Session One

Marketing: Creating and Capturing Customer

Value
Marketing Management
13th Eds by Philip Kotler
Prentice Hall Intl. 2010
Prepared by R.Roestam PhD Chapter 1- slide 1
 Creating and Capturing Customer
Value
Topic Outline
What Is Marketing?
Understand 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

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Chapter 1- slide 2
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 What Is Marketing?
Marketing is human activity directed at satisfying needs and
wants through exchange processes
Marketing is a process by which companies create value for
customers and build strong customer relationships to capture
value from customers in return

A product is something that is viewed as capable of satisfying a

need or want

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Chapter 1- slide 3
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 Marketing Management
The analysis, planning, implementation,
and control of programs designed to
create, build, and maintain mutually
beneficial exchanges and relationships with
target markets for the purpose of achieving
organizational objectives.
It relies on a disciplined analysis of the needs,
wants, perceptions, and preferences
(pilihan) of target and intermediary
markets as the basis for effective product
design, pricing, communication, and
distribution
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Chapter 1- slide 4
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 Understanding the Marketplace
and Customer Needs
Core Concepts

Customer needs, wants, and demands

Market offerings
Value and satisfaction
Exchanges and relationships
Markets

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Chapter 1- slide 5
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 Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands

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Chapter 1- slide 6
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 Basic Marketing Tasks
DEMAND STATE MARKETING TASK FORMAL NAME

Negative Reverse Conversional Marketing

No demand CREATE DEMAND STIMULATIONAL

MARKETING

LATENT (tersembunyi) DEVELOP DEMAND DEVELOPMENTAL

DEMAND MARKETING

FALTERING (melemah) REVITALIZE DEMAND REMARKETING

DEMAND

IRREGULAR DEMAND SYNCHRONIZE DEMAND SYNCHROMARKETING

FULL DEMAND MAINTAIN MAINTENANCE

MARKETING

OVERFULL REDUCE DEMARKETING

UNWHOLESOME
Copyright sehat) DESTROY
(tidakEducation,
2010 Pearson Inc. COUNTERMARKETING
Chapter 1- slide 7
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 Understanding the Marketplace
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

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Chapter 1- slide 8
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 Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction
Expectations

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Chapter 1- slide 9
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 Understanding the Marketplace
and Customer Needs
Exchange is the act of obtaining a desired
object from someone by offering
something in return

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Chapter 1- slide 10
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 Understanding the Marketplace
and Customer Needs

Markets are the set of actual and

potential buyers of a product

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Chapter 1- slide 11
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 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?

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Chapter 1- slide 12
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 Designing a Customer-Driven
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

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Chapter 1- slide 13
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 Designing a Customer-Driven
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

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Chapter 1- slide 14
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 Designing a Customer-Driven
Marketing Strategy
Choosing a Value Proposition

The value proposition (rencana) is the

set of benefits or values a company
promises to deliver to customers to
satisfy their needs

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Chapter 1- slide 15
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 Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

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Chapter 1- slide 16
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 Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

Production concept is the idea that

consumers will favor products that are
available or highly affordable

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Chapter 1- slide 17
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 Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

Product concept is the idea that consumers

will favor products that offer the most
quality, performance, and features.
Organization should therefore devote
(mencurahkan) its energy to making
continuous product improvements.

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Chapter 1- slide 18
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 Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

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

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Chapter 1- slide 19
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 Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

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

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Chapter 1- slide 20
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 Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
Societal (masyarakat) 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
(kepentingan masyarakat jangka panjang )

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Chapter 1- slide 21
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 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.

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Chapter 1- slide 22
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 Building Customer Relationships
Customer Relationship Management (CRM)
The overall process of building and maintaining
profitable customer relationships by delivering
superior customer value and satisfaction

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 Building Customer Relationships
Relationship Building Blocks: Customer Value
and Satisfaction

Perceived=
dirasakan

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Chapter 1- slide 24
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 Building Customer Relationships
Customer Relationship Levels and Tools

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Chapter 1- slide 25
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 Building Customer Relationships
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 (gabung) more interactive two
way relationships through blogs, Websites,
online communities and social networks

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Chapter 1- slide 26
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 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

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Chapter 1- slide 27
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 Building Customer Relationships
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

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Chapter 1- slide 28
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 Building Customer Relationships
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 (aliansi/persekutuan)

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Chapter 1- slide 29
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 Capturing Value from Customers
Creating Customer Loyalty and Retention (ingatan)

Customer lifetime value is the value of the

entire stream of purchases that the
customer would make over a lifetime of
patronage (langganan tetap)

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Chapter 1- slide 30
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 Capturing Value from Customers
Growing Share of Customer

Share of customer is the portion of the

customers purchasing that a company gets
in its product categories

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 Capturing Value from
Customers
Customer equity (kesamaan) is the total
combined customer lifetime values of all
of the companys customers

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Chapter 1- slide 32
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 Capturing Value from Customers
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

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Chapter 1- slide 33
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 The Changing Marketing
Landscape

Major Developments

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Chapter 1- slide 34
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 E-Marketing
(Introduction by Rob Stokes)
There is no doubt about it the Internet has
changed the world we live in.
The Internet has led to an increasingly connected
environment, and the growth of Internet usage
has resulted in declining distribution of traditional
media: television, radio, newspapers and
magazines.
eMarketing embraces a wide range of strategies, but
what underpins successful eMarketing is a user-
centric and cohesive approach to these strategies.
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Chapter 1- slide 35
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 A brief timeline of Internet
1958- US ARPA (advanced research projects agency) established to lead science and military
developments
technological developments
1961- MIT research paper of Packet Switching Theory
1961-69- Ongoing research into inter-computer communications and networks.
1969- ARPANET, commissioned by US Defense Department, goes live. US universities
connect up network facilities for the first time.
1971- Ray Tomlinson creates first network email application
1973- Development of protocols to enable multi-network Internet opportunities. First
international ARPANET connections made.
1976- HM Queen Elizabeth II sends an email.
1978- First spam email is recorded.
1980- Tim Berners-Lee develops rules for the World Wide Web and is credited as the Web
Father. 2006 Google buys YouTube for $1.6 billion. Alan Emtage develops the first
search tool known as ARCHIE
1982- Standard network protocols are established: Transmission Control Protocol (TCP) and
Internet Protocol (IP), commonly referred to as TCIP/IP.
1984- Joint Academic Network (JANET) is established, linking higher education institutions.
Time Magazine names You as person of the year, due to online activity. Domain
Name System (DNS) is introduced.
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 A brief timeline of Internet
developments
1985- A company named (2)
Simbolics becomes the first registered dot.com domain.
1987- National Science Foundation (US) is the catalyst for the surge in funded work into the
Internet. Number of Internet hosts increases significantly in this period.
1988-90- 28 countries sign up to hook up to the NSFNET, reinforcing international Internet
potential.
1990- Senator Al Gore coins the term information superhighway
1991- Web Father, Tim Berners-Lee releases World Wide Web (www) with scientists from
CERN.
1992- America Online (AOL) is launched and raises $23m in floatation.
The term surfing the net is introduced by Jean Armour Polly.
The World Bank goes online.
1993- Mainstream media attention increases awareness of the Internet.
First Internet publication. Wired, goes on sale.
Mosaic introduces the first web browser with graphical interface and is the forerunner of
Netscape Navigator.
First online shopping malls and virtual banks emerge as does evidence of spam.
First clickable banner advert is sold by Global Network Navigator to a law firm.
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Chapter 1- slide 37
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 A brief timeline of Internet
1995- Amazon is launched by Jeff Bezos.
developments
Trial dial up systems (3)While the Internet and
such as AOL and CompuServe launch.
the World Wide Web have enabled what we call New Media, Charging is
introduced for domain names. the theories that lead to the development of the
Internet were being developed from Search technology companies such as
Alta Vista, Infoseek, Excite and Metacrawler rapidly appear
1996- Yahoo! is launched on the stock exchange and shares are up nearly 300% on
first day.
1997- MP3.com is founded.
The term search engine optimisation is used for the first time in a forum.
1998- XML is released to enable compatibility between different computer
systems. Google founded by Larry Page and Sergey Brin.
1999- Peter Merholz coins the word blog.
2000- AOL and Time-Warner announce they are merging.
Pay-per-Click campaigns are introduced for top ten search rankings.
Google AdWords launches, charging for adverts on a CPM basis.
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Chapter 1- slide 38
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 A brief timeline of Internet
developments (4)
2002- UK online monthly consumer shopping breaks through the 1 billion
barrier. Google AdWords charges on a PPC basis instead of CPM.
2003- eBay topples Amazon as the most visited UK web site.
2004- CD-WOW loses court case and rights to source cheaper CDs outside EU,
undermining the global concept of the Internet.
2005- Iceland leads the world with broadband penetration: 26.7 inhabitants per
100 have broadband compared with 15.9 per 100 in the UK
2006- Google buys YouTube for $1.6 billion. Facebook membership opens to
anyone. Technical notes that a blog is created every second of every day. Time
Magazine names You as person of the year, due to online activity.
2008- Firefox 3.0 launches with over 8 million downloads in 24 hours. Internet
usage tops 1,407,724,920 worldwide.

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Chapter 1- slide 39
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 its all about being connected

The Internet is a world wide network which allows for

information to be shared between users (also known as
nodes).
The World Wide Web is a sub-set of this which caters
specifically for web sites.
In its simplest form, the Internet is a collection of connected
documents or objects. Hyperlinks are what connect these
documents.
Assignments: --- describe what you know about hyperlinks,
URL and Domain name?

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Chapter 1- slide 40
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 how do people access the
Internet?

Individual task: - Tell your experiences in how you access the internet?
Physical connections you have?
Devices you use?
Your reasons for using the Internet
Group discussion: - what does this all have to do with marketing?
Define step-by-step of marketing activities (from
preparation to the end of marketing activity).
Identify in which activities the Internet technology has a
role and How?
Provide example

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 All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

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