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Tutorial Sessions
A total of eight (8) hours are set aside for this course and they form a part of your learning process as you have an opportunity to receive face-to-face interaction with your informal facilitator and to receive answers to questions or classifications which you may have. Also, you may contact your tutorial facilitator by telephone or e-mail.
As an open and distant learner, you are expected to prepare ahead of time by studying the relevant study units, write your questions so as to gain maximum benefit from tutorial sessions. Information about the location and time schedule for facilitation will be available at your study centre.
Note that tutorial sessions are flexible arrangements between you and your tutorial facilitator. You will need to contact your study centre to arrange the time schedule for the sessions. You will also need to obtain your tutorial facilitator’s phone number and e-mail address.
Tutorial sessions are optional however; participating in them provides tremendous benefits because they provide a forum for interaction and group discussions which will maximise the isolation you may experience as an open and distant learner.
Facilitation
This is a learning process that takes place both within and outside of tutorial sessions. Your tutorial facilitator guides your learning by doing the following things.
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1.0. Providing answers to your questions during tutorial sessions on phone or by e-mail
2.0. Coordinating group discussions
3.0. Providing feedback on your assignments
4.0. Posing questions to confirm learning outcomes
5.0. Coordinating, marking and recording your assignments/examination score(s)
6.0. Monitoring your progress.
English language is the language of instruction for this course. The course material is available both in print and in CD. It is also on the National Open University if Nigeria website. However, on your part, you are to prepare ahead of time by studying and writing your questions so as to maximally benefit from facilitation. Information about the location and time of facilitation will be available at your study course.
This is a flexible arrangement between you and your tutorial facilitator. You should contact your tutorial facilitator whenever:
1.0. You do not understand any part of the study unit
2.0. You have difficulty with the self assessment exercises
3.0. You have a question or a problem with an assignment, with your tutorial facilitator’s comments on an assignment or with the grading of an assignment.
Counselling
Counselling is your part of learning which helps to facilitate the learning process. This service is available to you at two levels-academic and personal. At the study centre, student counsellors are available to provide guidance for personal issues that may affect your studies. In addition, your tutorial facilitators and study centre manager can assist you with questions on academic matters such as course materials, grades, facilitation, etc. Endeavour to have the telephone

1. Chapter 1- slide 1
Chapter One
Marketing: Creating and Capturing
Customer Value

2. Chapter 1- slide 2
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
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

3. Chapter 1- slide 3
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
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

4. Chapter 1- slide 4
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
Understanding the Marketplace
and Customer Needs
•Customer needs, wants, and demands
•Market offerings
•Value and satisfaction
•Exchanges and relationships
•Markets
Core Concepts

5. Chapter 1- slide 5
Copyright © 2010 Pearson Education, Inc.
 
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Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands

6. Chapter 1- slide 6
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
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

7. Chapter 1- slide 7
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction
Expectations

8. Chapter 1- slide 8
Copyright © 2010 Pearson Education, Inc.
 
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Exchange is the act of obtaining a desired
object from someone by offering
something in return
Understanding the Marketplace
and Customer Needs

9. Chapter 1- slide 9
Copyright © 2010 Pearson Education, Inc.
 
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Understanding the Marketplace
and Customer Needs
Markets are the set of actual and
potential buyers of a product

10. Chapter 1- slide 10
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
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?

11. Chapter 1- slide 11
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
Market segmentation refers to dividing the
markets into segments of customers
Target marketing refers to which segments
to go after
Selecting Customers to Serve

12. Chapter 1- slide 12
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
Demarketing is marketing to reduce demand
temporarily or permanently; the aim is not
to destroy demand but to reduce or shift it
Selecting Customers to Serve

13. Chapter 1- slide 13
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
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

14. Chapter 1- slide 14
Copyright © 2010 Pearson Education, Inc.
 
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Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

15. Chapter 1- slide 15
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
Production concept is the idea that
consumers will favor products that are
available or highly affordable
Marketing Management Orientations

16. Chapter 1- slide 16
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
Designing a Customer-Driven
Marketing Strategy
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.
Marketing Management Orientations

17. Chapter 1- slide 17
Copyright © 2010 Pearson Education, Inc.
 
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Designing a Customer-Driven
Marketing Strategy
Selling concept is the idea that consumers
will not buy enough of the firm’s products
unless it undertakes a large scale selling
and promotion effort
Marketing Management Orientations

18. Chapter 1- slide 18
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
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

19. Chapter 1- slide 19
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
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 company’s requirements, consumers’
long-term interests, and society’s long-run
interests

20. Chapter 1- slide 20
Copyright © 2010 Pearson Education, Inc.
 
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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.
Preparing an Integrated Marketing
Plan and Program

21. Chapter 1- slide 21
Copyright © 2010 Pearson Education, Inc.
 
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Building Customer Relationships
The overall process of building and maintaining
profitable customer relationships by delivering
superior customer value and satisfaction
Customer Relationship Management (CRM)

22. Chapter 1- slide 22
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Building Customer Relationships
Relationship Building Blocks: Customer Value and Satisfaction

23. Chapter 1- slide 23
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Building Customer Relationships
Customer Relationship Levels and Tools

24. Chapter 1- slide 24
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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

25. Chapter 1- slide 25
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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

26. Chapter 1- slide 26
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
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

27. Chapter 1- slide 27
Copyright © 2010 Pearson Education, Inc.
 
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Building Customer Relationships
•Supply chain is a channel that gives from
raw materials to components to final
products to final buyers
•Supply management
•Strategic partners
•Strategic alliances
Partner Relationship Management

28. Chapter 1- slide 28
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Capturing Value from Customers
•Customer lifetime value is the value of
the entire stream of purchases that the
customer would make over a lifetime of
support
Creating Customer Loyalty and Retention

29. Chapter 1- slide 29
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Capturing Value from Customers
Share of customer is the portion of the
customer’s purchasing that a company gets
in its product categories
Growing Share of Customer

30. Chapter 1- slide 30
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Capturing Value from
Customers
Customer equity is the total combined
customer lifetime values of all of the
company’s customers

31. Chapter 1- slide 31
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Capturing Value from Customers
•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
Building Customer Equity

32. Chapter 1- slide 32
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The Changing Marketing
Landscape
Major Developments

33. Chapter 1- slide 33
Copyright © 2010 Pearson Education, Inc.
 
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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.
Copyright © 2010 Pearson Education, Inc.
 
Copyright © 2010 Pearson Education, Inc.
 
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