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    Customer Relationship Management and Marketing

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    harryworld
    This document provides an overview of key concepts in marketing. It begins by defining marketing as creating value for customers and building relationships to capture value in return. It then discusses understanding customer needs, wants and demands. Market offerings aim to satisfy these through value and satisfaction. Exchanges between companies and customers occur in markets. The document also outlines designing a customer-driven marketing strategy through segmentation, targeting and positioning. It discusses different marketing orientations like production, product and marketing concepts. Finally, it briefly introduces integrating marketing programs, building customer relationships and capturing value from customers.

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    Customer Relationship Management and Marketing

    Uploaded by

    harryworld
    250 views41 pages
    This document provides an overview of key concepts in marketing. It begins by defining marketing as creating value for customers and building relationships to capture value in return. It then discusses understanding customer needs, wants and demands. Market offerings aim to satisfy these through value and satisfaction. Exchanges between companies and customers occur in markets. The document also outlines designing a customer-driven marketing strategy through segmentation, targeting and positioning. It discusses different marketing orientations like production, product and marketing concepts. Finally, it briefly introduces integrating marketing programs, building customer relationships and capturing value from customers.

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    Customer relationship management and marketing

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    Customer relationship management and marketing

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    This document provides an overview of key concepts in marketing. It begins by defining marketing as creating value for customers and building relationships to capture value in return. It then discusses understanding customer needs, wants and demands. Market offerings aim to satisfy these through value and satisfaction. Exchanges between companies and customers occur in markets. The document also outlines designing a customer-driven marketing strategy through segmentation, targeting and positioning. It discusses different marketing orientations like production, product and marketing concepts. Finally, it briefly introduces integrating marketing programs, building customer relationships and capturing value from customers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    250 views41 pages

    Customer Relationship Management and Marketing

    Uploaded by

    harryworld
    This document provides an overview of key concepts in marketing. It begins by defining marketing as creating value for customers and building relationships to capture value in return. It then discusses understanding customer needs, wants and demands. Market offerings aim to satisfy these through value and satisfaction. Exchanges between companies and customers occur in markets. The document also outlines designing a customer-driven marketing strategy through segmentation, targeting and positioning. It discusses different marketing orientations like production, product and marketing concepts. Finally, it briefly introduces integrating marketing programs, building customer relationships and capturing value from customers.

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    You are on page 1of 41

    Chapter One

    Marketing: Creating and Capturing Customer Value

    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

    What Is Marketing?
    Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return

    What Is Marketing?
    Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return

    Understanding the Marketplace and Customer Needs


    Core Concepts

    Customer needs, wants, and demands Market offerings Value and satisfaction Exchanges and relationships Markets

    Understanding the Marketplace and Customer Needs


    Customer Needs, Wants, and Demands

    Understanding the Marketplace and Customer Needs


    Customer Needs, Wants, and Demands Given their wants and resources, people demand products or services with benefits that add up to the most value and satisfaction The best marketing companies go to great lengths to learn and understand their customers' needs, wants and demands

    Understanding the Marketplace and Customer Needs


    Needs and wants are fulfilled through MARKET OFFERINGS Case in Point: The Dawn News advertisement Strengthening the pillar of good governance upon which rests the future of an enlightened state.... The offering here is reliable news which has a comprehensive relationship with good governance and and enlightened state

    Understanding the Marketplace and Customer Needs


    Needs and wants are fulfilled through MARKET OFFERINGS Case in Point: The Dawn News advertisement Strengthening the pillar of good governance upon which rests the future of an enlightened state.... The offering here is reliable news which has a comprehensive relationship with good governance and and enlightened state

    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. Eg. Banking, air-travel, hotel stays, tourism, etc. Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs. Eg. Lack of Innovation: Tape recorders Music systems Walkman CDman iPod Live streaming music on the internet.

    Understanding the Marketplace and Customer Needs


    Customer Value and Satisfaction Expectations
    Customers form expectations about value and satisfaction that various market offerings will deliver and buy accordingly
    Expectation creation about value and satisfaction by marketers must be judiciously decided

    Satisfied customers buy again and again and spread a positive word of mouth
    Dissatisfied customers switch to competitors and disparage the product to others

    Understanding the Marketplace and Customer Needs


    Customer Value and Satisfaction Expectations
    Too low expectations satisfy those who consume but not attract new consumers Too high expectations Customers / Consumers might be disappointed

    Understanding the Marketplace and Customer Needs


    Exchange is the act of obtaining a desired object from someone by offering something in return A marketer tries to bring about a response to some market offering. The response may be more than buying or trading products and services Political candidate Votes

    Religious group Memberships


    Musical troupe audience

    Social action group acceptance (Jan Lokpal, Narmada Bachao Andolan)

    Marketing occurs when people decide to satisfy needs and wants through exchange relationships

    Understanding the Marketplace and Customer Needs


    Markets are the set of actual and potential buyers of a product
    Company SUPPLIERS Competitors Marketing Intermediaries CONSUMERS

    Major Environmental Forces (Demographic, economic, technological, Politico-legal, socio-cultural)

    Assignments
    1. Visit website of Maruti Udyog Ltd. And answer the following questions:
    A. What needs, wants and/or demands is Maruti attempting to fill
    B. Describe their marketing offers C. Describe the relationship that they have with their customers D. What are their markets

    2. Visit India website of eBay and answer the following questions


    A. How is eBay providing value to its customers B. Describe the relationships they have with their customers C. What are their markets

    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?

    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

    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

    (Amusement Parks, Goa in the Rains)

    Designing a Customer-Driven Marketing Strategy


    Choosing a Value Proposition
    The value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs BMW promises the ultimate driving machine Indica V2 promises more car per car Such value propositions differentiate one brand from the other

    Class Assignment
    In groups of 4 develop a marketing plan for a company producing and marketing organic food. Who is your target market How will you enable customers to get the best value Develop value proposition of your offering for this target market

    Designing a Customer-Driven Marketing Strategy


    Marketing Management Orientations

    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 One of the oldest orientations that guides sellers

    Useful in highly competitive and price sensitive markets (PC Markets of Lenovo in China)
    This concept can lead to marketing myopia

    Companies adopting this orientation run a major risk of focussing too narrowly on their own operations and losing sight of satisfying customer needs and building customer relationships

    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 its energy to making continuous product improvements. Here again, focus on the product may lead to marketing myopia Even improved products might not sell if unless they are designed, packaged and priced attractively.

    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

    Such orientation is for products which are not sought popularly. (Insurance)
    Here prospects have to be tracked down and products sold on benefits

    The flaw is that this orientation focusses on sales transactions than on building long-term, profitable customer relationships

    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 Instead of a product-centered make & sell philosophy, the marketing concept is a customer-centered sense and respond philosophy The marketing concept starts with a well defined market, focusses on customer needs and integrates all marketing activities that affect customers In turn, it yields profits by creating lasting relationships with the right customers based on customer value and satisfaction

    Designing a Customer-Driven Marketing Strategy


    Marketing Management Orientations
    Societal 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
    Society (Human Welfare)

    Societal Marketing Concept Consumers (Satisfaction) Company (Profits)

    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.
    To deliver on its value proposition, the firm must first create a need satisfying market oferring (Product) It must then decide how much it will charge for the offering (Price) and how it will make the offering available to target customers (Place)

    Finally, it must must communicate with target customers about the offering and persuade them of its merits (Promotion)

    Preparing an Integrated Marketing Plan and Program


    Integrated Marketing Communication (IMC)program is a comprehensive plan that communicates and delivers the intended value to chosen customers. Communication channels include: Advertising, Personal selling, Public Relations (PR), Direct Marketing & Sales promotions

    Building Customer Relationships


    Customer Relationship Management (CRM)
    CRM is the most important concept of modern marketing The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction It deals with all aspects of acquiring, keeping & growing customers Relationship building blocks: CUSTOMER VALUE & SATISFACTION

    Building Customer Relationships


    Relationship Building Blocks: Customer Value and Satisfaction
    The key to building lasting customer relationships is to create superior customer value and satisfaction

    Customer value: This is the customer's evaluation of the difference between all the benefits and all the costs of a market offering relative too those of competing offers.
    Customers, often, do not judge values and costs accurately or objectively

    Customers act on Customer Perceived Value

    Building Customer Relationships


    Relationship Building Blocks: Customer Value and Satisfaction

    Building Customer Relationships


    Customer Relationship Levels and Tools

    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 more interactive two way relationships through blogs, Websites, online communities and social networks

    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

    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

    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

    Capturing Value from Customers


    Creating Customer Loyalty and Retention

    Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage

    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

    Capturing Value from Customers


    Customer equity is the total combined customer lifetime values of all of the companys customers

    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

    The Changing Marketing Landscape


    Major Developments

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