Professional Documents
Culture Documents
Chapter 1 E28093 Creating Customer Value and Engagement
Chapter 1 E28093 Creating Customer Value and Engagement
What is marketing
Consumer-generated marketing:
- Consumers play a bigger role in shaping their own brand experiences and those
of others
- Example: Starbucks: they collect ideas from their customers on new products,
store changes etc.
Market segmentation – Division of market into distinct groups à different needs,
characteristics, age, gender etc.
Market targeting – Process of evaluating each market segment’s attractiveness and selecting
1 or more segments to enter
Market position – arranging for a product to occupy a clear, distinctive and desirable place
relative to competing products in the mind’s of target consumers
Differentiation – begins positioning process.
SUMMARY OF CHAPTER 1
2
Objective 1: Define marketing and outline the steps in the marketing process.
Key term: marketing
- Marketing is the process by which companies create value for customers and build strong
customer relationships in order to capture value from customers in return.
- Involves 5 steps:
marketers need to understand the marketplace and customer needs and wants
marketers design a customer-driven marketing strategy with the goal of getting
,keeping and growing target customers
Marketers construct a marketing program that actually delivers superior value
Building profitable customer relationships and creating customer delight
The company reaps the rewards of strong customer relationships by capturing value
FROM customers.
Objective 2: Explain the importance of understanding customers and the market
place and identify the 5 core marketplace concepts
Key terms: needs, wants, demands, market offerings, marketing myopia, exchange, market
- Understanding a customer’s want need and demand help companies design want-
satisfying offerings and build value-laden customer relationships by which they can capture
customer lifetime value and greater share of customer. Result à increased long-term
customer equity for the firm
- the value proposition is fulfilled through a market offering (delivers customer value and
satisfaction resulting in long-term exchange relationships with customers.
Objective 3: identify the key elements of a customer-driven marketing strategy and
discuss the marketing management orientations that guide marketing strategy
Key terms: Marketing management, production concept, product concept, selling concept,
marketing concept, societal marketing concept
- Company must divide do market segmentation and select which will be their target
market.
- must decide how it will appeal to this target market: differentiation + market position
- marketing management can adopt 1 of the 5 competing market orientations.
- The societal marketing concept holds that generating customer satisfaction + long run
societal well being through sustainable marketing strategies is keyed to both, achieving the
company’s goals and fulfilling its responsibilities.
Objective 4: Discuss customer relationship management and identify strategies for
creating value for customers and capturing value from customers in return
3
Key words: Customer relationship management, Customer perceived value, customer
satisfaction, customer-managed relationships, consumer-generated marketing, partner
relationship management, customer lifetime value, share of customer, customer equity
- Costumer relationship management (CRM) is the process of building and maintaining
profitable customer relationships by delivering superior customer value and satisfaction.
- Aim of CRM: produce high customer equity
- They want to acquire profitable customers + build relationships that will grow “share of
customer”
- Different types of customers require different relationship management strategies
- Captures value from customers in the form of profits and customer equity
- Companies must work closely with marketing partners (inside and outside the company)
- Must be good at partner relationship management
Objective 5: Describe the major trends and forces that are changing the marketing
landscape in this age of relationships
Key words: internet
- Marketers must emphasize the value in their propositions.
- Challenge: Balance a brand’s value proposition with current times + enhance long term
quality
- Boom: Technologic development (internet etc.)
- Led to new approaches for marketers to target their consumers + build closer relationship
(connected globally)
- Marketers are re-examining their ethical and societal responsibilities
- Corporate Social Responsibility