Armstrong CH01 PPT.pptx

8/17/2019 Armstrong CH01 PPT.pptx

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Chapter 1

Marketing: Creatingand capturing

customer value

PowerPoint toaccompany:

Cover image: © VLADGRIN/!utterstock"com


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Marketing: Creating and capturing customer value

Learning objectives

Objective 1 De$ine marketing and outline t!e steps in t!e marketingprocess"

Objective 2 %&plain t!e importance o$ understanding customers andt!e marketplace' and identi$( t!e $ive core marketplace concepts"

Objective Identi$( t!e ke( elements o$ a customer)driven

marketing strateg( and discuss t!e marketing managementorientations t!at guide marketing strateg("

Objective ! Discuss customer relations!ip management and identi$(strategies for creating value $or customers and capturing value from

customers in return"

Objective " Descri*e t!e main trends and $orces t!at are c!anging t!e

marketing landscape in t!is age o$ relations!ips"

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7

#hat is Marketing$ Marketing de%ined


8e de$ine marketing as t!e activit(' set o$institutions' and processes $or creating'communicating' delivering' and e&c!anging

o$$erings t!at !ave value $or customers' clients'partners' and societ( at large"ee American Marketing Association' 9!ttp

://"marketingpoer"com/A*outAMA/.ages/De$initiono$Marketing"asp& ;' accessed


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& model o% the marketing process

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'nderstanding the marketplace ( customer needs


As a $irst step' marketers need to understandcustomer needs) wants and demands' and

the marketplace it!in !ic! t!e( operate"

As a $irst step' marketers need to understandcustomer needs) wants and demands' and

the marketplace it!in !ic! t!e( operate"


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Customer needs) wants and demands

Needs

8ants

Demands

a*

c*

b*



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Core marketing concepts

#hat is Marketing$ Core Marketing ConceptsC+



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,iscussion -uestion

8!at is t!e di$$erence *eteenneeds' ants and demands=

Give speci$ic e&amples



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Market o%%erings: .oods) services and e/periences

A market o%%ering is a product t!at is some com*ination o$ goods'

services and e&periences t!at can *e o$$ered to a market to satis$( aneed or ant"


In t!e *roadest sense'market o%%erings

include>

Goods

ervices/e&periences.ersons

.laces

?rganisations

In$ormation

Ideas


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Market o%%erings: Products) services and othermarket o%%erings

ervices

ocial causes

.roducts @ *rands


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0/changes) transactions and relationships


0/change is t!e act o$ o*taining a desired o*ect $romsomeone *( o$$ering somet!ing in return"

A transaction is a trade *eteen to parties t!atinvolves at least to t!ings o$ value' agreed)uponconditions' and a time and place o$ agreement"


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0/changes) transactions and relationships


B!ese *u(ers s!are a particular need or want t!at can *e

satis$ied t!roug! e/change relationships

Actual *u(ers .otential *u(ers& market


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0lements o% a modern marketing system

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,5

,esigning a customerdriven marketing strategy


Marketing management is t!e art and science

o$ c!oosing target markets and *uildingpro$ita*le relations!ips it! t!em"


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,esigning a customerdriven marketing strategy

Bo design a inning marketing strateg(' t!e marketing manager

must anser to important uestions:


What customers will we serve?

(i.e. Who is our target market?)

How can we serve these customers best?

(i.e. What is our value proposition?)


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,6

,iscussion -uestion

8!( is it important to a

marketer to decide !ic!customers t!e( ill serve=



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,3

Managing customer demand: 3ources o% demand


& marketingorganisation4s demand

comes %rom twogroups5

6ew customers

potential customers0

7epeat customers

e&isting customers0


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,4

Managing customer demand


Marketingdecisions

inding' increasing andretaining demand

C!anging or reducingdemand


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,2

Managing customer demand



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Managing customer demand: ,emarketing


Many service %irms ( not%or

pro%it organisations need toengage in demarketing5

Permanently: todiscourage anti)social*e!aviours"

8emporarily: to cope it!peak demand periods @over$ull demand"


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8he value proposition


is t!e set o$ *ene$its or valuest!at it promises to deliver tocustomers to satis$( t!eir needs

should di$$erentiate *rands andposition t!em in t!e marketplace

B!e marketingorganisationEsvalue

proposition5


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Marketing management orientations


ive concepts or p!ilosop!ies guide marketing e$$orts:

Production concept: $ocus on production @distri*ution e$$icienc(

Product concept: $ocus on continuous productimprovements

Selling concept: $ocus on large)scale selling andpromotion (used extensively with unsought goods)

Marketing concept: $ocus on understanding customerneeds and ants' and delivering satis$action e$$icientl(

Societal marketing concept: deliver value in a(st!at maintain *ot! t!e consumerEs and societ(Esell*eing


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Preparing an integrated marketing program


8he marketing

program5

8he marketing

program5

consists o$ t!e $irmEs marketingmi& 1 t!at is' t!e set o$ marketingtools t!e $irm uses to implement

its marketing strateg(

*uilds customer relations!ips *(trans$orming t!e marketingstrateg( into action


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#6

8he e/tended marketing mi/



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#3

9uilding customer relationships

Customer relationship management C7M* is t!eoverall process o$ *uilding and maintaining pro$ita*lecustomer relations!ips *( delivering superior customer

value and satis$action"



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#4

7elationship building blocks: Customer valueand satis%action

Perceived+alue

Customersatis%action

Depends on t!e productEsperceived per$ormance relative

to a *u(erEs e&pectations"


B!e customerEs evaluation o$ t!edi$$erence *eteen all t!e

*ene$its and t!e costs o$ a marketo$$ering relative to t!ose o$

competing o$$erings"

Perceivedvalue


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#2

Customer relationship levels and tools

Marketers can *uild relations!ips at di$$erent levels depending ont!e target market>


Basic relationship

Full partnership

Frequenc marketing programs

!lub marketing programs


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;re-uency marketing programs

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;re-uency marketing


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7,

,iscussion -uestion

Fo man( lo(alt( cards do (oucarr( in (our allet= ?$ t!ese' !o

man( do (ou personall( $eel relateto (ou deepl( and interactivel(=



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8he changing nature o% relationships


7elating more care%ully with selectedcustomers

7elating more deeply and interactively

Customermanaged relationships

Online social networks

Consumergenerated marketing


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7elationship marketing: Customer li%etime value

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Customer li%etimevalue CL+*: re$ers tot!e value o$ an entirestream o$ purc!ases

t!at t!e customerould make over ali$etime o$ patronage


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Capturing value %rom customers


Creatingcustomerlo(alt( @retention

Groing s!areo$ customer

uildingcustomer euit(

uilding t!erig!trelations!ip it!customers


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7-

9uilding the right relationship with the rightcustomers



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8he changing marketing landscape

8he uncertain world economy

Measuring marketing4s contribution to organisationalper%ormance

.rowth o% not%orpro%it marketing

7apid globalisation

8he digital age

3ustainable marketing: the call %or social responsibility



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8he changing marketing landscape: 8he digital age


B!e IB e&plosion is accelerating t!e rate o$ c!ange and t!eemergence o$ ne glo*al competitors as various markets*ecome attractive due to t!e loer costs o$$ered to man(industries *( tec!nolog( suc! as t!e internet"


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3o) what is marketing$ Pulling it all together


3uggested online resources

O b i


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72Cop(rig!t ©#+,- .earson Australia a division o$ .earson Australia Group .t( Ltd0 1 234,546++#626/Armstrong/.rinciples o$ Marketing/6 t! edition

Open source websites

Australian Marketing Institute' !ttp://"ami"org"au or AMI ace*ook'!ttps://"$ace*ook"com/australianmarketinginstitute

Marketing Association o$ NH' !ttp://"marketing"org"n B!e od( !op' ocial and environmental reporting page' !ttp://"t!e*od(s!op"com"au/a*out)us/social)and)environmental)reporting

"asp&

&rticles

JB!e art o$ creating a magnetic value propositionE includes man(e&amples0' !ttps://"!elpscout"net/*log/value)proposition

+ideos

Heart of Selling: How to Identify our !rospe"t#s $eal %eeds 6minutes0' !ttp://"(outu*e"com/atc!=vK3tuIHsBg

on( case stud( in relations!ip marketing @ social media # minutes0'!ttp://"karmarama"com/case)studies/son(

http://www.marketing.org.nz/http://www.ami.org.au/http://var/www/apps/conversion/tmp/scratch_7/NULLhttp://www.facebook.com/australianmarketinginstitutehttp://www.marketing.org.nz/http://www.marketing.org.nz/http://www.thebodyshop.com.au/about-us/social-and-environmental-reporting.aspxhttp://www.thebodyshop.com.au/about-us/social-and-environmental-reporting.aspxhttp://www.thebodyshop.com.au/about-us/social-and-environmental-reporting.aspxhttps://www.helpscout.net/blog/value-propositionhttp://www.youtube.com/watch?v=7tuIZUswQTghttp://www.karmarama.com/case-studies/sonyhttp://www.karmarama.com/case-studies/sonyhttp://www.karmarama.com/case-studies/sonyhttp://www.karmarama.com/case-studies/sonyhttp://www.youtube.com/watch?v=7tuIZUswQTghttp://www.youtube.com/watch?v=7tuIZUswQTghttp://www.youtube.com/watch?v=7tuIZUswQTghttps://www.helpscout.net/blog/value-propositionhttp://www.thebodyshop.com.au/about-us/social-and-environmental-reporting.aspxhttp://www.thebodyshop.com.au/about-us/social-and-environmental-reporting.aspxhttp://www.thebodyshop.com.au/about-us/social-and-environmental-reporting.aspxhttp://www.marketing.org.nz/http://www.marketing.org.nz/http://www.facebook.com/australianmarketinginstitutehttp://var/www/apps/conversion/tmp/scratch_7/NULLhttp://www.ami.org.au/http://www.marketing.org.nz/http://www.marketing.org.nz/


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Armstrong CH01 PPT.pptx