Welton Ch. 1 3 Slides

8/11/2019 Welton Ch. 1 3 Slides

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Marketing:Creating &CapturingCustomerValue

Marketing?

Marketing?

Market ScaniPhone 5 Rings In Six Million Sales

In its first weekend of sales, Apples iPhone 5connected with consumers, pushing sales to six millionunits after just three days on store shelves.


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Marketing?

Marketing?

Marketing?


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What is Marketing?A.Sales

B.AdvertisingC.ExchangeD.Value CreationE.A class I have to take to graduateF.Some of the aboveG.All of the above

Marketing

Product A Customer

Point of Attraction Where product, service,idea, come together with customer

Marketers work to bring Product and Customertogether

What is Marketing?

Kotlers definition: Marketing is a social and managerial

process by which individuals andgroups obtain what they need andwant through creating andexchanging products and value withothers.


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American Marketing AssociationDefinition of Marketing

Marketing is the activity, set ofinstitutions, and processes forcreating, communicating,delivering, and exchangingofferings that have value forcustomers, clients, partners, andsociety at large.

The Marketing Process: Creating &Capturing Customer Value

Marketing ProcessCustomer CCustomers Company Competitors Collaborators Context

Market

Segmentation

Target

MarketSelectionPositioning

Product andServices Place/Channels

Promotion

Marketing Mix/4Ps

Pricing

Profits

Customer Acquisition Customer Retention

Creating Value

Capturing Value

Sustaining Value

What is Marketing? By Harvard Business School


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Customers Lou Gerstner:

Everything starts with the customer.

Peter Drucker: If we want to know what a business is we have to start with its

purpose . There is only one valid definition of business purpose: tocreate a customer . It is the customer who determines what abusiness is. For it is the customer, and he alone, who throughbeing willing to pay for a good or service, converts economicresources into wealth, things into goods. What the business thinksit produces is not of first importance especially not to the future ofthe business and its success. What the customer thinks he isbuying, what he considers value is decisive Because it is[the purpose of a business] to create a customer, [the]business enterprise has two and only two basic functions:marketing and innovation.

Wessex, Inc. 2007

Peter Drucker

Marketing is THE key business function.Marketing is so basic that it cannot beconsidered a separate businessfunction. It is the whole business seenfrom the point of view of its final result thecustomers point of view. - PeterDrucker

What is Marketing?

Marketing is all about meeting needs . Diverse stakeholders

Consumers Sellers Investors Community residents


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What is Marketing?

Needs, wants, anddemands

Market offerings:products, services,ideas, people, andexperiences

Value andsatisfaction

Exchange,transactions, andrelationships

Markets

Core Marketing Concepts

What is Marketing?

Goods Services Experiences Events People

Places Properties Organizations Information Ideas

Many Things Can Be Marketed!

Brand Preference


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Presidential Preference

Welcome to Marketing

1 -22

Ideas


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Marketing Satisfies Needs

Marketing Concept Identify needs and wants, and provide

products, services, ideas, etc. thatsatisfy those needs and wants.

Marketing Satisfies Needs

Need is the difference between aconsumers actual state and some idealor desired state. Physical, Social, Psychological

Needs vs. Wants

A want is a desire for a particularproduct used to satisfy that need. Wants are culturally and socially

based Wants + Buying Power = Demand


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Want or Need?

Benefits

Benefits what a product or servicedelivers when it satisfies a need.

Consumers buy benefits, not productsor features.

Organization is in the business ofdelivering benefits.

Benefits

People dont buy a inch drill bit,they buy a inch hole.

Theodore Levitt


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Marketing is an Exchange of Value

Exchange is the heart of every marketingactivity

Companies choose a value proposition differentiation

What is value?

Exchange of Value

How much will you pay to download asong?

This ad attemptsto change theperceived value ofCheerios CerealBar by helpingconsumersevaluate itsnutritional value


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Market Market is all available buyers who share

common needs satisfied by specificproducts and have resources,willingness to make an exchange(purchase). Size

Marketplace where buyers and sellerscome together Marketspace

A Modern Marketing System

Marketing Management Marketing management is the art and

science of choosing target markets andbuilding profitable relationships with

them. Creating, delivering, and

communicating superior customervalue is key.

What customers will we serve? How can we serve these customers

best?


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Marketing Management Orientations

Production and Product Concepts

The Selling and Marketing ConceptsContrasted:


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Marketing Concept

What is the need? What is the

benefit?

Societal Marketing Concept Deliver value- improve well-being Corporate social marketing Cause marketing Cause-related marketing Corporate philanthropy Corporate community involvement Socially responsible business

practices

Corporate Social Responsibility


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Cause Related Marketing

200,000 new donorscontributed $30 millionto the ASPCA as aresult of The Ad

Sampson

Societal Marketing


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This ad showsa companycommunicatingits CaringCapitalism

Building Customer Relationships

CRM Customer RelationshipManagement is the overall process of building and

maintaining profitable customerrelationships by delivering superiorcustomer value (benefit) andsatisfaction.


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CRM

It costs 5 to 10 times MORE to attract a

new customer than it does to keep acurrent customer satisfied.

Marketers must be concerned with thelifetime value of the customer.

CRM

Attracting, retaining and growingcustomers

Building customer relationships andcustomer equity

CRM


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CRM

What organization does a great job of

delivering this for you? Why?

What organization does a poor job ofthis? How could they change it? Wouldthat impact your behavior?

The Digital Age: Online, Mobile, andSocial Media Marketing Digital and social media marketing :

Engaging consumers via their digital devicesusing digital marketing tools and social media

Mobile marketing : Using mobile channels tostimulate immediate buying, make shoppingeasier, and enrich the brand experience

Blending the new digital approaches withtraditional marketing creates a smoothlyintegrated marketing strategy and mix.

Customer-Engagement Marketing Customer-engagement marketing involves

fostering direct and continuous customerinvolvement in shaping brand conversations,

experiences, and community. Greater consumer empowerment means thatcompanies should rely on marketing byattraction.

The key is to find ways to enter consumersconversations with engaging and relevantbrand messages.


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Customer-Generated Marketing Brand exchanges created by consumers

Consumers play an increasing role inshaping their own brand experiences andthose of other consumers.

Occurs through: Uninvited consumer-to-consumer

exchanges Invitation of consumers by companies

Asking for new product and service ideas Asking to play an active role in shaping ads

Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

Customer Equity

Total combined customer lifetime valuesof all of the companys current andpotential customers

Helps to measure the future value of thecompanys customer base

Increases when the loyalty of the firmsprofitable customers increases

Better measure of a firms performancethan current sales or market share


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Customer Relationship Groups

Harley Davidson Marketing its wayto success

Documents

Welton Ch. 1 3 Slides