Presentation on theme: "Marketing Creating and Capturing Customer Value"— Presentation transcript:
1 Marketing Creating and Capturing Customer Value 1MarketingCreating and Capturing Customer Value
2 Chapter Outline What is Marketing? Market management orientation Role of marketing:Satisfy customer needs and wantsBuild customer relationship
3 What is MarketingBased on your knowledge and experience, what is the major role of marketing for a company?
4 Marketing ConceptThe process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
5 Customer Needs, Wants, and Demands Notes to Accompany Slide:Human needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression. These needs were not created by marketers; they are a basic part of the human makeup.Wants are the form human needs take as they are shaped by culture and individual personality. An American needs food but wants a Big Mac, French fries, and a soft drink. Wants are shaped by one’s society and are described in terms of objects that will satisfy needs. When backed by buying power, wants become demands.
6 Describe a college education in terms of wants, needs, and demands? Discussion QuestionDescribe a college education in terms of wants, needs, and demands?Answer: Students should talk about wanting to feel good about themselves, wanting a good future and wanting to feel knowledgeable and well educated. In addition they may want a certain school over others. The need to fulfill is to generate future income to purchase food and shelter and health care. The demand for education at a certain school is based on what that school offers and the buying power of the potential students.
7 Market Offerings Customer needs and wants are fulfilled Through market offering:ProductsServicesMarketing MyopiaNotes to Accompany Slide:These market offerings can be products and/or servicesServices include banking, airline, hotel, tax preparation, and home repair services.
8 Examples of Marketing Myopia We make copying equipmentWe help improve office productivityXeroxSuggestionCompanyDefinitionMissouri-Pacific RailroadWe run a railroadWe are a people-and-goods moverIdentify the problems in the marketing myopia2. How would you fix it?We make air conditioners and furnacesWe provide climate control in the homeCarrier
9 Examples of Marketing Myopia We make copying equipmentXeroxSuggestionCompanyDefinitionMissouri-Pacific RailroadWe run a railroadIdentify the problems in the marketing myopia2. How would you fix it?We make air conditioners and furnacesCarrier
10 Two Questions for Marketers How can we serve these customers best?What markets will we serve?
11 Discussion QuestionWhy is it important to a marketer to decide which customers they will serve?Answer: Marketers have limited resources. Some markets are simply more profitable based on size and demand.
14 Summary of Marketing Orientations Focus is on…ProductionProduction and distribution efficiencyProductMost quality productSalesProduct salesMarketConsumers’ needs and wantsSocietalIn addition to consumers’ needs and wants, also consider benefits to the society
15 Preparing an Integrated Marketing Plan and Program PricePlacePromotionProduct
16 Building Customer Relationships What is Customer Relationship ManagementCustomer valueCustomer satisfactionCustomer relationship levels and toolsThe key to building lasting customer relationships is to create superior customer value and satifaction.Customer relationship levels: consumer level, B to Be levels (Walmart); tools: loyalty program etc.
17 Discussion: NASCAR Basic about NASCAR Can you profile NASCAR fans? Kotler’s book: Chapter 1:NASCAR: The National Association for Stock Car Auto Racing.NASCAR now is the second highest rated regular season sport on TV
18 Who will be NASCAR fans? 75 Million in the U.S 4 of every 10 people in the U.S regularly watch or attend NASCARYoung, Affluent, and Family oriented$700/per person a year on Nascar-related collectibles
19 QuestionAs for the Marketing aspects of NASCAR, how should they offer what consumers want?
20 How the Marketing works: Develop strong customer relationshipNational tours (200,000 people attended the recent Daytona 500, doubling the size of Super Bowl)Tailgate parties, camp and cook out, making sports a family affairTV coverage reaches 20 million viewers weekly250 big name sponsorsWal-Mart, Home depot to U.S Army