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c.Marketing: Managing Profitable Customer

Relationships

•Chapter 1

•Powerpoint slides

•Express version

•Instructor name

•Course name

•School name

•Date

Principles of Marketing: 6th Canadian Edition

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Learning Objectives

• 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

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Needs, Wants, and Demands

• Marketing: – The managing of profitable relationships

– Satisfying customer needs

• Needs:– Felt deprivation

• Wants:– Form of needs shaped by

culture and personality

• Demands:– Wants backed by buying

power

Figure 1.1

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Value and Satisfaction

• Value: – 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

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Marketing Management

• Market:– 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

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Marketing Management Orientations

• Production concept

• Product concept

• Selling concept• Marketing

concept Figure 1.3

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Societal Marketing Concept

• 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

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Customer Satisfaction and Loyalty

• Customer __________– Relationship management

– Lifetime value– Perceived value

– Satisfaction

– Loyalty and retention

– Equity

Figure 1.5

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Today’s Marketing Connections

• The Internet

• One to one marketing

• Selective relationship management

• Increase share of customer

• Partner relationship management

• Supply chain management

• Strategic alliances

Figure 1.6

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Marketing Connections in Transition

Old marketing thinking:• 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…

New marketing thinking:• 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

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In Conclusion…

• 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