International Marketing Strategy

307LON

Creating and Capturing Value:

Customer Driven Strategy

Unit: 2 Knowledgecast: 1
Kalliopi.Konsolaki@culc.coventry.ac.uk

Last Week
What is Marketing?
The marketing process
Understanding the Marketplace and Customer
Needs
Some marketing challenges
International marketing
International market planning process

Module Learning Outcomes

Understand the principles of marketing within the
constantly changing international environment
Demonstrate knowledge of marketing concepts and
approaches in practice
Analyse a range of examples demonstrating innovative
marketing approaches used by various types of
international organisations

Lets Define Customer Value

Marketing is managing profitable customer relationships
(Kotler 2009:26)

The aim of marketing is to create value for customers

and capture value from customers in return (Kotler
2009:26)

The customers evaluation of the difference between all

the benefits and all the costs of a marketing offer relative
to those of competing offers (Kotler 2009:37)

How can we deliver customer value?

Best cost
Best product
Best service
Consistency
Efficiency
Quality
Benefits to exceed the costs!

Relationship Marketing Shift Paradigm 1990s

Satisfying the Customer

Product or
Services
Perceived
Performance

Source: Kotler 2009:37

Creating Customer Value:

https://www.youtube.com/watch?v=9I2baWR-rqg

Buyers
Expectations

Customer Relationship Levels

The exchange of value has become far more
complex over the years
Basic relationship
Many low margin customers
Uses tools such as brand building advertising, sales promotions
and web site networking

Full partnerships
Few customers and high margins
Uses tools such as account management/trade marketing

Nowadays
Increasingly competitive markets
Other forms of value:
Loyalty
Feedback
Referral & Recommendation

Building partnerships,
in which both parties
(customers ands brands)
recognize and welcome
the value being exchanged

Current Trends in Customer

Relationships
Relating with more
carefully selected
customers
Relating more deeply
and interactively
Partner Relationship
Management
Partners inside the company
Marketing partners outside the
firm

Capturing Value From Customers

Short Term

High

Projected Loyalty

Long Term

Butterflies

True Friends

Strangers

Barnacles

Potential
Profit
Low

Customer Relationship Groups

Source: Kotler 2009:48

Knowledgecast Summary
Understand the principles of marketing within the
constantly changing international environment
Now you are able to define value and are beginning to evaluate
the significance of value in the marketing context.

Demonstrate knowledge of marketing concepts and

approaches in practice
Reflect on the examples the lecturer has given you of these
concepts in action; you will gather more examples in the
seminar.

Questions?

Seminar
Defining Value in B2B and B2C Marketing
Menon A, Homburg C, Beutin N. Understanding Customer Value in
Business-to-Business Relationships. Journal of Business-to-Business
Marketing [serial online]. May 2005;12(2):1-35.
1. How do Menon and his co-authors define value in the marketing
context?
2. Compare and contrast their definition of value in B2C and B2B
marketing.
3. How does this affect B2B marketing strategies?

Group Activity (last week)

Marketing Review Unit 1 Task:

Your first activity for this module will be a 'First Thoughts' piece on the
company which you will use for your First assignment.

Before you even have chance to research the business you will be
working on, are you aware of any of its advertising?
What do you know about the company?
How did you become aware of the company?
What do you think the company is trying to say to their customers?
Who are their customers?

Please ensure that you use what you have learned from the Knowledgecast in your
answers and support your arguments with your group research findings. You need to
apply the theory and concepts covered in the module to the business under
consideration.

Group Activity (this week)

Marketing Review : Unit 2 Task
Your next activity should be a Value piece
For example:
How does your client define value?
What value do they offer to their customers?
What value do they hope/plan to receive in return?
Are there any issues related to the exchange of value
related to your client and their customers?
Be ready to present your arguments in the class
and to take and ask questions.