Transcript Marketing Customer Value

MR1100
Customer Value, Satisfaction, Customer
Relationships and Customer
Experiences.
Chapter 1
In this section we will:
 Define Marketing.
 Discover the basic requirements for marketing to occur.
 Understand the Role of Marketing in our Society
 Distinguish between the controllable marketing mix
elements and uncontrollable environmental marketing
elements.
 Develop an understanding of how marketing has
evolved over time.
 Understand how ethical issues can creep into marketing
decisions.
A Marketing Expert
• Unlike many other business subjects,
Marketing is something that we are exposed
to each and every day -- as a result we are
marketing experts.
Definition of Marketing
• Marketing is:
– A Process of Planning and Doing…
– The Conception (Product), the Pricing, The Promotion
and the Distribution (Place)…
– Of an Idea, Good or Service…
– To create and Exchange..
– To satisfy Individual or Organizational Objectives.
Marketing Discovers needs & wants and attempts to
satisfy them.
For Marketing to Occur there needs to
be:
• Two or more parties (a Buyer & a Seller) that
have needs that each other can fulfil.
• A Desire, and an Ability to satisfy these needs.
(A Market)
• A way to Communicate this desire to the other
party.
• Something of value to Exchange.
Key Questions of Marketing
• Who Markets - Profit and Not-for-profit,
government and individuals.
• What is marketed - Goods, Services and Ideas.
• Who Buys what is marketed - Individuals and
Organizations.
• Who Benefits - Individuals and Organizations
Finding a need
• Sometimes satisfying a need proves to be a
difficult task.
• To narrow in on the needs of a diverse group
of potential customers, companies often
group people by their needs. These groups are
known as Target Markets.
• Target Markets will respond similarly to a
given set of marketing actions.
Value
• The combination of benefits offered to the
customer relative to the price paid.
• Quality = increased customer value.
The Marketing Mix
“The 4 P’s”
• These are the controllable factors that a
company/organization can adjust in order to satisfy
customer needs.
• They include:
– The Product ( The Good, Service or Idea sold)
– The Promotion ( How the product is communicated to the
potential buyer)
– The Price (The rate of exchange)
– The Place ( How the product is distributed to the
customer)
Influences on Marketing
• Certain aspects of marketing are controllable:
Product, Price, Place & Promotion.
• Other aspects of the environment in which
marketing occurs must be dealt with, but
cannot be changed: Social Forces, Economic
Forces, Technological Forces, Competitive
Forces and Regulatory Forces.
Environmental Influences
• These are factors external to the
company/organization that it has no direct
control over. These factors must be dealt
with.
• These include:
– Social Factors - Aspects of Demographic Change
and Cultural Change.
– Economic Factors - People’s income and inflation
Environmental Influences cont...
– Technological Factors - Changes in technology and
the effects of this change.
– Competitive Factors - What competitors are doing.
– Regulatory Factors - Government and Industry
regulation and how it impacts on the business.
Eras of Marketing
• Production Era - 1800’s - 1920’s -
Customers
would buy all that was produced because they simply could
not buy these newly-invented items before. The Focus in this
era was on developing the production process (e.g. Assembly
lines), not on satisfying customer needs. Henry Ford’s
philosophy of “you can have any colour you want; provided
its black” was the prevailing tone of manufacturers.
Customers had little choice but accept this.
Mid - 1800’s
Industrial
Revolution
1930’s
The Great Depression
1960’s
Baby Boomers come
of age
Mid -1980’s
The Computer age
Now
Eras of Marketing cont...
• Sales era -- 1930’s - 1960’s - During this time the
world went through a depression and a war. Production
capacity was well developed however the buying public had
less money to buy these new products and competition
among specific manufactures was stiff. The focus was on the
hard sell. “We’ve built it, so you better buy it” was the
prevailing philosophy. Again the interests the customer were
secondary compared to the interests of manufacturers.
Mid - 1800’s
Industrial
Revolution
1930’s
The Great Depression
1960’s
Baby Boomers come
of age
Mid -1980’s
The Computer age
Now
Eras of Marketing cont...
• Marketing Concept Era -- 1960’s - 1980’s - The
emergence of Japanese competition in the late 60’s and 70’s
and the increased activism of customers who demanded
better quality products force manufactures to finally consider
the customer when developing and marketing products.
• Customers were better educated, better aware and demanded
“value”.
Mid - 1800’s
Industrial
Revolution
1930’s
The Great Depression
1960’s
Baby Boomers come
of age
Mid -1980’s
The Computer age
Now
Eras of Marketing cont...
• Market Orientation Era / Customer Experience Era- 1990’s The advent of computers and massive data gathering allow
companies to better determine customer needs. Product lives are
shorter and competition is stiff to please the customer and build
long-term relationships.
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Customer Value
Customer Satisfaction
Customer Relationship Management
Customer Lifetime Value
Interactive Marketing
Mid - 1800’s
Industrial
Revolution
1930’s
The Great Depression
1960’s
Baby Boomers come
of age
Mid -1980’s
The Computer age
Now
Eras of Marketing cont...
• Social Media: Market Orientation Era / Customer Experience
Era- NOW – Social Media is made up of user friendly internet
based website that allow three way communication – between
buyer and seller, seller and buyer and buyer and buyer. The
content is largely CONSUMER based.
Mid - 1800’s
Industrial
Revolution
1930’s
The Great Depression
1960’s
Baby Boomers come
of age
Mid -1980’s
The Computer age
Now
Micro/Macro Marketing
• Micromarketing - looks at how the individual
corporation markets.
• Macromarketing - Looks at the impact of
marketing, as a whole, on society.