Chapter One: Creating and Capturing Customer Value

Chapter One
Creating and Capturing

Customer Value
Copyright 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 1- slide 1
Creating and Capturing Customer

Value
Topic Outline
Define marketing and outline the steps in the

marketing process
Understand the Marketplace and Customer
Needs
Designing a Customer-Driven Marketing Strategy
Preparing an Integrated Marketing Plan and
Program
Building Customer Relationships
Capturing Value from Customers
The New Marketing Landscape
Chapter 1- slide 2
What Is Marketing?
Marketing is a process by which
companies create value for
customers and build strong
customer relationships to capture
value
from customers in
return

Chapter 1- slide 3
What Is Marketing?
The Marketing Process

Chapter 1- slide 4
Understanding the Marketplace

and Customer Needs
Core Concepts
Customer needs, wants, and

demands
Market offerings
Value and satisfaction
Exchanges and relationships
Markets
Chapter 1- slide 5

and Customer Needs
Customer Needs, Wants, and Demands

Chapter 1- slide 6

and Customer Needs
Market offerings are
some combination of
products, services,
information, or
experiences offered to
a market to satisfy a
need or want
Marketing myopia is
focusing only on
existing wants and
losing sight of
underlying consumer
needs
Chapter 1- slide 7

and Customer Needs
Customer Value and Satisfaction
Expectations

Chapter 1- slide 8

and Customer Needs
Exchange is the act of obtaining
a desired object from someone by
offering something in return

Chapter 1- slide 9

and Customer Needs
Markets are the set of actual
and potential buyers of a
product

Chapter 1- slide 10
Designing a Customer-Driven
Marketing Strategy
Marketing management is the art
and science of choosing target
markets and building profitable
relationships with them
What customers will we serve?
How can we best serve these
customers?
Chapter 1- slide 11
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

Chapter 1- slide 12
Marketing Strategy
Selecting Customers to Serve
Demarketing is marketing to
reduce demand temporarily or
permanently; the aim is not to
destroy demand but to reduce or
shift it

Chapter 1- slide 13
Marketing Strategy
Choosing a Value Proposition
The value proposition is the set of
benefits or values a company promises

to deliver to customers to satisfy their
needs

Chapter 1- slide 14
Marketing Strategy
Marketing Management Orientations

Chapter 1- slide 15
Marketing Strategy
Production concept is the idea

that consumers will favor products
that are available or highly
affordable

Chapter 1- slide 16
Marketing Strategy
Product concept is the idea that

consumers will favor products that
offer the most quality,
performance, and features.
Organization should therefore
devote its energy to making
continuous product improvements.
Chapter 1- slide 17
Marketing Strategy
Selling concept is the idea that

consumers will not buy enough of
the firms products unless it
undertakes a large scale selling
and promotion effort

Chapter 1- slide 18
Marketing Strategy
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 doChapter 1- slide 19
Marketing Strategy
Societal marketing concept

is the idea that a company
should make good marketing
decisions by considering
consumers wants, the
companys requirements,
consumers long-term
interests, and societys longrun interests
Chapter 1- slide 20
Marketing Strategy

Chapter 1- slide 21
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.
Chapter 1- slide 22

Customer Relationship Management (CRM)
The overall process of

building and
maintaining profitable
customer relationships
by delivering superior
customer value and
satisfaction

Chapter 1- slide 23

Relationship Building Blocks: Customer Value and Satisfaction

Chapter 1- slide 24

Customer Relationship Levels and Tools

Chapter 1- slide 25

The Changing Nature of Customer Relationships
Relating with more carefully selected

customers uses selective relationship
management to target fewer, more
profitable customers
Relating more deeply and interactively
by incorporating more interactive two
way relationships through blogs,
Websites, online communities and social
networks
Chapter 1- slide 26

Partner relationship
management involves working
closely with partners in other
company departments and outside
the company to jointly bring greater
value to customers

Chapter 1- slide 27

Partner Relationship Management
Partners inside the company is every

function area interacting with
customers
Electronically
Cross-functional teams
Partners outside the company is how

marketers connect with their suppliers,
channel partners, and competitors by
developing partnerships
Chapter 1- slide 28

Partner Relationship Management
Supply chain is a channel that

stretches from raw materials to
components to final products to
final buyers
Supply management
Strategic partners
Strategic alliances
Chapter 1- slide 29

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

Chapter 1- slide 30

Growing Share of Customer
Share of customer is the portion of

the customers purchasing that a
company gets in its product
categories

Chapter 1- slide 31
Capturing Value from

Customers
Customer
equity is the
total combined
customer
lifetime values
of all of the
companys
customers
Chapter 1- slide 32

Building Customer Equity
Building the right relationships with

the right customers involves
treating customers as assets that
need to be managed and maximized
Different types of customers require
different relationship management
strategies
Build the right relationship with the right
customers
Chapter 1- slide 33
The New Marketing Landscape

Major Developments

Chapter 1- slide 34
So, What Is Marketing?

Pulling It All Together

Chapter 1- slide 35

Chapter One: Creating and Capturing Customer Value

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Chapter One

Creating and Capturing

Creating and Capturing Customer

Define marketing and outline the steps in the

Copyright 2010 Pearson Education, Inc.

Copyright 2010 Pearson Education, Inc.

Understanding the Marketplace

Customer needs, wants, and

Understanding the Marketplace

Copyright 2010 Pearson Education, Inc.

Understanding the Marketplace

Understanding the Marketplace

Copyright 2010 Pearson Education, Inc.

Understanding the Marketplace

Copyright 2010 Pearson Education, Inc.

Understanding the Marketplace

Copyright 2010 Pearson Education, Inc.

Market segmentation refers to

Copyright 2010 Pearson Education, Inc.

Copyright 2010 Pearson Education, Inc.

The value proposition is the set of

benefits or values a company promises

Copyright 2010 Pearson Education, Inc.

Copyright 2010 Pearson Education, Inc.

Production concept is the idea

Copyright 2010 Pearson Education, Inc.

Product concept is the idea that

Selling concept is the idea that

Copyright 2010 Pearson Education, Inc.

Marketing concept is the

Societal marketing concept

Copyright 2010 Pearson Education, Inc.

Preparing an Integrated Marketing

Building Customer Relationships

The overall process of

Copyright 2010 Pearson Education, Inc.

Building Customer Relationships

Copyright 2010 Pearson Education, Inc.

Building Customer Relationships

Copyright 2010 Pearson Education, Inc.

Building Customer Relationships

Relating with more carefully selected

Building Customer Relationships

Copyright 2010 Pearson Education, Inc.

Building Customer Relationships

Partners inside the company is every

Partners outside the company is how

Building Customer Relationships

Supply chain is a channel that

Capturing Value from Customers

Customer lifetime value is the

Copyright 2010 Pearson Education, Inc.

Capturing Value from Customers

Share of customer is the portion of

Copyright 2010 Pearson Education, Inc.

Capturing Value from

Capturing Value from Customers

Building the right relationships with

The New Marketing Landscape