markets.


    Needs of sellers are stressed.

    Difference between selling and marketing

    Emphasis is on customers wants. Company first determines customers wants and then figures out how to make and delivers a product to satisfy those wants. Management is profit oriented Planning is long run oriented, in terms of new products, tomorrows market, and future growth. Wants of buyers are stressed.

    What Can Be Marketed?


    Goods Services Places Ideas What is being Events marketed in this ad? Persons Properties Organizations Information Experiences

    1-5

    Marketing process

    Understanding the Marketplace and Customer Needs


    Customer Needs, Wants, and Demands
    Needs

    are the basic human requirements. People need food, air, water, clothing & shelter to survive. People also have needs for recreation, education and entertainment. Eg: Hunger food.
    1-6

    Understanding the Marketplace and Customer Needs


    Customer Needs, Wants, and Demands
    Wants

    The needs become wants they are directed to specific objects that might satisfy the needs. Eg: Mercedes

    Demands are wants backed by buying power

    1-7

    Understanding the Marketplace and Customer Needs


    Market OfferingsProducts, Services, and Experiences Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want

    1-8

    Understanding the Marketplace and Customer Needs


    Market OfferingsProducts, Services, and Experiences

    Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs

    1-9

    Understanding the Marketplace and Customer Needs


    Customer Value and Satisfaction

    Expectations Customers forms expectation about the


    Value and satisfaction that various marketing offers will deliver and buy accordingly.

    Marketers
    Set the right level of expectations
    Not too high or too low
    1-10

    Understanding the Marketplace and Customer Needs


    Exchanges and Relationships Exchange is the act of obtaining a desired object from someone by offering something in return Relationships marketing consist of actions to
    build and maintain desirable relationships with Target audience involving product, service, idea or other object.
    1-11

    Understanding the Marketplace and Customer Needs


    Markets are the set of actual and potential buyers of a product Marketing system consists of all of the actors (suppliers, company, competitors, intermediaries, and end users) in the system who are affected by major environmental forces Demographic Economic Physical Technological Politicallegal Socio-cultural
    1-12

    Figure 1-2: Elements of a Modern Marketing System

    Designing a Customer-Driven Marketing Strategy


    Selecting Customers to Serve Market segmentation: Dividing the markets into segments of customers Target marketing: Which segments to go after

    1-14

    Designing a Customer-Driven Marketing Strategy


    Selecting Customers to Serve De-marketing: Marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it.

    1-15

    Designing a Customer-Driven Marketing Strategy


    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

    1-17

    Designing a Customer-Driven Marketing Strategy


    Marketing Management 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

    Designing a Customer-Driven Marketing Strategy


    Marketing Management Orientations

    Production concept Product concept Selling concept Marketing concept Societal concept

    1-18

    Designing a Customer-Driven Marketing Strategy


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

    1-19

    Designing a Customer-Driven Marketing Strategy


    Marketing Management Orientations Product concept is the idea that consumers will favor products that offer the most quality, performance, and features for which the organization should therefore devote its energy to making continuous improvements

    1-20

    Designing a Customer-Driven Marketing Strategy


    Marketing Management Orientations Selling concept is the idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort

    1-21

    Designing a Customer-Driven Marketing Strategy


    Marketing Management Orientations 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

    1-22

    Marketing and Selling Concepts Contrasted


    Starting Point
    Factory

    Focus
    Existing products

    Means
    Selling and promoting

    Ends
    Profits through sales volume

    The Selling Concept (inside-out)

    Market

    Customer needs

    Integrated marketing

    Profits through customer satisfaction

    The Marketing Concept (outside-in)

    Designing a Customer-Driven Marketing Strategy


    Marketing Management Orientations Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers wants, the companys requirements, consumers long-term interests, and societys long-run interests

    1-23

    Societal Marketing Concept


    Late 20th Century Still emerging Recognizes potential conflict
    Society

    (Long-term consumer & societal welfare)


    Maintain & improve long-term well-being Social responsibility Societal Marketing Concept Company Be ethical Do good: customer-oriented, environment, innovative (real, valued) product improvements sense-of-highermission, give back Stop doing bad f

    (Short-term want satisfaction)

    Consumers

    (Profits)

    Preparing an Integrated and Program

    Marketing Plan

    Marketing Mix The marketing mix is the set of tools (four Ps) the firm uses to implement its marketing strategy Product Price Promotion Place
    1-24

    Marketing Strategy gMarketing Mix


    The 4 Ps (4 Cs) = controllable, tactical tools
    coordinated program
    Product (Customer Solution)
    Goods-and-services combination the company offers to the target market Price (Customer Cost) Amount of money customers have to pay to obtain the product

    Target Customers
    Intended Positioning
    Advertising Personal Selling Sales Promotion Public Relations

    Activities that communicate the merits of the product and persuade target customers to buy it

    Activities that make the product available to target customers Place or Distribution

    Promotion (Communication)

    (Convenience)

    Preparing an Integrated Plan and Program

    Marketing

    Integrated Marketing Program Integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers

    1-25

    Building Customer Relationships


    Customer Relationship Management (CRM) Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior value and satisfaction

    1-26

    Building Customer Relationships


    Customer Relationship Management (CRM)
    Customer perceived value is the difference between total customer value and total customer cost Customer satisfaction is the extent to which a products perceived performance matches a buyers expectations
    1-27

    Customer Satisfaction
    Satisfaction = Performance (P) Expectation (E)

    Expectations are largely based on marketer information and promises must create realistically high expectations

    Reality = satisfaction has been declining


    Performance falls short of expectations Performance matches expectations

    Performance exceeds expectations

    P>E Customer is highly satisfied or delighted !

    P<E Customer is dissatisfied

    P=E Customer is satisfied

    Building Customer Relationships

    Customer Relationship Levels and Tools

    Many, low margin customers basic relationships (e.g., provide 800#, web site) Few, high margin customers full partnerships

    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

    Building Customer Relationships


    Partner Relationship Management

    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

    Capturing Value from Customers


    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

    1-33

    Capturing Value from Customers


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

    1-34

    The New Marketing Landscape


    Major Developments

    Digital age Globalization Ethics and social responsibility Not-for-profit marketing

    1-37

    The New Marketing Landscape


    The New Digital Age

    Recent technology has had a major impact on the ways marketers connect with and bring value to their customers Market research
    Learning about and tracking customers

    Create new customized products Distribution Communication


    Video conferencing Online data services
    1-38

    The New Marketing Landscape


    The New Digital Age Internetcreates marketplaces and marketspaces Information Entertainment Communication

    1-39

    The New Marketing Landscape


    Rapid Globalization

    The world is smaller Think globally, act locally

    1-40

    The New Marketing Landscape


    The Call for More Ethics and Social Responsibility Marketers are being called upon to take greater responsibility for the social and environmental impact of their actions in a global economy

    1-41

    The New Marketing Landscape


    The Call for More Ethics and Social Responsibility Social marketing campaigns encourage energy conservation and concern for the environment or discourage smoking, excessive drinking, and drug use

    1-42

    The New Marketing Landscape


    The Growth for Not-for-Profit Marketing

    Colleges Hospitals Museums Zoos Orchestras Religious groups


    1-43

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