Transcript Designing a Customer-Driven Marketing Strategy

Principles of Marketing,
Arab World Edition
Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed
Tolba
Presentation prepared by Annelie Moukaddem Baalbaki
CHAPTER ONE
Marketing: Creating and
Capturing Customer Value
Lecturer: Lulu Saud Altweem
Ch 1 -0
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Creating and Capturing Customer Value
Topic Outline
1.1 What Is Marketing?
Define marketing and outline the steps in the marketing
process.
1.2 Understand the Marketplace and Customer Needs.
Explain the importance of understanding customers and the
marketplace and identify the five core marketplace concepts.
1.3 Designing a Customer-Driven Marketing Strategy.
1.4 Preparing an Integrated Marketing Plan and Program.
Identify the key elements of a customer-driven marketing
strategy and discuss the marketing management orientations
that guide marketing strategy.
Ch 1 -1
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Creating and Capturing Customer Value
Topic Outline
1.5 Building Customer Relationships.
Discuss customer relationship management and identify
strategies for creating value for customers and capturing value
from customers in return.
1.6 The Changing Marketing Landscape.
Describe the major trends and forces that are changing the
marketing landscape in this age of relationships.
What Is Marketing?
Simplest
definition
Marketing is
managing
profitable
customer
relationships.
Attract new
customers by
promising
superior value
Keep and
grow current
customers by
delivering
satisfaction.
What Is Marketing?
Marketing Defined
Marketing is a process by which companies create value
for customers and build strong customer relationships to
capture value from customers in return.
Broadly defined, marketing is a social and managerial
process by which individuals and organizations obtain what
they need and want through creating and exchanging value
with others.
Ch 1 -4
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What Is Marketing?
The Marketing Process
This important figure shows marketing in a nutshell. By
creating value for customers, marketers capture value
from customers in return. This five-step process forms the
marketing frame work for the rest of the chapter and the
remainder of the text.
Ch 1 -5
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Understanding the Marketplace and Customer
Needs
Customer Needs, Wants, and Demands
Needs
• States of deprivation
• Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression
Wants
• Form that needs take as they are shaped by
culture and individual personality
Demands
Ch 1 -6
(read book pg 6,7)
• Wants backed by buying power
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Understanding the Marketplace and Customer
Needs
Market Offerings: Products, Services and Experiences
Market offerings are some combination of products,
services, information, or experiences offered to a market to
satisfy its needs or wants.
Marketing myopia is focusing only on existing wants and
losing sight of underlying consumer needs.
Ch 1 -7
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Understanding the Marketplace and Customer
Needs
Customer Value and Satisfaction
Customers
• Value and satisfaction.
• From expectations about the value and
satisfaction that various market offerings.
• Will deliver and buy accordingly
Marketers
• Set the right level of
expectations.
• Not too high or low.
Ch 1 -8
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Understanding the Marketplace and Customer
Needs
Exchanges and relationships
Exchange is the act of obtaining a desired object from
someone by offering something in return.
Relationships: Marketing actions try to create, maintain,
grow exchange relationships.
Ch 1 -9
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Understanding the Marketplace and Customer
Needs
•
Each party in the system adds value. Walmart cannot fulfill
its promise of low prices unless its suppliers provide low
costs. Ford cannot deliver a high-quality car-ownership
experience unless its dealers provide outstanding service.
•
Arrows represent relationships that must be developed and
managed to create customers value and profitable customer
relationships.
Ch 1 10
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Designing a Customer-Driven Marketing
Strategy
Marketing Management
Marketing management is the art and science of choosing
target markets and building profitable relationships with them.
Ch 1 -11
What customers will we
serve (what’s our target
market)?
Ch2
How can we serve these
customers best (what’s
our value proposition)?
Ch7
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Designing a Customer-Driven Marketing
Strategy
Selecting Customers to Serve
Market segmentation refers to dividing the markets into
segments of customers.
Target marketing refers to which segments to go after.
Ch 1 -12
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Designing a Customer-Driven Marketing
Strategy
Choosing a Value Proposition
A brand’s value proposition is the set of benefits or
values a company promises to deliver to customers to
satisfy their needs.
Ch 1 -13
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Designing a Customer-Driven Marketing
Strategy
Marketing Management Orientations
Production
concept
Ch 1 -14
Product
concept
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Selling
concept
Marketing
concept
Societal
concept
Designing a Customer-Driven Marketing
Strategy
Marketing Management Orientations
The societal marketing concept holds that marketing
strategy should deliver value to customers in a way that
maintains or improves both the consumer’s and society’s wellbeing.
Selling concept is the idea that consumers will not buy
enough of the firm’s products unless it undertakes a large scale
selling and promotion effort
Ch 1 -15
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Designing a Customer-Driven Marketing
Strategy
Marketing Management Orientations
Marketing concept is the idea that achieving
organizational goals depends on knowing the needs and
wants of the target markets and delivering the desired
satisfactions better than competitors do.
Ch 1 -16
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Designing a Customer-Driven Marketing
Strategy
Ch 1 -17
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Preparing an Integrated Marketing Plan and
Program
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.
Ch 1 -18
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Building Customer Relationships
Customer Relationship Management (CRM) (discuss
Etisalat case on pg. 15)
Customer relationship management (CRM): The overall
process of building and maintaining profitable customer
relationships by delivering superior customer value and
satisfaction.
Ch 1 -19
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Building Customer Relationships
Relationship Building Blocks: Customer Value and
Satisfaction
Customer- perceived value
• A customer buys from the firm that offers
the highest customer-perceived value—
the customer’s evaluation of the difference
between all the benefits and all the costs of
a market offering relative to those of
competing offers.
Customer satisfaction
• depends on the product’s
perceived performance
relative to a buyer’s
expectations. If the
product’s performance falls
short of expectations, the
customer is dissatisfied.
Ch 1 -20
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The Changing Nature of Customer
Relationships
(discuss Real Marketing on pg. 19) read book pg. 20
Today’s companies are building deeper, more direct, and lasting
relationships with more carefully selected customers. selective
relationship.
Ch 1 -21
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Capturing Value from Customers
Creating Customer Loyalty and Retention
The final step involves capturing value in return in the form
of sales, market share, and profits. By creating superior
customer value, the firm creates highly satisfied customers
who stay loyal and buy more. This, in return, means greater
long-run returns for the firm.
Ch 1 -22
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Creating Customer Loyalty and Retention
Customer lifetime value is the value of the entire stream of
purchases that the customer would make over a lifetime of
patronage.
Ch 1 -23
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Capturing Value from Customers
Building Customer Equity
Customer equity is the total combined customer lifetime
values for all of the company’s customers.
Ch 1 -24
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The Changing Marketing Landscape
This section have five major developments:
Digital age
Rapid
globalization
The Changing
Marketing
Landscape
Not-forprofit
marketing
Ch 1 -25
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Sustainable
Marketing ─
The Call for
More Social
Responsibility
The Changing Economic Environment

The Great Recession caused many consumers to rethink
their spending priorities and cut back on their buying.

In adjusting to the new economy, companies and slash
prices in an effort to coax more frugal customers into
opening their wallets.

The challenge is to balance the brand’s value proposition
with the current times while also enhancing its long-term
equity.
The Digital Age

The digital age has provided marketers with exciting new
ways to learn about and track customers and create
products and services tailored to individual customer needs.

Online marketing is now the fastest-growing form of
marketing.
The Growth of Not-for-profit Marketing

In recent years, marketing has also become a major part of
the strategies of many not-for-profit organizations, such as
colleges, hospitals, museums, zoos, symphony orchestras,
and even churches.

Government agencies have also shown an increased interest
in marketing.
Rapid Globalization

Today, almost every company, large or small, is touched in
some way by global competition.

Managers in countries around the world are increasingly
taking a global, not just local, view of the company’s
industry, competitors, and opportunities.
Sustainable Marketing
The Call for More Social Responsibility

As the worldwide consumerism and environmentalism
movements mature, today’s marketers are being called on
to develop sustainable marketing practices.

Corporate ethics and social responsibility have become hot
topics for almost every business.
So, What Is Marketing? Pulling It All Together
Ch 1 -31
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From book-
Read reviewing objectives and key terms (pg. 30 and 31)
Read all 'Key Terms' (pg. 31)
Video case- Harley Davidson (pg. 33).
Ch 1 -32
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