BUILDING CUSTOMER RELATIONSHIPS THROUGH EFFECTIVE

MARKETING

--CHAPTER 11--

<MARKETING>
 What is it?
- Activities
- Institutions (looking at target market)
- Transforming/ creating
- Value
- Needs of consumers

<MANAGING CUSTOMER RELATIONSHIPS>

 Relationship marketing:
- Establishing long-term, mutually satisfying buyer-seller relationships.
- Add activities to process in order to create loyalty amongst buyers
 Customer relationship management ( CRM) :
- Using information about customers to create marketing strategies that develop and
sustain desirable customer relationships
 Customer lifetime value:
- A combination of purchase frequency, average value of purchases, and brand-
switching patterns over the entire span of a customer’s relationship with a company

<YOUR BUSINESS VALUE …>

 Loyalty cards: you won’t want to go shop anywhere else

<UTILITY: THE VALUE ADDED BY MARKETING>

 Need to understand desire and behaviour- what is wanted and what is not
 The ability of a good/service to satisfy a human need----- creating utility (fulling a
need)
 Form utility: created by converting production inputs into finished products
- What form of the product is the customer satisfied with
 Place utility: created by making a product available at a location where customers
wish to purchase it
 Time utility: created by making a product available when customers wish to purchase
- Eg: avos: not in season all year round, how are still gonna make it available to
customers when not in season
 Possession utility: created by transferring title (OR ownership) of a product to a
buyer
 - Making it easier to purchase a product ie: snapscan

 Form utility is created by the production process, but marketing creates place,
time and possession utility

Market and their classification:

 MARKET
- A group of individuals or organizations, or both, that need products in a given
category and that have the ability , willingness, and authority to purchase such
products

1. Consumer markets
- Purchasers and / or household members who intend to consume or benefit from
the purchased products and who do not buy products to make a profit

2. Business-to-business (industrial) markets

- producer, reseller,governmental,and industrial customers that purchase specific
kinds of products for use in making other products for resale or day-to-day
operations

B2B

 Producer markets
- Individuals and business organizations that buy products to use in the manufacture
of other products
 Reseller markets
- Intermediaries such as wholesalers and retailers that buy finished products and sell
them for a profit
 Governmental markets
- Buy goods and services to maintain operations and provide citizens with products
such as highways, education, utilities, defense
 Institutional markets
- Churches, not-for-profit private schools and hospitals, civic clubs, charitable
organizations

DEVELOPING MARKETING STRATEGIES

 Marketing strategy:
- A plan that will enable an organization to make the best use of its recourses and
advantages to meet its objectives

- Consists of:
  The selection and analysis of a target market
 The creation and maintenance of an appropriate marketing mix ( combination of
product, price, distribution, promotion developed to satisfy a particular target
market)

 Target market selection and evaluation

 Target market
- A group of individuals, organizations, or both, for which a firm develops and
maintains a marketing mix suitable for the specific needs and preferences of that
group
 Market segment
- A group of individuals or organizations within a market that share one or more
common characteristics
 Market segmentation
- The process of dividing a market into segments and directing a marketing mix at a
particular segment or segments rather than at the total market

GENERAL APPROACHES FOR SELECTING TARGET MARKETS

 COMMON BASES OF MARKET SEGMENTATION

 THE MARKETING MIX AND THE MARKETING ENVIRONMENT

 CONSUMER BUTING DECISION PROCESS AND POSSIBLE INFLUENCES ON THE
PROCESS