Professional Documents
Culture Documents
Chapter 1
Chapter 1
Chapter 1
Marketing introduction
Topic Outline
What Is Marketing?
Understand the Marketplace and Customer Needs
Designing a Customer-Driven Marketing Strategy
Preparing an Integrated Marketing Plan and Program
Building Customer Relationships
Capturing Value from Customers
The Changing Marketing Landscape
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What Is Marketing?
3
What Is Marketing?
The Marketing Process
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Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands
• States of deprivation
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Understanding the Marketplace and Customer
Needs
Marketing has been criticized because it “make
people buy things they don’t really need” Refute or
support this accusation?
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Understanding the Marketplace
and Customer Needs
Market Offerings - 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
8 Ex: Nokia lost market share to Apple –
smartphone
Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction Expectations
Customers
• Value and
satisfaction
Marketers
• Set the right level of
expectations
• Not too high or low
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Understanding the Marketplace
and Customer Needs
GOODS PAYMENTS
Marketer Customer
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Understanding the Marketplace
and Customer Needs
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Marketing system
Company
Intermediaries Consumers
Suppliers
Competitors
ENVIRONMENTAL FORCES
©2012 Pearson Education
Customer driven marketing
Strategy
MARKETING MANAGEMENT
SELECTING CUSTOMERS
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Designing a Customer-Driven Marketing Strategy
Choosing a Value Proposition
Value proposition:
The set of benefits or
values a company
promises to deliver to
customers to satisfy
their needs
Ex: Facebook - “connect and
share with ppl in your life”
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Designing a Customer-Driven Marketing
Strategy
Who is Lexus’
customers?
What is Lexus’ value
proposition?
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Designing a Customer-Driven Marketing Strategy
Marketing Management Orientations
* Management should
focus on improving
production and
distribution efficiency.
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Designing a Customer-Driven Marketing Strategy
Marketing Management Orientations
Product concept is the idea that
consumers will favor products
that offer the most in quality,
performance, and innovative
features.
→Organization should therefore
devote its energy to making
continuous product
improvements.
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Designing a Customer-Driven Marketing Strategy
Marketing Management Orientations
Selling concept is the idea that consumers
will not buy enough of the firm’s products
unless it undertakes a large scale selling and
promotion effort.
The concept is typically practiced with unsought
goods—those that buyers do not normally think of
buying, such as insurance or blood donations.
These industries must be good at tracking down
prospects and selling them on product benefits.
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Designing a Customer-Driven Marketing Strategy
Marketing Management Orientations
Marketing concept is the idea that achieving
organizational goals depends on knowing the needs and
wants of the target markets and delivering the desired
satisfactions better than competitors do.
Under the marketing concept, customer focus and value
are the paths to sales and profits.
The job is not to find the right customers for your
product but to find the right products for your customers.
Customer-driven marketing is about understanding
customer needs and creating products and services that
meet existing and latent needs.
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Designing a Customer-Driven Marketing
Strategy
Marketing Management Orientations
Societal marketing concept is the idea that a
company should make good marketing
decisions by considering consumers’ wants,
the company’s requirements, consumers’ long-
term interests, and society’s long-run interests.
The societal marketing concept questions
whether the pure marketing concept overlooks
possible conflicts between consumer short-run
wants and consumer long-run welfare.
The societal marketing concept holds that
marketing strategy should deliver value to
customers in a way that maintains or improves
both the consumer’s and the society’s well
being.
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Designing a Customer-Driven Marketing Strategy
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Designing a Customer-Driven Marketing
Strategy
Review the five alternative
concepts under which
organization design and carry
out their marketing strategies.
Now take a look at one of the
mobile phone dealerships.
Which one of these five
concepts do you believe they
ate typically employing?
Why?
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Preparing an Integrated Marketing Plan and Program
Integrated marketing program:
comprehensive plan that
communicates and delivers the
intended value to chosen
customers.
The marketing mix: set of tools
(four Ps) the firm uses to
implement its marketing strategy. It
includes product, price, promotion,
and place
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Building Customer Relationships
Customer Relationship Management (CRM)
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Building Customer Relationships
Relationship Building Blocks: Customer Value and Satisfaction
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Building Customer Relationships
Relationship Building Blocks: Customer Value and Satisfaction
Customer SATISFACTION
satisfaction
depends on the
product’s
Performance
Expected
perceived level
performance
relative to a
buyer’s
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expectations. DISSATISFACTION
Building Customer Relationships
Customer Relationship Levels and Tools
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Capturing Value from Customers
Creating Customer Loyalty and Retention
Companies not only want customers to be
satisfied but also want them to retain and
be loyal with the companies.
Customer lifetime value is the value of
the entire stream of purchases that the
customer would make over a lifetime of
patronage.
A company can lose money on a specific
transaction but still benefit greatly from a
long-term relationship
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Capturing Value from Customers
Growing Share of Customer
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Capturing Value from Customers
Customer equity is the total
combined customer lifetime values
of all of the company’s current and
potential customers. Clearly, the
more loyal the firm’s profitable
customers, the higher the firm’s
customer equity.
Customer equity may be a better
measure of a firm’s performance
than current sales or market share..
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The Changing Marketing Landscape
Uncertain Economic
Environment
New consumer frugality
Marketers focus on value
for the customer
A troubled economy can
present opportunities as well
as threats
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The Changing Marketing Landscape
Digital Age
• The recent technology boom has created a
digital age. Companies now have access to
exciting new marketspaces.
• People are connected to people and
information worldwide
• Marketers have great new tools to
communicate with customers
• Internet + mobile communication devices
creates environment for online marketing
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The Changing Marketing Landscape
Rapid Globalization
•Almost every company,
large or small, is touched in
some way by global
competition.
•Today, companies are
buying more supplies and
components abroad and
selling more of their market
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offering abroad
The Changing Marketing Landscape
Sustainable Marketing
Marketers are being called
upon to take greater
responsibility for the social
and environmental impact
of their actions.
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The Changing Marketing Landscape
Not-for-Profit Marketing
The nation’s nonprofits
face stiff competition for
support and membership.
Sound marketing can help
them to attract
membership and support.
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So, What Is Marketing? Pulling It All Together
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