* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download The marketing concept
Food marketing wikipedia , lookup
Social media marketing wikipedia , lookup
Affiliate marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Sales process engineering wikipedia , lookup
Product planning wikipedia , lookup
Marketing communications wikipedia , lookup
Sports marketing wikipedia , lookup
Marketing research wikipedia , lookup
Ambush marketing wikipedia , lookup
Target audience wikipedia , lookup
Customer experience wikipedia , lookup
Marketing channel wikipedia , lookup
Multi-level marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Customer relationship management wikipedia , lookup
Digital marketing wikipedia , lookup
Viral marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Target market wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Marketing plan wikipedia , lookup
Multicultural marketing wikipedia , lookup
Advertising campaign wikipedia , lookup
Customer engagement wikipedia , lookup
Direct marketing wikipedia , lookup
Services marketing wikipedia , lookup
Street marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Customer satisfaction wikipedia , lookup
Green marketing wikipedia , lookup
Copyright © 2005 Pearson Education Canada Inc. Marketing: Managing Profitable Customer Relationships •Chapter 1 •Powerpoint slides •Extendit! version •Instructor name •Course name •School name •Date Principles of Marketing: 6th Canadian Edition Learning Objectives 1.2 Copyright © 2005 Pearson Education Canada Inc. • After studying this chapter, you should be able to: – Define what marketing is and discuss its core concepts – Define marketing management and compare the five marketing management orientations – Discuss customer relationship management and strategies for building lasting customer relationships – Analyze the major challenges facing marketers heading into the new “connected” millennium Principles of Marketing: 6th Canadian Edition Copyright © 2005 Pearson Education Canada Inc. Opening Vignette: VanCity Credit Union 1.3 • • • • Founded in 1946 in Vancouver, British Columbia In 2003: 286,000 members in 39 branches Credit unions are cooperatives, owned by members Profits returned as dividends or improved services/prices • Triple bottom line • Measures success by: – – – – – – Customer satisfaction Profits Community impact Member involvement Environmental sustainability Growth in new members • Uses non-traditional marketing tools Principles of Marketing: 6th Canadian Edition 1.4 Marketing Defined Copyright © 2005 Pearson Education Canada Inc. • Marketing: – – – – Social and managerial process Individuals and groups obtain what they need Creating and exchanging Products and values with others • Needs: Figure 1.1 – Felt deprivation • Wants: – Form of needs shaped by culture and personality • Demands: – Wants backed by buying power Principles of Marketing: 6th Canadian Edition Products, Services, and Experiences 1.5 Copyright © 2005 Pearson Education Canada Inc. • Marketing offer: – – – – – – – – – – Address needs with a value proposition Set of benefits promised to customers to satisfy needs Can include: Products Services Persons Places Organizations Information Ideas Figure 1.1 Principles of Marketing: 6th Canadian Edition 1.6 Value and Satisfaction Copyright © 2005 Pearson Education Canada Inc. • Value: – Benefits gained versus costs of obtaining product • Satisfaction: – Degree of meeting consumer’s expectations – Expectations formed from: • • • • Figure 1.1 Previous experience Opinions of others Marketing information Competitive information and promises – Satisfied customers buy again and tell others – Dissatisfied customers switch and tell others Principles of Marketing: 6th Canadian Edition Exchange, Transactions, and Relationships 1.7 Copyright © 2005 Pearson Education Canada Inc. • Exchange: – Obtaining a desired object – By offering something in return • Transaction: – Two things of value Figure 1.1 – Agreed-upon conditions – Time/place of agreement • Exchange relationships: – Want to build strong economic and social connections – Consistently delivering superior value Principles of Marketing: 6th Canadian Edition 1.8 Marketing Management Copyright © 2005 Pearson Education Canada Inc. • Market: – A physical place where buyers and sellers gather – Set of actual or potential buyers of a product • Marketing management: – Choosing target markets – Building profitable relationships with them • Demarketing: Figure 1.2 – Reduce, not destroy demand – Temporarily or permanently Principles of Marketing: 6th Canadian Edition 1.9 Marketing Management Orientations Copyright © 2005 Pearson Education Canada Inc. • Production concept: – Consumers will favour available/affordable products – Focus on improving production/distribution efficiency – Still useful when demand exceeds supply • Product concept: – Consumers favour products with the best: Figure 1.3 • Quality • Performance • Features – Focus on continuous product improvements Principles of Marketing: 6th Canadian Edition Marketing Management Orientations 1.10 Copyright © 2005 Pearson Education Canada Inc. • Selling concept: – Products need large-scale selling/promotion effort – Focus on the hard sell – Unsought goods, or when company has overcapacity • The marketing concept: – Achieve organizational objectives by – Determining needs and wants of target consumers – Delivering satisfaction – Better than competitors Figure 1.3 Principles of Marketing: 6th Canadian Edition Societal Marketing Concept 1.11 Copyright © 2005 Pearson Education Canada Inc. • Societal marketing concept: – – – – – The marketing concept focuses on short-run wants May be in conflict with consumer long-run welfare Determine needs/wants of target markets Deliver desired satisfactions More efficiently and effectively than competitors – In a way that maintains or improve consumer’s and society’s well-being Figure 1.4 Principles of Marketing: 6th Canadian Edition Customer Relationship Management 1.12 Copyright © 2005 Pearson Education Canada Inc. • Customer relationship management: – Process of building/maintaining profitable customer relationships – Delivering superior customer value and satisfaction • Customer lifetime value: – Value of the entire purchase stream – Customer makes over a lifetime – Focus on the long-term – Very few new customers, just someone else’s – More efficient to look after your own customers – Than to try to find new ones Figure 1.5 Principles of Marketing: 6th Canadian Edition Customer Satisfaction and Loyalty 1.13 Copyright © 2005 Pearson Education Canada Inc. • Customer perceived value: – Difference between total customer value – And total customer cost – To the customer, perception is reality • Customer satisfaction: – Extent a product’s perceived performance – Matches expectations – Maximizing customer satisfaction may not be possible or will be cost prohibitive Figure 1.5 Principles of Marketing: 6th Canadian Edition Customer Satisfaction and Loyalty 1.14 Copyright © 2005 Pearson Education Canada Inc. • Customer loyalty: – – – – – – – – Highly satisfied customers are less price sensitive Speak favourably about the company and products Remain loyal for longer period of time Link between satisfaction and loyalty is positive, but Different for some industries To the customer, slight changes in satisfaction may trigger switching Companies need to aim high Focus on greater “share of wallet” Figure 1.5 Principles of Marketing: 6th Canadian Edition Building Customer Relationships 1.15 Copyright © 2005 Pearson Education Canada Inc. • Customer equity: – Total combined customer lifetime values – Of all of the company’s customers • Relationship tools: – Levels from developing basic relationships to creating full partnerships – Financial benefits: frequency marketing programs – Social benefits: club marketing – Adding structural ties – Focus on profitable customers Principles of Marketing: 6th Canadian Edition Copyright © 2005 Pearson Education Canada Inc. Today’s Marketing Connections • • • • Single theme: connecting The Internet One to one marketing Selective relationship management 1.16 Figure 1.6 • Increase share of customer • Partner relationship management • Supply chain management • Strategic alliances Principles of Marketing: 6th Canadian Edition Copyright © 2005 Pearson Education Canada Inc. Marketing Connections in Transition (Table 1.1) Old marketing thinking: New marketing thinking: • • • • • • • • • • • • • • • • • • • • • • • • • Sales/product centered… Practice mass marketing… Focus on product/sales… Make sales to customers… Get new customers… Grow share of market… Serve any customer… Use mass media… Standardized products… Sales/marketing responsible for customer satisfaction/value… Go it alone… Market locally… Profit responsibility… Corporations… Use marketplaces… • • • • • 1.17 Market/customer centered Selected market segments Focus on customer satisfaction/value Develop customer relationships Keep old customers Grow share of customer Serve profitable customers Connect with customers directly Customized products Enlist all departments to deliver customer satisfaction/value Partner with others Market locally and globally Social/environmental responsibility Non-profits Use marketspaces Principles of Marketing: 6th Canadian Edition In Conclusion… 1.18 Copyright © 2005 Pearson Education Canada Inc. • The learning objectives for this chapter were: – Define what marketing is and discuss its core concepts – Define marketing management and compare the five marketing management orientations – Discuss customer relationship management and strategies for building lasting customer relationships – Analyze the major challenges facing marketers heading into the new “connected” millennium Principles of Marketing: 6th Canadian Edition