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Chapter 1 Marketing: Managing Profitable Customer Relationships - Coggle…
Chapter 1
Marketing: Managing Profitable Customer Relationships
Definition
Not just telling and selling but also the sense of
fulfilling the needs of the customer
Creating and trading value with others
Marketing Process
3) create and integrated marketing program that delivers superior value
4) Build profitable relationships and create customer delight
2) Create a marketing strategy based on customer value
5) Capture value from customers to create profit and customer equity
1) Understand the marketplace as well as customer needs and desires
Marketing's fundamental concept
Market
Set of actual and potential buyers of a product
Marketers seek buyers that are profitable, the marketers try to fulfill customers’ needs and wants.
Marketing offers
A combination of goods, services, information, or experiences that meet a need or desire.
Keywords: Offer may include services, information or ideas (anti-smoking, drugs prevention)
Demands
Wants that are backed by buying power
Example: Burger King vs Ramly Burger, Uniqlo vs Petaling Street cloth.
Value and Satisfaction
Marketers must provide value to customers.
Customers form opinions on the value of different marketing offers.
A satisfied consumer will buy again and inform everyone about their favorable experience, while an unhappy customer will tell 11 people about their bad experience.
Wants
The form of wants as influenced by cultures and the individual
Example: Want a Big Mac, fries and soft drinks
Exchange, transaction and relationship
Exchange
- receiving a desired item from another by giving something in return
Transactions
- trade of values between two parties
Relationships are built through delivering value and satisfaction
Relationships with exchanges are the target, and this is how you deliver value and satisfaction.
Need
Not developed by a marketer. It is fundamental aspect of human life.
Example: Food, cloth, safety
State of felt deprivation
Marketing Management
*
-Marketing management is the art and science of finding targeted customers and establishing profitable relationships with them.
Product concept
(between consumer and the marketing strategies)
Selling concept
(From factory > existing product > selling/promoting > profits through sales volume)
Production concept
( between consumer and management)
Marketing concept
( From market > customer needs > integrated marketing > profits through customer satisfaction)
The Societal-Marketing concept
( See the conflicts between consumer short run wants and consumer long run welfare.)
The Changing Marketing Landscape
Digital age
Customer research and tracking
Product development
Advances in telecommunications, information, transportation
Distribution
Growth of the Internet
New advertising tools-Internet, E-Commerce
24/7 marketing through the Internet
Marketing relationships
Target profitable customers
Keep profitable customers
Improve customer knowledge-for your latest product
Retain and maintain the customer relationship
Profits through managing long-term customer equity
Globalization
More options for purchasing and manufacturing
Geographical and cultural distances have shrunk-borderless
Greater market coverage
Increased competition from foreign competitors-pros & cons for SME
Not-for-profit marketing
Many organizations are realizing the importance of strategic marketing.
Example: Performing arts (museum, orchestras), Government agencies, Colleges,Hospitals, Churches
Ethics and social responsibility
Marketers need to take great responsibility for the impact of their actions
Seek profit by serving the best long run interest of their customers and communities
Building Customer Relationships
-It deals with all aspects of acquiring, keeping and growing
Relationship Building Blocks
Customer satisfaction
Customer- perceived value
Consumer-Generated Marketing
Consumers are playing an increasing role in shaping brand experiences.
Customer lifetime value
The value of the entire stream of purchases that the customer would make over a lifetime of patronage.
Customer-Engagement Marketing
Fosters direct and continuous customer involvement in shaping brand conversations, experiences, and community.
Customer equity
Total combined customer lifetime values of all of the company’s customers
Partner relationship management
Working closely with partners in other company departments and outside the company
Customer Relationships Group
Butterflies
Potentially profitable but not loyal.
True friends
Both profitable and loyal.
Strangers
show low potential profitability and little projected loyalty
Barnacles
Highly loyal but not very profitable.
The Marketing Mix
Set of controllable tactical marketing tools
-Uses to pursue its marketing objectives in the target market
Place
: company activities that make the product available to target consumers
Product
: goods and services (combination) the company offers to the target markets)
Promotion
:activities that communicate the merits of the product and persuade target customers to buy it
Price
: the amount of money customers have to pay to obtain the product
