Download creating customer relationships and value through marketing

CHAPTER
CREATING
CUSTOMER
RELATIONSHIPS
AND VALUE
THROUGH
MARKETING
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-2
AERO? THE NEXT ACT AFTER
LAUNCHING AN INDUSTRY?
• A New Idea That
Wasn’t So New
• Understanding
the Consumer
• Success Invites
Imitation, Which
Stimulates
Innovation
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-5
FIGURE 1-1 Number of in-line skaters in
the United States
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-6
FIGURE 1-3 An organization’s marketing
department relates to many people, groups,
and forces
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-9
WHAT IS MARKETING?
• Requirements for Marketing to Occur
! Two or More Parties with Unsatisfied Needs
! Desire and Ability to Satisfy These Needs
! A Way for the Parties to Communicate
! Something to Exchange
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-10
HOW MARKETING DISCOVERS AND
SATISFIES CONSUMER NEEDS
• Discovering Consumer Needs
! The Challenge of Meeting Consumer Needs
With New Products
• “Focus on the consumer benefit”
• “Learn from the past”
! Consumer Needs and Consumer Wants
! What a Market Is
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-14
FIGURE 1-4 Marketing’s first task:
discovering consumer needs
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-19
ETHICS AND SOCIAL
RESPONSIBILITY ALERT
Cell Phones and Distracted Driving––
Just as Dangerous as Drunk Driving
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-20
HOW MARKETING DISCOVERS AND
SATISFIES CONSUMER NEEDS
• Satisfying Consumer Needs
! Target Market
! The Four P’s: Controllable Marketing Mix
Factors
• Product
• Price
• Promotion • Place
! The Uncontrollable, Environmental Factors
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-21
FIGURE 1-A Summary of factors that affect
an organization’s marketing program
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-22
FIGURE 1-5 Marketing’s second task:
satisfying consumer needs
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-27
THE MARKETING PROGRAM:
HOW CUSTOMER RELATIONSHIPS
ARE BUILT
• A Marketing Program for Rollerblade
! Listening to Consumers to Stay Ahead
of the Trends
! Focusing the Marketing Program on Four
Key Segments
! Exploiting Strengths in Technology
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-28
Rollerblade
What marketing program for the
fitness/recreation in-line skate segment?
Zetrablade
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-29
Rollerblade
What marketing program for the
children in-line skate segment?
Microblade
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-30
Rollerblade
What marketing program for the
street/vert(ical) in-line skate segment?
TRS Broskow
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-31
Rollerblade
What marketing program for the
speed in-line skate segment?
ProBlade 100
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-32
FIGURE 1-6 Marketing programs for two of
Rollerblade’s skates, targeted at two
distinctly different customer segments:
fitness/recreational skaters and children
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-33
HOW MARKETING BECAME
SO IMPORTANT
• Evolution of the Market Orientation
! Production Era
! Sales Era
! Marketing Concept Era
! Customer Era
• Market Orientation
• Customer Relationship Management (CRM)
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-37
FIGURE 1-7 Four different orientations in
the history of American business
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-38
HOW MARKETING BECAME
SO IMPORTANT
• Ethics and Social Responsibility:
Balancing the Interests of Different
Groups
! Ethics
! Social Responsibility
• Societal Marketing Concept
• Macromarketing
• Micromarketing
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-39
HOW MARKETING BECAME
SO IMPORTANT
• The Breadth and Depth of Marketing
! Who Markets?
! What Is Marketed?
• Goods
• Services
• Ideas
! Who Buys and Uses What Is Marketed?
• Ultimate Consumers
• Organizational Buyers
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-40
American Library Association
Who markets and what is marketed?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-42
HOW MARKETING BECAME
SO IMPORTANT
• The Breadth and Depth of Marketing
! Who Benefits?
! How Do Consumers Benefit?
• Utility
! Form Utility
! Time Utility
! Place Utility
! Possession Utility
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-44
GOING ONLINE
YOUR PERSONAL
MECHANIZED
“TRANSPORTER”
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-47
SUPPLEMENTAL
LECTURE NOTE 1-1
THE MARKETING
CHALLENGES FACING
ROLLERBLADE®, INC.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-51
Rollerblade Print ad from the Early 1990s
What changes occurred for Rollerblade?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-52
Rollerblade Print ad from the Late 1990s
What changes occurred for Rollerblade?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-53
UltraWheels Print ad from the Late 1990s
What changes occurred for Rollerblade?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-54
Rollerblade 2005 Brochure
What product line changes?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-55
Dean Kamen: Segway HT Inventor
Competition for Rollerblade?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-56
Heelys Sneakers with Detachable Wheel
Competition for Rollerblade?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-57
FIGURE 1-B How Rollerblade’s marketing
mix actions today differ from those in 1986
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-58
Marketing
AMA Definition of Marketing
Marketing
Marketing is
is an
an organizational
organizational function
function
and
and aa set
set of
of processes
processes for
for creating,
creating,
communicating,
communicating, and
and delivering
delivering value
value to
to
customers
customers and
and for
for managing
managing customer
customer
relationships
relationships in
in ways
ways that
that benefit
benefit the
the
organization
organization and
and its
its stakeholders.
stakeholders.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-71
Exchange
Exchange
Exchange is
is the
the trade
trade of
of things
things of
of value
value
between
between buyer
buyer and
and seller
seller so
so that
that each
each is
is
better
better off
off after
after the
the trade.
trade.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-72
Market
A
A market
market consists
consists of
of people
people with
with both
both the
the
desire
desire and
and ability
ability to
to buy
buy aa specific
specific
product.
product.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-73
Target Market
The
The target
target market
market consists
consists of
of one
one or
or
more
more specific
specific groups
groups of
of potential
potential
customers
customers toward
toward which
which an
an organization
organization
directs
directs its
its marketing
marketing program.
program.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-74
Marketing Mix
The
The marketing
marketing mix
mix consists
consists of
of
the
the marketing
marketing manager’s
manager’s controllable
controllable
factors—product,
factors—product, price,
price, promotion,
promotion, and
and
place
place (the
(the 4Ps)—that
4Ps)—that can
can be
be used
used to
to solve
solve
aa marketing
marketing problem.
problem.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-75
Environmental Factors
Environmental
Environmental factors
factors are
are the
the
uncontrollable
uncontrollable factors
factors involving
involving social,
social,
economic,
economic, technological,
technological, competitive,
competitive, and
and
regulatory
regulatory forces.
forces.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-76
Customer Value
Customer
Customer value
value is
is the
the unique
unique
combination
combination of
of benefits
benefits received
received by
by
targeted
targeted buyers
buyers that
that includes
includes quality,
quality,
price,
price, convenience,
convenience, on-time
on-time delivery,
delivery, and
and
both
both before-sale
before-sale and
and after-sale
after-sale service.
service.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-77
Relationship Marketing
Relationship
Relationship marketing
marketing links
links the
the
organization
organization to
to its
its individual
individual customers,
customers,
employees,
employees, suppliers,
suppliers, and
and other
other partners
partners
for
for their
their mutual
mutual long-term
long-term benefits.
benefits.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-78
Marketing Program
A
A marketing
marketing program
program is
is aa plan
plan that
that
integrates
integrates the
the marketing
marketing mix
mix to
to provide
provide
aa good,
good, service,
service, or
or idea
idea to
to prospective
prospective
buyers.
buyers.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-79
Marketing Concept
The
The marketing
marketing concept
concept is
is the
the idea
idea that
that
an
an organization
organization should
should (1)
(1) strive
strive to
to satisfy
satisfy
the
the needs
needs of
of consumers
consumers (2)
(2) while
while also
also
trying
trying to
to achieve
achieve the
the organization’s
organization’s goals.
goals.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-80
Market Orientation
An
An organization
organization that
that has
has aa market
market
orientation
orientation focuses
focuses its
its efforts
efforts on
on
(1)
(1) continuously
continuously collecting
collecting information
information
about
about customers’
customers’ needs,
needs, (2)
(2) sharing
sharing this
this
information
information across
across departments,
departments, and
and
(3)
(3) using
using itit to
to create
create customer
customer value.
value.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-81
Customer Relationship
Management (CRM)
Customer
Customer relationship
relationship management
management
(CRM)
(CRM) is
is the
the process
process of
of identifying
identifying
prospective
prospective buyers,
buyers, understanding
understanding them
them
intimately,
intimately, and
and developing
developing favorable
favorable
long-term
long-term perceptions
perceptions of
of the
the organization
organization
and
and its
its offerings
offerings so
so that
that buyers
buyers will
will
choose
choose them
them in
in the
the marketplace.
marketplace.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-82
Societal Marketing Concept
The
The societal
societal marketing
marketing concept
concept is
is the
the
view
view that
that an
an organization
organization should
should satisfy
satisfy
the
the needs
needs of
of consumers
consumers in
in aa way
way that
that
provides
provides for
for society’s
society’s well-being.
well-being.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-83
Macromarketing
Macromarketing
Macromarketing is
is the
the study
study of
of the
the
aggregate
aggregate flow
flow of
of aa nation’s
nation’s goods
goods and
and
services
services to
to benefit
benefit society.
society.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-84
Micromarketing
Micromarketing
Micromarketing is
is how
how an
an individual
individual
organization
organization directs
directs its
its marketing
marketing
activities
activities and
and allocates
allocates its
its resources
resources to
to
benefit
benefit its
its customers.
customers.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-85
Ultimate Consumers
Ultimate
Ultimate consumers
consumers are
are the
the people
people who
who
use
use the
the goods
goods and
and services
services purchased
purchased for
for
aa household.
household.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-86
Organizational Buyers
Organizational
Organizational buyers
buyers are
are those
those
manufacturers,
manufacturers, wholesalers,
wholesalers, retailers,
retailers,
and
and government
government agencies
agencies that
that buy
buy goods
goods
and
and services
services for
for their
their own
own use
use or
or for
for
resale.
resale.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-87
Utility
Utility
Utility is
is the
the benefits
benefits or
or customer
customer value
value
received
received by
by users
users of
of the
the product.
product.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 1-88