world+ +creating+customer+value+and+satisfaction

8/6/2019 World+ +Creating+Customer+Value+and+Satisfaction

http://slidepdf.com/reader/full/world-creatingcustomervalueandsatisfaction 1/19

1

Chapter 1(Plus Section of Chapter 2)

Marketing in a Changing

World: Creating CustomerValue and Satisfaction



2

What is Marketing? (pp. 5-

6)

The process by which individuals and groups

obtain what they need and want through

creating and exchanging products and value

with others. (p. 6)

Simply put:Marketing is the delivery of customer

satisfaction at a profit. (p. 5)



3

TargetCustomers

Intended

Positioning

Product (Customer Solution)

Goods-and-servicecombination that acompany offers a

target market

Price (Customer Cost)

Amount of moneythat consumershave to pay to

obtain the product

Activities thatpersuade targetcustomers to buy

the product

romotion (Communication)

Company activitiesthat make the

product available

Place (Convenience)

“The 4 Ps,” TacticalTools

(“The 4 Cs”)

(Fig. 2.6, pp. 67-68)

AdvertisingPersonal SellingSales PromotionPublic Relations



4

Core Marketing Concepts

(Fig. 1.1, pp. 6-13)

Needs, wants,and demands

Productsand services

Value,satisfaction,and quality

Exchange,transactions,

and relationships

Exchange,transactions,

and relationships

Markets



5

NeedsNeeds - state of felt deprivation for basic itemssuch as food and clothing, and complex needssuch as for belonging. (i.e. I am hungry.)

WantsWants - form that a human need takes asshaped by culture and individual personality.(i.e. I want a hamburger, French fries, and a softdrink.)

DemandsDemands - human wants backed by buyingpower. (i.e. I have money to buy this meal.)

Needs, Wants and

Demands? (pp. 6-7)



6Caution: Avoid “Marketing Myopia”Caution: Avoid “Marketing Myopia” (pp. 8,

Productsnything that can be offered to a market to satisfy a need or wan

Experiences

Experiences Persons

Persons Places

Places

Organizations

Organizations Ideas

IdeasInformation

Information

Consumer’s Needs and

Wants? (pp. 7-8)

ServicesActivities or benefits offered for sale that are essentiallyintangible and don’t result in the ownership of anything



How Do Consumers ChooseChoose Among Products &

Services? (pp. 9-11)

Customer ValueCustomer Value – Value gained fromowning a product less the costs

Customer SatisfactionCustomer Satisfaction – Perceivedperformance in providing value, relativeto expectations

QualityQuality – Total quality management(TQM) -continuous improvement

• Caution: Avoid “Marketing Myopia”Caution: Avoid “Marketing Myopia”(pp. 8, 18)



TransactionsTransactionsExchangesExchanges

TheThe core conceptcore conceptof marketingof marketing

RelationshipsRelationships

Building a marketingnetwork with supporting

stakeholders

Obtain Products and

Services? (p. 11)

(p. 14)

Relationship Marketing & Customer LifetimeRelationship Marketing & Customer Lifetime



Who Purchases Products

and Services? (pp. 12-13)

Market

Actual and potentialbuyers who share

a particular need orwant that can be

satisfied through anexchange orrelationship.

Needsor wants

Resources toexchange

Willingness toexchange

Actualbuyers

Potentialbuyers



Connections WithCustomers(p. 14)

Most marketers are targetingfewer, potentially moreprofitable customers.

Asking:

What value does the customerbring to the organization? Are they worth pursuing?

Focus has shifted to: keeping current customers, and building lasting relationships

based on superior satisfactionand value.



MarketingManagement

Implementingprogramsto createexchanges

with targetbuyersto achieve

organizationalgoals

DemandManagement

Finding andincreasing

demand, alsochanging or

reducingdemand suchas in

“Demarketing”

ProfitableCustomer

Relationships

Attracting newcustomers andretaining and

buildingrelationshipswith currentcustomers

Marketing Management (p.

14)



Production Concept

Product Concept

Selling Concept

Marketing Concept

Societal Mktg. Concept

•Consumers favor products that areavailable and highly affordable.

•Consumers favor products that offer

the most quality, performance, andinnovative features.

•Consumers will buy products only if the company aggressively promotes/sells these products.

•Focuses on needs & wants of targetmarkets & delivering satisfactionbetter than competitors.

•Focuses on needs & wants of targetmarkets & maintaining or improving

societal and customer well-being.

Marketing Management Philosophies(pp. 15-22)

Based on different assumptions about:- what customers want

- what marketers should do



Production ConceptLate 1800s & Early 1900s

Demand > Supply; High Costs(Still appropriate under these limited circumstances)

(pp. 16-17)

Consumers Favor:

Widely available Highly affordable

Management’s Focus: “engineer” Improving production efficiency

Improving distribution efficiency

Fails to recognize customer needs/wants



Product ConceptLate 1940s (Post World War II)

Demand < Supply(p. 18) Consumers Favor:

Quality, performance Innovative features

Management’s Focus: “inventor” Make superior products (“build a better mousetrap”) Make continuous improvements

Danger: “Marketing Myopia” Focus on physical products, not customer needs & wants “Fall in love” with the product, not the customer

o Customers don’t need or want (“just don’t care”)o Over-improveo New technology replaces



Selling ConceptLate 1940s (Post World War II)

Demand < Supply(p. 18)

Consumers Favor: Not buying or not buying enough

Management’s Focus: “hard-sell salesman”

Large-scale selling and promotion efforts

Coaxing & pushing people to buy

Danger: “Sell what you can make”

(versus “Make what you can sell”)



Marketing Concept1950s – Present

Demand < Supply

(pp. 18-20)

Consumers Favor: Products that satisfy their needs and wants

Management’s Focus: “customer oriented” Understanding the needs and wants of consumers Satisfying them more efficiently and more

effectively than competitors

(NOTE: Efficiency & effectiveness - keeps the best of theproduction & product concepts)

(Focuses on the underlying and latent needs as well as thestated needs)



17

Marketing and SalesConcepts Contrasted (Fig. 1.4,

pp. 18-20)

Factory

Existing

Products

Sellingand

Promoting

Profits

throughVolume

The Selling Concept (“inside-out”)The Selling Concept (“inside-out”)

StartingPoint Focus Means Ends

MarketCustomer

Needs

IntegratedMarketing

Profitsthrough

Satisfaction

The Marketing Concept (“outside-in”)The Marketing Concept (“outside-in”)



18

ConceptLate 20th Century – Still emerging

Recognizes potential conflict (pp. 20-22)

SocietalMarketingConcept

Company(Profits)

Consumers(Short-term wants)

Society(Societal & customer well-being)

Maintain & improve

long-term well-being

Social responsibility

Ethics

EnvironmentDo goodStop doing bad



19

Chapter Review (pp. 36-37)

Define what marketing is and discuss itscore concepts.

Explain the relationships between customervalue, satisfaction, and quality.

Define marketing management andexamine how marketers manage demandand build profitable customer relationships.

Compare the five marketing managementphilosophies.

world+ +creating+customer+value+and+satisfaction

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