Creating and Capturing Customer Value: Topic Outline

2/11/2012
Creating and Capturing Customer

Value
Topic Outline
• What Is Marketing?
• Understand the Marketplace and Customer Needs
• Designing a Customer‐Driven Marketing Strategy
• Preparing an Integrated Marketing Plan and Program
Chapter One • Building Customer Relationships
• Capturing Value from Customers
Marketing: Creating and Capturing • The Changing Marketing Landscape
Customer Value
Copyright © 2009 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc.
Chapter 1- slide 1 Chapter 1- slide 2
Publishing as Prentice Hall Publishing as Prentice Hall
What Is Marketing? What Is Marketing?

The Marketing Process
Marketing is a process by which
companies create value for customers and
build strong customer relationships to
capture value
capture value
from customers in
return
Understanding the Marketplace Understanding the Marketplace

and Customer Needs and Customer Needs
Core Concepts Customer Needs, Wants, and Demands
• States of deprivation
• Customer needs, wants, and demands
Needs • Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Market offerings • Individual—knowledge and self-expression
• Value and satisfaction
• Exchanges and relationships Wants • Form that needs take as they are shaped by culture
and individual personality
• Markets
Demands • Wants backed by buying power
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Customer Value and Satisfaction
• Market offerings are some Expectations
combination of products,
services, information, or
experiences offered to a Customers
market to satisfy a need or
market to satisfy a need or • V
Value
l and d
want satisfaction
• Marketing myopia is
focusing only on existing
wants and losing sight of Marketers
underlying consumer • Set the right level of
needs expectations
• Not too high or low

Markets are the set of actual and
Exchange is the act of obtaining a desired potential buyers of a product
object from someone by offering
something in return
something in return
Designing a Customer-Driven
Designing a Customer-Driven Marketing Strategy
Marketing Strategy Selecting Customers to Serve
Market segmentation refers to dividing the
Marketing management is the art and markets into segments of customers
science of choosing target markets and
science of choosing target markets and
building profitable relationships with them Target marketing refers to which segments
– What customers will we serve? to go after
– How can we best serve these customers?
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Designing a Customer-Driven Designing a Customer-Driven

Marketing Strategy Marketing Strategy
Selecting Customers to Serve Choosing a Value Proposition
Demarketing is marketing to reduce demand The value proposition is the set of

temporarily or permanently; the aim is not
temporarily or permanently; the aim is not p yp
benefits or values a company promises to
to destroy demand but to reduce or shift it deliver to customers to satisfy their needs
Marketing Strategy Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
Production concept is the idea that
consumers will favor products that are
consumers will favor products that are
Production Product Selling Marketing Societal
available or highly affordable
concept concept concept concept concept
Designing a Customer-Driven Marketing Strategy
Marketing Strategy
Selling concept is the idea that consumers
Product concept is the idea that consumers
will not buy enough of the firm’s products
will favor products that offer the most
will favor products that offer the most
unless it undertakes a large scale selling
l i d k l l lli
quality, performance, and features.
and promotion effort
Organization should therefore devote its
energy to making continuous product
improvements.
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Designing a Customer-Driven Designing a Customer-Driven

Marketing Strategy Marketing Strategy
Marketing Management Orientations Marketing Management Orientations
Marketing concept is the Societal marketing concept

idea that achieving is the idea that a company
organizational goals should make g good marketingg
decisions by considering
depends on knowing the consumers’ wants, the
needs and wants of the company’s requirements,
target markets and consumers’ long-term
delivering the desired interests, and society’s long-
satisfactions better than run interests
Copyright © 2010 Pearson Education, Inc.
competitors doChapter 1- slide 19 Copyright © 2010 Pearson Education, Inc.
Chapter 1- slide 20
Designing a Customer-Driven Preparing an Integrated Marketing

Marketing Strategy Plan and Program
The marketing mix is the set of tools (four Ps)
the firm uses to implement its marketing
gy p ,p ,
strategy. It includes product, price,
promotion, and place.
Integrated marketing program is a
comprehensive plan that communicates
and delivers the intended value to chosen
customers.
Building Customer Relationships Building Customer Relationships

Relationship Building Blocks: Customer Value
Customer Relationship Management (CRM) and Satisfaction
• The overall process of
building and maintaining Customer- Customer
perceived value satisfaction
profitable customer
relationships by delivering
l i hi b d li i • The difference • The extent to
between total which a
superior customer value customer value product’s
and satisfaction and total perceived
customer cost performance
matches a
buyer’s
expectations
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2/11/2012
Building Customer Relationships

Building Customer Relationships
Customer Relationship Levels and Tools The Changing Nature of Customer
Relationships
Basic • Relating with more carefully selected
Relationships customers uses selective relationship
management to target fewer, more profitable
f fi bl
customers
Full • Relating more deeply and interactively by
Partnerships incorporating more interactive two way
relationships through blogs, Websites, online
communities and social networks
Building Customer Relationships Building Customer Relationships

Partner Relationship Management
Partner relationship management involves • Partners inside the company is every
working closely with partners in other function area interacting with customers
p y p
company departments and outside the – Electronicallyy
company to jointly bring greater value to – Cross‐functional teams
customers • Partners outside the company is how
marketers connect with their suppliers,
channel partners, and competitors by
developing partnerships
Building Customer Relationships Capturing Value from Customers

Partner Relationship Management Creating Customer Loyalty and Retention
• Supply chain is a channel that stretches • Customer lifetime value is the value of the
from raw materials to components to final entire stream of purchases that the
products to final buyers
p y customer would
• Supply management make over a
• Strategic partners lifetime of
patronage
• Strategic alliances
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Capturing Value from Customers Capturing Value from

Growing Share of Customer Customers
Customer equity is
Share of customer is the portion of the the total combined
customer’ss purchasing that a company gets
customer purchasing that a company gets customer lifetime
customer lifetime
in its product categories values of all of the
company’s
customers
Capturing Value from Customers The Changing Marketing

Landscape
Building Customer Equity
• Building the right relationships with the Major Developments
right customers involves treating
customers as assets that need to be Rapid
p
managed and maximized
d d i i d Digital age
globalization
• Different types of customers require
different relationship management Ethics and
strategies Not-for-profit
social
marketing
– Build the right relationship with the right responsibility
customers
So, What Is Marketing?

Pulling It All Together
Copyright © 2010 Pearson Education, Inc.

Chapter 1- slide 35
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Creating and Capturing Customer Value: Topic Outline

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2/11/2012

Creating and Capturing Customer

What Is Marketing? What Is Marketing?

Understanding the Marketplace Understanding the Marketplace

Understanding the Marketplace Understanding the Marketplace

Understanding the Marketplace Understanding the Marketplace

Designing a Customer-Driven Designing a Customer-Driven

Demarketing is marketing to reduce demand The value proposition is the set of

Designing a Customer-Driven Designing a Customer-Driven

Marketing concept is the Societal marketing concept

Designing a Customer-Driven Preparing an Integrated Marketing

Building Customer Relationships Building Customer Relationships

Building Customer Relationships

Building Customer Relationships Building Customer Relationships

Building Customer Relationships Capturing Value from Customers

Capturing Value from Customers Capturing Value from

Capturing Value from Customers The Changing Marketing

So, What Is Marketing?

Copyright © 2010 Pearson Education, Inc.

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