Designing a Customer Value-Driven

Marketing Strategy
• Marketing management orientations
• Production concept
• Product concept
• Selling concept
• Marketing concept “costumer department”
• Societal marketing concept

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 Production concept

• Customers prefer to buy products that are widely

available in low cost.
• Companies increase production and cut down costs.
• Build profit through big sales volume

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 Product concept
• Customers prefer to buy products which high in
quality, performance and innovative features.
• Continues product development
• Quality & improvements are key elements in
marketing strategies.
• Risk of marketing myopia

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Figure 1.3 - The Selling and Marketing
Concepts Contrasted

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 Figure 1.4 - Three Considerations
Underlying the Societal Marketing Concept

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 Marketing Mix
• Four Ps of Marketing
• Product
• Price
• Place
• Promotion

• Marketing mix tools should be blended into a

comprehensive integrated marketing
program.

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Customer Relationship Management
• Delivering superior customer value and
satisfaction to build and maintain profitable
customer relationships
• Customer-perceived value: Customer’s evaluation
of a marketing offer relative to those of
competing offers
• Customer satisfaction: Extent to which a
product’s perceived performance matches a
buyer’s expectations

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 Customer Relationship Levels
and Tools
A company with low- A company with high-
margin customers may margin customers a sellers
seek basic relationships. want to create full
For example: Nike does not call partnership with key
or phone all of its customers. customers.
Nike creates relationships For example: Nike sales
through brand-building representatives work closely
advertising, public relations, with sports authorities, foot
websites and Apps. locker, and other large
retailers,

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Customer-Engagement Marketing
• Customer-engagement marketing makes the
brand a meaningful part of consumers’
conversations and lives.
• Greater consumer empowerment means that
companies must practice marketing by
attraction.
• Marketers must find ways to enter
consumers’ conversations with engaging and
relevant brand messages. E.g: starbucks 38m,
Coca-Cola 94m on facebook.
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 Consumer-Generated Marketing
• Brand exchanges created by consumers
• Consumers play an increasing role in shaping their own
brand experiences and those of other consumers.
• Uninvited and Invited
• Consumer-to-consumer exchanges (social media, video
sharing sites)
• Consumers invited by companies
• New product and service ideas
• Active role in shaping ads. Such as:
✓ Pepsico’s when held “Crash the Super Bowl” where 30-second Ads
presented.
✓ Starbucks (My starbucks Idea Site)

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Partner Relationship Management
• Working closely with partners both inside and
outside the company to jointly bring more
value to customers
• Partners inside the firm—cross-functional teams
• Partners outside the firm—suppliers, channel
partners “supply chain management”

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 Creating Customer Loyalty
and Retention
• Keeping customers loyal makes good economic sense.
• Customer lifetime value is the value of the entire stream of purchases a customer
makes over a lifetime of patronage “support”.
• Customer defections can be costly
• Can lose that customer’s lifetime value
• May cause other customers to defect
For example, the average customer at Stew Leonard’s supermarket spends about
$100 a week, shops 50 weeks a year, and remains in the area for about 10
years. If this customer has an unhappy experience and switches to another
supermarket, Stew Leonard’s has lost $50,000 in lifetime revenue.
Two rules: #1- The customer is always right. #2- If the customer is ever wrong,
Rd rule #1.
Lexus estimates that single satisfied & loyal customer is worth more than $600,000 in
lifetime sales!!!
Customer delight creates an emotional relationship with a brand

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