Chapter One: Marketing: Creating and Capturing Customer Value

Chapter One
Marketing: Creating and Capturing

Customer Value
Chapter 1- slide 1
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
• Building Customer Relationships
• Capturing Value from Customers
• The Changing Marketing Landscape
Copyright © 2010 Pearson Education, Inc.

Chapter 1- slide 2
Publishing as Prentice Hall
What Is Marketing?
Marketing is a process by which companies
create value for customers and build
strong customer relationships to capture
value from customers in return

Chapter 1- slide 3
Understanding the Marketplace
and Customer Needs
Core Concepts
• Customer needs, wants, and demands

• Market offerings
• Value and satisfaction
• Exchanges and relationships
• Markets

Chapter 1- slide 4
and Customer Needs
Customer Needs, Wants, and Demands

Chapter 1- slide 5
and Customer Needs
• Market offerings are some combination of products,

services, information, or experiences offered to a
market to satisfy a need or want
• Marketing myopia is focusing only on existing wants

and losing sight of underlying consumer needs

Chapter 1- slide 6
and Customer Needs
Customer Value and Satisfaction
Expectations

Chapter 1- slide 7
and Customer Needs
Exchange is the act of giving one thing and
receiving another (especially of the same
kind) in return.

Chapter 1- slide 8
and Customer Needs
Markets are the set of actual and

potential buyers of a product

Chapter 1- slide 9
Designing a Customer-Driven
Marketing Strategy
Marketing management is the art and

science of choosing target markets and
building profitable relationships with them
– What customers will we serve?
– How can we best serve these customers?

Chapter 1- slide 10
Marketing Strategy
Selecting Customers to Serve
Market segmentation refers to dividing the

markets into segments of customers
Target marketing refers to which segments

to go after

Chapter 1- slide 11
Marketing Strategy
Selecting Customers to Serve
Demarketing is marketing to reduce demand

temporarily or permanently; the aim is not
to destroy demand but to reduce or shift it

Chapter 1- slide 12
Marketing Strategy
Choosing a Value Proposition
The value proposition is the set of

benefits or values a company promises to
deliver to customers to satisfy their needs

Chapter 1- slide 13
Marketing Strategy
Marketing Management Orientations

Chapter 1- slide 14
Marketing Strategy
Production concept is the idea that consumers will

favor those products that are available or highly
affordable(less expensive).

Chapter 1- slide 15
Marketing Strategy
Product concept is the idea that consumers

will favor those products that offer the
most quality, performance, and features.
Organization should therefore devote its
energy to making continuous product
improvements.

Chapter 1- slide 16
Marketing Strategy
Selling concept is the idea to sell as many

products as possible.
The aim is to sell what the company makes
rather than making what the market wants.

Chapter 1- slide 17
Marketing Strategy
Marketing concept is the idea that

achieving organizational goals
depends on knowing the needs and
wants of the target markets and
delivering the desired satisfactions
better than competitors do

Chapter 1- slide 18
Marketing Strategy
Societal marketing concept is the idea that a

company should make good marketing
decisions by considering consumers’ wants,
the company’s requirements, consumers’
long-term interests, and society’s long-run
interests

Chapter 1- slide 19
Preparing an Integrated Marketing
Plan and Program
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 communicates
and delivers the intended value to chosen
customers.
Chapter 1- slide 20
Building Customer Relationships
Customer Relationship Management (CRM)
The overall process of building and maintaining

profitable customer relationships by delivering
superior customer value and satisfaction

Chapter 1- slide 21
Relationship Building Blocks: Customer Value and Satisfaction

Chapter 1- slide 22
Customer Relationship Levels and Tools

Chapter 1- slide 23
The Changing Nature of Customer Relationships
• Relating with more carefully selected

customers uses selective relationship
management to target fewer, more profitable
customers
• Relating more deeply and interactively by
incorporating more interactive two way
relationships through blogs, Websites, online
communities and social networks
Chapter 1- slide 24
Partner relationship management involves

working closely with partners in other
company departments and outside the
company to jointly bring greater value to
customers

Chapter 1- slide 25
Partner Relationship Management
• Partners inside the company is every

function area 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
Chapter 1- slide 26
Partner Relationship Management
• Supply chain is a channel that stretches

from raw materials to components to final
products to final buyers
• Supply management
• Strategic partners
• Strategic alliances

Chapter 1- slide 27
Capturing Value from Customers
Creating Customer Loyalty and Retention
Customer satisfaction should lead to customer

loyalty and customer retention.
When the customer repeatedly comes back to

you for repeat orders and to purchase new
products manufactured by you. (In-spite of stiff
competition and multiple Suppliers/Sources).

Chapter 1- slide 28
Capturing Value from
Customers
Customer equity is more loyal a customer,
the more is the customer equity

Chapter 1- slide 29
Capturing Value from Customers
Building Customer Equity
• Building the right relationships with the

right customers involves treating customers
as assets that need to be managed and
maximized
• Different types of customers require
different relationship management
strategies
– Build the right relationship with the right
customers
Chapter 1- slide 30
The Changing Marketing
Landscape
Major Developments

Chapter 1- slide 31
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.


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Chapter One

Marketing: Creating and Capturing

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

• Customer needs, wants, and demands

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

• Market offerings are some combination of products,

• Marketing myopia is focusing only on existing wants

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Markets are the set of actual and

Copyright © 2010 Pearson Education, Inc.

Marketing management is the art and

Copyright © 2010 Pearson Education, Inc.

Market segmentation refers to dividing the

Target marketing refers to which segments

Copyright © 2010 Pearson Education, Inc.

Demarketing is marketing to reduce demand

Copyright © 2010 Pearson Education, Inc.

The value proposition is the set of

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Production concept is the idea that consumers will

Copyright © 2010 Pearson Education, Inc.

Product concept is the idea that consumers

Copyright © 2010 Pearson Education, Inc.

Selling concept is the idea to sell as many

Copyright © 2010 Pearson Education, Inc.

Marketing concept is the idea that

Copyright © 2010 Pearson Education, Inc.

Societal marketing concept is the idea that a

Copyright © 2010 Pearson Education, Inc.

The overall process of building and maintaining

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

• Relating with more carefully selected

Partner relationship management involves

Copyright © 2010 Pearson Education, Inc.

• Partners inside the company is every

• Supply chain is a channel that stretches

Copyright © 2010 Pearson Education, Inc.

Customer satisfaction should lead to customer

When the customer repeatedly comes back to

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

• Building the right relationships with the

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

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