Chapter 1Marketing: Creating and Capturing Customer Value Creating and Capturing Customer Value 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 Topic Outline 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? The Marketing Process Understanding the Marketplaceand Customer Needs Customer Needs, Wants, and Demands Understanding the Marketplaceand 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 Understanding the Marketplaceand Customer Needs Customer Value and Satisfaction Expectations Understanding the Marketplaceand Customer NeedsExchange is the act of obtaining a desired object from someone by offering something in return Understanding the Marketplaceand Customer NeedsMarkets are the set of actual and potential buyers of a product Designing a Customer-Driven Marketing StrategyMarketing 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 StrategyMarket segmentation refers to dividing the markets into segments of customersTarget marketing refers to which segments to go after Selecting Customers to Serve Designing a Customer-Driven Marketing Strategy Choosing a Value Proposition Designing a Customer-Driven Marketing Strategy Marketing Management Orientations Designing a Customer-Driven Marketing StrategyProduction concept is the idea that consumers will favor products that are available or highly affordable Marketing Management Orientations Designing a Customer-Driven Marketing StrategyProduct 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. Marketing Management Orientations Designing a Customer-Driven Marketing StrategySelling concept is the idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort Marketing Management Orientations Designing a Customer-Driven Marketing Strategy Marketing Management Orientations Designing a Customer-Driven Marketing Strategy Marketing Management Orientations Designing a Customer-Driven Marketing Strategy Preparing an Integrated Marketing Plan and ProgramThe marketing mix: set of tools (four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place.Integrated marketing program: comprehensive plan that communicates and delivers the intended value to chosen customers. Building Customer Relationships The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Customer Relationship Management (CRM) Building Customer Relationships Relationship Building Blocks: Customer Value and Satisfaction Building Customer Relationships Customer Relationship Levels and Tools Building 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 The Changing Nature of Customer Relationships Building Customer RelationshipsCustomer-managed relationships客户管理关系Marketing relationships in whichcustomers, empowered by todays newdigital technologies, interact withcompanies and with each other to shapetheir relationships with brands. The Changing Nature of Customer Relationships Building Customer RelationshipsPartner 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 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 Partner Relationship Management Building Customer Relationships Supply chain is a channel that stretches from raw m