Post on 05-Apr-2018
7/31/2019 Mktg Report Group 5
1/32
Designing a Customer-Driven Marketing
Strategy
7/31/2019 Mktg Report Group 5
2/32
MARKETING MANAGEMENT
Art and science of choosing target marketsand building profitable relationships with them.
A marketing managers aim is to find, attract,
keep, and grow target customers by creating,delivering, and communicating superiorcustomer value.
7/31/2019 Mktg Report Group 5
3/32
Procter and Gamble Philippines
To design a winning marketing
strategy, the marketing
manager must answer two
important questions.
1. What customers will
we serve? (whats
our target market)?
2. How can we servethese customers best
(whats our value
proposition)?
7/31/2019 Mktg Report Group 5
4/32
SELECTING CUSTOMERS TO SERVE
The company must first decide who will it serve.
It is necessary to select customers that can beserved well and profitably.
Market
Segmentation
- Dividing the
market intosegments of
customers.
STEP 1: STEP 2:
Target Marketing
-evaluating eachmarket segments
attractiveness andselecting one or
more segments to
enter.
7/31/2019 Mktg Report Group 5
5/32
1
Marketing managers must decide which
customers they want to target and on the level,
timing, and nature of their demand.Managing demand means managing customers
who come from two groups: new and repeat
customers. Keeping existing customers is
important as the cost of retaining them is muchless than attracting new ones.
Simply, marketing management is customer
management and demand management.
7/31/2019 Mktg Report Group 5
6/32
This slideshow is brought to you by.
CREDITS TO : mrbenjaminspeed
7/31/2019 Mktg Report Group 5
7/32
This slideshow is brought to you by.
CREDITS TO : Jollibee Official YT Channel
7/31/2019 Mktg Report Group 5
8/32
CHOOSING A VALUE PROPOSITION
A value proposition is the set of benefits or
values the firm promises to deliver to consumers tosatisfy their needs.
Customers question:
Why I should buy your brand rather than a
competitors?
7/31/2019 Mktg Report Group 5
9/32
MARKETING MANAGEMENT ORIENTATIONS
The firm must decide the design strategiesthat will build profitable relationships with
target customers.
There are 5 alternative concepts under which
organizations design and carry out their
marketing strategies: the production, product,
selling, marketing, and social marketingconcepts.
7/31/2019 Mktg Report Group 5
10/32
PRODUCTION CONCEPT
Consumers prefer products that are widelyavailable, and relatively inexpensive to purchase
The firms focus would be on improving
production and distribution efficiency to reduceproduct costs and therefore be in a position tosell more cheaply .
7/31/2019 Mktg Report Group 5
11/32
PRODUCT CONCEPT
Consumers prefer those products that offerthe most quality; the best performance; or
innovative features.
Firms focus would, primarily, be on regular
product enhancement.
7/31/2019 Mktg Report Group 5
12/32
SELLING CONCEPT
Consumers will buy certain products only ifthey are aggressively promoted and sold.
Firms focus would be on advertising and
sales activities, especially for those products
that consumers do not actively look for.
7/31/2019 Mktg Report Group 5
13/32
MARKETING CONCEPT
Attempt to identify the needs and wants ofthe target market, and then offer a solution that
delivers more value than the competitors
products.
Firms focus would be on delivering customer
satisfaction, at a profit.
7/31/2019 Mktg Report Group 5
14/32
SOCIETAL CONCEPT
Organizations should determine the needs,wants and interests of target markets anddeliver the desired satisfaction more effectivelyand efficiently than competitors in a way that
maintains or improves the customers andsocietys well-being.
The firm should aim to satisfy: consumers
needs/ want, company profits/requirementsand consumers and societys long run interests.
7/31/2019 Mktg Report Group 5
15/32
CAPTURING VALUE FROM CUSTOMERS
1. Creating Customer Loyalty and Retention
Good customer relationship managementcreates customer delight. Delighted customersremain loyal and talk favourably about the
company. Companies are realizing that losing acustomer means losing more than a single sale.
Customer lifetime value the value of theentire stream of purchase that the customerwould make over a lifetime of patronage.
7/31/2019 Mktg Report Group 5
16/32
A Tour to The Worlds Largest Dairy Store and
New York Times Disneyland of the DairyStores
ENJOY!
7/31/2019 Mktg Report Group 5
17/32
CAPTURING VALUE FROM CUSTOMERS
From its humble beginnings as a small dairy
stores in 1969, Stew Leonards has grown at anamazing pace. Its built 29 additions onto theoriginal store, which now serves more than 300,000customers each week. This legion of loyal shoppers
is largely a result of the stores compassionateapproach to customer service.
Rule #1: at Stew Leonards The customer is
always right.Rule #2: If the customer is ever wrong, reread rule
#1!
7/31/2019 Mktg Report Group 5
18/32
CAPTURING VALUE FROM CUSTOMERS
2. Growing Share of Customer
Share of customer is the portion of thecustomers purchasing at a company gets in itsproduct categories.
To increase share of customer, firms can offergreater variety to current customers. Or theycan create programs to cross-sell and up-sell inorder to market more products and services toexisting customers.
7/31/2019 Mktg Report Group 5
19/32
CAPTURING VALUE FROM CUSTOMERS
3. Building Customer Equity
Customer equity is the total combined
customers lifetime values of all of the
companys customers.
The more the loyal the firms profitable
customers, the higher the firms customer
equity. It may also be a better measure offirms
performance than current sales or marketshares.
7/31/2019 Mktg Report Group 5
20/32
Companies should manage customer equity
carefully. They should view customers as assetsthat need to be managed and maximized. But
not all customers, not even all loyal customers,
are good investments. Surprisingly, some loyal
customers can be unprofitable, and some
disloyal customers can be profitable.
7/31/2019 Mktg Report Group 5
21/32
The company can classify customers
according to their potential profitability and
manage its relationship with them accordingly.There are four classifications of customers
according to their profitability and projected
loyalty.
1. Strangers
2. Butterflies
3. True friends
4. Barnacles
7/31/2019 Mktg Report Group 5
22/32
1. Strangers
They show low potential profitability and
little projected loyalty. The relationship strategy for these
customers is simple: Dont invest anything in
them.
2. Butterflies They are potentially profitable but not loyal.
However, like butterflies, we can enjoy them
for only a short while and then theyre gone.
The company should use promotional blitzes
to attract them, create satisfying and
profitable transactions with them.
7/31/2019 Mktg Report Group 5
23/32
3. True Friends
They are both profitable and loyal.
The firm should make continuousrelationship to delight these customers and
nurture, retain, and grow them.
4. Barnacles They are highly loyal but not profitable.
The company might be able to improve their
profitability by selling more, raising the fess,
or reducing service to them.
7/31/2019 Mktg Report Group 5
24/32
CAPTURING VALUE FROM CUSTOMERS
3. Building Customer Equity
Different customers require different
relationship management strategies. The goal is
to build the right relationships with the right
customers.
7/31/2019 Mktg Report Group 5
25/32
RapidGlobalization
Growth of
Not-for-Profit
Marketing
The DigitalAge
Call for Ethics
and Social
Responsibility
THE CHANGING MARKETING LANDSCAPE
7/31/2019 Mktg Report Group 5
26/32
7/31/2019 Mktg Report Group 5
27/32
7/31/2019 Mktg Report Group 5
28/32
THE DIGITAL AGE
Technology provided marketers with exciting
new ways to learn about and track customers and
to create products and services tailored to
individual customer needs.
Digital technology has also brought a new waveof communication, advertising, and relationship
building tools-ranging from online advertising,
video sharing tools, cell phones and video games to
Web widgets and online social network.
7/31/2019 Mktg Report Group 5
29/32
RAPID GLOBALIZATION
In an increasing smaller world, many marketers
are now connected globally with their customers
and marketing partners.
Today, companies are not only trying to sell more
of their locally produced goods in internationalmarkets, they also are buying more supplies and
components abroad.
7/31/2019 Mktg Report Group 5
30/32
CALL FOR MORE ETHICS AND SOCIAL
RESPONSIBILITY
7/31/2019 Mktg Report Group 5
31/32
GROWTH OF NOT-FOR-PROFIT MARKETING
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.
7/31/2019 Mktg Report Group 5
32/32
END