Download Marketing: Creating and Capturing Customer Value

Philip Kotler | Gary Armstrong |
Prafulla Y. Agnihotri | Ehsan ul Haque
 Procter & Gamble
 Product: Tide detergent
 Strategy: Building customer relationship
 Implementation: “knows fabrics best”
 Result: Increase in market share, most successful
detergent in the market
 Marketing is ‘managing profitable customer
relationship’.
 A process by which companies create value for
customers and build strong customer relationships in
order to capture value from customers in return.
 Why do companies invest heavily in marketing?
Class activity:
Write down one sentence that is your own personal
slogan. The aim is to impress an employer who would
employ you based on your slogan.
 Wal-Mart: ‘Save money. Live better’
 Disney theme park: ‘Make a dream come true today’
 Apple: ‘Think different'
 Customer needs, wants and demands
 Market offerings - Products, services, and experiences
 Customer value and satisfaction
 Exchanges and relationships
 Markets
 Selecting customers to serve
 Choosing a value proposition
 Marketing management orientations
 The production concept
 The product concept
 The selling concept
 The marketing concept
 The societal marketing concept
 The 4 Ps: Product, Price, Place and Promotion
 To be discussed in detail later.
 Customer Relationship Management
 Relationship building blocks: customer value and
customer satisfaction.
 Customer relationship levels and tools
 The changing nature of customer relationships
 Selective relationship management: Best Buy, consumer
electronics; angels and demons
 Relating more deeply and interactively
 Creating customer loyalty and retention
 Growing share of customers
 Building customer equity
 Customer equity: the total combined customer lifetime
values of all the company’s customers. Cadillac and
BMW.
 Building the right relationship with the right customers
 The digital age
 Rapid globalization
 The call for more ethics and social responsibility
 The growth of not-for-profit marketing
 Ask five businesspeople from different industries (for
example, food service, retailing, consumer-product
manufacturing, education and so on) what they think
marketing is. Evaluate their definitions and discuss
whether or not they are consistent with the goal of
creating customer value and managing profitable
customer relationships.