marketing: managing profitable customer...

Marketing: Managing Profitable Customer

Relationships 1

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Learning ObjectivesAfter studying this chapter, you should be able to:

1. Define marketing and outline the steps in the marketing process

2. Explain the importance of understanding customers and the marketplace, and identify the five core marketplace concepts

3. Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy

4. Discuss customer relationship management, and identify strategies for creating value for customers and capturing value from customers in return

5. Describe the major trends and forces that are changing the marketing landscape in this age of relationships

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Chapter Concepts

1. What Is Marketing?2. Understanding the Marketplace and Customer

Needs3. Designing a Customer-Driven Marketing Strategy4. Preparing an Integrated Marketing Plan and

Program5. Building Customer Relationships6. Capturing Value from Customers7. The New Marketing Landscape8. So, What Is Marketing? Pulling It All Together

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What Is Marketing?

Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return

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What Is Marketing?The Marketing Process

1. Understand the marketplace and customer wants and needs

2. Design a customer-driven marketing strategy3. Construct a marketing plan that delivers superior

value4. Build profitable relationships and create customer

satisfaction5. Capture value from customers to create profit and

customer equity

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What Is Marketing?

The Marketing Process

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Understanding the Marketplaceand Customer Needs

Customer Needs, Wants, and Demands

Needs are states of deprivation• Physical—food, clothing, warmth, safety• Social—belonging and affection• Individual—knowledge and self-expression

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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

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Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want

Market Offerings—Product, Services, and Experiences

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Market Offerings—Products, Services, and Experiences

Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs

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Customer Value and Satisfaction

• Expectations• Customers

• Value and satisfaction• Marketers

• Set the right level of expectations• Not too high or low

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Exchange is the act of obtaining a desired object from someone by offering something in return

Marketers want to build and maintain strong relationships by consistently delivering superior customer value

Exchanges and Relationships

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Markets are the set of actual and potential buyers of a product

Marketing system consists of all of the actors (suppliers, company, competitors, intermediaries, and end users) in the system affected by major environmental forces

• Demographic• Economic• Physical

• Technological• Political–legal• Socio-cultural

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Elements of a Marketing System

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Designing a Customer-Driven Marketing Strategy

Marketing management is the art and science of choosing target markets and building profitable relationships with them• What customers will we serve?• How can we best serve these customers?

marketing: managing profitable customer...

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