Kotl Pom 7ce Ppt Bas 01

Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition

Chapter1

Marketing: Managing Profitable Customer

Relationships

1-2Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition

Learning Goals

1. Define marketing and outline the marketing process.

2. Explain the importance of understanding customers and the marketplace, and identify the five core marketplace concepts

3. Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations.

4. Discuss customer relationship management and identify strategies for creating and capturing value from customers.

5. Describe the major trends and forces changing the marketing landscape.


• NASCAR is the #1 televised motorsport in Canada

• Compelling blend of live racing events, media coverage and Web sites

• Show the customer a good time

• To develop customer relationship NASCAR creates a wholesome family-oriented environment.

• Fans are passionate about NASCAR

• Fans spend nearly $700 a year on NASCAR merchandise

• Second highest regular season sport on TV

• NASCAR attracts over 250 big-name sponsors

• Big part of the NASCA experience is the feeling of accessibility

NASCAR –What is their secret?


Learning Goals







What is Marketing?

• Marketing is about managing profitable customer relationships– Attracting new customers– Retaining and growing current customers

• Marketing Defined:– “Marketing is a social and managerial process

by which individuals and groups obtain what they need and want through creating and exchanging value with others”


Learning Goals







• Core Concepts– Understand the

marketplace and customer wants and needs

– Design a customer-driven marketing strategy

– Construct a marketing program that delivers superior value

– Build profitable relationships and create customer delight

– Capture value from customers to create profits and customer quality

Understanding the Marketplace

• Need– State of felt deprivation

• Wants– The form of needs as

shaped by culture and the individual

• Demands– Wants which are backed

by buying power



• Marketing offer– Combination of

products, services, information or experiences that satisfy a need or want

– Offer may include services, activities, people, places, information or ideas


marketplace and customer wants and needs (cont.)







• Value–Customers form expectations regarding value

–Marketers must deliver value to consumers

• Satisfaction–A satisfied customer will buy again and tell others about their good experience








Discussion Questions Customer Satisfaction

• When have you, personally, been extremely satisfied or dissatisfied with a product? Why?

• Why is it so difficult for companies to deliver value to consumers?

????









• Exchange– The act of obtaining a

desired object from someone by offering something in return

– One exchange is not the goal, relationships with several exchanges are the goal

– Relationships are built through delivering value and satisfaction



• Market– Set of actual and

potential buyers of a product

– Marketers seek buyers that are profitable








Learning Goals







Designing a Customer-Driven Marketing Strategy

• Marketing management is “the art and science of choosing target markets and building profitable relationships with them.”

• A winning marketing strategy– What customers will we serve?– How can we serve these customers

best?


Designing a Customer-Driven Marketing Strategy

• What customers will we serve?– Market segmentation and target marketing– Marketers select customers that can be served

profitably– Known as customer management and demand

management

• How can we serve these customers best?– By defining a value proposition that will

differentiate and position the brand in the marketplace

– Is set of benefits or values a company promises to deliver to consumers in order to satisfy their needs


Netflix – DVDs by mail

• Netflix began in early 2000• DVDs are delivered to your home with

return mail envelope• Monthly charge with unlimited rentals –

limited amount out at one time


Discussion Questions Netflix

1. How might Netflix define its target market?

2. What need or want does it fulfill?

3. What is its marketing offer?

4. What is its value proposition? Is it a strong value proposition for its target market? ????


Marketing Management Orientations

• The Production Concept– Consumers will favour products that are

available and highly affordable

• The Product Concept– Consumers will favour products that

offer the most in quality, performance, and innovative features



• The Selling Concept– Consumers will not buy enough of the

firm’s products unless it undertakes a large-scale selling effort.

• The Marketing Concept– Achieving organizational goals depends

on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.



• The Societal Marketing Concept– The marketing strategy should deliver

value to customers and other stakeholders affected by marketing decisions in a way that maintains or improves the consumer’s and the society’s well-being.


Preparing a Marketing Planand Program

• Build customer relationships by transforming the marketing strategy into action

• Includes the marketing mix and the 4P’s of marketing– Product– Price– Place– Promotion


Learning Goals







Building Customer Relationships

• CRM – Customer relationship management . . .“is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, keeping and growing customers.”


Relationship Building Blocks:Value and Satisfaction

• Customer Perceived Value– The customers’ evaluation of the

difference between benefits and costs.– Customers often do not judge values

and costs accurately or objectively.

• Customer Satisfaction– Product’s perceived performance

relative to customers’ expectations.


Customer RelationshipLevels and Tools

• Basic relationships – low margin customers

• Full partnerships – key customers

• Frequency marketing programs – Reward customers who buy frequently or in

large amounts

• Club marketing programs– Offer members special discounts and create

member communities


The Changing Nature of Customer Relationships

• Relating with more Carefully Selected Customers

• Relating for the Long-Term• Relating Directly


Partnership Relationship Management

• Working closely with partners in other company departments and outside the company to jointly bring greater value to customers

• Partners Inside the Company• Partners Outside the Firm

– Strategic partners– Supply chain management


Capturing Value from Customers

• Creating Customer Loyalty and Retention– Customer delight leads to emotional

relationships and loyalty– Customer lifetime value shows true worth

of a customer• Growing Share of Customer

– Share of customer’s purchase in a product category

– Achieved through offering greater variety, cross-sell and up-sell strategies



• Building Customer Equity– The combined customer lifetime values

of all current and potential customers– Measures a firm’s performance, but in a

manner that looks to the future– Choosing the “best” customers is key



• The company can classify customers according to their potential profitability and manage its relationships accordingly.


Learning Goals







The New Marketing Landscape

• Advances in computers, telecommunications information, transportation– Customer research and

tracking– Product development– Distribution– New advertising tools– 24/7 marketing through

the Internet

• Challenges– The Digital Age– Rapid Globalization– Ethics and Social

responsibility– Not-for-profit

Marketing



• Geographical and cultural distances have shrunk– Greater market

coverage– More options for

purchasing and manufacturing

– Increased competition from foreign competitors



Marketing



• Marketers need to take great responsibility for the impact of their actions– Caring capitalism is a

way to differentiate your company



Marketing



• Many non-profit organizations are realizing the importance of strategic marketing– Performing arts– Government agencies– Colleges– Hospitals– Churches



Marketing


What is Marketing?

• The process of building profitable customer relationships by creating value for customers and capturing value in return


Learning Goals






Kotl Pom 7ce Ppt Bas 01

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