Marketing: Managing Profitable Customer RelationshipsObjectivesSlide 3Slide 3What is Marketing?Slide 6What Can Be Marketed?Slide 7Slide 8Slide 9Marketing ManagementSlide 12Slide 13Slide 14Slide 14Slide 15Slide 16CRMSlide 19BusinessNowSlide 21Slide 22Slide 23Marketing ChallengesSlide 24Slide 26Slide 27Slide 28Slide 29Slide 29Reconnecting with TeensSlide 31Slide 32Marketing: Managing Marketing: Managing Profitable Customer Profitable Customer RelationshipsRelationshipsChapter 1Chapter 11 - 2ObjectivesBe 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 - 3ObjectivesUnderstand 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 - 4Strong sales, no Strong sales, no profitsprofitsCustomer-driven Customer-driven to its coreto its coreEach customer’s Each customer’s experience is uniqueexperience is uniqueProvides great Provides great selection, good selection, good value, discovery value, discovery as well as as well as convenienceconvenienceA true online A true online communitycommunitycAmazonAmazon1 - 5What is Marketing?Marketing is managing profitable Marketing is managing profitable customer relationshipscustomer relationshipsAttracting new customersAttracting new customersRetaining and growing current customersRetaining and growing current customers““Marketing” is NOT synonymous with Marketing” is NOT synonymous with “sales” or “advertising”“sales” or “advertising”1 - 6What 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 exchanging want through creating and exchanging products and value with others.”products and value with others.”1 - 7What Can Be Marketed?GoodsGoodsServicesServicesPlacesPlacesIdeasIdeasEventsEventsPersonsPersonsPropertiesPropertiesOrganizationsOrganizationsInformationInformationExperiencesExperiencesWhat is being marketed in this ad?1 - 8Figure 1-1: Core Marketing Concepts1 - 9ResellersResellers are a primary are a primary market for Nike’s market for Nike’s products. products. Describe the Describe the exchange exchange processprocess between Nike between Nike and resellers.and resellers. Think beyond the obvious.Think beyond the obvious.Discussion Question1 - 10Figure 1-2: Elements of a Modern Marketing System1 - 11Marketing ManagementMarketing 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 - 12Marketing ManagementCustomer 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 - 13Marketing ManagementDemarketing: Commuter Connections promotes the use of mass transit and carpooling as an alternative to driving alone.CommuterConnections1 - 14Marketing ManagementProduction ConceptProduct ConceptSelling ConceptMarketing ConceptSocietal Marketing ConceptManagement Orientations1 - 15Figure 1-3: The Selling and Marketing Concepts Contrasted1 - 16Figure 1-4: Considerations Underlying the Societal Marketing Concept1 - 17Figure 1-5: Relationship Between Customer Satisfaction and Loyalty1 - 18CRMCustomer 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 - 19CRMIt costs 5 to 10 times MORE to attract It costs 5 to 10 times MORE to attract a new customer than it does to keep a new customer than it does to keep a current customer satisfied.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 - 20SatMetrix Video ClipView what the experts have to say about customer loyalty and the bottom line.BusinessNowClick the picture above to play video1 - 21CRMAttracting, Attracting, retaining and retaining and growing customersgrowing customersBuilding Building relationships and relationships and customer equitycustomer equityCustomer value and satisfactionCustomer value and satisfactionPerceptions are keyPerceptions are keyCreated by meeting/ exceeding Created by meeting/ exceeding expectationsexpectationsLoyalty 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 goalGrowing customer shareGrowing customer shareCross-sellingCross-sellingKey ConceptsKey Concepts1 - 22CRMCustomer 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 futureAttracting, Attracting, retaining and retaining and growing growing customerscustomersBuilding Building relationships and relationships and customer equitycustomer equityKey ConceptsKey Concepts1 - 23CRMCustomer relationship Customer