LECTURE 1

MANAGING
PROFITABLE
CUSTOMER
RELATIONSHIPS

MARKETING
 LECTURE 1

AGENDA
Define marketing and the marketing process
Explain the importance of understanding
customers and identify the five core
marketplace concepts
Identify the elements of a customer-driven
marketing strategy and discuss the
marketing management orientations
 LECTURE 1

WHAT IS MARKETING?

MARKETING IS MANAGING PROFITABLE

CUSTOMER RELATIONSHIPS

GOALS:
1. ATTRACT NEW CUSTOMERS BY
PROMISING SUPERIOR VALUE

2. KEEP AND GROW CURRENT

CUSTOMERS BY DELIVERING
SATISFACTION
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A SOCIAL AND MANAGERIAL PROCESS

BY WHICH INDIVIDUALS AND GROUPS
OBTAIN WHAT THEY NEED AND WANT
THROUGH CREATING AND
EXCHANGING PRODUCTS AND VALUE
WITH OTHERS

MARKETING DEFINED
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1 OLD
VIEW Making a Sale - "Telling and
Selling"
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2 NEW
VIEW Satisfying Customer Needs
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THE MARKETING
PROCESS
Construct a
Understand the
Design a customer- marketing
marketplace and
driven marketing program that
customer needs and
strategy delivers superior
wants
value

Capture Value from

Build customer
customers to create
relationships and
profits and customer
create customer
equity
delight
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CORE MARKETING
CONCEPTS
Marketing
Needs, Wants Offers
Markets and Demands (Products,
Services, and
Experiences)
Exchange,
Transactions, Value and
and Satisfaction
Relationships
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WHAT ARE CONSUMERS'

NEEDS, WANTS, AND
DEMANDS?

CORE CONCEPT #1
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A STATE OF FELT
DEPRIVATION
INCLUDING
PHYSICAL, SOCIAL,
AND INDIVIDUAL
NEEDS

THIS IS A NEED
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FORM THAT A
HUMAN NEED
TAKES, AS SHAPED
BY CULTURE AND
INDIVIDUAL
PERSONALITY

THIS IS A WANT
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WANTS + BUYING
POWER = DEMAND

THIS IS A DEMAND
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MARKETING OFFERS:
PRODUCTS, SERVICES,
EXPERIENCE

CORE CONCEPT #2
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MARKETING OFFER
SOME COMBINATION OF PRODUCTS,
SERVICES, INFORMATION, OR
EXPERIENCES OFFERED TO A MARKET
TO SATISFY A NEED OR WANT

* NEEDS AND WANTS ARE FULFILLED

THROUGH A MARKETING OFFER
 PRODUCT AS AN IDEA

PRODUCT AS A PERSON

PRODUCT AS AN ORGANISATION

PRODUCT AS A PLACE

PRODUCT AS AN INFORMATION
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SERVICES
Activity or Benefit Offered for Sale That
is Essentially Intangible and Does Not
Result in the Ownership of Anything
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CHARACTERISTICS
OF SERVICES

Intangibility
Inseparability
Heterogeneity
Perishability
Ownership
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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 MORE ON THE "WANTS" AND

LOSE SIGHT OF THE "NEEDS"
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VALUE AND SATISFACTION

CORE CONCEPT #3
 VALUE AND SATISFACTION

Care must be taken when setting expectations

EXPECTATIONS < PERFORMANCE EXPECTATIONS > PERFORMANCE

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EXCHANGE AND
RELATIONSHIP

CORE CONCEPT #4
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1 EXCHA
NGE Act of obtaining a desired object from
someone by offering something in
return
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RELATIO 2

NSHIP
Marketing consists of actions taken to
build and maintain desirable
EXCHANGE RELATIONSHIPS with
target audiences
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HOW DOES A COMPANY

DIFFERENTIATE AND
POSITION ITSELF?

Value Proposition
It is the set of benefits or
values a company promises
to deliver to consumers to
satisfy their needs
It differentiates the product
from others
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MARKET

CORE CONCEPT #5
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WHAT?
Set of actual and potential
buyers for a product/service
These people share a need or
want that can be satisfied
through exchange
relationships
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MARKETING MANAGEMENT

THE ART AND SCIENCE OF CHOOSING

TARGET MARKETS AND BUILDING
PROFITABLE RELATIONSHIPS WITH
THEM

* REQUIRES THAT CONSUMERS AND THE

MARKETPLACE BE FULLY UNDERSTOOD

** DESIGNING A WINNING MARKETING

STRATEGY ANSWERS WHO THE TARGET
MARKET IS AND HOW THEY CAN BE BEST
SERVED THROUGH A VALUE PROPOSITION
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1 MARKET
SEGMEN
TATION
Divide the market into segments of
customers
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TARGET 2

MARKETI
NG
Selecting the segment to cultivate
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THE MARKETING
PLAN
Transforms the marketing
strategy into action
Includes the 4Ps of
Marketing: Product, Price,
Place, and Promotion