1. Marketing Creating and Capturing Customer Value1
Marketing
Creating and Capturing Customer Value

2. Chapter Outline What is Marketing? Market management orientation
Role of marketing:
Satisfy customer needs and wants
Build customer relationship

3. What is Marketing
Based on your knowledge and experience, what is the major role of marketing for a company?

4. Marketing Concept
The 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 Question
Describe 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:
Products
Services
Marketing Myopia
Notes to Accompany Slide:
These market offerings can be products and/or services
Services include banking, airline, hotel, tax preparation, and home repair services.

8. Examples of Marketing Myopia
We make copying equipment
We help improve office productivity
Xerox
Suggestion
Company
Definition
Missouri-Pacific Railroad
We run a railroad
We are a people-and-goods mover
Identify the problems in the marketing myopia
2. How would you fix it?
We make air conditioners and furnaces
We provide climate control in the home
Carrier

9. Examples of Marketing Myopia
We make copying equipment
Xerox
Suggestion
Company
Definition
Missouri-Pacific Railroad
We run a railroad
Identify the problems in the marketing myopia
2. How would you fix it?
We make air conditioners and furnaces
Carrier

10. Two Questions for Marketers
How can we serve these customers best?
What markets will we serve?

11. Discussion Question
Why 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.

12. Marketing Management Orientations
Production concept
Product concept
Selling concept
Marketing concept
Societal marketing concept

13. Marketing Management Orientations
Production concept
Product Concept
Selling concept
Marketing Concept
Societal Marketing Concept

14. Summary of Marketing Orientations
Focus is on…
Production
Production and distribution efficiency
Product
Most quality product
Sales
Product sales
Market
Consumers’ needs and wants
Societal
In addition to consumers’ needs and wants, also consider benefits to the society

15. Preparing an Integrated Marketing Plan and Program
Price
Place
Promotion
Product

16. Building Customer Relationships
What is Customer Relationship Management
Customer value
Customer satisfaction
Customer relationship levels and tools
The 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 NASCAR
Young, Affluent, and Family oriented
$700/per person a year on Nascar-related collectibles

19. Question
As for the Marketing aspects of NASCAR, how should they offer what consumers want?

20. How the Marketing works:
Develop strong customer relationship
National 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 affair
TV coverage reaches 20 million viewers weekly
250 big name sponsors
Wal-Mart, Home depot to U.S Army

21. ©2011 Pearson Education, Inc. publishing as Prentice Hall
Kodak continued to focus on producing traditional film-based cameras long after competitors introduced digital models. Kodak suffered from:
Marketing myopia
Poor partner relationship management
Outside-in perspective
Customer driven strategy
©2011 Pearson Education, Inc. publishing as Prentice Hall

22. ©2011 Pearson Education, Inc. publishing as Prentice Hall
Kodak continued to focus on manufacturing traditional film-based cameras long after competitors introduced digital models. Kodak suffered from:
Marketing myopia
Poor partner relationship management
Outside-in perspective
Customer driven strategy
Kodak ignored consumers’ desire for digitized photos that could be printed at home or shared over the Internet.
©2011 Pearson Education, Inc. publishing as Prentice Hall

23. ©2011 Pearson Education, Inc. publishing as Prentice Hall
You favor an approach that emphasizes the quality and new features of your product while your assistant prefers to emphasize innovative promotion strategies. Which two marketing concepts are being exhibited?
Marketing and selling
Production and societal marketing
Product and marketing
Product and selling
©2011 Pearson Education, Inc. publishing as Prentice Hall

24. ©2011 Pearson Education, Inc. publishing as Prentice Hall
You favor an approach that emphasizes the quality and new features of your product while your assistant prefers to emphasize innovative promotion strategies. Which two marketing concepts are being exhibited?
Marketing and selling
Production and societal marketing
Product and marketing
Product and selling
The product concept emphasizes product quality, performance, and innovative features. The selling concept focuses on creating sales transactions.
©2011 Pearson Education, Inc. publishing as Prentice Hall