Download Marketing management is

Marketing: Managing
Profitable Customer
Relationships
Chapter 1
Objectives
• Be able to define marketing
and discuss its core concepts.
• Be able to define marketing
management and compare the
five marketing management
orientations.
1-1
Objectives
• Understand customer
relationship management and
strategies.
• Realize the major challenges
facing marketers in the new
“connected” millennium.
1-2
What is Marketing?
• Marketing is managing profitable
customer relationships
 Attracting new customers
 Retaining and growing current
customers
• “Marketing” is NOT synonymous
with “sales” or “advertising”
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
1-4
The Marketing Process
•
Understand the marketplace and customer
wants and needs
•
Design a customer-driven marketing strategy
•
Construct a marketing plan that delivers
superior value
•
Build profitable relationships and create
customer satisfaction
•
Capture value from customers to create profit
and customer equity
1-5
What is Marketing?
Many Things Can Be Marketed!
• Goods
• Places
• Services
• Properties
• Experiences
• Organizations
• Events
• Information
• Persons
• Ideas
1-6
Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands
• Needs are states of deprivation
 Physical—food, clothing, warmth, safety
 Social—belonging and affection
 Individual—knowledge & self-expression
1-7
Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands
• Wants are the form that needs take as they
are shaped by culture and individual
personality
• Demands are wants backed by buying
power
1-8
Understanding the Marketplace
and Customer Needs
Market Offerings—Products, Services
& Experiences
• Market offerings are some
combination of products, services,
information, or experiences offered
to a market to satisfy a need or
want
1-9
Understanding the Marketplace
and Customer Needs
Marketing myopia is focusing only on
existing wants and losing sight of
underlying consumer needs
Exchange is the act of obtaining a
desired object from someone by
offering something in return
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Marketing management is the art & science
of choosing target markets & building
profitable relationships with them
• What customers will we serve?
• How can we best serve these customers?
• Selecting Customers to Serve
Market segmentation: Dividing the markets
into segments of customers
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Selecting Customers to Serve
• Target marketing: Which segments to go
after
• Choosing a Value Position: It is the set of
benefits or values a company promises to
deliver to customers to satisfy their
needs, how it will differentiate & position
itself in the market place.
• De-marketing: Marketing to reduce
demand temporarily or permanently; the
aim is not to destroy demand but to
reduce or shift it.
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Designing a Customer-Driven
Marketing
Management
Marketing Strategy
Management Orientations
• Production
concept
• Product concept
• Selling concept
• Marketing
concept
• Societal marketing concept
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Marketing Management Orientations
• Production concept is the idea
that
consumers
will
favor
products that are available or
highly affordable
1-19
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Marketing Management Orientations
• Product concept is the idea that
consumers will favor products that
offer the most quality, performance &
features for which the organization
should therefore devote its energy to
making continuous improvements
1-20
1 - 15
Marketing Management Orientations
• 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 Management Orientations
• Marketing concept is the idea
that achieving organizational goals
depends on knowing the needs &
wants of the target markets &
delivering the desired satisfactions
better than competitors do.
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Starting
Point
Factory
Focus
Existing
products
Means
Ends
Selling &
Promoting
Profit through
sales volume
The Selling Concept
Starting
Point
Market
Focus
Customer
Needs
Means
Ends
Integrated Profit through
Marketing Customer Satisfaction
The Marketing Concept
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Marketing Management Orientations
• 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.
1 - 19
Marketing Mix
The marketing mix is the set of tools
(four Ps) the firm uses to implement
its marketing strategy
• Product
• Price
• Promotion
• Place
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CRM
• CRM – Customer relationship
management . . .
“is the overall process of building
and maintaining profitable
customer relationships by
delivering superior customer
value and satisfaction.”
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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
product’s perceived performance matches a
buyer’s expectations
•
Customer lifetime value is the value of the
entire stream of purchases that the customer
would make over a lifetime of patronage
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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
• Building Customer Equity: Customer
equity is the total combined customer
lifetime values of all of the company’s
customers
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