Académique Documents
Professionnel Documents
Culture Documents
Customer Relationships
1
What is Marketing?
Marketing is managing profitable customer
relationships
Attracting new customers
Retaining and growing current customers
Marketing is NOT synonymous with sales
or advertising
2
Marketing Defined
Marketing consists of the strategies and tactics used to
identify, create and maintain satisfying relationships with
customers that result in value for both the customer and the
marketer
4
The Marketing Process
5
1. Understanding the
Marketplace
and Consumer Needs
6
Core Customer and Marketplace
Concepts
Needs, Wants, and Demands
Marketing Offers
Value and Satisfaction
Exchange, Transactions, and Relationships
Markets
7
Needs, Wants, and Demands
Needs
A state of felt deprivation. The basic human requirements
Wants
The form taken by a human needs as shaped by culture and
individual personality. Wants are described in terms of
objects that will satisfy needs
Demands
Human wants that are backed by buying power
8
Needs, Wants, and Demands
People need food, air, water, clothing, and shelter to survive. People
also have strong needs for creation, education, and entertainment
The above needs become wants when they are directed to specific
objects that might satisfy the need. An American needs food but may
want a hamburger, French fries, and a soft drink. A person in
Mauritius needs food but may want a mango, rice, lentils, and beans.
Wants are shaped by one's society and are described in terms of
objects that will satisfy needs
Demands are wants for specific products backed by an ability to pay.
Many people want a Mercedes; only a few are willing and able to
buy one
9
Marketing Offers
Marketing Myopia?
Focus only on existing wants and lose sight of underlying
customer needs. Forgetting the fact that product is only the
tool to solve consumer problem
10
Customer Value and Satisfaction
11
Markets
The set of all actual and potential buyers of a product or
service.
Types of Market
Pure competition Many buyers and many seller trading in a uniform
commodity e.g. wheat, vegetables etc
Monopolistic competition Many buyers and sellers who trade over a
range of prices
Oligopolistic competition Few sellers who are highly sensitive to
each other pricing and marketing strategies
Pure Monopoly Market consist of one seller
12
Exchange, Transactions, and
Relationships
Exchange
The act of obtaining a desired object from someone by
offering something in return.
Transactions
A trade of values between two parties
13
2. Designing a Customer Driven
Marketing Strategy
14
Marketing Management
Marketing management is the art and science
of choosing target markets and building
profitable relationships with them.
Creating, delivering and communicating superior
customer value is key.
Demarketing
Marketing to reduce demand temporarily or permanently; the
aim is not to destroy the demand but only to reduce or shift it.
15
What customers will we serve? (Target Market)
How can we serve these customers best? (Value
proposition)
Value Proposition
The set of benefits or values it promises to deliver to
consumers to satisfy their needs. Answers the customers
question Why should I buy your brand rather than a
competitors? e.g. Nestle Pure drinking water, BlackBerry
connectivity on the go, K&Ns healthy and safe chicken etc
16
Marketing Management Orientations
Product Concept
17
Marketing Management Orientations
Production Concept
Demand for a product is greater than
supply.
To increase profit, focus on production efficiencies
knowing all output can be sold. Also useful concept
when increasing production raises economies of scale
etc. to reduce price. Henry Ford, "Doesn't matter what
color car you want, as long as it is black."...A typical
quote during the production era.
Dominant era: From mid C19th to early C20th,
industrial revolution etc.
18
Marketing Management Orientations
Selling Concept
Demand for a product is equal to supply.
19
Marketing Management Orientations
Marketing Concept
Supply for a product is greater than
demand, creating intense competition
among suppliers.
- Company first determines what the consumer wants, then
produces what the consumer wants, then sells the consumer
what it wants.
- Dominant era: 1930's to WWII 1950's to present.
20
Marketing Concept
"I do not consider a sale complete until goods are worn out and the
customer still satisfied. We will thank anyone to return goods that are
not perfectly satisfactory...Above all things we wish to avoid having a
dissatisfied customer."
21
Marketing Concept
23
Marketing Management Orientations
The difference between short term consumer wants and long term
consumer welfare.
24
Marketing Management Orientations
25
Preparing a Marketing Plan and
Program
26
27
Building Customer
Relationships
28
CRM
CRM - Customer Relationship Management
is the overall process of building and
maintaining profitable customer relationships
by delivering superior customer value and
satisfaction
29
CRM
30
Capturing Value from
Customers
31
Creating Customer Loyalty and
Retention
Key Concepts Customer value/satisfaction
Perceptions are key
Meeting/exceeding
Attracting, retaining and expectations creates
growing customers satisfaction
Loyalty and retention
Benefits of loyalty
Loyalty increases as
satisfaction levels increase
Delighting consumers should
be the goal
Growing share of customer
Cross-selling 32
CRM
Key Concepts Customer equity
The total combined
Building customer customer lifetime values
relationships and customer of all customers.
equity Measures a firms
performance, but in a
manner that looks to the
future.
33
CRM
Key Concepts Customer relationship levels
and tools
Building customer Target market typically
relationships and customer dictates type of relationship
equity Basic relationships
Full relationships
Customer loyalty and
retention programs
Adding financial
benefits
Adding social benefits
34
The New Marketing Landscape
35
Marketing Challenges
Connecting Advances in computers,
telecommunications, video-
Via technology conferencing, etc. are major
forces.
With customers Databases allow for
With marketing partners customization of
products, messages and
With the world analysis of needs.
The Internet
Facilitates anytime,
anywhere connections
Facilitates CRM
Creates market spaces
36
Marketing Challenges
Connecting Partner relationship
management involves:
Via technology Connecting inside the
With customers company
Connecting with
With marketing outside partners
partners Supply chain
With the world management
Strategic alliances
37
Marketing Challenges
Connecting Globalization
Via technology Competition
New opportunities
With customers
Greater concern for
With marketing partners environmental and social
With the world responsibility
Increased marketing by
nonprofit and public-sector
entities
Social marketing
campaigns
38