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Chapter 1- slide 1Copyright 2009 Pearson Education, Inc.Publishing as Prentice Hall

Chapter One

Creating and Capturing CustomerValue


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Creating and Capturing CustomerValue

Define marketing and outline the steps in themarketing process

Understanding the Marketplace and CustomerNeeds

Designing a Customer-Driven Marketing Strategy Preparing an Integrated Marketing Plan and

Program

Building Customer Relationships Capturing Value from Customers The Changing Marketing Landscape

Topic Outline


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What Is Marketing?

Marketing is a process by whichcompanies create value for customers

and build strong customer relationshipsto capture value from customers inreturn


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Understanding the Marketplaceand Customer Needs

Customer needs, wants, and demands Market offerings Customer Value and satisfaction Exchanges and relationships

Markets

Core Concepts


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States of deprivation Physical food, clothing, warmth, safety Social belonging and affection Individual knowledge and self-expression

Needs

Form that human needs take as they are shaped byculture and individual personality Wants

Human wants backed by buying power Demands

Customer Needs, Wants, and Demands


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Market offerings are somecombination of products, services,information, or experiences offered to amarket to satisfy a need or want

Marketing myopia is focusing only on

existing wants and losing sight ofunderlying consumer needs

Understanding the Marketplace

and Customer Needs


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Publishing as Prentice Hall


Customer Value and SatisfactionExpectations

Customers Value and

satisfaction

Marketers Set the right level of

expectations Not too high or low




Exchange is the act of obtaining adesired object from someone by offeringsomething in return


and Customer Needs




Markets are the set of actual andpotential buyers of a product or service


and Customer Needs




Designing a Customer-Driven

Marketing Strategy

Marketing management is the art andscience of choosing target markets andbuilding profitable relationships withthem

What customers will we serve? How can we best serve these customers?


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Designing a Customer-DrivenMarketing Strategy

Market segmentation refers to dividingthe markets into segments of customers

Target marketing refers to whichsegments to go after

Selecting Customers to Serve


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Demarketing is marketing to reducedemand temporarily or permanently; theaim is not to destroy demand but toreduce or shift it

Selecting Customers to Serve


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The value proposition is the set ofbenefits or values a company promisesto deliver to customers to satisfy theirneeds

Choosing a Value Proposition


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Productionconcept

Productconcept

Sellingconcept

Marketingconcept

Societalconcept

Marketing Management Orientations


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Production concept is the idea thatconsumers will favor products that areavailable or highly affordable



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Product concept is the idea thatconsumers will favor products that offerthe most quality, performance, andfeatures. Organizations should

therefore devote its energy to makingcontinuous product improvements.



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Selling concept is the idea thatconsumers will not buy enough of thefirms products unless it undertakes alarge scale selling and promotion effort



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Marketing concept is the idea that

achieving organizational goals dependson knowing the needs and wants of thetarget markets and delivering thedesired satisfactions better thancompetitors do



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Societal marketing concept is the ideathat a company should make goodmarketing decisions by consideringconsumers wants, the companysrequirements, consumers long -terminterests, and societys long -runinterests



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The marketing mix is the set of tools(four Ps) the firm uses to implement its

marketing strategy. It includes product,price, promotion, and place.

Integrated marketing program is a

comprehensive plan that communicatesand delivers the intended value tochosen customers.

Preparing an Integrated Marketing

Plan and Program


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Building Customer Relationships

The overall process of building andmaintaining profitable customerrelationships by delivering superiorcustomer value and satisfaction

Customer Relationship Management(CRM)


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Building Customer RelationshipsRelationship Building Blocks: Customer

Value and Satisfaction

Customerperceived value

The differencebetween totalcustomer valueand totalcustomer cost

Customersatisfaction

The extent towhich aproductsperceivedperformancematches abuyersexpectations


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Building Customer RelationshipsCustomer Relationship Levels and Tools

BasicRelationships

FullPartnerships


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Relating with more carefully selected

customers uses selective relationshipmanagement to target fewer, moreprofitable customers

Relating more deeply and interactively byincorporating more interactive two wayrelationships through blogs, Websites,online communities and social networks

The Changing Nature of CustomerRelationships


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Partner relationship managementinvolves working closely with partners in

other company departments andoutside the company to jointly bringgreater value to customers


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Partners inside the company is everyfunction area interacting with customers Electronically Cross-functional teams

Partners outside the company is how

marketers connect with their suppliers,channel partners, and competitors bydeveloping partnerships

Partner Relationship Management


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Supply chain is a channel that stretchesfrom raw materials to components tofinal products to final buyers

Supply management Strategic partners Strategic alliances

Partner Relationship Management


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Capturing Value from Customers

Customer lifetime value is the value ofthe entire stream of purchases that thecustomer would make over a lifetime ofpatronage

Creating Customer Loyalty andRetention


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Share of customer is the portion of thecustomers purchasing that a companygets in its product categories

Growing Share of Customer


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Customer equity is the total combinedcustomer lifetime values of all of the

companys customers


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Building the right relationships with theright customers involves treatingcustomers as assets that need to bemanaged and maximized

Different types of customers requiredifferent relationship managementstrategies Build the right relationship with the right

customers

Building Customer Equity


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The New Marketing Landscape

Digital age Rapidglobalization

Ethics andsocial

responsibilityNot-for-profitmarketing

Major Developments


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Ch t 1 lid 33Copyright 2010 Pearson Education Inc

All rights reserved. No part of this publication may be reproduced, stored in aretrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written

permission of the publisher. Printed in the United States of America.

Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall

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