Ch 01-creating-and-capturing-customer-value

9/17/2014
1
1-1
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
it ’s good and
good for you
Chapter 1Marketing: Creating and Capturing Customer Value
1-2
Creating and Capturing Customer Value
•What Is Marketing?
•Understand the Marketplace and Customer Needs
•Designing a Customer-Driven Marketing Strategy
•Preparing an Integrated Marketing Plan and Program
•Building Customer Relationships
•Capturing Value from Customers
•The Changing Marketing Landscape
Topic Outline
1-3
Publishing as Prentice HallGood Marketing is No AccidentBoston Beer Company, maker of Samuel Adams, constantly innovatesGood marketing is a result of careful planning and executionNOT FOR EXAMINATIONNOT EXAMINATION
1-4
Marketingdealswithcustomers
•Marketing is more than any other business functionMarketingisnotconfinedto:
•Advertising and selling
•Telling and selling
•Fishing and hunting
Thesearelikethetipoficeberg!!!
What is Marketing?
1-5
Selling Is Only the Tip of the Iceberg
“There will always be need for
some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available.”
Peter Drucker
“The aim of marketing is to make selling unnecessarily.” NOT FOR EXAMINATIONNOT EXAMINATION
1-6
Publishing as Prentice HallBriefly,marketingcanbedefinedas:
•Sensing and responding
•Identifying and meeting human and social needs more profitably
•Managing profitable customer relationships
What is Marketing?
Marketing is like gardening!!!

9/17/2014
2
1-7
Publishing as Prentice HallWhat Is Marketing?
Marketingis a process by which companies create value for customers and build strong customer relationships to capture value from customers in return.
Marketingis an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
1-8
Publishing as Prentice HallWhat is Marketed?
•Goods
•Services
•Events
•Experiences
•Persons
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall1-8
•Places
•Properties
•Organizations
•Information
•Ideas
1-9
“Friends Don‟t Let Friends Drive Drunk. ” This is the watch Stephen Hollingshead, Jr. was wearing when he encountered a drunk driver. Time of death 6:55 p.m.
Marketing IdeasNOT FOR EXAMINATIONNOT EXAMINATION
1-10
A marketeris someone who seeks a response– attention, a purchase, a vote, a donation–from another party, called the prospect
−If two parties are seeking to sell something to each other, we call them both marketers
Marketersare skilled at stimulating demand for their products
−They seek to influence the level, timing, and composition of demand to meet firm‟s goals
Who Markets?
1-11
Publishing as Prentice HallWhat Is Marketing?
The Marketing Process
Fig: A Simple Model of the Marketing Process
1-12
Publishing as Prentice HallMarketplace and Marketspace
Marketplaceis physical, such as a store you shop in.
Marketspaceis digital, as when you shop on the Internet.
Understanding the Marketplaceand Customer Needs

9/17/2014
3
1-13
Publishing as Prentice HallUnderstanding the Marketplaceand Customer Needs
•The states of felt deprivation or the basic human requirements
•Physical—food, clothing, warmth, safety
•Social—belonging and affection
•Individual—knowledge and self-expression
NeedsNeeds
•Needs become wants when they are directed to specific objects that can satisfy the need
•Shaped by culture and individual personalityWantsWants
•Demands are wants backed by buying powerDemandsDemands
Customer Needs, Wants, and Demands
1-14
Types of NeedsStated
RealUnstated
Delight
Secret I want an inexpensive carI want a car with lower operating cost
I expect good service from the dealer I would like the dealer to include an onboard GPS navigation system. I want friends to see me as a savvy consumer NOT FOR EXAMINATIONNOT EXAMINATION
1-15
Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want
Marketing myopia is the mistake of paying more attention to the specific products they offer than to the benefits and experiences produced by these products.
Losing sight of underlying consumer needs
Market Offerings and Marketing Myopia
1-16
Customer Value and SatisfactionCustomers
•Value and satisfactionMarketers
•Set the right level of expectations
•Not too high or lowCustomer value and customer satisfaction are the key building blocks for developing and managing customer relationships.
1-17
Publishing as Prentice HallCustomer valueis primarily a function of quality, service, and price (QSP), customer value triad
−The difference between the sum of the perceived tangible and intangible benefits and costs to customersSatisfactionreflects a person‟s judgments of a product‟s perceived performance in relation to expectations
−If the performance falls short of expectations, the customer is disappointed. If it matches expectations, the customer is satisfied. If it exceeds them, the customer is delighted.
Customer Value and Satisfaction
1-18
Publishing as Prentice HallMeans of Obtaining Products
Self Production
Begging
Coercion
ExchangeUnderstanding the Marketplaceand Customer NeedsNOT FOR EXAMINATIONNOT EXAMINATION

9/17/2014
4
1-19
Exchangeis the act of obtaining a desired object from someone by offering something in return
−A value creating process because both parties get benefit out of it
−There are some conditions for an exchange
Marketing creates, maintains, and grows desirable exchange relationships with target audiences
Understanding the Marketplaceand Customer NeedsExchange and Exchange Relationships
1-20
Market
A marketis NOT
−A physical place where buyers and sellers gathered to buy and sell goods
−A collection of buyers and sellers who transact over a particular product or product classA marketis a set of all present and potential buyers sharing a particular need or want, and willing and able to engage in exchange
1-21
Understanding the Marketplaceand Customer NeedsMarketA Modern Marketing System
1-22
Publishing as Prentice HallKey Customer Markets
•Consumer markets
•Business markets
•Global markets
•Nonprofit and government marketsUnderstanding the Marketplaceand Customer Needs
1-23
Publishing as Prentice HallMarketingmanagementis the art and scienceof choosingtarget markets and building profitable relationships with them
•What customers will we serve?
•How can we best serve these customers?
Designing a Customer-Driven Marketing Strategy
Choosing target markets
Getting, keeping, and growing customers through creating, delivering, and communicating superior customer value
1-24
Nonexistent
Latent
DecliningIrregularFullUnwholesomeOverfull
Negative
Eight Demand States NOT FOR EXAMINATIONNOT EXAMINATION

9/17/2014
5
1-25
•Negative(dislike product and may even pay a price to avoid it)
•Nonexistent(unaware of or uninterested in the product)
•Latent(need that cannot be satisfied by existing product)
•Declining(buy the product less frequently or not at all)
•Why do they dislike? Can marketing program change their beliefs and attitudes?
•Connect the benefits of the product with the person's natural needs and interests.
•Measure the size of the potential market & develop effective goods and services
•Re-stimulate demand by changing marketing programs through creative remarking
Demand Management
NOT FOR EXAMINATIONNOT EXAMINATION
1-26
•Irregular (purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis)
•Unwholesome(product that have undesirable social consequences)
•Full (adequately buying all products put into the marketplace)
•Overfull(more consumers would like to buy the product that can be satisfied)
•Adopt synchro-marketing by changing price, product features, marketing communication etc
•Get people to give these products up.
•Maintain and monitor current demand level.
•De-marketing, not to destroy but only to reduce its level, temporarily or permanently
Demand ManagementNOT FOR EXAMINATIONNOT EXAMINATION
1-27
Publishing as Prentice HallDesigning a Customer-Driven Marketing Strategy
Segmentation is dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
Target market is the segment of market which presents the greatest opportunities and the marketer decides to pursue
Selecting Customers to Serve
1-28
Target marketing refers to which segments to go after
Positioning is the act of designing a company‟s offering and image to occupy a distinctive place in the minds of the target market
Selecting Customers to Serve
1-29
Choosing a Value Proposition
Value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs
1-30
Marketing Management Orientations
•Marketing management designs strategies to build profitable relationships with target consumers
–What philosophy should guide these marketing strategies?
–What relative weights should be given to the interests of the customers, the company, and society
»These interests are conflicting

9/17/2014
6
1-31
Production concept
Product conceptSelling concept
Marketing concept
Holistic Marketing concept
1-32
Production concept is the idea that consumers will favor products that are available or highly affordable
–Focuses on mass production, distribution and low cost
–Makes sense in developing countries
1-33
Product concept is the idea that consumers will favor products that offer the most quality, performance, and features.
–Thus, organization should continuously devote its energy to making product improvement .
1-34
Product concept assumes consumers like quality products and they can apprise those products
Shortcomings:
–Focusing only on company‟s products can lead to „marketing myopia‟ (Managers are caught in a love affair with their products.)
–Commit ”better-mousetrap” fallacy
–„Look into a mirror instead of looking out of the window‟
–Ignoring price, distribution, and communications
1-35
Selling conceptis the idea that consumers will not buy enough of the firm‟s products unless it undertakes a large scale selling and promotion effort
–Assumes that buyers can be coaxed into buying and firms have a whole battery of promotional tools
1-36
•Selling concept is practiced most aggressively with unsought goods
•Firms with overcapacity aim to sell what they make, rather than make what the market wants
•Focuses on the needs of sellers, not the needs of buyers
NOT FOR EXAMINATION

9/17/2014
7
1-37
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
–A customer-centric approach emerged in the mid-1950s
–Make the right products for your customers, not to find the right customers for your products
1-38
Figure: Contrasts Between the Sales Concept and the Marketing Concept
1-39
Publishing as Prentice HallHolistic marketing acknowledges that everything matters in marketing and that a broad, integrated perspective is often necessary
–A cohesive approach that considers the business as a whole
–This approach is based on development, design, and implementation of marketing programs, processes, activities that recognizes their breadth and interdependencies
1-40
Publishing as Prentice HallMarketing Management OrientationsDesigning a Customer-Driven Marketing Strategy
1-41
1. The company is not sufficiently market focused and customer driven.
2. The company does not fully understand its target customers.
3. The company needs to better define and monitor its competitors.
4. The company has not properly managed its relationships with its stakeholders.
5. The company is not good at finding new opportunities.
6. The company‟s marketing plans and planning process are deficient.
7. The company‟s product and service policies need tightening.
8. The company‟s brand-building and communications skills are weak.
9. The company is not well organized to carry on effective and efficient marketing.
10. The company has not made maximum use of technology.
The Ten Deadly Sins of Marketing
NOT FOR EXAMINATION
1-42
1. The company segments the market, chooses the best segments, and develops a strong position in each chosen segment.
2. The company maps its customers‟ needs, perceptions, preferences, and behavior and motivates its stakeholders to obsess about serving and satisfying the customers.
3. The company knows its major competitors and their strengths and weaknesses.
4. The company builds partners out of its stakeholders and generously rewards them.
5. The company develops systems for identifying opportunities, ranking them, and choosing the best ones.
6. The company manages a marketing planning system that leads to insightful long- term and short-term plans.
7. The company exercises strong control over its product and service mix.
8. The company builds strong brands by using the most cost-effective
communication and promotion tools.
9. The company builds marketing leadership and a team spirit among its various departments.
10. The company constantly adds technology that gives it a competitive advantage in the marketplace.
The Ten Commandments of Marketing
NOT FOR EXAMINATION

9/17/2014
8
1-43
Internal marketing is the task of hiring, training, and motivating able employees for different departments and top management who want to serve customers well.
Integrated marketing occurs when marketers:
–Recognize that many different marketing activities can create, communicate, and deliver value
–Design and implement any one marketing activity with all other activities in mind
1-44
Relationship marketing builds mutually satisfying, L-T relationships with key constituents to earn and retain their business.
–The ultimate outcome is to create a marketing network
Performance marketing considers financial and nonfinancial returns to business and society from marketing activities.
–Examine and interpret the marketing scorecard
–Consider the legal, ethical, social, and environmental effects of marketing activities and programs
Marketing Management OrientationsDesigning a Customer-Driven Marketing Strategy
1-45
The marketing mix is the set of tools or four Ps the firm uses to implement its marketing strategy.
Integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers.
Preparing an Integrated Marketing Plan and Program
1-46
•McCarthy classified various marketing activities into marketing-mix tools of four broad kinds, called 4 Ps.
•The marketing variables under each P are shown in Figure
1-47
The New Four Ps
Marketing
Mix
4 Ps
Product
Place
Promotion
Price
Modern Marketing
4 Ps
People
Processes
Programs
Performance
•People are employees.
•Processes are all creativity, discipline, and structure brought to marketing management.
•Programs are firm‟s consumer- directed activities.
•Performance is the possible outcome measures that have financial and nonfinancial implications and implications beyond the company itself.
NOT FOR EXAMINATION
1-48
Publishing as Prentice HallPreparing an Integrated Marketing Plan and ProgramNOT FOR EXAMINATIONFour Ps Vs. 4Cs

9/17/2014
9
1-49
Building Customer Relationships
•The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
–Build and maintain the right type of relationship with the right types of customers
Customer Relationship Management (CRM)
1-50
Relationship Building Blocks: Customer Value and Satisfaction
CustomerCustomer- perceived valueperceived value
•The difference between total customer value and total customer cost
Customer satisfactionsatisfaction
•The extent to which a product‟s perceived performance matches a buyer‟s expectations
1-51
Publishing as Prentice HallBuilding Customer Relationships
Customer Relationship Levels and ToolsBasic Basic RelationshipsRelationships
Full PartnershipsPartnerships
1-52
•Relating with more carefully selected customers
–Uses selective relationship management to target fewer, more profitable customers
•Relating more deeply and interactively
–Incorporates more interactive two way relationships through blogs, Websites, online communities and social networks
»Consumer-managed relationships
»Consumer-generated marketing
The Changing Nature of Customer Relationships
1-53
•Customer-managed relationships are marketing relationships in which customers empowered by today‟s new digital technologies, interact with companies and with each other to shape their relationships with brands.
•Consumer-generated marketing in which consumers themselves are playing a bigger role in shaping their brand experiences (invited and uninvited) and those of others
The Changing Nature of Customer Relationships
1-54
•Partner relationship management involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers
Partner Relationship Management

9/17/2014
10
1-55
•Partnering inside the company is every function area that interacts with customers
–Electronically
–Cross-functional teams
•Partnering outside the company is how marketers connect with their suppliers, channel partners, and competitors by developing partnerships
1-56
•Supply chain is a channel that stretches from raw materials to components to final products to final buyers
–Through supply chain management companies strengthen their connections with partners all along the supply chain
1-57
Publishing as Prentice HallCapturing Value from Customers
Customer lifetime value is the value of the entire stream of purchases that the customer wouldmake over a lifetime of patronage
Creating Customer Loyalty and Retention
1-58
Share of customer is the portion of the customer‟s purchasing that a company gets in its product categories
Growing Share of Customer
1-59
Capturing Value from Customers
Customer equity is the total combined customer lifetime values of all of the company‟s customers
1-60
•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

9/17/2014
11
1-61
Marketing in Practice
•In theory marketing planning process consists of analyzingmarketing opportunities, selectingtarget markets, designingmarketing strategies, developingmarketing programs, and managing the marketing effort.
•In practice, marketing planning is not confined to the norm; it is more fluid and is continually refreshed.
–Companies must move forward with marketing programs, innovateofferings, stay in touch with customer needs, and seeknew advantages rather than rely on past strengths.
1-62
CMOs’ Success Factors
•Must have strong quantitative and qualitative skills, independent, entrepreneurial attitude
•Must work in close harmony with other departments
•Must capture the “voice” and point of view of consumers
•Understand how marketing creates value within their organization
1-63
The New CMOs’ Qualities
Innate Qualities
•Risk taker
•Willingness to make decisions
•Problem-solving ability
•Change agent
•Results-orientedLearned Qualities
•Global experience
•Multichannel expertise
•Cross-industry experience
•Digital focus
•Operational knowledgeNOT FOR EXAMINATIONNOT EXAMINATION
1-64
Publishing as Prentice HallMarketing in the Organization
•Although marketing is done by all departments, marketing must also be influential in key general management activities (product innovation, new- business development)
–It affects every aspect of the customer experience
•Marketers think in other departments as executives
–Executives in other departments think more like marketers
1-65
Marketing Management Tasks
•Develop market strategies and plans
•Capture marketing insights
•Connect with customers
•Build strong brands
•Shape market offerings
•Deliver value
•Communicate value
•Create long-term growth
1-66
Publishing as Prentice HallShifts in Marketing Management
•From marketing does the marketing to everybody does the marketing
•From organizing by product units to organizing by customer segments
•From making everything to buying more goods and services from outside
•From using many suppliers to working with fewer suppliers in a partnership
•From relying on old market positions to uncovering new ones

9/17/2014
12
1-67
Shifts in Marketing Management
•From emphasizing tangible assets to emphasizing intangible assets
•From building brands through advertising to building brands through performance and integrated communications
•From attracting customers through stores and salespeople to making products available online
•From selling to everyone to trying to be the best firm serving well defined target markets
1-68
Publishing as Prentice HallShifts in Marketing Management
•From focusing on profitable transactions to focusing on customer lifetime value
•From a focus on gaining market share to a focus on building customer share
•From being local to being GLOCAL
•From focusing on the financial scorecard to focusing on the marketing scorecard
•From focusing on shareholders to focusing on stakeholders
1-69
Publishing as Prentice HallThe Changing Marketing Landscape
Uncertain Economic Environment
•New consumer frugality
•Marketers focus on value for the customer
1-70
The Changing Marketing Landscape
•People are connected continuously to people and information worldwide
•Marketers have great new tools to communicate with customers
•Internet + mobile communication devices creates environment for online marketing
Digital Age
1-71
Publishing as Prentice HallThe Changing Marketing Landscape
•Rapid Globalization
•Sustainable Marketing
•Not-for-Profit Marketing
1-72
So, What Is Marketing? Pulling It All Together

9/17/2014
13
1-73
Publishing as Prentice HallMarketing Debate
Does Marketing
Create or Satisfy Needs?
1-74
Publishing as Prentice HallMarketing Debate
“The aim of marketing is to make
selling unnecessarily.”
--Peter Drucker
Do you agree or disagree? Why
1-75
Publishing as Prentice HallMarketing DebateWhy do marketer‟s not always understand customer needs? How can they better identify customer needs?
1-76
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Publishing as Prentice HallPublishing Hall

Ch 01-creating-and-capturing-customer-value

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (18)

En vedette

En vedette (15)

Similaire à Ch 01-creating-and-capturing-customer-value

Similaire à Ch 01-creating-and-capturing-customer-value (20)

Plus de Nazmul Hasan Mahmud

Plus de Nazmul Hasan Mahmud (11)

Dernier

Dernier (20)

Ch 01-creating-and-capturing-customer-value