Marketing CH01

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Ch 1 -0 Copyright 2011 Pearson Education


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Principles of Marketing,Arab World Edition

Philip Kotler, Gary Armstrong, Anwar Habib, AhmedTolba

Presentation prepared by Annelie Moukaddem Baalbaki

CHAPTER ONEMarketing: Creating and

Capturing Customer Value

Lecturer: Insert your name here



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Creating and Capturing Customer Value

1.1 What Is Marketing?

1.2 Understand the Marketplace and Customer Needs

1.3 Designing a Customer-Driven Marketing Strategy1.4 Preparing an Integrated Marketing Plan and Program

1.5 Building Customer Relationships

1.6 Capturing Value from Customers

1.7 The Changing Marketing Landscape1.8 So, What is Marketing? Pulling It All Together

Topic Outline



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What Is Marketing?

Marketingis a process by which companies create valuefor customers and build strong customer relationships tocapture value from customers in return.

Marketing Defined



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What Is Marketing?

The Marketing Process



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Understanding the Marketplace and Customer

Needs

States of deprivation

Physicalfood, clothing, warmth, safety

Socialbelonging and affection

Individualknowledge and self-expression

Needs

Form that needs take as they are shaped byculture and individual personalityWants

Wants backed by buying powerDemands

Customer Needs, Wants, and Demands



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Understanding the Marketplace and CustomerNeeds

Market offerings are some combination of products,services, information, or experiences offered to a market to

satisfy its needs or wants.

Marketing myopia is focusing only on existing wants andlosing sight of underlying consumer needs.

Market Offerings: Products, Services and Experiences



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Customer Value and Satisfaction

Customers

Value andsatisfaction

Marketers

Set the right level ofexpectations

Not too high or low



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Exchangeis the act of obtaining a desired object fromsomeone by offering something in return.

Marketers aim at building strong relationshipsby consistentlydelivering superior customer value.


Exchanges and relationships



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A marketis the set of actual and potential buyers of aproduct.



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Designing a Customer-Driven MarketingStrategy

Marketing management is the art and science of choosingtarget markets and building profitable relationships with them.

What customers will we serve?

How can we best serve these customers?

Marketing Management



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Designing a Customer-Driven Marketing

Strategy

Market segmentation refers to dividing the markets intosegments of customers.

Target marketing refers to which segments to go after.

Demarketing is marketing to reduce demand temporarily orpermanently; the aim is not to destroy demand but to reduceor shift it.

Selecting Customers to Serve

http://www.almarai.com/


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Strategy

Choosing a Value Proposition

The value proposition is the set of benefits or values acompany promises to deliver to customers to satisfy their

needs.



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Strategy

Productionconcept

Productconcept

Sellingconcept

Marketingconcept

Societalconcept

Marketing Management Orientations



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Strategy

Production concept is the idea that consumers will favor

products that are available and highly affordable.




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Strategy

Product concept is the idea that consumers will favorproducts that offer the most quality, performance, and

features. An organization should therefore devote its energy tomaking continuous product improvements.




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Strategy

Selling concept is the idea that consumers will not buyenough of the firms products unless it undertakes a large

scale selling and promotion effort.




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Strategy


Marketing concept is the idea that achievingorganizational goals depends on knowing the needs andwants of the target markets and delivering the desiredsatisfactions better than competitors do.



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Strategy

The Selling and Marketing Concepts Contrasted



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Strategy


Thesocietal marketing conceptis the idea that acompanys marketing decisions should consider consumers

wants, the companys requirements, consumers long-terminterests, and societys long-term interests.

http://www.youtube.com/watch?v=6ox_IV7LqYQ


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Designing a Customer-Driven MarketingStrategy



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The marketing mix is the set of tools (four Ps) the firm usesto implement its marketing strategy. It includes product, price,promotion, and place.

Integrated marketing program is a comprehensive planthat communicates and delivers the intended value to chosencustomers.

Preparing an Integrated Marketing Plan andProgram



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Building Customer Relationships

Customer relationship management (CRM):The overallprocess of building and maintaining profitable customer

relationships by delivering superior customer value andsatisfaction.



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Relationship Building Blocks: Customer Value andSatisfaction

Customer-perceived value

The differencebetween totalcustomer valueand totalcustomer cost

Customersatisfaction

The extent towhich aproductsperceivedperformancematches a

buyersexpectations



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Customer Relationship Levels and Tools

BasicRelationships

FullPartnerships



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Relating with more carefully selected customers usesselective relationship management to target fewer, moreprofitable customers.

Relating more deeply and interactively by incorporating moreinteractive, two way relationships through blogs, websites,online communities and social networks.

The Changing Nature of Customer Relationships



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Partner relationship management involves workingclosely with partners in other company departments andoutside the company to jointly bring greater value to

customers.


Partner Relationship Management



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Partners insidethecompanyrefer to every function areainteracting with customers:

electronically

cross-functional teams

Partners outsidethecompanyrefer to how marketersconnect with their suppliers, channel partners, and competitorsby developing partnerships.




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Supply chain is a channel that stretches from raw materialsto components to final products to final buyers:

Supply management

Strategic partners

Strategic alliances




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Capturing Value from Customers

Customer lifetime value is the value of the entire streamof purchases that the customer would make over a lifetimeof patronage.

Creating Customer Loyalty and Retention



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Share of Customer is the portion of the customerspurchasing that a company gets in its product categories.

Growing Share of Customer



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Customer equity is the total combined customer lifetimevalues of all of the companys customers.

Building Customer Equity



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Building the right relationships with the right customersinvolves treating customers as assets that need to bemanaged and maximized.

Different types of customers require different relationshipmanagement strategies.

Building Customer Equity



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The Changing Marketing Landscape

Digital ageRapid

globalization

Ethics andsocial

responsibility

Not-for-profit

marketing

Major Developments



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So, What Is Marketing? Pulling It All Together



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Marketing CH01

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