My_Armstrong15_accessible_fullppt_01_handout_240909_092244.pdf

My armstrong 15th marketing an introduction chapter 1

1. Marketing: An Introduction
Fifteenth Edition
Chapter 01
Marketing: Creating Customer
Value and Engagement
Copyright © 2023 Pearson Education, Ltd. All Rights Reserved

2. Objectives Outline (1 of 2)
1.1Define marketing and outline the steps in the marketing
process.
1.2Explain the importance of understanding the marketplace
and customers and identify the five core marketplace
concepts.
1.3Identify the key elements of a customer value-driven
marketing strategy and discuss the marketing management
orientations that guide marketing strategy.

3. Objectives Outline (2 of 2)
1.4 Discuss customer relationship management and identify
strategies for creating value forcustomers and capturing
value from customers in return.
1.5 Describe the major trends and forces that are changing
the marketing landscape in this age of relationships.

4. Copyright © 2023 Pearson Education, Ltd. All Rights Reserved
First Stop: Amazon
Amazon does much more
than just sell goods online.
It engages customers and
creates satisfying customer
experiences. “The thing that
drives everything is creating
genuine value for
customers,” says Amazon
founder Jeff Bezos.

5. Objective Outline 1-1
•Define marketing and outline the steps in the marketing
process.

6. What Is Marketing?
•Marketing is engaging customers and managing profitable
customer relationships.
•Goals of Marketing
–Attract new customers by promising superior value
–Keep and grow current customers by delivering
satisfaction

7. Forms of Marketing
Traditional
•Making a sale
•Abundance of products in the nearby shopping centers
•Television, magazine, and direct-mail ads
Contemporary
•Satisfying customer needs
•Imaginative Web sites and mobile phone apps, blogs,
online videos, and social media
•Reach customers directly, personally, and interactively

8. Figure 1.1The Marketing Process:
Creating and Capturing Customer
Value

9. Objective Outline 1-1 Summary
•Marketingcreates value for customers
–understand marketplace and customers
–design a customer value-driven marketing strategy
–construct a marketing program
–engage customers, build relationships
•Captures value from customers

10. Objective Outline 1-2
•Explain the importance of understanding the marketplace
and customers and identify the five core marketplace
concepts.

11. 產品與服務
價值、滿意與
品質
市場
行銷核心概念
需要(needs)、慾望( wants)、
需求(demands)
交換(exchange) 、交易
( transactions)與關係
(relationships)
11
Understanding the Marketplace and
Customer Needs

12. Customer Needs, Wants, and
Demands
Needs
•States of felt deprivation
–Physical needs—food, clothing, warmth, and safety
–Social needs—belonging and affection
–Individual needs—knowledge and self-expression
Wants
•Form taken by human needs when shaped by culture and
individual personality
Demands
•Human wants that are backed by buying power

13. Market Offerings
•Products, services, information, or experiences
–Offered to satisfy a need or want
•Marketing myopia行銷近視症 —paying more attention to
the specific products than to the benefits and experiences
produced

14. Customer Value and Satisfaction
•Customers form expectations期望about the value價值and
satisfaction滿足of market offerings.
–Satisfied customers buy again
–Dissatisfied customers switch to competitors
•Setting the right level of expectations
–Low expectations may fail to attract buyers
–High expectations may disappoint buyers

15. Value and Satisfaction
Expectation Performance
810
If performance is lower than expectations, satisfaction is
low.
If performance is higher than expectations, satisfaction
is high.
Expectation Performance
108

16. Exchanges and Relationships
•Exchange交換is the act of obtaining a desired object by
offering something in return.
•Marketing consists of creating, maintaining, and growing
desirable exchange relationships.
–Strong relationships are built by consistently delivering
superior customer value.

17. Markets
•All actual and potential buyers of a product
•Sellers and Consumers market
•Customer-managed relationships

18. The Concept of a ‘Market’
•Economists describe a market as a collection of buyers and
sellers who transact over a particular product or product
class.
•Marketers use the term “market” to cover various groups of
customers. The five basic markets are:
a.Resource Markets資源市場
b.Government Markets政府市場
c.Manufacturer Markets製造商市場
d.Intermediary Markets中間市場
e.Consumer Markets消費者市場
18

19. Figure 1.2A Modern Marketing
System

20. Objective Outline 1-2 Summary
•Customers needs, wants, and demands
•Customer lifetime value and share of customer
•Long-termcustomer equity
•Other marketplace concepts
–market offerings
–value and satisfaction
–exchange and relationships
–markets
•Value proposition

21. •Customer Lifetime Value顧客終身價值 : The value of the
entire stream of purchases a customer makes over a
lifetime of patronage.
•Share of Customer顧客佔有率 : The portion of the
customer’s purchasing that a company gets in its product
categories.
•Customer Equity顧客權益 : The total combined customer
lifetime values of all of the company’s customers.
•Value Proposition價值命題: The full positioning of a
brand—the full mix of benefits on which it is positioned.

22. Objective Outline 1-3
•Identify the key elements of a customer value-driven
marketing strategy and discuss the marketing
management orientations that guide marketing strategy.

23. Designing a Customer Value-Driven
Marketing Strategy (1 of 4)
•Customer value-driven marketing strategy
–Once a company fully understands its consumers and
the marketplace, it must decide which customers it will
serve and how it will bring them value.”
•Marketing management: Choosing target markets and
building profitable relationships
•Designing a winning marketing strategy
–Target market?
–Value proposition?

24. Designing a Customer Value-Driven
Marketing Strategy (2 of 4)
•Selecting customers to serve
•Market segmentation refers to dividing the markets into
segments of customers.
•Target marketing refers to which segments to go after.

25. Designing a Customer Value-Driven
Marketing Strategy (3 of 4)
Choosing a value
proposition—the company
must decide how it will
differentiate and position
itself in the marketplace.

26. Designing a Customer Value-Driven
Marketing Strategy (4 of 4)
•Marketing management orientations
–Production concept生產概念
–Product concept產品概念
–Selling concept銷售概念
–Marketing concept行銷概念
–Societal marketing concept社會行銷概念

27. Company Orientations
Production Concept
•The production concept holds that consumers will prefer products
that are widely available and inexpensive.
Product Concept
•The product concept holds that consumers will favor those products
that offer the most quality, performance, or innovative features.
Selling Concept
•The selling concept holds that consumers and businesses, will
ordinarily not buy enough of the organization’s products, therefore,
the organization must undertake aggressive selling and promotion
effort.
27

28. Production Concept
28
This orientation makes sense in developing countries such as China where the largest PC manufacturer,
Lenovo, and domestic appliances giant, Haier, take advantage of the country’s huge inexpensive labor
pool to dominate the market. It is also used when a company wants to expand the market.

29. The Marketing Concept
•The marketing concept holds that the key to achieving
organizational goals consists of the company being more
effective than competitors in creating, delivering, and
communicating superior customer value to your chosen
target markets.
•Marketing is NOT selling!
29

30. Figure 1.3The Selling and Marketing
Concepts Contrasted

31. The Marketing Concept
•Theodore Levitt drew a perceptive contrast between the
selling and marketing concepts:
Selling focuses on the needs of the seller; marketing on the needs
of the buyer. Selling is preoccupied with the seller’s need to convert
his product into cash; marketing with the idea of satisfying the
needs of the customer by means of the product and the whole
cluster of things associated with creating, delivering, and finally
consuming it.
31

32. Figure 1.4Three Considerations
Underlying the Societal Marketing
Concept

33. Preparing an Integrated Marketing
Plan and Program
•Major marketing mix tools
•Four Ps of marketing
–Product
–Price
–Place
–Promotion
•Marketing mix tools should be blended into a
comprehensive integrated marketing program.

34. Objective Outline 1-3 Summary
•Market segmentation
•Target marketing
•Differentiation and positioning
•Production and product concepts
•Selling and marketing concepts
•Societal marketing concept

35. Objective Outline 1-4
•Discuss customer relationship management and identify
strategies for creating value for customers and capturing
value from customers in return.

36. Customer Relationship Management
•Delivering superior customer value and satisfaction to build
and maintain profitable customer relationships
–Customer-perceived value: Customer’s evaluation of
a marketing offer relative to those of competing offers
–Customer satisfaction: Extent to which a product’s
perceived performance matches a buyer’s expectations

37. Customer Relationship Levels and
Tools (1 of 2)
Levels
•Basic relationships
•Low-margin customers
•Full partnerships
•High-margin customers
Tools
•Frequency marketing programs
•Loyalty rewards programs
•Club marketing programs

38. Customer Relationship Levels and
Tools (2 of 2)
Relationship marketing tools: The Honors smartphone app.

39. Customer-Engagement Marketing
•Customer-engagement marketing makes the brand a
meaningful part of consumers’ conversations and lives.
•Greater consumer empowerment賦權means that
companies must practice marketing by attraction.
•Marketers must find ways to enter consumers’
conversations with engaging and relevant brand
messages.

40. Consumer-Generated Marketing
•Brand exchanges created by consumers
–Consumers play an increasing role in shaping their
own brand experiences and those of other consumers.
•Uninvited and Invited
–Consumer-to-consumer exchanges
–Consumers invited by companies
▪New product and service ideas
▪Active role in shaping ads

41. Partner Relationship Management
•Working closely with partners both inside and outside the
company to jointly bring more value to customers
–Partners inside the firm—cross-functional teams
–Partners outside the firm—suppliers, channel partners

42. Creating Customer Loyalty and
Retention
•Keeping customers loyal makes good economic sense.
•Customer lifetime value is the value of the entire stream
of purchases a customer makes over a lifetime of
patronage.
•Customer defections can be costly
–Can lose that customer’s lifetime value
–May cause other customers to defect

43. Growing Share of Customer
•Portion of the customer’s purchasing in their product
categories
•Share of Customer is increased by:
–Good customer relationship management
–Offering greater variety to current customers
–Creating programs to cross-sell and up-sell to existing
customers

44. Building Customer Equity
•Total combined customer lifetime values of all of the
company’s customers
•Measures the future value of the company’s customer
base
•Increases when the loyalty of the firm’s profitable
customers increases
•Better measure of a firm’s performance than current sales
or market share

45. Copyright © 2023 Pearson Education, Ltd. All Rights Reserved
Customer Equity
Cadillac: Managing Customer Equity
Managing customer equity: To increase customer equity,
Cadillac is making the classic car cool again among younger
buyers. For example, says G M, “Cadillac will lead the
company to an all-electric future.”

46. Figure 1.5Customer Relationship
Groups
花蝴蝶
陌生人 藤壺
真朋友

47. Objective Outline 1-4 Summary
•Customer relationship management
•Customer-engagement marketing
•Customer equity
•Customer value and satisfaction
•Creating value forcustomers and capturing value from
customers in return.

48. Objective Outline 1-5
•Describe the major trends and forces that are changing the
marketing landscape in this age of relationships.

49. The Changing Marketing Landscape
•Digital Age
•Changing Economic Environment
•Growth of Not-for-Profit Marketing
•Rapid Globalization
•Sustainable Marketing

50. The Digital Age: Online, Mobile, and
Social Media Marketing (1 of 2)
•Digital and social media marketing: Engaging
consumers via their digital devices using digital marketing
tools
•Mobile marketing: Using mobile channels to stimulate
immediate buying, make shopping easier, and enrich the
brand experience
•Blending the new digital approaches with traditional
marketing creates a smoothly integrated marketing
strategy and mix.

51. Social Media Marketing (2 of 2)
•Online social media provide a digital home for people to
connect and share important information and life’s
moments.
•Social media offer an ideal platform for real-time marketing
and engagement.
–Facebook, Twitter, Snapchat, and smaller more
focused sites.

52. Big Data and Artificial Intelligence
(AI)
•Marketers can now amass mountains of data
•Brands can use big data to:
–gain deep customer insights,
–personalize marketing offers,
–and improve customer engagements and service.

53. Growth of Not-for-Profit Marketing
Sound marketing can help not-for-profitsattract
membership, funds, and support.

54. Rapid Globalization and Sustainable
Marketing
•Managers around the world are taking both local and
global views of the company’s:
–Industry
–Competitors
–Opportunities
•Corporate ethics and social responsibility have become
important for every business.

55. Objective Outline 1.5 Summary
•Online, mobile, and social media marketing
•Post-recession economy
•Not-for-profit marketing
•Connecting globally
•Ethical and societal responsibilities

56. Figure 1.6An Expanded Model of the
Marketing Process

57. Copyright © 2023 Pearson Education, Ltd. All Rights Reserved
Final Thoughts
•How did the COVID-19 pandemic impact markets and
marketing?
•In the aftermath of the pandemic, are things returning to
the way they were before? Why or why not?

58. THE END