1. Chapter One
Creating and Capturing
Customer Value
AwS/MKT202/NSU
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2. What is Marketing?
• The process by which companies create value for
customers and build strong relationships in order to
capture value from customer in return.
• Marketing is managing profitable customer
relationship.
• Old sense: Telling and Selling
• New sense: Satisfying customer needs
Copyright © 2010 Pearson Education, Inc.
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3. The Marketing Process
Understand the marketplace and customer needs
and demands
Design a customer-driven marketing strategy
Construct an integrated marketing program that
deliver superior values
Build profitable relationships and create customer
delight
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4. Understanding the Marketplace and
Customer Needs
• Need: States of felt deprivation.
• Wants: The form of human needs take as
shaped by culture and individual personality.
• Demands: Human wants that are backed by
buying power.
• Exchange: The act of obtaining desired object
from someone by offering something in return.
• Market: The set of all actual and potential
customers.
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5. Designing a customer-driven
marketing strategy
• Production concept
◦ Consumers will favor the products that are
available and highly affordable.
◦ Focus on production and distribution
• Product concept
◦ A product will sell by itself.
◦ Focus on quality, performance and innovative
features
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6. Designing a customer-driven
marketing strategy
Selling concept
◦ Large scale selling and promotional efforts are
required
Marketing concept
◦ Understand the NWD and deliver satisfaction
Societal marketing concept
◦ Customers’ and society’s long-run interest is
important [J&J Our Credo]
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7. Preparing an Integrated Marketing
Program
• Marketing Mix:
– Product
– Price
– Promotion
– Place
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8. Building Customer Relationships
Customer relationship management
Customer-perceived value:
…cost-benefit analysis by the customer
Customer satisfaction:
The extent to which products perceived performance
matches buyer’s expectations.
Customer-generated marketing:
…messages, ads, and other brand exchanges crated by
customers themselves – both invited or uninvited.
(Real Marketing 1.2)
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9. Capturing Value from Customers
• Creating Customer Loyalty and Retention
• Customer lifetime value [Stew Leonard]
• Growing Share of Customer
• Building Customer Equity
– The total combined customer lifetime values
of all the company’s customers.
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10. Chapter – 3
Readings
• Company Case
– Xerox [Page: 64-65]
• Reviewing objectives & key terms
[Page: 93-94]
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Chapter 1- slide 10
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