Chapter 1- slide 1
Copyright 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter One
Creating and Capturing Customer
Value
Chapter 1- slide 2
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Creating and Capturing Customer
Value
Define marketing and outline the steps in the
marketing process
Understanding the Marketplace and Customer
Needs
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
Chapter 1- slide 3
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is Marketing?
Marketing is a process by which
companies create value for customers
and build strong customer relationships
to capture value from customers in
return
Chapter 1- slide 4
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Understanding the Marketplace
and Customer Needs
Customer needs, wants, and demands
Market offerings
Customer Value and satisfaction
Exchanges and relationships
Markets
Core Concepts
Chapter 1- slide 5
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Understanding the Marketplace
and Customer Needs
States of deprivation
Physicalfood, clothing, warmth, safety
Socialbelonging and affection
Individualknowledge and self-expression
Needs
Form that human needs take as they are shaped by
culture and individual personality Wants
Human wants backed by buying power
Demands
Customer Needs, Wants, and Demands
Chapter 1- slide 6
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Market offerings are some
combination of products, services,
information, or experiences offered to a
market to satisfy a need or want
Marketing myopia is focusing only on
existing wants and losing sight of
underlying consumer needs
Understanding the Marketplace
and Customer Needs
Chapter 1- slide 7
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction
Expectations
Customers
Value and
satisfaction
Marketers
Set the right level of
expectations
Not too high or low
Chapter 1- slide 8
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Exchange is the act of obtaining a
desired object from someone by offering
something in return
Understanding the Marketplace
and Customer Needs
Chapter 1- slide 9
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Markets are the set of actual and
potential buyers of a product or service
Understanding the Marketplace
and Customer Needs
Chapter 1- slide 10
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
Marketing management is the art and
science of choosing target markets and
building profitable relationships with
them
What customers will we serve?
How can we best serve these customers?
Chapter 1- slide 11
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
Market segmentation refers to dividing
the markets into segments of customers
Target marketing refers to which
segments to go after
Selecting Customers to Serve
Chapter 1- slide 12
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
Demarketing is marketing to reduce
demand temporarily or permanently; the
aim is not to destroy demand but to
reduce or shift it
Selecting Customers to Serve
Chapter 1- slide 13
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
The value proposition is the set of
benefits or values a company promises
to deliver to customers to satisfy their
needs
Choosing a Value Proposition
Chapter 1- slide 14
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
Production
concept
Product
concept
Selling
concept
Marketing
concept
Societal
concept
Marketing Management Orientations
Chapter 1- slide 15
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
Production concept is the idea that
consumers will favor products that are
available or highly affordable
Marketing Management Orientations
Chapter 1- slide 16
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
Product concept is the idea that
consumers will favor products that offer
the most quality, performance, and
features. Organizations should
therefore devote its energy to making
continuous product improvements.
Marketing Management Orientations
Chapter 1- slide 17
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
Selling concept is the idea that
consumers will not buy enough of the
firms products unless it undertakes a
large scale selling and promotion effort
Marketing Management Orientations
Chapter 1- slide 18
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
Marketing concept is the idea that
achieving organizational goals depends
on knowing the needs and wants of the
target markets and delivering the
desired satisfactions better than
competitors do
Marketing Management Orientations
Chapter 1- slide 19
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
Societal marketing concept is the idea
that a company should make good
marketing decisions by considering
consumers wants, the companys
requirements, consumers long-term
interests, and societys long-run
interests
Marketing Management Orientations
Chapter 1- slide 20
Copyright 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 communicates
and delivers the intended value to
chosen customers.
Preparing an Integrated Marketing
Plan and Program
Chapter 1- slide 21
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Building Customer Relationships
The overall process of building and
maintaining profitable customer
relationships by delivering superior
customer value and satisfaction
Customer Relationship Management
(CRM)
Chapter 1- slide 22
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Building Customer Relationships
Relationship Building Blocks: Customer
Value and Satisfaction
Customer
perceived value
The difference
between total
customer value
and total
customer cost
Customer
satisfaction
The extent to
which a
products
perceived
performance
matches a
buyers
expectations
Chapter 1- slide 23
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Building Customer Relationships
Customer Relationship Levels and Tools
Basic
Relationships
Full
Partnerships
Chapter 1- slide 24
Copyright 2010 Pearson Education, Inc.
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Building Customer Relationships
Relating with more carefully selected
customers uses selective relationship
management to target fewer, more
profitable customers
Relating more deeply and interactively by
incorporating more interactive two way
relationships through blogs, Websites,
online communities and social networks
The Changing Nature of Customer
Relationships
Chapter 1- slide 25
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Building Customer Relationships
Partner relationship management
involves working closely with partners in
other company departments and
outside the company to jointly bring
greater value to customers
Chapter 1- slide 26
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Building Customer Relationships
Partners inside the company is every
function area interacting with customers
Electronically
Cross-functional teams
Partners outside the company is how
marketers connect with their suppliers,
channel partners, and competitors by
developing partnerships
Partner Relationship Management
Chapter 1- slide 27
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Building Customer Relationships
Supply chain is a channel that stretches
from raw materials to components to
final products to final buyers
Supply management
Strategic partners
Strategic alliances
Partner Relationship Management
Chapter 1- slide 28
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Capturing Value from Customers
Customer lifetime value is the value of
the entire stream of purchases that the
customer would make over a lifetime of
patronage
Creating Customer Loyalty and
Retention
Chapter 1- slide 29
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Capturing Value from Customers
Share of customer is the portion of the
customers purchasing that a company
gets in its product categories
Growing Share of Customer
Chapter 1- slide 30
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Capturing Value from Customers
Customer equity is the total combined
customer lifetime values of all of the
companys customers
Chapter 1- slide 31
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Capturing Value from Customers
Building the right relationships with the
right customers involves treating
customers as assets that need to be
managed and maximized
Different types of customers require
different relationship management
strategies
Build the right relationship with the right
customers
Building Customer Equity
Chapter 1- slide 32
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The New Marketing Landscape
Digital age
Rapid
globalization
Ethics and
social
responsibility
Not-for-profit
marketing
Major Developments
Chapter 1- slide 33
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
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Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
