Marketing Managing Profitable Customer Relationships (PowerPoint)

							Marketing: Managing
Profitable Customer
   Relationships
      Chapter 1
 Road Map: Previewing the
        Concepts
• Define marketing and outline the steps in
  the marketing process.
• Explain the importance of understanding
  customers and the marketplace, and
  identify the five core marketplace
  concepts.


                                        1- 2
Road Map: Previewing the
       Concepts
• Identify the key elements of a
  customer-driven marketing strategy and
  discuss the marketing management
  orientations that guide marketing
  strategy.
• Discuss customer relationship
  management and strategies for building
  lasting customer relationships.

                                      1- 3
Road Map: Previewing the
       Concepts
• Describe the major trends and forces
  that are changing the marketing
  landscape in this new age of
  relationships.




                                         1- 4
    What is Marketing?
•  Simple Definition: Marketing is
   managing profitable customer
   relationships.
Goals:
1. Attract new customers by promising
   superior value.
2. Keep and grow current customers by
   delivering satisfaction.
                                        1- 5
   Marketing Defined
• A social and managerial
  process by which individuals
  and groups obtain what they
  need and want through
  creating and exchanging
  products and value with
  others.
                                 1- 6
  Needs, Wants, & Demands
• Need: State of felt deprivation including
  physical, social, and individual needs.
• Physical:
   Food, clothing, shelter, safety
• Social:
   Belonging, affection
• Individual:
   Learning, knowledge, self-expression

                                           1- 7
  Needs, Wants, & Demands

• Wants: Form that a human need
  takes, as shaped by culture and
  individual personality.


• Wants + Buying Power = Demand

                                    1- 8
Need / Want Fulfillment
• Needs and Wants Fulfilled
  through a Marketing Offer :
   Some combination of products,
    services, information, or
    experiences offered to a market
    to satisfy a need or want.


                                      1- 9
 Need / Want Satisfiers
• Products:           • Services
     Persons            Activity or benefit
     Places              offered for sale
     Organizations       that is essentially
                          intangible and
     Information         does not result in
     Ideas               the ownership of
                          anything.


                                           1 - 10
   Marketing Myopia
• Sellers pay more attention to
  the specific products they offer
  than to the benefits and
  experiences produced by the
  products.
• They focus on the “wants” and
  lose sight of the “needs”
                                     1 - 11
   Value & Satisfaction
• If performance is lower than
  expectations, satisfaction is low


• If performance is higher than
  expectations, satisfaction is high

                                       1 - 12
Exchange vs. Transaction
• Exchange:              • Transaction:
   Act of obtaining a      A trade of values
    desired object           between two
    from someone by          parties.
    offering                One party gives X
    something in             to another party
    return.                  and gets Y in
                             return. Can
                             include cash,
                             credit, or check.
                                             1 - 13
    What is a Market?
• The set of actual and potential
  buyers of a product.

• These people share a need or
  want that can be satisfied
  through exchange relationships.

                                    1 - 14
Marketing Management
• The art and science of choosing
  target markets and building
  profitable relationships with
  them.



                                    1 - 15
Marketing Management
       Questions to ask:
1. What customers will we serve?
    What is our target market?
2. How can we best serve these
   customers?
    What is our value proposition?

                                     1 - 16
  Segmentation & Target
       Marketing
• Market Segmentation:
   Divide the market into segments
    of customers
• Target Marketing:
   Select the segment to cultivate

                                      1 - 17
Marketing Management
• Demand               • Demarketing
  Management              Temporarily or
   Finding and            permanently
    increasing             reducing the
    demand, also           number of
    changing or            customers or
    reducing demand,       shifting their
    such as in             demand
    demarketing.


                                            1 - 18
    Value Proposition
• The set of benefits or values a
  company promises to deliver to
  consumers to satisfy their needs.




                                  1 - 19
 Marketing Management
      Philosophies
• Production Concept
• Product Concept
• Selling Concept
• Marketing Concept
• Societal Marketing Concept

                               1 - 20
   The Marketing Mix
• Product
• Price
• Distribution (Place)
• Promotion


                         1 - 21
  Customer Relationship
      Management
• The process of building and
  maintaining profitable customer
  relationships by delivering
  superior customer value and
  satisfaction.


                                    1 - 22
Customer Perceived Value
• Customer’s evaluation of the
  difference between all the
  benefits and all the costs of a
  marketing offer relative to those
  of competing offers.


                                  1 - 23
 Customer Satisfaction
• Dependent on the product’s
  perceived performance relative
  to a buyer’s expectations.




                                   1 - 24
  Loyalty & Retention
• Financial Benefits
• Social Benefits
• Structural Ties


• Focus on profitable customers

                                  1 - 25
      Partner Relationship
           Marketing
• Partners inside the firm
   All employees customer focused
   Teams coordinate efforts toward
    customers
• Partners outside the firm
   Supply chain management
   Strategic alliances
                                      1 - 26
       Customer Loyalty &
            Retention
• Customer Lifetime • Share of
  Value               Customer
   The entire stream    The share a
    of purchases that     company gets of
    the customer          the customers
    would make over       purchasing in
    a lifetime of         their product
    patronage.            categories.

                                       1 - 27
    Customer Equity
•Customer equity is the
 total combined customer
 lifetime values of all the
 company’s customers.


                              1 - 28
           The Internet
• The technology behind a New
  Economy
• Applications:
   “Click-and-mortar” companies
   “Click-only” companies
   Business-to-business e-commerce


                                      1 - 29
New Marketing Landscape
• Rapid Globalization
• Ethics & Social Responsibility
• Not-for-Profit Marketing
• New World of Marketing
  Relationships

                                   1 - 30
  Rest Stop: Reviewing the
          Concepts
• Define marketing and outline the steps in
  the marketing process.
• Explain the importance of understanding
  customers and the marketplace, and
  identify the five core marketplace
  concepts.


                                        1 - 31
 Rest Stop: Reviewing the
         Concepts
• Identify the key elements of a
  customer-driven marketing strategy and
  discuss the marketing management
  orientations that guide marketing
  strategy.
• Discuss customer relationship
  management and strategies for building
  lasting customer relationships.

                                      1 - 32
 Rest Stop: Reviewing the
         Concepts
• Describe the major trends and forces
  that are changing the marketing
  landscape in this new age of
  relationships.




                                         1 - 33