Presentation on theme: "Learning Objectives After studying this chapter, you should be able to: Define marketing and outline the steps in the marketing process Explain the importance."— Presentation transcript:
2 Learning ObjectivesAfter studying this chapter, you should be able to:Define marketing and outline the steps in the marketing processExplain the importance of understanding customers and the marketplace, and identify the five core marketplace conceptsIdentify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategyDiscuss customer relationship management, and identify strategies for creating value for customers and capturing value from customers in returnDescribe the major trends and forces that are changing the marketing landscape in this age of relationships
3 Chapter Outline What Is Marketing? Understanding the Marketplace and Customer NeedsDesigning a Customer-Driven Marketing StrategyPreparing an Integrated Marketing Plan and ProgramBuilding Customer RelationshipsCapturing Value from CustomersThe New Marketing LandscapeSo, What Is Marketing? Pulling It All Together
4 What Is Marketing?Marketing Defined Marketing is the process by which companies create value for customers and build strong customer relationships to capture value from customers in return.
5 What Is Marketing? The Marketing Process Understand the marketplace and customer wants and needsDesign a customer-driven marketing strategyConstruct a marketing plan that delivers superior valueBuild profitable relationships and create customer satisfactionCapture value from customers to create profit and customer equity
6 Understand the marketplace and customers’ needs/wants Create customer driven marketing strategyConstruct a marketing program that delivers superior valueBuild profitable relationships & create customer delightCapture value from customers to create profits & customer quality
7 Understanding the Marketplace and Customer Needs Customer Needs, Wants, and DemandsNeeds are states of deprivation:Physical—food, clothing, warmth, safetySocial—belonging and affectionIndividual—knowledge and self-expression
8 Customer Needs, Wants, and Demands Understanding the Marketplace and Customer NeedsCustomer Needs, Wants, and DemandsWants are the form that needs take as they are shaped by culture and individual personality.Demands are wants backed by buying power.
9 Market Offerings—Products, Services, and Experiences Understanding the Marketplace and Customer NeedsMarket Offerings—Products, Services, and ExperiencesMarket offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want.Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs.
10 Customer Value and Satisfaction Understanding the Marketplace and Customer NeedsCustomer Value and SatisfactionSatisfaction is derived from comparing performance with expectationsExpectationsCustomers make choices according toValues and satisfaction of various market offeringsMarketersSet the right level of expectationsNot too high or too low
11 Exchanges and Relationships Understanding the Marketplace and Customer NeedsExchanges and RelationshipsExchange is the act of obtaining a desired object from someone by offering something in return.Marketing consists of actions to build and maintain desirable exchange relationships.
12 Markets are the set of actual and potential buyers of a product. Understanding the Marketplace and Customer NeedsMarkets are the set of actual and potential buyers of a product.Marketing system consists of all of the actors (suppliers, company, competitors, intermediaries, and end users) in the system who are affected by major environmental forces: Demographic; Economic; Physical; Technological; Political-legal; Socio-cultural
14 Designing a Customer-Driven Marketing Strategy Marketing ManagementMarketing 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?
15 Designing a Customer-Driven Marketing Strategy Selecting Customers to ServeMarket segmentation: Dividing the markets into segments of customersTarget marketing: Which segments to go after
16 Designing a Customer-Driven Marketing Strategy Selecting Customers to ServeDe-marketingMarketing to reduce demand temporarily or permanentlyThe aim is not to destroy demand but to reduce or shift it.
17 Designing a Customer-Driven Marketing Strategy Selecting Customers to ServeMarketing management is:Customer managementDemand management
18 Designing a Customer-Driven Marketing Strategy Choosing a Value PropositionThe value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs.
20 Designing a Customer-Driven Marketing Strategy Marketing Management Orientations The production concept is the idea that consumers will favor products that are available or highly affordable.
21 Designing a Customer-Driven Marketing Strategy Marketing Management Orientations Product concept is the idea that consumers will favor products that offer the most quality, performance, and features for which the organization should therefore devote its energy to making continuous improvements.
22 Designing a Customer-Driven Marketing Strategy Marketing Management Orientations Selling concept is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort.
23 Designing a Customer-Driven Marketing Strategy Marketing Management Orientations Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do.
25 Designing a Customer-Driven Marketing Strategy Marketing Management Orientations Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long-run interests.
26 Preparing an Integrated Marketing Plan and Program Marketing MixThe marketing mix is the set of tools (four Ps) the firm uses to implement its marketing strategy:Product – create a need-satisfying market offeringPrice – decide how much it will charge for the offerPromotion – communicate with target customers about the offer and persuade them of its meritsPlace – decide how it will make the offer available to target consumers
27 Preparing an Integrated Marketing Plan and Program Integrated Marketing Program An integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers.
28 Building Customer Relationships Customer Relationship Management (CRM) Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior value and satisfaction.
29 Building Customer Relationships Customer Relationship Management (CRM) Customer perceived value is the difference between total customer value and total customer cost of a market offering relative to those of competing offers. Customer satisfaction is the extent to which a product’s perceived performance matches a buyer’s expectations.
31 Building Customer Relationships Customer Relationship Management (CRM)Customer Relationship Levels and ToolsBasic relationship (with low-margin customers)Full relationships (with high-margin/key customers)Developing strong bonds with customers throughFrequency marketing programsClub marketing programs
32 Building Customer Relationships The Changing Nature of Customer RelationshipsRelating with more carefully selected customers uses selective relationship management to target fewer, more profitable customers.Relating for the long term uses customer relationship management to retain current customers and build profitable, long-term relationships.Relating directly uses direct marketing tools (telephone, mail order, kiosks, Internet) to make direct connections with customers.
33 Building Customer Relationships Partner Relationship Management Partner relationship management refers to working closely with partners in other company departments and outside the company to jointly bring greater value to customers.
34 Building Customer Relationships Partner Relationship ManagementPartners inside the company is every function area interacting with customers.ElectronicallyCross-functional teamsPartners outside the company is how marketers connect with their suppliers, channel partners, and competitors by developing partnerships.
35 Building Customer Relationships Partner Relationship ManagementThe supply chain is a channel that stretches from raw materials to components to final products to final buyers.Supply managementStrategic partnersStrategic alliances
36 Capturing Value from Customers Creating Customer Loyalty and RetentionCustomer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage.
37 Capturing Value from Customers Growing Share of Customer Share of customer is the portion of the customer’s purchasing that a company gets in its product categories.
38 Capturing Value from Customers Building Customer EquityCustomer equity is the total combined customer lifetime values of all of the company’s customers.
39 Capturing Value from Customers Building Customer EquityBuilding the 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 strategiesBuild the right relationship with the right customers
40 The New Marketing Landscape Major DevelopmentsDigital ageGlobalizationEthics and social responsibilityNot-for-profit marketingThe new world of marketing relationships
41 The New Marketing Landscape The New Digital AgeRecent technology has had a major impact on the ways marketers connect with and bring value to their customersMarket researchLearning about and tracking customersCreate new customized productsDistributionCommunicationVideo conferencingOnline data services
42 The New Marketing Landscape The New Digital AgeInternet—creates marketplaces and MarketspacesInformationEntertainmentCommunication
43 The New Marketing Landscape Rapid GlobalizationThe world is smallerThink globally, act locally
44 The New Marketing Landscape The Call for More Ethics and Social ResponsibilityMarketers are being called upon to take greater responsibility for the social and environmental impact of their actions in a global economy.
45 The New Marketing Landscape The Call for More Ethics and Social Responsibility Social marketing campaigns encourage energy conservation and concern for the environment or discourage smoking, excessive drinking, and drug use.
46 The New Marketing Landscape The Growth for Not-for-Profit MarketingCollegesHospitalsMuseumsZoosOrchestrasReligious groups