Chapter [1]

marketing ceuting and

Capturing customer value
What is marketing?
Marketing :
is a process by which componies create value for cutomers and build
strong customer relationships to capture value from customers in return.
The marketing :
create value for customers and build customer relationship?
1. understand the marketplace and customer needs and wants.
2. design a customer driven marketing strategy.
3. construct on integrated marketing program that delivers superior
value.
4. build profitable relationship and create customer delight.
5. capture value from customers to create profits and customers equity.
understand the marketplace and customer needs and wants.
Need  states of deprivation
- physical food, clothing, warmth, safety
- social belonging and affecting.
- Individual knowledge and self expression.
Wants:
from that needs take as they are shaped by culture and individual
personality.
Demand  wants backed by buying power.
Note:
Demand depends on the power of money you have
- there is a very hard competition between goods.
- Actually supply is more than demand.
Example:
A firm produce 1000 sets, but wed need only 100 sets
50 there is a great excess supply
understand the marketplace and customer needs
 market offering:
 are some combination of products, services information, or
experiences offered to a market to satisfy it needs and wants.
 Marketing myopia:
is focusing only on existing wants and losing sight of underlying
consumer needs.
 Marketing myopia:
the mistake of paying more attention on the specific products a
company offers than to the benefits and experiences produce by
these products.
 Customer equity:
the total combined customer lifetime value of all of the company
customers.
 Share of customer:
the portion of the customer's purchasing that a company get in its
product categories.

understand the marketplace and customer needs customer value and satisfaction

 set the right level of expectations

 not too high or low

Customers value & satisfaction

Exchange and relationships

 exchange :
is the act of obtaining a desired object from someone by offering
something in return.
 Marketers:
aim at building strong relationships by consistently delivering
superior customer value [ construction intergraded marketing
program]
 A market:
is the set of actual and potential buyers of a product or service
Modern marking system
 Company
Suppliers Marketing Consumers
intermediaries
Company

Major environmental forces

Each part in the system adds value. A retailer like geont cannot fulfill its
promise of low price unless its suppliers provide low costs. A car market like
marcedes cannot deliver high quality to car buyers unless its dealers provide out
standing service.

2- designing a customer. Driven marketing strategy.

1- marketing management:
 marketing management is the art and science of choosing target market
and building profitable relationships with them.
 What customers will we serve?
 How can we best serve these customers?

2- selecting customers to serve:

 Marketing segmentation  refers to dividing the markets into segments of
customers.
 Target marketing  refers to which segement to go after.
 Demarcating  is marketing to reduce demand temporarily or
permanently; the aim is not to destroy demand but to reduce or shift it.

3- choosing a value proposition:

 The value proposition  is the set of benefits or values a company
promises to deliver to customer.

4- strategy:
 Marketing management orientations

Production Product Selling Marketing Societal

Concept Concept Concept Concept Concept

1- production concept:
is the idea that consumer will favor product that are available
highly quality.
2- Product concept:
is the idea that consumer will favor products that offer the best
quality, performance and features. An organization should therefore
devote its energy to making continuous product continuous
3- Selling concept:
is the idea that consumers will not buy enough of the firm's products
unless it undertakes a large scale selling.
4- Marketing concept:
is the idea that achieving organizational goals depend on knowing
the needs and wants of the target markets and delivering the desired
satisfaction better than competitors do.

Selling Profits
The selling Existing through
Factory &
Concept Products sales
Promoting volume

Profits
The marketing Customer Integrated through
Market
Concept Needs Marketing Customer
Society [human welfare] Satisfaction

5- Societal concept:
is the idea that a company's marketing decisions should consider
consumer want's; the company's requirements, consumer's long.
Term interests, and society's long – term interests.
 the considerations underlying
Societal the societal marketing.
Marketin
g concept

Consumers Company profit

Want satisfaction
3- preparing 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 – place – promotion
[ advertising – publish ]
 integrated marketing plan:
is a comprehensive plan that communical anddelivers the intend.
Value to chosen customers.
4- building customer relationship management:
 customer relationship management:
the overall process of building and maintaining profitable customer
relationships. By delivery superior customer value and satisfaction.
 Relationship building blocks:
customer value and satisfaction.

Customer perceived value Customer satisfaction

The difference b/w total value and total cost The extent to which products
of marketing offering cost of marketing perceived performance matches
offering relative to those competing offers. a buyer's satisfaction

 Relating with more carefully selected customers use selective relationship

management to target fewer, more profitable customer.
 Relating more deeply and interactively by incorporating more interactive,
two way relationships through blogs, websites, online communities and
social networks.
"partner relationship management"
 Partner relationship management: involves working closely with pertness
in other company deportment and outside the company to jointly bring
greater value to customers.
 portners inside the company:
- refers to eve functions are interacting with customers.
- Electronically cross – functional teams.
 Partners outside the company:
- refers to how marketers connect with their suppliers,
channel partness, and competitors by developing
partnership.
 Customer lifetime value: the value of the entire stream of purchases that
the customer would make over a lifetime of partronage.
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