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Marketing ManagingProfitableCustomerRelationships Chapter1 1 1 LearningGoals Definemarketingandthemarketingprocess ExplaintheimportanceofunderstandingcustomersandidentifythefivecoremarketplaceconceptsIdentifytheelementsofacustomer drivenmarketingstrategyanddiscussthemarketingmanagementorientations DiscusscustomerrelationshipmanagementandcreatingvalueforandcapturingvaluefromcustomersDescribethemajortrendsandforceschangingthemarketinglandscape 1 2 CreatingValueCreatecompellingblendofliveracingevents mediacoverageandWebsites Gooutofitswaytoshowthecustomeragoodtime Createwholesomefamily orientedenvironment NASCAR Whatisitssecret CaseStudy CapturingValueFansspendsnearly 700ayearonNASCARmerchandiseSecondhighestregularseasonsportonTVNASCARattractsover250big namesponsors 1 3 WhatisMarketing MarketingDefined Marketingisasocialandmanagerialprocessbywhichindividualsandgroupsobtainwhattheyneedandwantthroughcreatingandexchangingvaluewithothers MarketingisaboutmanagingprofitablecustomerrelationshipsAttractingnewcustomersRetainingandgrowingcurrentcustomers Goal1 Definemarketingandthemarketingprocess 1 4 TheMarketingProcessAFive StepProcess UnderstandthemarketplaceandcustomerneedsandwantsDesignacustomer drivenmarketingstrategyConstructamarketingprogramthatdeliverssuperiorvalueBuildprofitablerelationshipsandcreatecustomerdelightCapturevaluefromcustomerstocreateprofitsandcustomerquality Goal1 Definemarketingandthemarketingprocess 1 5 UnderstandingtheMarketplace Needs wants anddemandsMarketingoffers includingproducts servicesandexperiencesValueandsatisfactionExchange transactionsandrelationshipsMarkets NeedStateoffeltdeprivationExample NeedfoodWantsTheformofneedsasshapedbycultureandtheindividualExample WantaBigMacDemandsWantswhicharebackedbybuyingpower CoreConcepts Goal2 Identifythefivecoremarketplaceconcepts 1 6 UnderstandingtheMarketplace Needs wants anddemandsMarketingoffers includingproducts servicesandexperiencesValueandsatisfactionExchange transactionsandrelationshipsMarkets CoreConcepts Goal2 Identifythefivecoremarketplaceconcepts MarketingofferCombinationofproducts services informationorexperiencesthatsatisfyaneedorwantOffermayincludeservices activities people places informationorideas 1 7 UnderstandingtheMarketplace Needs wants anddemandsMarketingoffers includingproducts servicesandexperiencesValueandsatisfactionExchange transactionsandrelationshipsMarkets ValueCustomersformexpectationsregardingvalueMarketersmustdelivervaluetoconsumersSatisfactionAsatisfiedcustomerwillbuyagainandtellothersabouttheirgoodexperience CoreConcepts Goal2 Identifythefivecoremarketplaceconcepts 1 8 UnderstandingtheMarketplace Needs wants anddemandsMarketingoffers includingproducts servicesandexperiencesValueandsatisfactionExchange transactionsandrelationshipsMarkets ExchangeTheactofobtainingadesiredobjectfromsomeonebyofferingsomethinginreturnOneexchangeisnotthegoal relationshipswithseveralexchangesarethegoalRelationshipsarebuiltthroughdeliveringvalueandsatisfaction CoreConcepts Goal2 Identifythefivecoremarketplaceconcepts 1 9 UnderstandingtheMarketplace Needs wants anddemandsMarketingoffers includingproducts servicesandexperiencesValueandsatisfactionExchange transactionsandrelationshipsMarkets MarketSetofactualandpotentialbuyersofaproductMarketersseekbuyersthatareprofitable CoreConcepts Goal2 Identifythefivecoremarketplaceconcepts 1 10 MarketingManagement Marketingmanagementistheartandscienceofchoosingtargetmarketsandbuildingprofitablerelationshipswiththem Thisdefinitionmustincludeanswerstotwoquestions Whatcustomerswillweserve Howcanweservethesecustomersbest Goal3 Identifyelementsofacustomer drivenstrategy 1 11 SelectingCustomersandCreatingValue CustomerManagementWhatcustomerswillweserve MarketersselectcustomersthatcanbeservedprofitablyValuePropositionHowcanweservethesecustomersbest Includesthesetofbenefitsorvaluesacompanypromisestodelivertoconsumerstosatisfytheirneeds Goal3 Identifyelementsofacustomer drivenstrategy 1 12 MarketingManagement ProductionconceptProductconcept SellingconceptMarketingconcept Societalmarketingconcept MarketingOrientations Goal3 Identifyelementsofacustomer drivenstrategy 1 13 TheMarketingPlan TransformsthemarketingstrategyintoactionIncludesthemarketingmixandthe4P sofmarketingProductPricePlacePromotion Goal3 Identifyelementsofacustomer drivenstrategy 1 14 BuildingCustomerRelationships CRM CustomerrelationshipmanagementTheoverallprocessofbuildingandmaintainingprofitablecustomerrelationshipsbydeliveringsuperiorcustomervalueandsatisfaction Itdealswithallaspectsofacquiring keepingandgrowingcustomers Goal4 DiscussCRMandcapturingvalue 1 15 ValueandSatisfaction PerceivedValueThecustomer sevaluationofthedifferencebetweenbenefitsandcosts Customersoftendonotjudgevaluesandcostsaccuratelyorobjectively CustomerSatisfactionProduct sperceivedperformancerelativetocustomer sexpectations Goal4 DiscussCRMandcapturingvalue 1 16 NotAllCustomersareEqual BasicRelationshipsLow margincustomersFullPartnershipsKeycustomersSelectiverelationshipmanagementWeedingoutunprofitablecustomers Goal4 DiscussCRMandcapturingvalue 1 17 CapturingValuefromCustomers CustomerLoyaltyandRetentionShareofCustomerCustomerEquity CustomerdelightleadstoemotionalrelationshipsandloyaltyCustomerLifetimeValueshowstrueworthofacustomer KeyConcepts Goal4 DiscussCRMandcapturingvalue 1 18 CapturingValuefromCustomers CustomerLoyaltyandRetentionShareofCustomerCustomerEquity Shareofcustomer spurchaseinaproductcategory Achievedthroughofferinggreatervariety cross sellandup sellstrategies KeyConcepts Goal4 DiscussCRMandcapturingvalue 1 19 CapturingValuefromCustomers CustomerLoyaltyandRetentionShareofCustomerCustomerEquity Thecombinedcustomerlifetimevaluesofallcurrentandpotentialcustomers Measuresafirm sperformance butinamannerthatlookstothefuture Choosingthe best customersiskey KeyConcepts Goal4 DiscussCRMandcapturingvalue 1 20 MarketingLandscape GrowthoftheInternetAdvancesintelecommunications information transportationCustomerresearchandtrackingProductdevelopmentDistributionNewadvertisingtools24 7marketingthroughtheInternet Challenges Goal5 Discusstrendsandforces DigitalageGlobalizationEthicsandsocialresponsibilityNot for profitmarketingMarketingrelationships 1 21 MarketingLandscape DigitalageGlobalizationEthicsandsocialresponsibilityNot for profitmarketingMarketingrelationships GeographicalandculturaldistanceshaveshrunkGreatermarketcoverageMoreoptionsforpurchasingandmanufacturingIncreasedcompetitionfromforeigncompetitors Challenges Goal5 Discusstrendsandforces 1 22 MarketingLandscape DigitalageGlobalizationEthicsandsocialresponsibilityNot for profitmarketingMarketingrelationships MarketersneedtotakegreatresponsibilityfortheimpactoftheiractionsCaringcapitalismisawaytodiffe
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