Chapter One

Marketing: Creating and Capturing

Customer Value
Book: Kotler and Armstrong, 17e Global
 I work as a Marketer!
I work in the Marketing
Wing!
 General Perception
•Direct Mail Offers
•Tele Sales Calls
•Selling via Kiosk outside Stores
•Email Offers
•Brochures
Selling and Advertising is Just one part (tip) of
Marketing
What Is Marketing?
Topics and Marketing Overview
 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
 Lets Break it Down

• Is a Process
• By Which Companies create Value
• For Customers and themselves
 Lets Break it Down
Further!
• Is a Process
• By Which Companies provide solutions
• To customer Problems(Need, Want,
Demand)
• For which customer pays back (Financial
Benefits)
• And Relationships are built
 Lets Break it Down
Further!
• Marketing Tells Companies What they
should develop
• Then Marketing Informs Customers
“Hey Look We have developed this”.
• What Happens next?
 Understanding the Marketplace
and Customer Needs
5 Core Concepts

1. Customer needs, wants, and demands

2. Market offerings
3. Value and satisfaction
4. Exchanges and relationships
5. Markets
Marketing is ___________.
1. the same as advertising and sales
2. not used by small corporations
3. about satisfying customer needs
4. making a profit
Marketing is ________.
1. the same as advertising and sales
2. not used by small corporations
3. about satisfying customer needs
4. making a profit
Marketing is ________.
1. part of manufacturing
2. part of the finance department
3. managing customer relationships
4. sales promotion
Marketing is ________.
1. part of manufacturing
2. part of the finance department
3. managing customer relationships
4. sales promotion
 Chapter One
Marketing: Creating and Capturing Customer Value

Topic 2: Understanding the Marketplace

and Customer Needs

Book: Kotler and Armstrong, 17e Global

Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands
The most basic concept underlying marketing
is that of ________.
1. profits
2. products
3. human needs
4. services
The most basic concept underlying marketing
is that of ________.
1. profits
2. products
3. human needs
4. services
 Understanding the Marketplace
and Customer Needs
• Market offerings are • Marketing myopia is
some combination focusing only on existing
of products, wants and losing sight of
services,
information, or underlying consumer
experiences offered needs
to a market to
satisfy a need or
want
Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction
Expectations
 Understanding the Marketplace
and Customer Needs
Exchange is the act of obtaining a desired object from
someone by offering something in return
Understanding the Marketplace
and Customer Needs
Markets are the set of actual and
potential buyers of a product
 Chapter One
Marketing: Creating and Capturing Customer Value

Topic 3: Designing a Customer-Driven

Marketing Strategy

Book: Kotler and Armstrong, 17e Global

 How?

• Through a well defined Marketing Process

• Marketing Process Starts from
– Understanding What?
– Then Doing What?
– And Then What?
– Long Term Relationships are built in the end
 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?
The art and science of selecting target markets
and developing profitable relationships with
those markets is called marketing ________.
1. profiles
2. maneuvers
3. selection
4. management
The art and science of selecting target markets
and developing profitable relationships with
those markets is called marketing ________.
1. profiles
2. maneuvers
3. selection
4. management
Designing a Customer-Driven 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
Designing a Customer-Driven 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
The set of benefits/values a company promises
to its customers is called __________.
1. value proposition
2. advertising
3. supply and demand
4. production concept
The set of benefits/values a company promises
to its customers is called __________.
1. value proposition
2. advertising
3. supply and demand
4. production concept
 Chapter One
Marketing: Creating and Capturing Customer Value

Topic 4: Marketing Management Orientations

Book: Kotler and Armstrong, 17e Global

Designing a Customer-Driven Marketing
Strategy
Marketing Management Orientations
 Designing a Customer-Driven Marketing
Strategy
Marketing Management Orientations

Production concept is the idea that consumers will favor

products that are available or highly affordable
 Designing a Customer-Driven Marketing
Strategy
Marketing Management Orientations

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.
Designing a Customer-Driven Marketing
Strategy
Marketing Management Orientations

Selling concept is the idea that consumers

will not buy enough of the firm’s products
unless it undertakes a large scale selling
and promotion effort
Designing a Customer-Driven Marketing
Strategy
Marketing Management Orientations

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 do
Designing a Customer-Driven Marketing
Strategy
Marketing Management Orientations

Societal marketing concept

is the idea that a company
should make good marketing
decisions by considering
consumers’ wants, the
company’s requirements,
consumers’ long-term
interests, and society’s long-
run interests
Human welfare, want satisfaction, and profits
are the three considerations underlining the
concept known as ________.
1. societal marketing
2. customer-driven
3. sales-driven
4. production
Human welfare, want satisfaction, and profits
are the three considerations underlining the
concept known as ________.
1. societal marketing
2. customer-driven
3. sales-driven
4. production
Which marketing philosophy purports that
achieving corporate goals depends on knowing
the needs/wants of your markets and delivering
the desired satisfactions better than your
competitors?
1. Production concept
2. Product concept
3. Selling concept
4. Marketing concept
Which marketing philosophy purports that
achieving corporate goals depends on knowing
the needs/wants of your markets and delivering
the desired satisfactions better than your
competitors?
1. Production concept
2. Product concept
3. Selling concept
4. Marketing concept
Designing a Customer-Driven Marketing
Strategy
 Chapter One
Marketing: Creating and Capturing Customer Value

Topic 5: Building Customer Relationships

Book: Kotler and Armstrong, 17e Global

Building Customer Relationships
Relationship Building Blocks: Customer Value and Satisfaction
To build lasting customer relationships,
organizations should focus on delivering
________ and ________.
1. high quality products; low prices
2. customer value; customer satisfaction
3. customer satisfaction; customer growth
4. customer value; high profits
To build lasting customer relationships,
organizations should focus on delivering
________ and ________.
1. high quality products; low prices
2. customer value; customer satisfaction
3. customer satisfaction; customer growth
4. customer value; high profits
Building Customer Relationships
Customer Relationship Levels and Tools
 Building Customer Relationships
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
 Capturing Value from Customers
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
 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.
 Capturing Value from Customers

Different types of customers require

different relationship management
strategies
– Build the right relationship with the right
customers
 Chapter One
Marketing: Creating and Capturing Customer Value

Topic 6: Landscape Change and Review

Book: Kotler and Armstrong, 17e Global

The New Marketing Landscape

Major Developments
So, What Is Marketing?
Pulling It All Together
Which of the first four steps of the marketing
process asks, “What consumers will we serve?”
and “How can we best serve targeted
customers?”
1. Step 1: Understanding the marketplace
2. Step 2: Designing the marketing strategy
3. Step 3: Constructing the marketing
program
4. Step 4: Building profitable relationships
with customers
Which of the first four steps of the marketing
process asks, “What consumers will we serve?”
and “How can we best serve targeted
customers?”
1. Step 1: Understanding the marketplace
2. Step 2: Designing the marketing strategy
3. Step 3: Constructing the marketing
program
4. Step 4: Building profitable relationships
with customers
Which step of the marketing process is the most
important?
1. Step 1: Understanding the marketplace
2. Step 2: Designing the marketing strategy
3. Step 3: Constructing the marketing
program
4. Step 4: Building profitable relationships
with customers
Which step of the marketing process is the most
important?
1. Step 1: Understanding the marketplace
2. Step 2: Designing the marketing strategy
3. Step 3: Constructing the marketing program
4. Step 4: Building profitable relationships
with customers