MARKETING: CREATING AND CAPTURING

CUSTOMER VALUE

PRESENTED TO . . .

SYED ABUL KALAM AZAD

Professor, Department of MarketingFaculty of Business Studies

University of Dhaka

GROUP LINE UP: GROUP 1

NAME ID NO. BATCH

KAZI RASEL KABIR 41325010 25TH

MD. MAIDUL ISLAM 41325064 25TH

JAMSHED ALAM 41426088 26TH

MD. RAFIKUL ISLAM 41427010 27TH

MOLOY KANTI RAHA 41427088 27TH

Principles of Marketing (MKT 502)- Section AMBA (Evening) Program, Department of Marketing

Faculty of Business Studies, University of Dhaka

TOPICS TO BE COVERED

Marketing & the Marketing Process

Customer Needs, Wants and Demands

Market OfferingsCustomer Value,

Satisfaction & Quality

Exchange, Transaction & Relationships

Markets & Marketing Myopia

Modern Marketing System

Marketing Management,

Demand management

Profitable Customer

Relationship

The Production Concept

The Product Concept

The Selling Concept

The Marketing Concept

The Societal Marketing Concept

Green Marketing

Customer Perceived Value

Customer Equity, Share of Customer

& Customer Lifetime Value

Customer Relationship

Groups

Marketing Challenges in the New Connected

Millennium

Goals of Marketing

TOPICS COVERED BY MD. KAZI RASEL KABIR

Marketing & the Marketing Process

Customer Needs, Wants and Demands

Market Offerings

Customer Value, Satisfaction & Quality

MARKETING DEFINED

A social & managerial Process

Creating & retaining value for the customers

Developing & managing relationship with customers

• long-term relationship

• profitable relationship

Capturing Value from customers in return

Superior Value Delivery

Marketing Mix- 4 P’s or 4 C’s

• Product (Customers’ Solution), Price (Customers’ Cost), Place (Customers’ Convenience), Promotion (Communication to Customers)

THE MARKETING PROCESS

Understanding the

marketplace &

customer needs &

wants

Design a customer

driven marketing strategy

Construct an integrated marketing

program that delivers

superior value

Build profitable

relationship & create customer

delight

Capture value from customers to create profits & customer

equity

Needs WantsDemands

We will we serve?How will we be different?

Customers lifetime Value, Share of customers, Customers Equity

Marketing MixProductPricePlacepromotion

CRM, Are we actually creating value? Are our customers satisfied

Creating Value for Customers and build customer relationships

Capturing Value from customers

in return

CUSTOMER NEEDS, WANTS AND DEMANDS

Need

• A state of felt deprivation of some basic satisfaction.

• Basic physical needs for food, clothing, warmth, and safety

• Social needs for belonging and affection;

• Individual needs for knowledge and self-expression.

• Our need: Knowledge, Higher Education or Certificate ???

Want

• Desires for specific satisfies of these deeper needs.

• If you are thirsty, you can satisfy this need by drinking water, tea etc.

• Our want: MBA Degree.

Demand

• Human wants that are backed by buying power and willingness to buy.

• Do you have money and willingness to buy a bottle of mineral water or a cup of tea?

• Our Demand: MBA (Evening) Degree from University of Dhaka.

MARKET OFFERINGS

Some combination of products, services, information, or experience offered to a market to satisfy a need or want.

• Physical Products – Food items, Text Books, Clothing & Fashion Wares etc.

• Services- Educational Services (EMBA Program), Medical Services, Financial Services etc.

• Idea- Anti Smoking Campaign, Anti-Cancer Campaign, Forest Reservation Campaign etc.

• Information- Call Centers, Research Journals, Telephone Directory, Yellow Pages etc.

• Experiences – Professional Services, Consultancy Services, Architectural Design Services etc.

• Events- Concerts, Seminars, River Cruise, etc.

• Places- Community Centers, Picnic spots, Town Halls etc.

CUSTOMER VALUE & SATISFACTION

Customer Value

• Two aspects- Desired value and Perceived value.

• Desired value refers to what customers desire in a product or service. EMBA Program of DU: Quality Education, Experienced Teachers, Affordable Cost etc.

• Perceived value is the benefit that a customer believes he or she received from a product after it was purchased. EMBA Program of D: ????

Customer Satisfaction

• Difference between a product’s perceived performance in delivering value relative to a buyer’s expectations

Level of Customer Satisfaction

• Satisfied Customer : Customers Expectations = Marketers Performances

• Dissatisfied Customer: Customers Expectations >Marketers Performances

• Delighted Customer: Customers Expectations < Marketers Performances

• Are EMBA students of DU satisfied/ dissatisfied/ delighted ???

TOPICS COVERED BY MD. MAIDUL ISLAM

Exchange, Transaction & Relationships

Markets & Marketing Myopia

Modern Marketing System

MARKETING MANAGEMENT

EXCHANGE, TRANSACTION & RELATIONSHIPS

EXCHANGE

• The act of obtaining a desired object from someone by offering something in return.

• 3 Conditions: 1. Two Parties, 2. Both parties own something which has got value to each other, 3. Both parties are agreeable two each other.

• Two parties: Authority of University of Dhaka, Students

• Our desired object: MBA Degree from University of Dhaka.

• You pay a substantial amount of earnings of our parents as tuition fees.

TRANSACTION

• A trade between two parties that involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.

• Unit of measurement of exchange.

RELATIONSHIPS

• The way in which two or more people or things are connected, or the state of being connected.

• Relationship marketing is the process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders

MARKETS & MARKETING MYOPIA

Market

• Customers are the market. The set of all actual & potential buyers of a product or service.

• Actual Buyer: Someone who is committed to buying a product

• Potential Buyer: Some who is interested in buying, but may not.

• We, students, are the actual buyers.

Different types of Market

• Consumer Markets- Products and services bought by individuals for their own or family use.

• Industrial Market- It involves the sale of goods between businesses

Marketing Myopia

• A short-sighted and inward looking approach to marketing that focuses on the needs of the company instead of defining the company and its products in terms of the customers' needs and wants.

• It results in the failure to see and adjust to the rapid changes in their markets.

• Nokia Smart Phones

MODERN MARKETING SYSTEM

SuppliersMarketing

Intermediaries

Company

Consumers

Competitors

Major Environmental Forces

MARKETING MANAGEMENT, DEMAND MANAGEMENT

& PROFITABLE CUSTOMER RELATIONSHIP

Marketing Management

• The art & science of choosing target markets and building profitable relationships with them.

• It focuses on the practical application of marketing techniques and the management of a firm's marketing resources and activities.

Demand Management

• Recognizing all demands for goods and services to support the market place.

• De-marketing : Marketing to reduce demand temporarily or permanently, the aim is not to destroy demand but only to reduce or shift it

Profitable Customer Relationship

• Key factor to be successful in the marketplace.

TOPICS COVERED BY JAMSHED ALAM

The Production Concept

The Product Concept

The Selling Concept

The Marketing Concept

The Societal Marketing Concept

THE PRODUCTION CONCEPT

The idea that buyer will favor products that are widely available and highly affordable

Large Scale production for reducing the cost of production & extensive distribution

Economies of scale benefit

Competitively Lower price as production cost is reduced

It works when demand exceeds supply

THE PRODUCT CONCEPT

The idea that buyers will favour products that offer the most in quality, performance, and innovative features

Emphasis On Product Quality

No Concern With Customers' Need

Continuous Quality Improvement

Price doesn’t matter at all

A good quality product and high price

Do the customers not take care of the price of the products, its availability, etc . ???

THE SELLING CONCEPT

The idea that the market will not buy enough of the firm's products unless it undertakes a large-scale selling effort

Customers can be attracted

Selling what you have

With repeated efforts, one can sell-anything.

It offers only a short-term advantage and is not for long-term gains.

THE MARKETING CONCEPT

The marketing philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target a markets and delivering the desired satisfactions better than competitors do.

Marketers do not sell what they can make but they make what they can sell.

Know what customers want.

Achieving consumer satisfaction is the goal.

Do marketing pay attention to social welfare ???

THE SOCIETAL MARKETING CONCEPT

A principle of enlightened marketing that holds that marketing strategy should deliver value to the organization's customers in a way that maintains or improves the well-being of society

Social Responsibility Orientation

Customer Need Satisfaction

Integrated Marketing Efforts

Profit Through Social Well-being And Consumers' Welfare

TOPICS COVERED BY MD. RAFIKUL ISLAM

Green Marketing

Customer Perceived Value

Customer Equity & Share of Customer

Customer Lifetime Value

GREEN MARKETING

Green marketing is the marketing of products that are presumed to be environmentally safe.

Green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising.

Green products are defined by following measures:

•Products those are originally grown, recyclable, reusable and biodegradable,

•Products with natural ingredients,

•Products containing recycled contents, non-toxic chemical,

•Products contents under approved chemical,

•Products that do not harm or pollute the environment,

•Products that will not be tested on animals,

•Products that have eco-friendly packaging i.e. reusable,refillable containers etc.

CUSTOMER PERCEIVED VALUE

The customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

CUSTOMER EQUITY , SHARE OF CUSTOMER

& CUSTOMER LIFETIME VALUE

Customer Equity

• The total combined customer lifetime values of all of a company’s customers.

Share of Customer

• The portion of the customer's purchasing in its product categories that a company gets.

Customer Lifetime Value

• The value of the entire stream of purchases that the customer would make over a lifetime of patronage.

TOPICS COVERED BY MOLOY KANTI RAHA

Customer Relationship Groups

Marketing Challenges in the

New Connected Millennium

Goals of Marketing

CUSTOMER RELATIONSHIP GROUPS

Butterflies - Profitable but not loyal

True friends - Profitable and loyal

Barnacles - Highly loyal but not very profitable

Strangers - Low profitability and little loyalty

MARKETING CHALLENGES IN THE NEW

CONNECTED MILLENNIUM

Reaching potential customers through internet to increase the base of customers.

Sharing necessary information through social communication media

Removing unfavourable impression about the product or company

Promoting new product and services through social communication media.

Promoting favourable company events like its CSR activities to public through social communication media.

Creating public awareness in social issues,

Engaging public with day to day company

Organizing for public polls on debatable company issues to learn about their view.

GOALS OF MARKETING

Delivering Superior Value to customers

Maintaining a fine balance between price and quality

Delighting Customers, only satisfying is not enough

Building Strong relationship with customers

Giving customers a reason to buy the product

THANK YOU