Lesson 1-Creating and Capturing Customer Value

Lesson 1
Creating and Capturing Customer

Value
Copyright 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 1- slide 1
Creating and Capturing Customer

Value
Topic Outline
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
Chapter 1- slide 2
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 3
Understanding the Marketplace

and Customer Needs
Core Concepts
Customer needs, wants, and demands

Market offerings
Customer Value and satisfaction
Exchanges and relationships
Markets

Chapter 1- slide 4

and Customer Needs
Customer Needs, Wants, and Demands

Chapter 1- slide 5

and Customer Needs
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
Chapter 1- slide 6

and Customer Needs

Customer Value and Satisfaction

Expectations
Chapter 1- slide 7

and Customer Needs
Exchange is the act of obtaining a
desired object from someone by
offering something in return

Chapter 1- slide 8

and Customer Needs
Markets are the set of actual and
potential buyers of a product or service

Chapter 1- slide 9
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 10
Marketing Strategy
Selecting Customers to Serve
Market segmentation refers to dividing

the markets into segments of customers
Target marketing refers to which
segments to go after

Chapter 1- slide 11
Marketing Strategy
Selecting Customers to Serve
Demarketing is marketing to reduce

demand temporarily or permanently; the
aim is not to destroy demand but to
reduce or shift it

Chapter 1- slide 12
Marketing Strategy
Choosing a Value Proposition
The value proposition is the set of
benefits or values a company promises

to deliver to customers to satisfy their
needs

Chapter 1- slide 13
Marketing Strategy
Marketing Management Orientations

Chapter 1- slide 14
Marketing Strategy
Production concept is the idea that

consumers will favor products that are
available or highly affordable

Chapter 1- slide 15
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.
Chapter 1- slide 16
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

Chapter 1- slide 17
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

Chapter 1- slide 18
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
Chapter 1- slide 19
Preparing an Integrated Marketing

Plan and Program
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.
Chapter 1- slide 20

Customer Relationship Management (CRM)
The overall process of building and

maintaining profitable customer
relationships by delivering superior
customer value and satisfaction

Chapter 1- slide 21

Relationship Building Blocks: Customer Value and Satisfaction

Chapter 1- slide 22

Customer Relationship Levels and Tools

Chapter 1- slide 23

The Changing Nature of 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
Chapter 1- slide 24

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 25

Partner Relationship Management
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
Chapter 1- slide 26

Partner Relationship Management
Supply chain is a channel that stretches

from raw materials to components to
final products to final buyers
Supply management
Strategic partners
Strategic alliances
Chapter 1- slide 27

Creating Customer Loyalty and Retention
Customer lifetime value is the value of

the entire stream of purchases that the
customer would make over a lifetime of
patronage

Chapter 1- slide 28

Growing Share of Customer
Share of customer is the portion of the

customers purchasing that a company
gets in its product categories

Chapter 1- slide 29

Customer equity is the total combined
customer lifetime values of all of the
companys customers

Chapter 1- slide 30

Building Customer Equity
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
Chapter 1- slide 31
The New Marketing Landscape

Major Developments

Chapter 1- slide 32

Lesson 1-Creating and Capturing Customer Value

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Lesson 1

Creating and Capturing Customer

Creating and Capturing Customer

Define marketing and outline the steps in the

Copyright 2010 Pearson Education, Inc.

Understanding the Marketplace

Customer needs, wants, and demands

Copyright 2010 Pearson Education, Inc.

Understanding the Marketplace

Copyright 2010 Pearson Education, Inc.

Understanding the Marketplace

Understanding the Marketplace

Copyright 2010 Pearson Education, Inc.

Customer Value and Satisfaction

Understanding the Marketplace

Copyright 2010 Pearson Education, Inc.

Understanding the Marketplace

Copyright 2010 Pearson Education, Inc.

Market segmentation refers to dividing

Copyright 2010 Pearson Education, Inc.

Demarketing is marketing to reduce

Copyright 2010 Pearson Education, Inc.

The value proposition is the set of

benefits or values a company promises

Copyright 2010 Pearson Education, Inc.

Copyright 2010 Pearson Education, Inc.

Production concept is the idea that

Copyright 2010 Pearson Education, Inc.

Product concept is the idea that

Selling concept is the idea that

Copyright 2010 Pearson Education, Inc.

Marketing concept is the idea that

Copyright 2010 Pearson Education, Inc.

Societal marketing concept is the idea

Preparing an Integrated Marketing

Building Customer Relationships

The overall process of building and

Copyright 2010 Pearson Education, Inc.

Building Customer Relationships

Copyright 2010 Pearson Education, Inc.

Building Customer Relationships

Copyright 2010 Pearson Education, Inc.

Building Customer Relationships

Relating with more carefully selected

Building Customer Relationships

Copyright 2010 Pearson Education, Inc.

Building Customer Relationships

Partners inside the company is every

Partners outside the company is how

Building Customer Relationships

Supply chain is a channel that stretches

Capturing Value from Customers

Customer lifetime value is the value of

Copyright 2010 Pearson Education, Inc.

Capturing Value from Customers

Share of customer is the portion of the

Copyright 2010 Pearson Education, Inc.

Capturing Value from Customers

Copyright 2010 Pearson Education, Inc.

Capturing Value from Customers