basic01_ppt.ppt 195KB Sep 05 2010 10:30:38 PM

Chapter One

Roadmap:

Previewing the Concepts

1. Define marketing and the marketing process.

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

marketplace concepts.

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

marketing management orientations.

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

Creating Value

 _{NASCAR sells the}

experience – in-car cameras, wholesome family orientation.

 _{NASCAR.com engages}

fans via content.

 _{Success has been}

achieved by creating

lasting customer relationships.

NASCAR – What is its secret?

NASCAR – What is its secret?

Case Study

Case Study

Capturing Value

 _{NASCAR is the 2nd}

highest rated sport on TV.

 _{Fans are young, affluent,}

and family oriented, spending nearly $700 annually on NASCAR merchandise.

 _{Fans are loyal to sport}

What Is Marketing?

Simple Definition:

Marketing is managing profitable customer relationships.

Goals:

1. Attract new customers by promising superior value.

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.

OLD View of Marketing: Making a Sale – “Telling & Selling”

The Marketing Process

 _{A simple model of the marketing process:}

– Understand the marketplace and customer needs and wants.

– _{Design a customer-driven marketing strategy.} – Construct a marketing program that delivers

superior value.

– Build profitable relationships and create customer delight.

Needs, Wants, & Demands

 _Need:

State of felt deprivation including

physical, social, and individual needs.

– Physical needs:

• Food, clothing, shelter, safety

– Social needs:

• Belonging, affection

Needs, Wants, & Demands

 _Wants:

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

Need / Want Fulfillment

 _{Needs and wants are fulfilled through a}

Marketing Offer:

– Some combination of products, services, information, or experiences offered to a market to satisfy a need

Need / Want Satisfiers

– Activity or benefit offered for sale

that is essentially intangible and

does not result in ownership.

 _{Brand Experiences:}

Marketing Myopia

 _{Marketing myopia occurs when 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}

Value & Satisfaction

 _{Care must be taken when setting}

expectations:

– If performance is lower than expectations, satisfaction is low.

– _{If performance is higher than expectations,}

Exchange vs. Transaction

 _Exchange:

– _{Act of obtaining}

a desired object from someone by offering

something in return.

 _Transaction:

– _{A trade of}

values between two parties.

– _{One party gives}

X to another

What Is a Market?

 _{The set of actual and potential buyers}

of a product.

 _{These people share a need or want that}

Modern Marketing Systems

 _{Main elements in a modern marketing}

system include:

– Suppliers

– Company (marketer)

– Competitors

– Marketing intermediaries

Marketing Management

 _{The art and science of choosing target}

markets and building profitable relationships with them.

– _{Requires that consumers and the}

Marketing Management

 _{Designing a winning marketing}

strategy requires answers to the following questions:

1. What customers will we serve?

What is our target market?

2. How can we best serve these

customers?

Segmentation & Target Marketing

 _{Market Segmentation:}

– Divide the market into segments of customers

 _{Target Marketing:}

Marketing Management

 _Demand

Management

– Finding and increasing

demand, also changing or reducing

demand, as in demarketing.

 _Demarketing

– Temporarily or permanently reducing the number of

Value Proposition

 _{The set of benefits or values a}

company promises to deliver to consumers to satisfy their needs.

– _{Value propositions dictate how firms will}

Marketing Management

Philosophies

 _{Production Concept}  _{Product Concept}

 _{Selling Concept}

 _{Marketing Concept}

The Marketing Plan

 _{Transforms the marketing strategy into}

action

 _{Includes the marketing mix and 4 P’s of}

marketing:

– _Product – _Price

Customer Relationship Management

 _{The overall process of building and}

maintaining profitable customer

relationships by delivering superior customer value and satisfaction.

Customer Perceived Value

 _{Customer’s evaluation of the difference}

Customer Satisfaction

 _{Dependent on the product’s perceived}

performance relative to a buyer’s expectations.

– _{Customer satisfaction often leads to}

consumer loyalty.

Customer Relationships

 _{Loyalty and retention programs build}

relationships and may feature:

– Financial Benefits

• EX: Frequency marketing programs

– Social Benefits

• _{EX: Club marketing programs}

– _{Structural Ties}

 _{Focus is on relating directly to}

Partner Relationship Marketing

 _{Marketing partners help create customer}

value and assist in building customer relationships.

 _{Partners inside the firm:}

– All employees customer focused

– Teams coordinate efforts toward customers

 _{Partners outside the firm:}

Customer Loyalty & Retention

 _Customer

Lifetime Value

– _{The entire}

stream of

purchases that the customer would make over a lifetime of patronage.

 _{Share of}

Customer

– The share a company gets

of the customers purchasing in

Customer Equity

 _{The combined discounted customer}

lifetime values of all the company’s current and potential customers.

– _{Classify customers by loyalty and}

potential profitability

The New Digital Age

 _{Technology impacts the ways firms bring}

value to their customers.

 _{Greater connectivity means greater access to}

information, faster travel and communication.

 _{The Internet allows anytime, anywhere}

connections between firms and customers.

– “Click-and-mortar” companies

– “Click-only” companies

New Marketing Landscape

 _{Rapid Globalization}

 _{Ethics and Social Responsibility}  _{Not-for-Profit Marketing}

Rest Stop:

Reviewing the Concepts

1. Define marketing and the marketing process.

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

marketplace concepts.

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

marketing management orientations.

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