05 05 2015 CHAPTER 1 MARKETING CREATING AND CAPTURING CUSTOMER VALUE Marketing Managing profitable customer relationships o Attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction Create value for customers to capture value in return Social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return The marketing process Understand the marketplace and the customer needs and wants 1 needs wants and demands o needs felt deprivation wants form human needs take when shaped by culture and individual personality demands combination of wants and resources buying power 2 market offerings o some combination of products services information or experiences offered to a market to satisfy a need or want o has to do more with creating a brand experience not just a product o ex Stop texts stop the wrecks campaign o marketing myopia only focusing on existing wants and losing sight of underlying customer needs because of over focusing on the product 3 value and satisfaction o markets must set the right level of expectations to satisfy customers who buy and still attract enough customers to satisfy 4 exchanges and relationships o exchange the act of obtaining a desired object from someone by offering something in return Design a customer driven marketing strategy 5 markets o market tries to bring about a response could be more than simply buying or trading products and services politicians want votes and churches want membership o the set of actual and potential buyers of a product or service buyers share a particular need or want that can be satisfied through exchange relationships o importance of customer managed relationships how can customers influence company and how can customers influence each other marketing management the art and science of choosing target markers and building profitable relationships with them to find attract keep and grow target customers by creating delivering and communicating superior customer value o selecting customers to serve and choosing a value proposition production concept customers will favor products that are available and highly affordable focus on improving production and distribution efficiency product concept customers will favor products that offer the most in quality performance and innovative features focuses on making continuous product improvements o can lead to marketing myopia selling concept customers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort aggressive selling carries high risks because it focuses on creating sales transactions rather than building long term profitable customer relationships o sell what the company makes not making what the market wants marketing concept achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do o customer focus and value are the path to sales and profits sense and respond philosophy instead of make and sell societal marketing concept questions whether the pure marketing concept overlooks possible conflicts between consumer short run wants and consumer long run welfare o marketers should deliver value in a way that maintains or improves both the consumer and society s well being o sustainable marketing socially and environmentally responsible marketing that meets the present needs of consumers and business while also preserving or enhancing the ability of future generations to meet their needs Construct an integrated marketing program that delivers superior value 4 P s of marketing product price place and promotion create need satisfying market offering decide how much it will charge how it will make the offering available to target consumers communicate with consumers about offering and persuade them of its merits Build profitable relationships and create customer delight customer relationship management overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction customer perceived value customer s evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers perceived because it is often not accurate customer satisfaction depends on the product s perceived performance relative to a buyer s expectations customer engagement marketing new marketing fostering direct and continuous customer involvement in shaping brand conversations brand experiences and brand community goal is to make brand a meaningful part of customer s lives o consumer generated marketing consumers themselves are playing a bigger role in shaping their own brand experiences and those of others consumer to consumer interactions partner relationship management working closely with others inside and outside the company to jointly bring more value to customers Capture value from customers to create profits and customer equity customer lifetime value the stream of purchases the customer would make over a lifetime of patronage share of customer the share they get out of the customer s purchasing in their product categories try to sell more products to existing customers customer equity total combined customer lifetime values of all the company s current and potential customers measure of the future value of the company s customer base butterflies high potential profitability short term loyalty true friends high profitability long term loyalty strangers low profitability short term loyalty barnacles low profitability long term loyalty digital age in marketing digital and social media marketing using digital marketing tools that engage consumers anytime anywhere makes it easier for marketers to engage customers mobile marketing people using phones for shopping related activities making it easy to reach consumers at all times changing economic environment 2008 recession hit after 2 years of overspending American consumers now bringing consumption back in line with their incomes and rethinking buying priorities rapid globalization marketers now looking at their relationship with the broader world around them not just the customer sustainable marketing being
View Full Document
Unlocking...