What is Marketing and Introduction to CRM

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2012 Carl-Johan Rosenbrijer


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What is marketing?

Dr.Sc. (Econ.) Carl-Johan Rosenbrijer

Department of Economy, Media and Engineering

ARBIT Applied Research in Business an IT

[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Customer Relationship Management: 30.8-

1.9.2012

What is marketing

Introduction to CRM - development of marketing

Business and CRM strategy

The nature and complexity of customer relationships

The network approach

Group assignment part 1

Customer loyalty

Customer value and the value creation process

Group assignment part 2

Future of CRM


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What is marketing social definition

Marketing deals with identifying and meeting human and

social needs

or shorter..

Meeting needs profitably

Kotler (2003)

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What is marketing managerial definition

The art of selling products

however Drucker (1973) states

the aim of marketing is to know and understand thecustomer so well that the product or service fits him and

sells itself. Ideally, marketing should result in a customerwho is ready to buy.

Kotler (2003)

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What is marketing managerial definition

The American Marketing Association:

Marketing is the process of planning and executing

the conception, pricing, promotion, and distribution of ideas, goods and

services to create exchanges that satisfy individual andorganizational goals.

Kotler(2003) see

marketing management as the art and science of choosing target

markets and getting, keeping, and growing customers through creating,delivering, and communicating superior customer value.

Kotler (2003)

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What do marketing people market?

Goods

Services

Experiences

Events

Persons Places

Properties

Organizations

Information Ideas

Etc?

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Kotler (2003)


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Core Marketing Concepts

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Market Segments

Target Markets Market Offering

Marketing Mix

Product

Price

Place

Promotion

1) The firm identifiesdifferent buyers

2)and decides which segments

present greatest business opportunity

3) For each chosentarget market

the firm develops a .

4) The market offering

is developed based on a

certain marketing mix

Kotler (2003)


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Four Ps and four Cs

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Sellers view

Product

Price

Place

Promotion

Customers view

Customer solution

Customer cost

Convenience

Communication

:

-))

:

-((


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Company orientations toward the

marketplace

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Company orientation Company assumes that .

The production concept the customer want widely available and affordable

products

The product concept the customer want products with the most quality,

performance or innovative features

The selling concept the customer will not buy enough products without

an aggressive selling and promotion effort

The marketing concept the firm must be better than competitors in

creating, delivering, and communicating customer

value to its chosen target markets.

The customer concept the company will achieve profitable growth and

capture long-term share and loyalty by shaping

offers and activities to individual customers

The societal marketing concept the firm must satisfy customers more effectively

and efficiently than competitors while still

preserving the consumers and societys well-being


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What?

Product / brand:

Production oriented

Technical quality

Capacity

Price

Distribution

Advertising and

other sales

promotion

E.g.: Presidentticoffee, Coca Cola,

Scania etc.

How?

Service

Production and consumption

often simultaneous

Functional quality

The customer encounter(moment of truth)

Different services connected to

the product

Service concept = way of

operating / way of life E.g.: Robert Paulig Coffee

Company, IKEA, Kone, etc.

The development of marketing thought


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Where?

Place of purchase Distribution central

Understanding thecustomer process isvital

Where is the

customer customerflow?

Offer existingproducts/services innew places

E.g.: Esso andgroceries, R-kioski

and Post, Internet,home etc.

When?

Timing

time: 24 hx7, life-cycle

Seasons: Summer,

autumn,winter and spring

Seasons: christmas,eastern

etc. The customers perception of

time, changes (e.g.

computers,mobile phones

etc.)

E.g. Fazer Bakerys,Teleoperators,Banks etc.



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The marketing concept is dynamic

PRODUCT/

SERVICE

New

Old

TARGET MARKETS

NewOld

XX X

XX

X

X

XWhats

next?


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C

U

S

T

O

M

E

R

The traditional push role of marketing

S

UP

L

I

E

R

SP

SP

SP

SP

SP=Sales person

Marketing Mix:

product

price

place

sales promotion

Efficient sales:Take it or leave it

principle


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Purchasing and competitive buying

C

U

S

TO

M

E

R

S

S

S

S

B

Marketing mix

Efficient purchasing:

Competitive buying

I have the power

principle

B=BUYER


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Marketing is not a function in a company

PRODUCTION LOGISTICS ACCOUNTING MARKETING IT

OPERATIVE MANAGEMENT

Marketing as

an isolated function!

THE ACTIVITIES ORGANISED AS INDEPENDENT FUNCTIONS

NO COORDINATION AND COMMUNICATION

THE COMPANY IS A PRISONER OF ITS FUNCTIONS

AND

CUSTOMER GETS WHAT IS PRODUCED!


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Marketing is not a function in a company

PRODUCTION

IT

ACCOUNTINGLOGISTICS

MANAGEMENT


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From product to customer focus

Product focus

Production

Technical quality

Product development dominates Very transparent

price

functional comparisons easy

First produced then sold


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The problems of the product focus The customer is in a minimal role or not taken into consideration at all

What is the role of the customer?

Consumer not a producer of value

The victim of sales dependent on the supplier A comparer of different product and a competitive buyer

What does the customer get?

A product that perhaps does not create the value he could get

A product without any service

A product that is produced on the suppliers terms


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Customer focus

The customer is the starting point

Time perspective important

Focus on the customers perceived value The customer is unique

The customer relationship and understanding it in focus

Trust

Customer loyalty - commitment


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Transaction

Customer

Relationship

Product Core competenceThe companysresources

CustomerContact

Competitive Base

Traditional

Marketing

Network Management

Service

Marketing

Innovativeness,

learning

Network

Customer Relationship

Management (CRM)

Episode

CustomerencounterPersonnel

1970-

1980-

1990-

2000-

Source: Tore Strandvik (2000)


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A Framework for Customer Relationship

Management (Winer, 2001)

Discuss the following questions in your group

(4 groups) What is the main purpose of the article?

What is CRM according to the article?

Have you any experiences of this type of approach

from a professional or consumer perspective?

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Thank You!

[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]

What is Marketing and Introduction to CRM

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