Chpt 1 Marketing: creating and capturing marketing value
Marketing
Creating value for customers and build strong relationships in order to capture
value.
The marketing process
1 Understanding the marketplace and the needs and wants
Needs
gaps in personal things a person wants
Wants
The form human needs take as they are shaped by cultural and individual
Demands
Human wants backed up by buying power
Market offerings
Something offered to a market to satisfy a need or a want
Marketing myopia
Mistake of showing more attention to the product than to the benefits and
experiences by these products
Exchange
obtaining a desired object from someone by offering something in return
Market
A set of all actual and potential buyers
2. Designing a customer-driven marketing strategy
Marketing management
The art and science of choosing target markets and building profitable
relationships with them.
Production concept
The idea that consumers will favor products that are highly available and
affordable.
- Focussing on improving production and distribution efficiency
- Can lead to Marketing myopia
- Example: Lenovo dominate the market by low through low labor costs.
,Product Concept
The idea that consumers will favor products that offer the most quality and
performance, and features
- Make continuous product improvements
- Can lead to marketing myopia
- better mousetrap or better solution?
Selling Concept
The idea that consumers will not buy enough of the firm’s products.
- Strategies: large-scale selling and promotion efforts
- unsought goods
Marketing concept
Goal is to know the needs and wants of target markets and delivering the desired
satisfactions better than competitors do.
Societal marketing concept
Marketing concept + long term effects (Sustainable marketing)
- Consumers, Company, society’s
3. Preparing an integrated marketing plan and program
Marketing Mix
- Product
- Price
- Place
- Promotion
4. Building Customer relationships
Customer relationship management
Overall process of building and maintaining profitable customer relationships
Customer perceived value
The customer’s value of different between all the benefits and all the costs of a
marketing offer relative to those of competing offers
Customer satisfaction
The perceived performance in comparison to the buyer’s expectations
Customer-managed relationships
Customers interacting with companies through new digital technologies to shape
their relationship with brands (Twitter)
Consumer-generated marketing
Brand exchanges created by customers, by which consumers are playing an
increasing role in shaping their own brand experiences and those of other
consumers. (Heinz ads Youtube)
, Partner relationship management
Working closely within the company and outside to company to bring a greater
customer value.
5. Capturing value from customers
Customer lifetime value
The value that the customer purchases over a lifetime
Share of customer
The portion of consumer purchases that a company get in its product categories
(share of stomach)
Customer of equity
The total combines customer lifetime values
High Butterflies True Friends
- profitable, not loyal - Profitable, loyal
- Investors - relationship investment
- capture as much as - True believers
possible in short-term - usage rate
- spread the word
Strangers Barnacles
Potential profitability - Don’t invest - loyal, not profitable
- Limited fit between
market offering
- Smaller bankers
- fire if no increasing in
profitablity
Low
Short-term Long-term
Projected loyalty
Marketing
Creating value for customers and build strong relationships in order to capture
value.
The marketing process
1 Understanding the marketplace and the needs and wants
Needs
gaps in personal things a person wants
Wants
The form human needs take as they are shaped by cultural and individual
Demands
Human wants backed up by buying power
Market offerings
Something offered to a market to satisfy a need or a want
Marketing myopia
Mistake of showing more attention to the product than to the benefits and
experiences by these products
Exchange
obtaining a desired object from someone by offering something in return
Market
A set of all actual and potential buyers
2. Designing a customer-driven marketing strategy
Marketing management
The art and science of choosing target markets and building profitable
relationships with them.
Production concept
The idea that consumers will favor products that are highly available and
affordable.
- Focussing on improving production and distribution efficiency
- Can lead to Marketing myopia
- Example: Lenovo dominate the market by low through low labor costs.
,Product Concept
The idea that consumers will favor products that offer the most quality and
performance, and features
- Make continuous product improvements
- Can lead to marketing myopia
- better mousetrap or better solution?
Selling Concept
The idea that consumers will not buy enough of the firm’s products.
- Strategies: large-scale selling and promotion efforts
- unsought goods
Marketing concept
Goal is to know the needs and wants of target markets and delivering the desired
satisfactions better than competitors do.
Societal marketing concept
Marketing concept + long term effects (Sustainable marketing)
- Consumers, Company, society’s
3. Preparing an integrated marketing plan and program
Marketing Mix
- Product
- Price
- Place
- Promotion
4. Building Customer relationships
Customer relationship management
Overall process of building and maintaining profitable customer relationships
Customer perceived value
The customer’s value of different between all the benefits and all the costs of a
marketing offer relative to those of competing offers
Customer satisfaction
The perceived performance in comparison to the buyer’s expectations
Customer-managed relationships
Customers interacting with companies through new digital technologies to shape
their relationship with brands (Twitter)
Consumer-generated marketing
Brand exchanges created by customers, by which consumers are playing an
increasing role in shaping their own brand experiences and those of other
consumers. (Heinz ads Youtube)
, Partner relationship management
Working closely within the company and outside to company to bring a greater
customer value.
5. Capturing value from customers
Customer lifetime value
The value that the customer purchases over a lifetime
Share of customer
The portion of consumer purchases that a company get in its product categories
(share of stomach)
Customer of equity
The total combines customer lifetime values
High Butterflies True Friends
- profitable, not loyal - Profitable, loyal
- Investors - relationship investment
- capture as much as - True believers
possible in short-term - usage rate
- spread the word
Strangers Barnacles
Potential profitability - Don’t invest - loyal, not profitable
- Limited fit between
market offering
- Smaller bankers
- fire if no increasing in
profitablity
Low
Short-term Long-term
Projected loyalty
