chapter 1_creating and capturing customer value

7/22/2019 Chapter 1_Creating and Capturing Customer Value

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Chapter 1- slide 1Copyright 2009 Pearson Education, Inc.Publishing as Prentice Hall

Chapter One

Creating and Capturing CustomerValue


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Chapter 1- slide 2

Creating and Capturing CustomerValue

Define marketing and outline the steps in themarketing process

Understanding the Marketplace and CustomerNeeds

Designing a Customer-Driven Marketing Strategy

Preparing an Integrated Marketing Plan andProgram

Building Customer Relationships Capturing Value from Customers

The Changing Marketing Landscape

Topic Outline


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Chapter 1- slide 3

What Is Marketing?

Marketingis a process by which

companies create value for customers

and build strong customer relationshipsto capture value from customers in

return


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Chapter 1- slide 4

Understanding the Marketplaceand Customer Needs

Customer needs, wants, and demands

Market offerings

Customer Value and satisfaction

Exchanges and relationships

Markets

Core Concepts


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Understanding the Marketplaceand Customer Needs

States of deprivation

Physicalfood, clothing, warmth, safety

Socialbelonging and affection

Individualknowledge and self-expression

Needs

Form that human needs take as they are shaped by culture andindividual personalityWants

Human wants backed by buying powerDemands

Customer Needs, Wants, and Demands


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Market offerings are some

combination of products, services,

information, or experiences offered to amarket to satisfy a need or want

Marketing myopia is focusing only on

existing wants and losing sight ofunderlying consumer needs

Understanding the Marketplace

and Customer Needs


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and Customer Needs

Customer Value and SatisfactionExpectations

Customers

Value andsatisfaction

Marketers Set the right level of

expectations

Not too high or low



Exchangeis the act of obtaining adesired object from someone by offering

something in return


and Customer Needs



Marketsare the set of actual and

potential buyers of a product or service


and Customer Needs


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Chapter 1- slide 10

Designing a Customer-Driven

Marketing Strategy

Marketing management is the art and

science of choosing target markets andbuilding profitable relationships with

them

What customers will we serve? How can we best serve these customers?


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Designing a Customer-DrivenMarketing Strategy

Market segmentation refers to dividing

the markets into segments of customers

Target marketing refers to which

segments to go after

Selecting Customers to Serve


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Demarketing is

marketing to reduce

demand temporarily

or permanently; the

aim is not to destroy

demand but to reduceor shift it

Selecting Customers to Serve


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The value proposition is the set of

benefits or values a company promises

to deliver to customers to satisfy their

needs

Choosing a Value Proposition


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Productionconcept

Productconcept

Sellingconcept

Marketingconcept

Societalconcept

Marketing Management Orientations


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Production concept is the idea that

consumers will favor products that areavailable or highly affordable



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Product concept is the idea that

consumers will favor products that offerthe most quality, performance, and

features. Organizations should

therefore devote its energy to makingcontinuous product improvements.



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Selling concept is the idea that

consumers will not buy enough of the

firms products unless it undertakes a

large scale selling and promotion effort



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Chapter 1- slide 18


Marketing concept is the idea that

achieving organizational goals depends

on knowing the needs and wants of thetarget markets and delivering the

desired satisfactions better than

competitors do



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Societal marketing

concept is the idea that a

company should makegood marketing decisions

by considering

consumers wants, the

companys requirements,consumers long-term

interests, and societys

long-run interests



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The marketing mix is the set of tools

(four Ps) the firm uses to implement its

marketing strategy. It includes product,price, promotion, and place.

Integrated marketing program is a

comprehensive plan that communicatesand delivers the intended value to

chosen customers.

Preparing an Integrated Marketing

Plan and Program


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Chapter 1- slide 21

Building Customer Relationships

The overall process of building and

maintaining profitable customer

relationships by delivering superior

customer value and satisfaction

Customer Relationship Management(CRM)


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Building Customer RelationshipsRelationship Building Blocks: Customer

Value and Satisfaction

Customerperceived value

The differencebetween totalcustomer valueand total

customer cost

Customersatisfaction

The extent towhich aproductsperceived

performancematches abuyersexpectations

Value = Benefits / Cost


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Customer Relationship Levels and Tools

Basic

Relationships

FullPartnerships


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Relating with more carefully selected

customers uses selective relationshipmanagement to target fewer, moreprofitable customers

Relating more deeply and interactively by

incorporating more interactive two wayrelationships through blogs, Websites,online communities and social networks

The Changing Nature of CustomerRelationships


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Partner Relationship Managementinvolves working closely with partners in

other company departments and

outside the company to jointly bringgreater value to customers


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Partners inside the company is how every

function is interacting with customers

Electronically

Cross-functional teams

Partners outside the company is how

marketers connect with their suppliers,channel partners, and competitors by

developing partnerships

Partner Relationship Management


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Supply chain is a channel that stretches

from raw materials to components to

final products to final buyers

Supply management

Strategic partners

Strategic alliances

Partner Relationship Management


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Capturing Value from Customers

Customer lifetime value is the value of

the entire stream of purchases that thecustomer would make over a lifetime of

patronage

Creating Customer Loyalty andRetention


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Share of customer is the portion of the

customers purchasing that a company

gets in its product categories

Growing Share of Customer


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Customer equity is the total combined

customer lifetime values of all of the

companys customers


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Building the right relationships with theright customers involves treatingcustomers as assets that need to bemanaged and maximized

Different types of customers requiredifferent relationship managementstrategies Build the right relationship with the right

customers

Building Customer Equity


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Applying the Concept PracticalAssignment Lets have lunch time

Go to Fat burger outlet and order a burger. Note the

questions that you are asked by the cashier, and

observe how special orders are handled. Next go to

Subways and order a sandwich. Note the questions

that you are asked here, and observe whetherspecial orders are handled in the same way they arehandled at Fat Burger.

chapter 1_creating and capturing customer value

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