Professional Documents
Culture Documents
Chapter One: Marketing: Managing Profitable Customer Relationships
Chapter One: Marketing: Managing Profitable Customer Relationships
1-2
Case Study
NASCAR What is its secret?
Creating Value
NASCAR sells the
experience in-car
cameras, wholesome
family orientation.
NASCAR.com engages
fans via content.
Success has been
achieved by creating
lasting customer
relationships.
Capturing Value
NASCAR is the 2nd
highest rated sport on TV.
Fans are young, affluent,
and family oriented,
spending nearly $700
annually on NASCAR
merchandise.
Fans are loyal to sport
and NASCAR fans are 3
times as likely to seek out
sponsors products than
are nonfans.
1-3
What Is Marketing?
Simple Definition:
Marketing is managing profitable
customer relationships.
Goals:
1. Attract new customers by promising
superior value.
2. Keep and grow current customers by
delivering satisfaction.
Prentice Hall, Inc. Copyright 2007
1-4
Marketing Defined
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.
OLD View
of Marketing:
Making a Sale
Telling & Selling
Prentice Hall, Inc. Copyright 2007
NEW
New View
View
of
ofMarketing:
Marketing:
Satisfying
Satisfying
Customer
customerNeeds
needs
1-5
1-6
1-7
1-8
1-9
Services
Activity or benefit
offered for sale
that is essentially
intangible and
does not result in
ownership.
Brand Experiences:
. . . dazzle their senses, touch their hearts,
stimulate their minds.
Prentice Hall, Inc. Copyright 2007
1-10
Marketing Myopia
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 on the wants and lose
sight of the needs.
Prentice Hall, Inc. Copyright 2007
1-11
1-12
Transaction:
A trade of
values between
two parties.
One party gives
X to another
party and gets Y
in return. Can
include cash,
credit, or check.
1-13
What Is a Market?
The set of actual and potential buyers
of a product.
These people share a need or want that
can be satisfied through exchange
relationships.
1-14
1-15
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
1-16
Marketing Management
Designing a winning marketing
strategy requires answers to the
following questions:
1. What customers will we serve?
What is our target market?
1-17
Target Marketing:
Select the segment to cultivate
1-18
Marketing Management
Demand
Management
Finding and
increasing
demand, also
changing or
reducing
demand, as in
demarketing.
Prentice Hall, Inc. Copyright 2007
Demarketing
Temporarily or
permanently
reducing the
number of
customers or
shifting their
demand.
1-19
Value Proposition
The set of benefits or values a
company promises to deliver to
consumers to satisfy their needs.
Value propositions dictate how firms will
differentiate and position their brands in
the marketplace.
1-20
Marketing Management
Philosophies
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
1-21
1-22
1-23
1-24
Customer Satisfaction
Dependent on the products perceived
performance relative to a buyers
expectations.
Customer satisfaction often leads to
consumer loyalty.
Some firms seek to DELIGHT customers
by exceeding expectations.
1-25
Customer Relationships
Loyalty and retention programs build
relationships and may feature:
Financial Benefits
EX: Frequency marketing programs
Social Benefits
EX: Club marketing programs
Structural Ties
1-26
1-27
Share of
Customer
The share a
company gets
of the customers
purchasing in
their product
categories.
1-28
Customer Equity
The combined discounted customer
lifetime values of all the companys
current and potential customers.
Classify customers by loyalty and
potential profitability
Manage accordingly
1-29
1-30
Rapid Globalization
Ethics and Social Responsibility
Not-for-Profit Marketing
New World of Marketing Relationships
1-31
1-32