1. 1- 1 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Dr. Shari Carpenter Welcome! Important things! Attendance Online aspect

2. Copyright ©2014 by Pearson Education, Inc. All rights reserved

3. 1- 3 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Who is the audience? What is the product? Commercial

4. 1- 4 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall http://www.youtube.com/watch?v=yaBNjTtCxd4 Cartier

5. 1- 5 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Marketing involves analyzing potential customers Creating a customer profile helps us to figure out what our customers want and what they need

6. 1- 6 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall List of questions to ask to get to know someone To the board! Each person answer 1 question & your name! Introductions

7. Creating and Capturing Customer Value Marketing Chapter 1 Copyright ©2014 by Pearson Education, Inc. All rights reserved

8. What Is Marketing? Understanding the Marketplace & Customer Needs Designing a Customer-Driven Marketing Strategy & Preparing an Integrated Marketing Plan &Program Building Customer Relationships &Capturing Value from Customers The Changing Marketing Landscape Learning Objectives Copyright ©2014 by Pearson Education, Inc. All rights reserved

9. 1- 9 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Mind mapping! Marketing Head to the boards Write the word ‘marketing’ on each board Connect a word to each letter

10. Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return. Copyright ©2014 by Pearson Education, Inc. All rights reserved

11. Marketing Process

12. States of deprivation Physical—food, clothing, warmth, safety Social—belonging and affection Individual—knowledge and self-expression Needs Form that needs take as they are shaped by culture and individual personality Wants Wants backed by buying power Demands Customer Needs, Wants, and Demands Understanding the Marketplace and Customer Needs Copyright ©2014 by Pearson Education, Inc. All rights reserved

13. Understanding the Marketplace & Customer Needs Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want Copyright ©2014 by Pearson Education, Inc. All rights reserved

14. Understanding the Marketplace & Customer Needs Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs Myopia = lack of foresight Foresight - the ability to envision possible future problems or obstacles Copyright ©2014 by Pearson Education, Inc. All rights reserved

15. Understanding the Marketplace & Customer Needs Customer Value and Satisfaction Expectations Customers Value and satisfaction Marketers Set the right level of expectations Not too high or low Copyright ©2014 by Pearson Education, Inc. All rights reserved

16. 1- 16 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Over Deliver!

17. Understanding the Marketplace & Customer Needs Exchange the act of obtaining a desired object from someone by offering something in return Marketing actions try to create, maintain, grow exchange relationships. Copyright ©2014 by Pearson Education, Inc. All rights reserved

18. Understanding the Marketplace & Customer Needs Markets are the set of actual and potential buyers of a product Copyright ©2014 by Pearson Education, Inc. All rights reserved

19. Main Elements in the Marketing system Copyright ©2014 by Pearson Education, Inc. All rights reserved

20. 1- 20 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1- 20 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall http://www.ted.com/talks/malcolm_gladwell_on_spag hetti_sauce.html 3 concepts

21. Designing a Customer-Driven Marketing Strategy Marketing management is the art and science of choosing target markets and building profitable relationships with them What customers will we serve? How can we best serve these customers? Copyright ©2014 by Pearson Education, Inc. All rights reserved

22. 1- 22 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Pick a Product To the boards! In your group answer the questions for your product. What customers will we serve? Tell me a story about your product

23. Market segmentation refers to dividing the markets into segments of customers Target marketing refers to which segments to go after Selecting Customers to Serve Designing a Customer-Driven Marketing Strategy Copyright ©2014 by Pearson Education, Inc. All rights reserved

24. Market segmentation refers to dividing the markets into segments of customers Target marketing refers to which segments to go after How can we divide our class into segments of customers? Practice

25. Choosing a Value Proposition Designing a Customer-Driven Marketing Strategy A company must also decide how it will serve targeted customers – how it will differentiate and position itself in the marketplace. Copyright ©2014 by Pearson Education, Inc. All rights reserved

26. Choosing a Value Proposition Designing a Customer-Driven Marketing Strategy Brand’s Value Proposition Set of benefits or values a company promises to deliver to customers to satisfy their needs Copyright ©2014 by Pearson Education, Inc. All rights reserved

27. Your Product’s Value Proposition? Brand’s Value Proposition Set of benefits or values a company promises to deliver to customers to satisfy their needs

28. wants to design strategies that will build profitable relationships with target consumers; 5 common concepts. The production concept The product concept The selling concept The marketing concept The societal marketing concept Marketing Management

29. Production concept Product concept Selling concept Marketing concept Societal concept Marketing Management Orientations Designing a Customer-Driven Marketing Strategy Copyright ©2014 by Pearson Education, Inc. All rights reserved

30. Production concept consumers will favor products that are available and highly affordable Marketing Management Orientations Designing a Customer-Driven Marketing Strategy Copyright ©2014 by Pearson Education, Inc. All rights reserved

31. Product concept consumers favor products that offer the most quality, performance, and features. Focus is on continuous product improvements. Marketing Management Orientations Designing a Customer-Driven Marketing Strategy Copyright ©2014 by Pearson Education, Inc. All rights reserved

32. Selling concept consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort Marketing Management Orientations Designing a Customer-Driven Marketing Strategy Copyright ©2014 by Pearson Education, Inc. All rights reserved

33. Marketing Management Orientations Designing a Customer-Driven Marketing Strategy Marketing concept knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do Copyright ©2014 by Pearson Education, Inc. All rights reserved

34. Marketing Management Orientations Designing a Customer-Driven Marketing Strategy Societal marketing make good marketing decisions by considering consumers’ wants and long- term interests company’s requirements society’s long-run interests Copyright ©2014 by Pearson Education, Inc. All rights reserved

35. Designing a Customer-Driven Marketing Strategy Copyright ©2014 by Pearson Education, Inc. All rights reserved

36. Preparing an Integrated Marketing Plan and Program The marketing mix: set of tools (four Ps) ??? Copyright ©2014 by Pearson Education, Inc. All rights reserved

37. Preparing an Integrated Marketing Plan and Program The marketing mix: set of tools (four Ps) the firm uses to implement its marketing strategy. product, price, promotion, and place. Copyright ©2014 by Pearson Education, Inc. All rights reserved

38. Preparing an Integrated Marketing Plan and Program Integrated marketing program: comprehensive plan that communicates and delivers the intended value to chosen customers. Copyright ©2014 by Pearson Education, Inc. All rights reserved

39. The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Customer Relationship Management (CRM) Building Customer Relationships Copyright ©2014 by Pearson Education, Inc. All rights reserved

40. Building Customer Relationships Relationship Building Blocks: Customer Value and Satisfaction Customer- perceived value The difference between total customer value and total customer cost Customer satisfaction The extent to which a product’s perceived performance matches a buyer’s expectations Copyright ©2014 by Pearson Education, Inc. All rights reserved

41. Building Customer Relationships Customer Relationship Levels and Tools Basic Relationships Full Partnerships Copyright ©2014 by Pearson Education, Inc. All rights reserved

42. 1- 42 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Why bother?

43. Relating with more carefully selected customers uses selective relationship management to target fewer, more profitable customers The Changing Nature of Customer Relationships Building Customer Relationships Copyright ©2014 by Pearson Education, Inc. All rights reserved

44. Relating more deeply and interactively by incorporating more interactive two way relationships through blogs, Websites, online communities and social networks The Changing Nature of Customer Relationships Building Customer Relationships Copyright ©2014 by Pearson Education, Inc. All rights reserved

45. Customer-managed relationships Customers, empowered by today’s new digital technologies, interact with companies and each other to shape their relationships with brands. The Changing Nature of Customer Relationships Building Customer Relationships Copyright ©2014 by Pearson Education, Inc. All rights reserved

46. Building Customer Relationships Partner relationship management involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers Copyright ©2014 by Pearson Education, Inc. All rights reserved

47. ‘Partners’ inside the company is every functional area interacting with customers Electronically Cross-functional teams Partner Relationship Management Building Customer Relationships Copyright ©2014 by Pearson Education, Inc. All rights reserved

48. Marketers connect with their suppliers, channel partners, and competitors by developing partnerships Partner Relationship Management Building Customer Relationships Copyright ©2014 by Pearson Education, Inc. All rights reserved

49. Supply chain is a channel that stretches from raw materials to components to final products to final buyers Partner Relationship Management Building Customer Relationships Copyright ©2014 by Pearson Education, Inc. All rights reserved

50. http://www.youtube.com/watch?v=gBRrG0-SA1I Supply Chain Mgt

51. Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage Creating Customer Loyalty and Retention Capturing Value from Customers Copyright ©2014 by Pearson Education, Inc. All rights reserved

52. You just opened a NEW Coffee Shop what can you do to create customer loyalty? Practice: Customer Service

53. Share of customer the portion of the customer’s purchasing that a company gets in its product categories Growing Share of Customer Capturing Value from Customers Copyright ©2014 by Pearson Education, Inc. All rights reserved

54. Capturing Value from Customers Customer equity the total combined customer lifetime values of all of the company’s customers Copyright ©2014 by Pearson Education, Inc. All rights reserved

55. Right relationships with the right customers involves treating customers as assets that need to be managed and maximized Different types of customers require different relationship management strategies Building Customer Equity Capturing Value from Customers Copyright ©2014 by Pearson Education, Inc. All rights reserved

56. Changing Economic Environment New consumer frugality Marketers focus on value for the customer The Changing Marketing Landscape Copyright ©2014 by Pearson Education, Inc. All rights reserved

57. Online marketing is the fastest-growing Click- and- mortar companies evolved The Changing Marketing Landscape Digital Age Copyright ©2014 by Pearson Education, Inc. All rights reserved

58. Not-for-profit marketing growth Rapid Globalization Sustainable marketing The Changing Marketing Landscape Copyright ©2014 by Pearson Education, Inc. All rights reserved

59. So, What Is Marketing? Pulling It All Together Copyright ©2014 by Pearson Education, Inc. All rights reserved

60. What Is Marketing? Understanding the Marketplace & Customer Needs Designing a Customer-Driven Marketing Strategy & Preparing an Integrated Marketing Plan &Program Building Customer Relationships & Capturing Value from Customers The Changing Marketing Landscape Learning Objectives Copyright ©2014 by Pearson Education, Inc. All rights reserved