Download - Welton Ch. 1 3 Slides
-
8/11/2019 Welton Ch. 1 3 Slides
1/19
8/23/201
Marketing:Creating &CapturingCustomerValue
Marketing?
Marketing?
Market ScaniPhone 5 Rings In Six Million Sales
In its first weekend of sales, Apples iPhone 5connected with consumers, pushing sales to six millionunits after just three days on store shelves.
-
8/11/2019 Welton Ch. 1 3 Slides
2/19
8/23/201
Marketing?
Marketing?
Marketing?
-
8/11/2019 Welton Ch. 1 3 Slides
3/19
8/23/201
What is Marketing?A.Sales
B.AdvertisingC.ExchangeD.Value CreationE.A class I have to take to graduateF.Some of the aboveG.All of the above
Marketing
Product A Customer
Point of Attraction Where product, service,idea, come together with customer
Marketers work to bring Product and Customertogether
What is Marketing?
Kotlers definition: Marketing is a social and managerial
process by which individuals andgroups obtain what they need andwant through creating andexchanging products and value withothers.
-
8/11/2019 Welton Ch. 1 3 Slides
4/19
8/23/201
American Marketing AssociationDefinition of Marketing
Marketing is the activity, set ofinstitutions, and processes forcreating, communicating,delivering, and exchangingofferings that have value forcustomers, clients, partners, andsociety at large.
The Marketing Process: Creating &Capturing Customer Value
Marketing ProcessCustomer CCustomers Company Competitors Collaborators Context
Market
Segmentation
Target
MarketSelectionPositioning
Product andServices Place/Channels
Promotion
Marketing Mix/4Ps
Pricing
Profits
Customer Acquisition Customer Retention
Creating Value
Capturing Value
Sustaining Value
What is Marketing? By Harvard Business School
-
8/11/2019 Welton Ch. 1 3 Slides
5/19
8/23/201
Customers Lou Gerstner:
Everything starts with the customer.
Peter Drucker: If we want to know what a business is we have to start with its
purpose . There is only one valid definition of business purpose: tocreate a customer . It is the customer who determines what abusiness is. For it is the customer, and he alone, who throughbeing willing to pay for a good or service, converts economicresources into wealth, things into goods. What the business thinksit produces is not of first importance especially not to the future ofthe business and its success. What the customer thinks he isbuying, what he considers value is decisive Because it is[the purpose of a business] to create a customer, [the]business enterprise has two and only two basic functions:marketing and innovation.
Wessex, Inc. 2007
Peter Drucker
Marketing is THE key business function.Marketing is so basic that it cannot beconsidered a separate businessfunction. It is the whole business seenfrom the point of view of its final result thecustomers point of view. - PeterDrucker
What is Marketing?
Marketing is all about meeting needs . Diverse stakeholders
Consumers Sellers Investors Community residents
-
8/11/2019 Welton Ch. 1 3 Slides
6/19
8/23/201
What is Marketing?
Needs, wants, anddemands
Market offerings:products, services,ideas, people, andexperiences
Value andsatisfaction
Exchange,transactions, andrelationships
Markets
Core Marketing Concepts
What is Marketing?
Goods Services Experiences Events People
Places Properties Organizations Information Ideas
Many Things Can Be Marketed!
Brand Preference
-
8/11/2019 Welton Ch. 1 3 Slides
7/19
8/23/201
Presidential Preference
Welcome to Marketing
1 -22
Ideas
-
8/11/2019 Welton Ch. 1 3 Slides
8/19
8/23/201
Marketing Satisfies Needs
Marketing Concept Identify needs and wants, and provide
products, services, ideas, etc. thatsatisfy those needs and wants.
Marketing Satisfies Needs
Need is the difference between aconsumers actual state and some idealor desired state. Physical, Social, Psychological
Needs vs. Wants
A want is a desire for a particularproduct used to satisfy that need. Wants are culturally and socially
based Wants + Buying Power = Demand
-
8/11/2019 Welton Ch. 1 3 Slides
9/19
8/23/201
Want or Need?
Benefits
Benefits what a product or servicedelivers when it satisfies a need.
Consumers buy benefits, not productsor features.
Organization is in the business ofdelivering benefits.
Benefits
People dont buy a inch drill bit,they buy a inch hole.
Theodore Levitt
-
8/11/2019 Welton Ch. 1 3 Slides
10/19
8/23/201
Marketing is an Exchange of Value
Exchange is the heart of every marketingactivity
Companies choose a value proposition differentiation
What is value?
Exchange of Value
How much will you pay to download asong?
This ad attemptsto change theperceived value ofCheerios CerealBar by helpingconsumersevaluate itsnutritional value
-
8/11/2019 Welton Ch. 1 3 Slides
11/19
8/23/201
Market Market is all available buyers who share
common needs satisfied by specificproducts and have resources,willingness to make an exchange(purchase). Size
Marketplace where buyers and sellerscome together Marketspace
A Modern Marketing System
Marketing Management Marketing management is the art and
science of choosing target markets andbuilding profitable relationships with
them. Creating, delivering, and
communicating superior customervalue is key.
What customers will we serve? How can we serve these customers
best?
-
8/11/2019 Welton Ch. 1 3 Slides
12/19
8/23/201
Marketing Management Orientations
Production and Product Concepts
The Selling and Marketing ConceptsContrasted:
-
8/11/2019 Welton Ch. 1 3 Slides
13/19
8/23/201
Marketing Concept
What is the need? What is the
benefit?
Societal Marketing Concept Deliver value- improve well-being Corporate social marketing Cause marketing Cause-related marketing Corporate philanthropy Corporate community involvement Socially responsible business
practices
Corporate Social Responsibility
-
8/11/2019 Welton Ch. 1 3 Slides
14/19
8/23/201
Cause Related Marketing
200,000 new donorscontributed $30 millionto the ASPCA as aresult of The Ad
Sampson
Societal Marketing
-
8/11/2019 Welton Ch. 1 3 Slides
15/19
8/23/201
This ad showsa companycommunicatingits CaringCapitalism
Building Customer Relationships
CRM Customer RelationshipManagement is the overall process of building and
maintaining profitable customerrelationships by delivering superiorcustomer value (benefit) andsatisfaction.
-
8/11/2019 Welton Ch. 1 3 Slides
16/19
8/23/201
CRM
It costs 5 to 10 times MORE to attract a
new customer than it does to keep acurrent customer satisfied.
Marketers must be concerned with thelifetime value of the customer.
CRM
Attracting, retaining and growingcustomers
Building customer relationships andcustomer equity
CRM
-
8/11/2019 Welton Ch. 1 3 Slides
17/19
8/23/201
CRM
What organization does a great job of
delivering this for you? Why?
What organization does a poor job ofthis? How could they change it? Wouldthat impact your behavior?
The Digital Age: Online, Mobile, andSocial Media Marketing Digital and social media marketing :
Engaging consumers via their digital devicesusing digital marketing tools and social media
Mobile marketing : Using mobile channels tostimulate immediate buying, make shoppingeasier, and enrich the brand experience
Blending the new digital approaches withtraditional marketing creates a smoothlyintegrated marketing strategy and mix.
Customer-Engagement Marketing Customer-engagement marketing involves
fostering direct and continuous customerinvolvement in shaping brand conversations,
experiences, and community. Greater consumer empowerment means thatcompanies should rely on marketing byattraction.
The key is to find ways to enter consumersconversations with engaging and relevantbrand messages.
-
8/11/2019 Welton Ch. 1 3 Slides
18/19
8/23/201
Customer-Generated Marketing Brand exchanges created by consumers
Consumers play an increasing role inshaping their own brand experiences andthose of other consumers.
Occurs through: Uninvited consumer-to-consumer
exchanges Invitation of consumers by companies
Asking for new product and service ideas Asking to play an active role in shaping ads
Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall
Customer Equity
Total combined customer lifetime valuesof all of the companys current andpotential customers
Helps to measure the future value of thecompanys customer base
Increases when the loyalty of the firmsprofitable customers increases
Better measure of a firms performancethan current sales or market share
-
8/11/2019 Welton Ch. 1 3 Slides
19/19
8/23/201
Customer Relationship Groups
Harley Davidson Marketing its wayto success