Presentation on theme: "BA 631 Marketing Management"— Presentation transcript:
1 BA 631 Marketing Management 15/04/60Marketing ManagementSession I : Introduction and OverviewCustomer Value, Satisfaction and RetentionMM 601, IBMP, Thammasat University, Semester 2/2552
2 BA 631 Marketing Management 15/04/60AgendaCourse OrganizationCourse MaterialsTasks of MarketingMajor Concepts & Tools of MarketingHow has marketing management changed?What are customer value, satisfaction, and loyalty, and how can company delivers them?
3 BA 631 Marketing Management 15/04/60Course OrganizationPart I - Understanding Marketing ManagementPart II - Analyzing Marketing OpportunitiesPart III - Developing Marketing StrategiesPart IV – Developing Marketing Offerings
4 BA 631 Marketing Management 15/04/60Course MaterialsText Reading – Marketing Management, Kotler & Keller, 13th EditionMini CasesMarketing Plan
5 BA 631 Marketing Management 15/04/60What is Marketing? (Social Definition)Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.
6 BA 631 Marketing Management 15/04/60What is Marketing? (Managerial Definition)Marketing is an organizational functionand a set of processes for creating,communicating, and deliveringvalue to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
7 BA 631 Marketing Management 15/04/60Marketing ManagementMarketing management is the art and scienceof choosing target markets and getting, keeping, and growing customers throughcreating, delivering, and communicatingsuperior customer value.
8 BA 631 Marketing Management 15/04/60What is marketed?GoodsServicesEvents & ExperiencesPersonsPlaces & PropertiesOrganizationsInformationIdeas
10 BA 631 Marketing Management 15/04/60Structure of FlowsResourcesResourcemarketsMoneyTaxesTaxes,goodsServices,moneyGovernmentmarketsServicesManufacturermarketsConsumermarketsIntermediaryGoods, servicesMoney
11 BA 631 Marketing Management 15/04/60Company Orientations toward the MarketplaceProduction ConceptConsumers prefer products that arewidely available and inexpensiveMass Production, Cost Leadership, Wide CoverageProduct ConceptConsumers favor products that offer the most quality, performance, or innovative featuresBest Quality, Performance, Innovative Product
12 BA 631 Marketing Management 15/04/60Company Orientations toward the MarketplaceSelling ConceptConsumers will buy products only ifthe company aggressivelypromotes/sells these productsHigh Sales Volume, Short Term OrientedMarketing ConceptFocuses on needs/wants of targetmarkets & delivering valuebetter than competitorsTarget Market, Customer’s need, Coordinated Marketing, Profitability
13 BA 631 Marketing Management 15/04/60Selling & Marketing ConceptsFactoryExistingproductsSelling andpromotionProfits throughsales volumeStartingpointFocusMeansEnds(a) The selling conceptMarketIntegratedmarketingProfits throughcustomersatisfactionCustomerneeds(b) The marketing concept
14 BA 631 Marketing Management 15/04/60Company Orientations toward the MarketplaceDevelop, design, implement marketingprograms, processes and activitiesthat recognizes their breadth,and interdependencies.Holistic MarketingConceptRelationship Marketing, Internal Marketing, Integrated Marketing, Socially responsible marketing
15 BA 631 Marketing Management 15/04/60Company Orientations toward the Marketplace
17 BA 631 Marketing Management 15/04/60Customer ValueThe customers will buy from the firm that they perceive offers the highest customer delivered value.
18 BA 631 Marketing Management 15/04/60Determinants of Customer Delivered ValueImage valuePersonnel valueServices valueProduct valueTotalcustomervalueCustomerdeliveredvalueMonetary costTime costEnergy costPsychic costTotalcustomercost
19 BA 631 Marketing Management 15/04/60Customer SatisfactionSatisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectationsSatisfaction is a function of perceived performance and expectations
20 BA 631 Marketing Management 15/04/60Customer ExpectationIs based upon the customer’s past buying experiences, the opinions of friends and associates, and marketer and competitor information and promises.
21 BA 631 Marketing Management 15/04/60Satisfied CustomerAre loyal longerBuy more (new products & upgrades)Spread favorable word-of-mouthAre more brand loyal (less price sensitive)Offer feedbackReduce transaction costs
22 BA 631 Marketing Management 15/04/60Customer LoyaltyA deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.
23 BA 631 Marketing Management Tracking and Measuring Customer SatisfactionBA 631 Marketing Management15/04/60Complaints and Suggestion SystemsPeriodic SurveyGhost Shopping (Mystery shoppers)Lost Customer AnalysisMonitor competitive performance
24 BA 631 Marketing Management Retaining CustomersBA 631 Marketing Management15/04/60Intense competition and maturity of market increase the costs of attracting new customers.It costs much less to service an existing customer than to create a new one.Acquisition of customers can cost 5 times more than retaining current customers.Repeat purchases and loyal customers are the main driver of profitability for most businesses.
25 BA 631 Marketing Management 15/04/60Forming strong customer bondsAdding Financial Benefits- Frequency Marketing ProgramsAdding Social Benefits- Brand CommunitiesAdding Structural Ties- Special equipment or computer software, EDI
26 BA 631 Marketing Management 15/04/60Customer ProfitabilityThe 80/20/30 rule of customer profitabilityThe top 20% of clients generate 80% of total profitThe bottom 30% of clients consume half of all profits generated by other customers