Transcript The Marketing Concept

Marketing: Creating and
Capturing Customer Value
Market & Product
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A market is the set of actual and potential
buyers of a product. These buyers share a
particular need or want that can be satisfied
through exchange relationships.
Product (Marketing Offer): physical product,
service, information, experience, person,
place, organization, and ideas.
Examples of Product
National Milk Processors
Education Program
Definition of Marketing
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Marketing is the process of planning and
executing the conceptions, pricing, promotion
and distribution of ideas, goods, and services
to create exchanges that satisfy individual
and organizational goals. (AMA)
Marketing is meeting needs profitably.
Marketing Philosophy
The Production Concept
 The Product Concept
 The Selling Concept
------------------------------------------------------- The Marketing Concept
 The Customer Concept
 The Societal Marketing Concept
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The Production Concept
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The idea that consumers will favor products
that are widely available and highly affordable.
Focus: achieving high production efficiency,
low costs, and mass distribution.
It is useful when (1) the demand for a product
exceeds the supply; (2) the product’s cost is
too high.
Examples: Ford’s Model-T, standard raw
materials and components, CD, LCD.
The Product Concept
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The idea that consumers will favor products
that offer the most quality, performance, and
features.
Focus: making superior products and
improving them over time.
Examples: Digital Camera, CPU.
Better Mousetrap Fallacy
Marketing Myopia (Theodoes Levitt, 1960)
Product-Oriented vs. MarketOriented Definition
Company Product-Oriented
Definition
Market-Oriented Definition
Disney
We run theme
parks.
We create fantasies – a place
where America still works the way
it’s supposed to.
Nike
We sell shoes.
We help people experience the
emotion of competition, winning,
and crushing competitors.
We make
cosmetics.
We sell lifestyle and selfexpression; success and status;
memories, hopes, and dreams.
Revlon
The Selling Concept
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The idea that consumers will not buy enough
of the firm’s products unless it undertakes a
large-scale selling and promotion effort.
Sergio Zyman (Coca-Cola’s former vice
president of marketing): the purpose of
marketing is to sell more stuff to more people
more often for more money to make more
profit.
The Selling Concept
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Focus: undertake an aggressive selling and
promotion effort.
Examples: unsought goods (e.g. funeral plots,
encyclopedias, and foundations), election.
The selling concept assumes that customers
who are coaxed into buying the product will
like it. Or, if they don’t like it, they will possibly
forget their disappointment and buy it again
later.
The Marketing Concept
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The key to achieving its organizational goals
consists of the company being more effective
than competitors in creating, delivering, and
communicating superior customer value to its
chosen target markets.
Slogans: “Find wants and fill them”, “Love
the customer, not the product”, and “We do it
all for you” (Toyota).
Contrasts Between the Sales Concept
and the Marketing Concept
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Theodore Levitt: selling focuses on the needs
of the seller; marketing on the needs of the
buyer.
Selling – the manufacturer: “This is what I
make, won’t you please buy it”; marketing –
the consumer: “This is what I want, won’t you
please make it”
Selling – inside-out perspective; marketing –
outside-in perspective.
Contrasts Between the Sales Concept and the
Marketing Concept
The Marketing Concept
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Four pillars
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Target market
Customer needs
Integrated marketing
Profitability.
Target Market
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Companies do best when they choose their
target market(s) carefully and prepare
tailored marketing program.
Case: Veterinary Pet Insurance
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Facts
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More than 60% of all U.S. households own one
dog or one cat or both.
There are more than 60 million dogs, 68million
cats, and 2 million rabbits in U.S..
Spend $28.5 billion a year on the pets.
Nearly 75% of pet owners are willing to go into
debt to pay for veterinary care.
Sales have grown 40% in each of the past
year, reaching nearly $72million last year.
Customer Needs
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Five types of needs
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Stated needs, e.g. the customer wants an inexpensive car.
Real needs, e.g. the customer wants a car whose
operating cost, not its initial price, is low.
Unstated needs, e.g. the customer expects good service
from the dealer.
Delight needs, e.g. the customer would like the dealer to
include an onboard navigation system.
Secret needs, e.g. the customer wants to be seen by
friends as a savvy consumer.
Customer Needs
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Responsive, anticipative, and creative marketing
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A responsive marketer finds a stated need and fills it.
An anticipative marketer looks ahead into what needs
customers may have in the near future.
A creative marketer discovers and produces solutions
customers did not ask for but to which they enthusiastically
respond.
Akio Morita once proclaimed that Sony doesn’t
serve markets; Sony creates markets. The Walkman
is a classic example.
3M: “Our goal is to lead customers where they want
to go before they know where want to go.”
Does Marketing Create or Satisfy Needs?
Take a position: Marketing shapes
consumer needs and wants versus
Marketing merely reflects
needs and wants of consumers.
the
Integrated Marketing
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When all the company’s departments work
together to serve the customer’s interests,
the result is integrated marketing.
Two levels
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Integrating the various marketing functions.
Integrating marketing with other departments
(production, finance, human resource).
External marketing and Internal marketing
The Four P
Components of
the Marketing
Mix
Marketing-Mix Strategy
The Customer Concept
The Societal Marketing
Concept
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A principle of enlightened marketing that
holds that a company should make good
marketing decisions by considering
consumers’ wants, the company’s
requirements, consumers’ long-run interests,
and society’s long-run interests.
Examples: Body Shop, HSBC, Dell Asia, Bata
Indonesia.
Johnson & Johnson’s Tylenol ($240 million),
保力達蠻牛 (NT 120 million), 金車毒奶事件.
Earth Tree
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將來自第三世界國家的手工製作品，經由較進
步的國家像歐美、日本等國負責設計與商品化
流程，然後銷售出口。
因為堅持Fair Trade的基本精神，讓第三世界
國家的工錢不被剝削，保有合理的利潤，因此
多販售出一樣商品也就能夠讓他們靠自己的努
力改善困窘的生活，甚至也因為這樣可以學到
新的謀生技能，即便在不穩定的環境中也能靠
他們自己的力量感到榮耀和成就。
Needs, Wants and Demands
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Needs (需要): the basic human requirements.
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Physical: food, clothing, shelter, safety
Social: belonging, affection
Individual: learning, knowledge, self-expression
Wants (慾望): when needs are directed to
specific objects that might satisfy the need.
Demands (需求): wants for specific products
backed by an ability to pay.
Demand States and Marketing
Tasks
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Marketing managers are responsible for
demand management.
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Negative Demand → Counter Marketing, e.g.
insurance.
No Demand → Stimulus, e.g. encyclopedias.
Latent Demand → Developing, e.g. iPod; 柴汽兩
用汽車; 克寧銀養奶粉.
Declining Demand → Remarketing, e.g. Arm &
Hammer’s baking soda → deodorizer; school.
Demand States and Marketing
Tasks
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Marketing managers are responsible for
demand management.
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Irregular Demand → Synchromarketing (同步行
銷), e.g. ice cream; museum.
Full Demand → Maintain Marketing
Overfull Demand → Demarketing (低行銷), e.g.
Mister Donut; 黑師傅捲心酥.
Unwholesome Demand → Social Marketing, e.g.
cigarettes; drunk-driving; seat belt; anorexia.
Customer Relationship
Management (CRM)
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The overall process of building and
maintaining profitable customer relationships
by delivering superior customer value and
satisfaction.
On average, it costs 5 to 10 times as much to
attract a new customer as it does to keep a
current customer satisfied. (Sears – 12 times)
Customer Lifetime Value and
Equity
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Customer lifetime value: the value of the
entire stream of purchases that the customer
would make over a lifetime of patronage.
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Lexus: $600,000; Taco Bell: $12,000;
Supermarket: $50,000.
Customer equity: the total combined
customer lifetime values of all of the
company’s customers.
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Cadillac vs. BMW
Selective Relationship
Management
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Weed out losing customers and target
winning ones for pampering.
Examples: Citibank; First Chicago Bank;
Fidelity Investment.
Risk: future profits are hard to predict.
Selective Relationship
Management
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西南航空(Southwest Airlines)流傳一個故事，
有一名對公司抱怨不休的顧客，每回搭機後，
一定寫信到公司總部抗議，她在每封信結語中
都發誓再也不搭西南航空的飛機了，但抗議信
還是不斷寄來。最後，有個顧客溝通人員火大
了，把整疊信拿去給創辦人Herb Kelleher。
Kelleher看過後，拿出一張印有公司名稱的信
紙，寫道：「瓊斯太太：我們會想念妳的！」
摘錄自哈佛商業評論 全球繁體中文版
(p. 42, December 2007)
Customer Relationship Groups
Butterflies
High
Profitability
Good fit between
company’s offerings and
customer’s needs; high
profit potential
True Friends
Good fit between
company’s offerings and
customer’s needs; highest
profit potential
Strangers
Low
Little fit between company’s
offerings and customer’s
needs; lowest profit
potential
Barnacles
Limited fit between
company’s offerings and
customer’s needs; low
profit potential
Short-term
customers
Projected loyalty
Long-term
customers
Share of Customer
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The portion of the customer’s purchasing in
its product categories that a company gets.
Methods to increase share of customer
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Offer greater variety to current consumers
Train employees to cross-sell and up-sell in order
to market more products and services to existing
customers.
Amazon: books, music, videos, gifts, toys,
consumer electronics, office products, and so
on.
Customer Satisfaction
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The extent to which a product’s perceived
performance matches a buyer’s expectation.
Smart companies aim to delight customers by
promising only what they can deliver, then
delivering more than they promise.
Examples: Lexus; Southwest Airlines;
Seasons Hotels; Nordstrom department store.
Satisfying Customer Complaints
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Rate of dissatisfaction: 25%; rate of
complaint in dissatisfaction: 5%.
50% of complaints report a satisfactory
problem resolution.
Examples: Williams-Sonoma; Enterprise
Rent-A-Car.
On average, satisfied →3 people, and
dissatisfied → 11 people.
顧客價值
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直接終身價值：即 Customer lifetime value。
間接終身價值：顧客口碑會影響別人與公司的
交易，因而為公司增加或減少利潤。
對新產品來說，一名顧客的口碑價值可能是他
的直接價值的兩倍以上。
不滿的顧客散播負面評語，因而減損的銷售量
也是直接價值的兩倍以上。
摘錄自哈佛商業評論 全球繁體中文版
(p. 44, December 2007)
Satisfying Customer Complaints
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Rate of complainant repurchase
Resolved
Resolved
quickly
Major
complaints
34%
52%
Minor
complaints
52%
95%
Customer Relationship Levels
and Tools
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Level of relationship: basic＜ reactive (e.g.
P&G)＜accountable＜proactive＜partnership
(e.g. Boeing).
Tools:
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Add financial benefits, e.g. frequent-flier program.
Add social benefits, e.g. club marketing program.
Add structural ties, e.g. McKesson; FedEx.
Levels of Relationship
Marketing
High margin
Medium
margin
Low Margin
Many customers/
distributors
Accountable
Reactive
Basic or
reactive
Medium number of
customers/
distributors
Proactive
Accountable
Reactive
Few customers/
distributors
Partnership
Proactive
Accountable
Harley-Davidson
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Harley Owners Group (H.O.G.)
H.O.G. benefits include Hog Tales, a touring
handbook, emergency road service, a
specially designed insurance program, theft
reward service, discount hotel rates, and a
Fly & Ride program.
The company also maintains an extensive
Web site devoted to H.O.G., which includes
information on club chapters, events, and a
special members-only section.
In 1981, American Airlines first
introduced the AADVANTAGE
frequent-flier program. When other
airlines copied this strategy, did they
engage in the prisoner’s dilemma?
Prisoner’s Dilemma
Player 1 ╲ Player 2
Cooperate
Fink
Cooperate
2, 2
-3, 3
Fink
3, -3
-2, -2
How can the firms escape from the
prisoner’s dilemma?