mktg report group 5

7/31/2019 Mktg Report Group 5

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Designing a Customer-Driven Marketing

Strategy


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MARKETING MANAGEMENT

Art and science of choosing target marketsand building profitable relationships with them.

A marketing managers aim is to find, attract,

keep, and grow target customers by creating,delivering, and communicating superiorcustomer value.


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Procter and Gamble Philippines

To design a winning marketing

strategy, the marketing

manager must answer two

important questions.

1. What customers will

we serve? (whats

our target market)?

2. How can we servethese customers best

(whats our value

proposition)?


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SELECTING CUSTOMERS TO SERVE

The company must first decide who will it serve.

It is necessary to select customers that can beserved well and profitably.

Market

Segmentation

- Dividing the

market intosegments of

customers.

STEP 1: STEP 2:

Target Marketing

-evaluating eachmarket segments

attractiveness andselecting one or

more segments to

enter.


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1

Marketing managers must decide which

customers they want to target and on the level,

timing, and nature of their demand.Managing demand means managing customers

who come from two groups: new and repeat

customers. Keeping existing customers is

important as the cost of retaining them is muchless than attracting new ones.

Simply, marketing management is customer

management and demand management.


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This slideshow is brought to you by.

CREDITS TO : mrbenjaminspeed


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This slideshow is brought to you by.

CREDITS TO : Jollibee Official YT Channel


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CHOOSING A VALUE PROPOSITION

A value proposition is the set of benefits or

values the firm promises to deliver to consumers tosatisfy their needs.

Customers question:

Why I should buy your brand rather than a

competitors?


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MARKETING MANAGEMENT ORIENTATIONS

The firm must decide the design strategiesthat will build profitable relationships with

target customers.

There are 5 alternative concepts under which

organizations design and carry out their

marketing strategies: the production, product,

selling, marketing, and social marketingconcepts.


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PRODUCTION CONCEPT

Consumers prefer products that are widelyavailable, and relatively inexpensive to purchase

The firms focus would be on improving

production and distribution efficiency to reduceproduct costs and therefore be in a position tosell more cheaply .


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PRODUCT CONCEPT

Consumers prefer those products that offerthe most quality; the best performance; or

innovative features.

Firms focus would, primarily, be on regular

product enhancement.


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SELLING CONCEPT

Consumers will buy certain products only ifthey are aggressively promoted and sold.

Firms focus would be on advertising and

sales activities, especially for those products

that consumers do not actively look for.


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MARKETING CONCEPT

Attempt to identify the needs and wants ofthe target market, and then offer a solution that

delivers more value than the competitors

products.

Firms focus would be on delivering customer

satisfaction, at a profit.


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SOCIETAL CONCEPT

Organizations should determine the needs,wants and interests of target markets anddeliver the desired satisfaction more effectivelyand efficiently than competitors in a way that

maintains or improves the customers andsocietys well-being.

The firm should aim to satisfy: consumers

needs/ want, company profits/requirementsand consumers and societys long run interests.


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CAPTURING VALUE FROM CUSTOMERS

1. Creating Customer Loyalty and Retention

Good customer relationship managementcreates customer delight. Delighted customersremain loyal and talk favourably about the

company. Companies are realizing that losing acustomer means losing more than a single sale.

Customer lifetime value the value of theentire stream of purchase that the customerwould make over a lifetime of patronage.


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A Tour to The Worlds Largest Dairy Store and

New York Times Disneyland of the DairyStores

ENJOY!


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From its humble beginnings as a small dairy

stores in 1969, Stew Leonards has grown at anamazing pace. Its built 29 additions onto theoriginal store, which now serves more than 300,000customers each week. This legion of loyal shoppers

is largely a result of the stores compassionateapproach to customer service.

Rule #1: at Stew Leonards The customer is

always right.Rule #2: If the customer is ever wrong, reread rule

#1!


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2. Growing Share of Customer

Share of customer is the portion of thecustomers purchasing at a company gets in itsproduct categories.

To increase share of customer, firms can offergreater variety to current customers. Or theycan create programs to cross-sell and up-sell inorder to market more products and services toexisting customers.


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3. Building Customer Equity

Customer equity is the total combined

customers lifetime values of all of the

companys customers.

The more the loyal the firms profitable

customers, the higher the firms customer

equity. It may also be a better measure offirms

performance than current sales or marketshares.


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Companies should manage customer equity

carefully. They should view customers as assetsthat need to be managed and maximized. But

not all customers, not even all loyal customers,

are good investments. Surprisingly, some loyal

customers can be unprofitable, and some

disloyal customers can be profitable.


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The company can classify customers

according to their potential profitability and

manage its relationship with them accordingly.There are four classifications of customers

according to their profitability and projected

loyalty.

1. Strangers

2. Butterflies

3. True friends

4. Barnacles


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1. Strangers

They show low potential profitability and

little projected loyalty. The relationship strategy for these

customers is simple: Dont invest anything in

them.

2. Butterflies They are potentially profitable but not loyal.

However, like butterflies, we can enjoy them

for only a short while and then theyre gone.

The company should use promotional blitzes

to attract them, create satisfying and

profitable transactions with them.


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3. True Friends

They are both profitable and loyal.

The firm should make continuousrelationship to delight these customers and

nurture, retain, and grow them.

4. Barnacles They are highly loyal but not profitable.

The company might be able to improve their

profitability by selling more, raising the fess,

or reducing service to them.


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3. Building Customer Equity

Different customers require different

relationship management strategies. The goal is

to build the right relationships with the right

customers.


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RapidGlobalization

Growth of

Not-for-Profit

Marketing

The DigitalAge

Call for Ethics

and Social

Responsibility

THE CHANGING MARKETING LANDSCAPE


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THE DIGITAL AGE

Technology provided marketers with exciting

new ways to learn about and track customers and

to create products and services tailored to

individual customer needs.

Digital technology has also brought a new waveof communication, advertising, and relationship

building tools-ranging from online advertising,

video sharing tools, cell phones and video games to

Web widgets and online social network.


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RAPID GLOBALIZATION

In an increasing smaller world, many marketers

are now connected globally with their customers

and marketing partners.

Today, companies are not only trying to sell more

of their locally produced goods in internationalmarkets, they also are buying more supplies and

components abroad.


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CALL FOR MORE ETHICS AND SOCIAL

RESPONSIBILITY


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GROWTH OF NOT-FOR-PROFIT MARKETING

Marketing has also become a major part of

the strategies of many not-for-profit

organizations, such as colleges, hospitals,

museums, zoos, symphony orchestras, and even

churches.


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END

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