Creating and Capturing Customer Value Creating and Capturing Customer Value Topic Outline + fine rarkating and outne te stops tho ‘marketing process + Understanding the Marketplace and Customer Undestaninag place and Ci + Designing a Customer-Diven Marketing Strategy + Preparing an integrated Marketing Plan and Program + Building Customer Relatenships + Capturing Value tom Customer + The Changing Marketing Landscape i What Is Marketing? Marketing is a process by which customers fationships Understanding the Marketplace and Customer Needs ‘Customer Needs, Wants, and Demands Understanding the Marketplace and Customer Needs Core Concepts * Customer needs, wants, and demands + Market offerings + Customer Value and satisfaction + Exchanges and relationships Understanding the Marketplace and Customer Needs + Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want + Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needsstanding the Marketplace and Customer Needs act of obtaining 2 ‘one by offering Bol Exchange is the desired object from some’ something in return Designing a Customer-Driven Understanding the Marketplace ‘Marketing Strategy and Customer Needs management is the art and Markets are the set of actual and _ Marketing potential buyers of a productor service etience of choosing target markets and building profitable relationships with them = What customers will we serve? How can we best serve these customers? i pial brrev ema tet Designing Customer-Driven Designing a Customer-Driven ‘Marketing Strategy meh ‘| “Marketing : ‘electing Customers 10 Se ea Se ‘selecting Customers to Seve market segmentation refers 10d Demarketing is marketing to recur, the markets into segmen ‘of customers eran eats ay or permane mays the arget marketing refers fownich serpnot to destroy demand PUNO segments to 9° after reduce or shift it ‘enopit tose tt one ien ee oa te ate inceDesigning a Customer-Dri Marketing strategy Choosing a Value Proposition + The value proposition is the set of benefits of values a company promises to deliver to customers to satisfy their needs Marketing Management Orientations ‘oncept is the idea that Designing a Customer-Driven Designing 3 Customer-Driven ‘Marketing Stratesy ‘Marketing Strategy Marketing Management Orientations Marketing Management Orientations Production concept is the idea that product concept is the idea that ‘consumers wil favor products that are romrumers wil favor products that offer available or highly affordable the most quality, performance, and 3| features. Organizations should : therefore devote its energy tomaking : continuous product improvements. : Pe ao ee ol Designing a Customer-Driven Designing a Customer-Driven ‘Marketing Strategy ‘Marketing Strategy Marketing Management Orientations js the idea that Marketing concept tional goals depends achieving organiza! Selling c ‘consumers will not buy enough ofthe firm's products unless it undertakes @ ‘on knowing the needs and wants of the large scale selling and promotion effort target markets and delivering the desired satisfactions better than competitors do nf bs peo Gas, ‘pte aise i ayers acme cart ntPesiefarneting ene 5 ie Preparing an Integrated Marketing Marketing Management Orientations: Plan and Program + The: mix is the set of tools Socita marketing concepts tees Teeter ts ne yi ao marketing strategy. It includes product. marketing decisions by considering price, fon; and Sa et oe -Tntograted marketing program isa interests, and society's long-run 4 comprehensive plan that communicates interests. 2 and delivers the intended value to il chosen customers. | Building Customer Relationships Building Customer Relationships Relationship Building Blocks: Customer Customer Relationship Management MO ee and Zatisfaction (cRM) + The overall process of building 2nd maintaining profitable customer ‘elationships by delivering superior ‘customer value and satisfaction é beer aes Building Customer Relationships Building Customer Relationships ‘Customer Relationship Levels and Tools ‘The Changing Nature of Customer ——— Relationships Basic + Relating with more carefully selected : customers uses selective relationship Relationships management to target fewer, more | profitable customers |S S| + Relating more deeply and interactively by Full : incorporating more interactive two way 2 2 relationships through blogs, Websites, Partnerships online communities and social networks —— crs 3 ee oe atcBuilding Customer Relationships. Partnor Relationship Managomont BPE rs nad te corpary every ynction area interact fee ‘vith custorners = Cross-Aunetional teams + Partners outside the company is how marketers connect with their suppliers, Channel partners, and comy partners: pettors developing partnerships fy a Building Customer Relationships Capturing Value from Customers Pariner Relationship Management roating Gustomer Loyalty and «= Supply chains a channel that stretches foie from raw materials to components {0 = Customer lifetime valve is the value of final products to final Buyers the entire stream of purchases that the + Supply management qustomer would make over a lifetime of + Strategic partners Fetes + Strategic alliances a Capturing Value from Customers Growing Share of Customer share of customer isthe portion ofthe chasing that a company customer's pu! gets in its product categories Capturing Value from Customers Customer equity is the total combined customer lifetime values of al cof the ‘company's customers craps ise LamersCapturing Value from Customers Building Customer Equity * Building the right relationships with the right customers involves treating customers as assets that need to be managed and maximized * Different types of customers require different relationship management BiMaricating — Build the right relationship with the right Pubishng 26 Prentice Hall TSR? The New Marketing Landscape Major Developments Rapid Digital age || giobalization Marketing Ethics and social responsibility Not-for-profit marketing ‘opytight © 2010 Pearson Education, nc. Pubiehing as Prenice Hall Chapter 1-stide 32