Marketing: Managing Profitable Customer RelationshipsLearning GoalsCase StudyWhat is Marketing?The Marketing Process A Five-Step ProcessUnderstanding the MarketplaceSlide 7Slide 8Slide 9Slide 10Marketing ManagementSelecting Customers and Creating ValueSlide 13The Marketing PlanBuilding Customer RelationshipsValue and SatisfactionNot All Customers are EqualCapturing Value from CustomersSlide 19Slide 20Marketing LandscapeSlide 22Slide 23Slide 24Slide 25What is MarketingMarketing: Managing Profitable Customer RelationshipsChapter 11 - 2Learning Goals1. Define marketing and the marketing process.2. Explain the importance of understanding customers and identify the five core marketplace concepts 3. Identify the elements of a customer-driven marketing strategy and discuss the marketing management orientations.4. Discuss customer relationship management and creating value for and capturing value from customers5. Describe the major trends and forces changing the marketing landscape1 - 3Creating Value•Create compelling blend of live racing events, media coverage and Web sites.•Go out of its way to show the customer a good time.•Create wholesome family- oriented environmentNASCAR – What is its secret?Case StudyCapturing Value •Fans spends nearly $700 a year on NASCAR merchandise•Second highest regular season sport on TV•NASCAR attracts over 250 big-name sponsors1 - 4What is Marketing?Marketing Defined: “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others”Marketing is about managing profitable customer relationshipsAttracting new customersRetaining and growing current customersGoal 1: Define marketing and the marketing process.1 - 5The Marketing ProcessA Five-Step Process1. Understand the marketplace and customer needs and wants2. Design a customer-driven marketing strategy3. Construct a marketing program that delivers superior value4. Build profitable relationships and create customer delight5. Capture value from customers to create profits and customer qualityGoal 1: Define marketing and the marketing process.1 - 6Understanding the MarketplaceNeeds, wants, and demandsMarketing offers: including products, services and experiencesValue and satisfaction Exchange, transactions and relationships MarketsNeedState of felt deprivationExample: Need foodWantsThe form of needs as shaped by culture and the individualExample: Want a Big MacDemandsWants which are backed by buying powerCore ConceptsGoal 2: Identify the five core marketplace concepts.1 - 7Understanding the MarketplaceNeeds, wants, and demandsMarketing offers: including products, services and experiencesValue and satisfaction Exchange, transactions and relationships MarketsCore ConceptsGoal 2: Identify the five core marketplace concepts.Marketing offerCombination of products, services, information or experiences that satisfy a need or wantOffer may include services, activities, people, places, information or ideas1 - 8Understanding the MarketplaceNeeds, wants, and demandsMarketing offers: including products, services and experiencesValue and satisfaction Exchange, transactions and relationships MarketsValueCustomers form expectations regarding valueMarketers must deliver value to consumersSatisfactionA satisfied customer will buy again and tell others about their good experienceCore ConceptsGoal 2: Identify the five core marketplace concepts.1 - 9Understanding the MarketplaceNeeds, wants, and demandsMarketing offers: including products, services and experiencesValue and satisfaction Exchange, transactions and relationships MarketsExchangeThe act of obtaining a desired object from someone by offering something in returnOne exchange is not the goal, relationships with several exchanges are the goalRelationships are built through delivering value and satisfactionCore ConceptsGoal 2: Identify the five core marketplace concepts.1 - 10Understanding the MarketplaceNeeds, wants, and demandsMarketing offers: including products, services and experiencesValue and satisfaction Exchange, transactions and relationships MarketsMarketSet of actual and potential buyers of a productMarketers seek buyers that are profitableCore ConceptsGoal 2: Identify the five core marketplace concepts.1 - 11Marketing ManagementMarketing management is the art and science of choosing target markets and building profitable relationships with them.This definition must include answers to two questions:•What customers will we serve?•How can we serve these customers best?Goal 3: Identify elements of a customer-driven strategy.1 - 12Selecting Customers and Creating ValueCustomer Management What customers will we serve?Marketers select customers that can be served profitablyValue PropositionHow can we serve these customers best?Includes the set of benefits or values a company promises to deliver to consumers to satisfy their needsGoal 3: Identify elements of a customer-driven strategy.1 - 13Marketing ManagementProduction conceptProduct conceptSelling concept Marketing concept• Societal marketing conceptMarketing OrientationsGoal 3: Identify elements of a customer-driven strategy.1 - 14The Marketing PlanTransforms the marketing strategy into actionIncludes the marketing mix and the 4P’s of marketingProductPricePlacePromotionGoal 3: Identify elements of a customer-driven strategy.1 - 15Building Customer RelationshipsCRM – Customer relationship management The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, keeping and growing customers.Goal 4: Discuss CRM and capturing value.1 - 16Value and SatisfactionPerceived ValueThe customer’s evaluation of the difference between benefits and costs.Customers often do not judge values and costs accurately or objectively.Customer SatisfactionProduct’s perceived performance relative to customer’s expectations. Goal 4: Discuss CRM and capturing value.1 - 17Not All Customers are EqualBasic Relationships Low-margin customersFull Partnerships Key customersSelective relationship management Weeding out unprofitable customers Goal 4: Discuss CRM and capturing value.1 - 18Capturing Value from CustomersCustomer Loyalty and RetentionShare of CustomerCustomer