Kotler 01
description
Transcript of Kotler 01
Marketing: Managing Marketing: Managing Profitable Customer Profitable Customer
RelationshipsRelationships
Chapter 1Chapter 1
1 - 2
Objectives
Be able to define marketing and Be able to define marketing and discuss its core concepts.discuss its core concepts.
Be able to define marketing Be able to define marketing management and compare the management and compare the five marketing management five marketing management orientations.orientations.
1 - 3
Objectives
Understand customer Understand customer relationship management relationship management and strategies.and strategies.
Realize the major challenges Realize the major challenges facing marketers in the new facing marketers in the new “connected” millennium.“connected” millennium.
1 - 4
What is Marketing?
Marketing is managing profitable Marketing is managing profitable customer relationshipscustomer relationships Attracting new customersAttracting new customers Retaining and growing current Retaining and growing current
customerscustomers
““Marketing” is NOT synonymous with Marketing” is NOT synonymous with “sales” or “advertising”“sales” or “advertising”
1 - 5
What is Marketing?
Kotler’s social definition:Kotler’s social definition: ““Marketing is a social and managerial Marketing is a social and managerial
process by which individuals and process by which individuals and groups obtain what they need and groups obtain what they need and want through creating and want through creating and exchanging products and value with exchanging products and value with others.”others.”
1 - 6
What Can Be
Marketed?
GoodsGoodsServicesServicesPlacesPlacesIdeasIdeasEventsEventsPersonsPersonsPropertiesPropertiesOrganizationsOrganizationsInformationInformationExperiencesExperiencesWhat is being
marketed in this ad?
1 - 7
Figure 1-1:
Core Marketing Concepts
1 - 8
Figure 1-2:
Elements of a Modern Marketing System
1 - 9
Marketing Management
Marketing managementMarketing management is “the art is “the art and science of choosing target and science of choosing target markets and building profitable markets and building profitable relationships with them.”relationships with them.” Creating, delivering and Creating, delivering and
communicating superior communicating superior customcustomeer value is key.r value is key.
1 - 10
Marketing Management
Customer Management:Customer Management: Marketers select customers that Marketers select customers that
can be served well and profitably.can be served well and profitably.
Demand Management:Demand Management: Marketers must deal with different Marketers must deal with different
demand states, ranging from no demand states, ranging from no demand to too much demand.demand to too much demand.
1 - 11
Marketing Management
Demarketing: Commuter Connections promotes the use of mass transit and carpooling as an alternative to driving alone.
CommuterConnections
1 - 12
Marketing Management
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
Management Orientations
1 - 13
Figure 1-3: The Selling and Marketing
Concepts Contrasted
1 - 14
Figure 1-4: Considerations Underlying the
Societal Marketing Concept
1 - 15
Figure 1-5: Relationship Between
Customer Satisfaction and Loyalty
1 - 16
CRM
Customer relationship Customer relationship management (also called CRM) management (also called CRM) is defined as:is defined as:
““the overall process of building the overall process of building and maintaining profitable and maintaining profitable customer relationships by customer relationships by delivering superior customer delivering superior customer value and satisfaction.”value and satisfaction.”
1 - 17
CRM
It costs 5 to 10 times MORE to It costs 5 to 10 times MORE to attract a new customer than it does attract a new customer than it does to keep a current customer satisfied.to keep a current customer satisfied.Marketers must be Marketers must be concerned with the concerned with the lifetime value of the lifetime value of the customercustomer..
1 - 18
SatMetrix Video Clip
View what the experts have to say about customer loyalty and the bottom line.
BusinessNow
Click the picture above to play video
1 - 19
CRM
Attracting, Attracting, retaining and retaining and growing growing customerscustomers
Building Building relationships and relationships and customer equitycustomer equity
Customer value and satisfactionCustomer value and satisfaction Perceptions are keyPerceptions are key Created by meeting/ exceeding Created by meeting/ exceeding
expectationsexpectations
Loyalty and retentionLoyalty and retention Many benefits of loyalty Many benefits of loyalty Increases as satisfaction levels Increases as satisfaction levels
increaseincrease Delighting consumers should be Delighting consumers should be
the goalthe goal
Growing customer shareGrowing customer share Cross-sellingCross-selling
Key ConceptsKey Concepts
1 - 20
CRM
Customer equityCustomer equity Total combined Total combined
customer lifetime customer lifetime values of all customersvalues of all customers
Measures firm’s Measures firm’s performance, but in a performance, but in a manner that looks to manner that looks to the futurethe future
Attracting, Attracting, retaining and retaining and growing growing customerscustomers
Building Building relationships and relationships and customer equitycustomer equity
Key ConceptsKey Concepts
1 - 21
CRM
Customer relationship Customer relationship levels and toolslevels and tools Target market typically Target market typically
dictates type of relationshipdictates type of relationship Basic relationshipsBasic relationships Full relationshipsFull relationships
Customer loyalty and Customer loyalty and retention programsretention programs
Adding financial benefitsAdding financial benefits Adding social benefitsAdding social benefits Adding structural tiesAdding structural ties
Attracting, Attracting, retaining and retaining and growing growing customerscustomers
Building Building relationships and relationships and customer equitycustomer equity
Key ConceptsKey Concepts
1 - 22
Marketing Challenges
Technological advances, rapid Technological advances, rapid globalization, and continuing globalization, and continuing social and economic shifts are social and economic shifts are causing marketplace changes.causing marketplace changes.
Major marketing developments Major marketing developments can be grouped under the theme can be grouped under the theme of of ConnectingConnecting..
1 - 23
Figure 1-6: Today’s Marketing
Connections
1 - 24
Marketing Challenges
Via technologyVia technology
With customersWith customers
With marketing With marketing partnerspartners
With the worldWith the world
Advances in computers, Advances in computers, telecommunications, video-telecommunications, video-conferencing, etc. are major conferencing, etc. are major forcesforces Databases allow for Databases allow for
customization of products, customization of products, messages and analysis of messages and analysis of needsneeds
The InternetThe Internet Facilitates anytime, anywhere Facilitates anytime, anywhere
connectionsconnections Facilitates CRMFacilitates CRM Creates marketspacesCreates marketspaces
ConnectingConnecting
1 - 25
Marketing Challenges
Selective relationship Selective relationship management is keymanagement is key Customer profitability Customer profitability
analysis separates analysis separates winners from loserswinners from losers
Growing “share of Growing “share of customer” customer” Cross-selling and up-Cross-selling and up-
selling are helpfulselling are helpful
Direct sales to buyers Direct sales to buyers are growingare growing
Via technologyVia technology
With customersWith customers
With marketing With marketing partnerspartners
With the worldWith the world
ConnectingConnecting
1 - 26
Marketing Challenges
Partner relationship Partner relationship management involves:management involves: Connecting inside the Connecting inside the
companycompany Connecting with Connecting with
outside partnersoutside partnersSupply chain Supply chain
managementmanagementStrategic alliancesStrategic alliances
Via technologyVia technology
With customersWith customers
With marketing With marketing partnerspartners
With the worldWith the world
ConnectingConnecting
1 - 27
Marketing Challenges
GlobalizationGlobalization CompetitionCompetition New opportunitiesNew opportunities
Greater concern for Greater concern for environmental and social environmental and social responsibilityresponsibilityIncreased marketing by Increased marketing by nonprofit and public-nonprofit and public-sector entitiessector entities Social marketing campaignsSocial marketing campaigns
Via technologyVia technology
With customersWith customers
With marketing With marketing partnerspartners
With the worldWith the world
ConnectingConnecting