Chapter 1. marketing managing profitable customer

Chapter 1: marketing

1. Chapter 1- slide 1
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Chapter One
Managing Profitable Customer
Relationships

2. Chapter 1- slide 2
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•What role its going to play ?
Importance of Marketing

3. Chapter 1- slide 3
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Marketing is from MARKET
Market as Noun
•A Place for buying and selling
Market as verb
•Take something to its potential customers
“ Place of actual and potential buyers ”
What is Marketing?

4. Chapter 1- slide 4
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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” Philip Kotler

5. Chapter 1- slide 5
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Understanding the Marketplace
and Customer Needs
•Customer Needs, Wants, and Demands
•Customers and Consumers
•Value and Satisfaction ( Something of importance)
•Exchange (Getting some desired object from someone by offering something in return)
•Market offerings (Combination of products,services,information,experiences offered to a
market to satisfy needs or wants)
•Marketing Mix (Combination of 4ps/tools used by companies to deliver value to their
customers)

Core Concepts

6. Chapter 1- slide 6
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Figure 1.2
A Simple Marketing System
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1-6

7. Chapter 1- slide 7
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Demand Situations
•Negative Demand (avoidance of a product)
•No Demand (lack of awareness or interest)
•Latent Demand (a strong need that can’t be satisfied by existing product)
•Declining Demand ( Lower demand)
•Full Demand (a satisfying level of demand)
•Irregular Demand (varies by seasons)
•Overfull Demand (More demand that can be handled)
•Unwholesome Demand (demand for unhealthy and dangerous
products)

8. Chapter 1- slide 8
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What Is Marketing?
The Marketing Process

9. Chapter 1- slide 9
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Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

10. Chapter 1- slide 10
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Understanding the Marketplace
and Customer Needs
Markets are the set of actual and
potential buyers of a product

11. Chapter 1- slide 11
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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
1. Selecting Customers to Serve

12. Chapter 1- slide 12
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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
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Designing a Customer-Driven
Marketing Strategy
2. 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
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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

15. Chapter 1- slide 15
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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

16. Chapter 1- slide 16
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Building Customer Relationships
•Supply chain is a channel that stretches
from raw materials to components to final
products to final buyers.
•Share of customer is the portion of the
customer’s purchasing that a company gets
in its product categories

17. Chapter 1- slide 17
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Building Customer Relationships
Relationship Building Blocks: Customer Value and Satisfaction

18. Chapter 1- slide 18
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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
•Customer equity is the total
combined customer lifetime
values of all of the company’s
customers
Creating Customer Loyalty and Retention