Transcript Marketing: Managing Profitable Customer Relationships

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Marketing: Managing Profitable Customer
Relationships
•Chapter 1
•Powerpoint slides
•Express version
•Instructor name
•Course name
•School name
•Date
Principles of Marketing: 6th Canadian Edition
Learning Objectives
1.2
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• After studying this chapter, you should be able to:
– Define what marketing is and discuss its core concepts
– Define marketing management and compare the five
marketing management orientations
– Discuss customer relationship
management and strategies for
building lasting customer
relationships
– Analyze the major challenges facing
marketers heading into the new
“connected” millennium
Principles of Marketing: 6th Canadian Edition
Needs, Wants, and Demands
1.3
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• Marketing:
– The managing of profitable relationships
– Satisfying customer needs
• Needs:
Figure 1.1
– Felt deprivation
• Wants:
– Form of needs shaped by
culture and personality
• Demands:
– Wants backed by buying
power
Principles of Marketing: 6th Canadian Edition
Value and Satisfaction
1.4
• Value:
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– Benefits gained versus costs of obtaining product
• Satisfaction:
– Degree of meeting consumer’s expectations
• Exchange:
– Trade of value between
parties
• Transaction:
– Two things of value
– Agreed-upon conditions
– Time/place of agreement
Principles of Marketing: 6th Canadian Edition
Marketing Management
1.5
• Market:
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– Set of actual or potential buyers
• Marketing management:
– Choosing target markets
– Building profitable relationships with them
• Demarketing:
– Reduce, not
destroy demand
– Temporarily or
permanently
Figure 1.2
Principles of Marketing: 6th Canadian Edition
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Marketing Management Orientations
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Production concept
Product concept
Selling concept
Marketing
concept
1.6
Figure 1.3
Principles of Marketing: 6th Canadian Edition
Societal Marketing Concept
1.7
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• Societal marketing concept:
– Determine needs/wants of target markets
– Deliver desired satisfactions
– More efficiently and
effectively
– Maintain or improve
consumer’s and society’s
well-being
Figure 1.4
Principles of Marketing: 6th Canadian Edition
Customer Satisfaction and Loyalty
1.8
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• Customer __________
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Relationship management
Lifetime value
Perceived value
Satisfaction
Loyalty and
retention
– Equity
Figure 1.5
Principles of Marketing: 6th Canadian Edition
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Today’s Marketing Connections
• The Internet
• One to one marketing
• Selective relationship
management
1.9
Figure 1.6
• Increase share of
customer
• Partner relationship
management
• Supply chain
management
• Strategic alliances
Principles of Marketing: 6th Canadian Edition
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Marketing Connections in Transition
Old marketing thinking:
New marketing thinking:
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Sales/product centered…
Practice mass marketing…
Focus on product/sales…
Make sales to customers…
Get new customers…
Grow share of market…
Serve any customer…
Use mass media…
Standardized products…
Sales/marketing responsible for
customer satisfaction/value…
Go it alone…
Market locally…
Profit responsibility…
Corporations…
Use marketplaces…
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1.10
Market/customer centered
Selected market segments
Focus on customer satisfaction/value
Develop customer relationships
Keep old customers
Grow share of customer
Serve profitable customers
Connect with customers directly
Customized products
Enlist all departments to deliver
customer satisfaction/value
Partner with others
Market locally and globally
Social/environmental responsibility
Non-profits
Use marketspaces
Principles of Marketing: 6th Canadian Edition
In Conclusion…
1.11
Copyright © 2005 Pearson Education Inc.
• The learning objectives for this chapter were:
– Define what marketing is and discuss its core concepts
– Define marketing management and compare the five
marketing management orientations
– Discuss customer relationship
management and strategies for
building lasting customer
relationships
– Analyze the major challenges facing
marketers heading into the new
“connected” millennium
Principles of Marketing: 6th Canadian Edition