1 MARKETING AN INTRODUCTION

Armstrong/Kotler

Marketing
Creating and Capturing Customer Value

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 Chapter Outline
• What is Marketing?
• Understanding 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
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 What is Marketing

Marketing is managing profitable customer

relationships

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 The Marketing Process

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 Customer Needs, Wants, and Demands

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 Discussion Question

Describe a
college education
in terms of
wants, needs,
and demands?

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 Market Offerings

Customer needs and wants are fulfilled

through
market
offerings

Does it?

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 Exchanges and relationships
Exchange is the act of obtaining a desired
object from
someone by
offering
something in
return

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 A Modern Marketing System

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 Do you remember this?

Why it has failed?

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 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
sight of the “needs.”

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 Two Questions for Marketers

What How can we

markets serve these
will we customers
serve? best?

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 Discussion Question

Why is it
important to a
marketer to
decide which
customers they
will serve?
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 Designing a Customer Driven Marketing Strategy

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 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

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customers?
— What is our value proposition?
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 Selecting Customers to Serve

• Market segmentation:
– Dividing the market into segments of
customers.
• Target marketing:
– Selecting one or more segments to
cultivate.
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 Choosing a 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
differentiate and position their brands in
the marketplace.

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Inc. Publishing as Prentice-Hall
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 Marketing Management Orientations

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 Preparing an Integrated Marketing Plan and
Program

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 Building Customer Relationships
Customer Relationship Management is the
overall process
of building and
maintaining
profitable
customer
relationships
by delivering
superior customer value and satisfaction.
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 Customer Value

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 Customer Satisfaction and Relationships

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 The Changing Nature of Customer Relationships

Relating with
More Carefully
Selected
Customers
Relating
More Deeply and
Interactively

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 Discussion Question

What companies
do you personally
feel relate to you
deeply and
interactively?

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 Capturing Value from Customers

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 Customer Relationship Groups

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 The Changing Marketing Landscape
Economic environment
Digital age
Rapid globalization
Not-for-profit marketing

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 The Marketing Process

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