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Chapter 1- slide 1Copyright 2009 Pearson Education, Inc.Publishing as Prentice Hall
Chapter One
Creating and Capturing CustomerValue
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Chapter 1- slide 2Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Creating and Capturing CustomerValue
Define marketing and outline the steps in themarketing process
Understanding the Marketplace and CustomerNeeds
Designing a Customer-Driven Marketing Strategy Preparing an Integrated Marketing Plan and
Program
Building Customer Relationships Capturing Value from Customers The Changing Marketing Landscape
Topic Outline
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Chapter 1- slide 3Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
What Is Marketing?
Marketing is a process by whichcompanies create value for customers
and build strong customer relationshipsto capture value from customers inreturn
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Chapter 1- slide 4Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Understanding the Marketplaceand Customer Needs
Customer needs, wants, and demands Market offerings Customer Value and satisfaction Exchanges and relationships
Markets
Core Concepts
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Chapter 1- slide 5Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Understanding the Marketplaceand Customer Needs
States of deprivation Physical food, clothing, warmth, safety Social belonging and affection Individual knowledge and self-expression
Needs
Form that human needs take as they are shaped byculture and individual personality Wants
Human wants backed by buying power Demands
Customer Needs, Wants, and Demands
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Chapter 1- slide 6Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Market offerings are somecombination of products, services,information, or experiences offered to amarket to satisfy a need or want
Marketing myopia is focusing only on
existing wants and losing sight ofunderlying consumer needs
Understanding the Marketplace
and Customer Needs
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Publishing as Prentice Hall
Understanding the Marketplaceand Customer Needs
Customer Value and SatisfactionExpectations
Customers Value and
satisfaction
Marketers Set the right level of
expectations Not too high or low
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Publishing as Prentice Hall
Exchange is the act of obtaining adesired object from someone by offeringsomething in return
Understanding the Marketplace
and Customer Needs
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Publishing as Prentice Hall
Markets are the set of actual andpotential buyers of a product or service
Understanding the Marketplace
and Customer Needs
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Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
Marketing management is the art andscience of choosing target markets andbuilding profitable relationships withthem
What customers will we serve? How can we best serve these customers?
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Chapter 1- slide 11Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Designing a Customer-DrivenMarketing Strategy
Market segmentation refers to dividingthe markets into segments of customers
Target marketing refers to whichsegments to go after
Selecting Customers to Serve
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Chapter 1- slide 12Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Designing a Customer-DrivenMarketing Strategy
Demarketing is marketing to reducedemand temporarily or permanently; theaim is not to destroy demand but toreduce or shift it
Selecting Customers to Serve
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Chapter 1- slide 13Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Designing a Customer-DrivenMarketing Strategy
The value proposition is the set ofbenefits or values a company promisesto deliver to customers to satisfy theirneeds
Choosing a Value Proposition
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Chapter 1- slide 14Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Designing a Customer-DrivenMarketing Strategy
Productionconcept
Productconcept
Sellingconcept
Marketingconcept
Societalconcept
Marketing Management Orientations
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Chapter 1- slide 15Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Designing a Customer-DrivenMarketing Strategy
Production concept is the idea thatconsumers will favor products that areavailable or highly affordable
Marketing Management Orientations
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Chapter 1- slide 16Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Designing a Customer-DrivenMarketing Strategy
Product concept is the idea thatconsumers will favor products that offerthe most quality, performance, andfeatures. Organizations should
therefore devote its energy to makingcontinuous product improvements.
Marketing Management Orientations
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Chapter 1- slide 17Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Designing a Customer-DrivenMarketing Strategy
Selling concept is the idea thatconsumers will not buy enough of thefirms products unless it undertakes alarge scale selling and promotion effort
Marketing Management Orientations
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Chapter 1- slide 18Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Designing a Customer-DrivenMarketing Strategy
Marketing concept is the idea that
achieving organizational goals dependson knowing the needs and wants of thetarget markets and delivering thedesired satisfactions better thancompetitors do
Marketing Management Orientations
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Chapter 1- slide 19Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Designing a Customer-DrivenMarketing Strategy
Societal marketing concept is the ideathat a company should make goodmarketing decisions by consideringconsumers wants, the companysrequirements, consumers long -terminterests, and societys long -runinterests
Marketing Management Orientations
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Chapter 1- slide 20Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
The marketing mix is the set of tools(four Ps) the firm uses to implement its
marketing strategy. It includes product,price, promotion, and place.
Integrated marketing program is a
comprehensive plan that communicatesand delivers the intended value tochosen customers.
Preparing an Integrated Marketing
Plan and Program
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Chapter 1- slide 21Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Building Customer Relationships
The overall process of building andmaintaining profitable customerrelationships by delivering superiorcustomer value and satisfaction
Customer Relationship Management(CRM)
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Chapter 1- slide 22Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Building Customer RelationshipsRelationship Building Blocks: Customer
Value and Satisfaction
Customerperceived value
The differencebetween totalcustomer valueand totalcustomer cost
Customersatisfaction
The extent towhich aproductsperceivedperformancematches abuyersexpectations
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Chapter 1- slide 23Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Building Customer RelationshipsCustomer Relationship Levels and Tools
BasicRelationships
FullPartnerships
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Chapter 1- slide 24Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Building Customer Relationships
Relating with more carefully selected
customers uses selective relationshipmanagement to target fewer, moreprofitable customers
Relating more deeply and interactively byincorporating more interactive two wayrelationships through blogs, Websites,online communities and social networks
The Changing Nature of CustomerRelationships
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Chapter 1- slide 25Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Building Customer Relationships
Partner relationship managementinvolves working closely with partners in
other company departments andoutside the company to jointly bringgreater value to customers
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Chapter 1- slide 26Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Building Customer Relationships
Partners inside the company is everyfunction area interacting with customers Electronically Cross-functional teams
Partners outside the company is how
marketers connect with their suppliers,channel partners, and competitors bydeveloping partnerships
Partner Relationship Management
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Chapter 1- slide 27Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Building Customer Relationships
Supply chain is a channel that stretchesfrom raw materials to components tofinal products to final buyers
Supply management Strategic partners Strategic alliances
Partner Relationship Management
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Chapter 1- slide 28Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Capturing Value from Customers
Customer lifetime value is the value ofthe entire stream of purchases that thecustomer would make over a lifetime ofpatronage
Creating Customer Loyalty andRetention
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Chapter 1- slide 29Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Capturing Value from Customers
Share of customer is the portion of thecustomers purchasing that a companygets in its product categories
Growing Share of Customer
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Chapter 1- slide 30Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Capturing Value from Customers
Customer equity is the total combinedcustomer lifetime values of all of the
companys customers
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Chapter 1- slide 31Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Capturing Value from Customers
Building the right relationships with theright customers involves treatingcustomers as assets that need to bemanaged and maximized
Different types of customers requiredifferent relationship managementstrategies Build the right relationship with the right
customers
Building Customer Equity
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Chapter 1- slide 32Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
The New Marketing Landscape
Digital age Rapidglobalization
Ethics andsocial
responsibilityNot-for-profitmarketing
Major Developments
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Ch t 1 lid 33Copyright 2010 Pearson Education Inc
All rights reserved. No part of this publication may be reproduced, stored in aretrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall