what is marketing and introduction to crm
TRANSCRIPT
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What is marketing?
Dr.Sc. (Econ.) Carl-Johan Rosenbrijer
Department of Economy, Media and Engineering
ARBIT Applied Research in Business an IT
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Customer Relationship Management: 30.8-
1.9.2012
What is marketing
Introduction to CRM - development of marketing
Business and CRM strategy
The nature and complexity of customer relationships
The network approach
Group assignment part 1
Customer loyalty
Customer value and the value creation process
Group assignment part 2
Future of CRM
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What is marketing social definition
Marketing deals with identifying and meeting human and
social needs
or shorter..
Meeting needs profitably
Kotler (2003)
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What is marketing managerial definition
The art of selling products
however Drucker (1973) states
the aim of marketing is to know and understand thecustomer so well that the product or service fits him and
sells itself. Ideally, marketing should result in a customerwho is ready to buy.
Kotler (2003)
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What is marketing managerial definition
The American Marketing Association:
Marketing is the process of planning and executing
the conception, pricing, promotion, and distribution of ideas, goods and
services to create exchanges that satisfy individual andorganizational goals.
Kotler(2003) see
marketing management as the art and science of choosing target
markets and getting, keeping, and growing customers through creating,delivering, and communicating superior customer value.
Kotler (2003)
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What do marketing people market?
Goods
Services
Experiences
Events
Persons Places
Properties
Organizations
Information Ideas
Etc?
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Kotler (2003)
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Core Marketing Concepts
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Market Segments
Target Markets Market Offering
Marketing Mix
Product
Price
Place
Promotion
1) The firm identifiesdifferent buyers
2)and decides which segments
present greatest business opportunity
3) For each chosentarget market
the firm develops a .
4) The market offering
is developed based on a
certain marketing mix
Kotler (2003)
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Four Ps and four Cs
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Sellers view
Product
Price
Place
Promotion
Customers view
Customer solution
Customer cost
Convenience
Communication
:
-))
:
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Company orientations toward the
marketplace
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Company orientation Company assumes that .
The production concept the customer want widely available and affordable
products
The product concept the customer want products with the most quality,
performance or innovative features
The selling concept the customer will not buy enough products without
an aggressive selling and promotion effort
The marketing concept the firm must be better than competitors in
creating, delivering, and communicating customer
value to its chosen target markets.
The customer concept the company will achieve profitable growth and
capture long-term share and loyalty by shaping
offers and activities to individual customers
The societal marketing concept the firm must satisfy customers more effectively
and efficiently than competitors while still
preserving the consumers and societys well-being
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What?
Product / brand:
Production oriented
Technical quality
Capacity
Price
Distribution
Advertising and
other sales
promotion
E.g.: Presidentticoffee, Coca Cola,
Scania etc.
How?
Service
Production and consumption
often simultaneous
Functional quality
The customer encounter(moment of truth)
Different services connected to
the product
Service concept = way of
operating / way of life E.g.: Robert Paulig Coffee
Company, IKEA, Kone, etc.
The development of marketing thought
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Where?
Place of purchase Distribution central
Understanding thecustomer process isvital
Where is the
customer customerflow?
Offer existingproducts/services innew places
E.g.: Esso andgroceries, R-kioski
and Post, Internet,home etc.
When?
Timing
time: 24 hx7, life-cycle
Seasons: Summer,
autumn,winter and spring
Seasons: christmas,eastern
etc. The customers perception of
time, changes (e.g.
computers,mobile phones
etc.)
E.g. Fazer Bakerys,Teleoperators,Banks etc.
The development of marketing thought
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The marketing concept is dynamic
PRODUCT/
SERVICE
New
Old
TARGET MARKETS
NewOld
XX X
XX
X
X
XWhats
next?
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C
U
S
T
O
M
E
R
The traditional push role of marketing
S
UP
L
I
E
R
SP
SP
SP
SP
SP=Sales person
Marketing Mix:
product
price
place
sales promotion
Efficient sales:Take it or leave it
principle
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Purchasing and competitive buying
C
U
S
TO
M
E
R
S
S
S
S
B
Marketing mix
Efficient purchasing:
Competitive buying
I have the power
principle
B=BUYER
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Marketing is not a function in a company
PRODUCTION LOGISTICS ACCOUNTING MARKETING IT
OPERATIVE MANAGEMENT
Marketing as
an isolated function!
THE ACTIVITIES ORGANISED AS INDEPENDENT FUNCTIONS
NO COORDINATION AND COMMUNICATION
THE COMPANY IS A PRISONER OF ITS FUNCTIONS
AND
CUSTOMER GETS WHAT IS PRODUCED!
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Marketing is not a function in a company
PRODUCTION
IT
ACCOUNTINGLOGISTICS
MANAGEMENT
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From product to customer focus
Product focus
Production
Technical quality
Product development dominates Very transparent
price
functional comparisons easy
First produced then sold
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From product to customer focus
The problems of the product focus The customer is in a minimal role or not taken into consideration at all
What is the role of the customer?
Consumer not a producer of value
The victim of sales dependent on the supplier A comparer of different product and a competitive buyer
What does the customer get?
A product that perhaps does not create the value he could get
A product without any service
A product that is produced on the suppliers terms
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From product to customer focus
Customer focus
The customer is the starting point
Time perspective important
Focus on the customers perceived value The customer is unique
The customer relationship and understanding it in focus
Trust
Customer loyalty - commitment
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The development of marketing thought
Transaction
Customer
Relationship
Product Core competenceThe companysresources
CustomerContact
Competitive Base
Traditional
Marketing
Network Management
Service
Marketing
Innovativeness,
learning
Network
Customer Relationship
Management (CRM)
Episode
CustomerencounterPersonnel
1970-
1980-
1990-
2000-
Source: Tore Strandvik (2000)
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A Framework for Customer Relationship
Management (Winer, 2001)
Discuss the following questions in your group
(4 groups) What is the main purpose of the article?
What is CRM according to the article?
Have you any experiences of this type of approach
from a professional or consumer perspective?
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Thank You!
mailto:[email protected]:[email protected]:[email protected]:[email protected]