Marketing: creating and capturing

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Topic One Introduction
Marketing creating and capturing customer value
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Objectives

• Course Organization
• Tasks of Marketing
• Major Concepts Tools of Marketing
• Marketplace Orientations
• Marketings Responses to New Challenges

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Course/Text Organization

• Part I - Understanding Marketing
• Part II - Analyzing Marketing Opportunities
• Part III - Identifying customer value
• Part IV - Creating the Market Offering
• Part V - Delivering and communicating Market
  Offering

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Defining Marketing

• Marketing is a societal process by which
  individuals and groups obtain what they need and
  want through creating, offering, and freely
  exchanging products and services of value with
  others.
• - Philip Kotler (p. 7)

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Core Concepts of Marketing
Target Markets Segmentation
Needs, Wants, and Demands
Product or Offering
Value and Satisfaction
Exchange and Transactions
Relationships and Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment
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Simple Marketing System
Goods/services
Money
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Structure of Flows
Manufacturer markets
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The Four Ps
The Four Cs
Marketing Mix
Conven- ience
Customer Solution
Customer Cost
Communication
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Company Orientations Towards the Marketplace
Consumers prefer products that are widely
available and inexpensive
Production Concept

• Consumers favor products that
• offer the most quality, performance,
• or innovative features

Product Concept
Consumers will buy products only if the company
aggressively promotes/sells these products
Selling Concept
Focuses on needs/ wants of target markets
delivering value better than competitors
Marketing Concept
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Customer Delivered Value
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Traditional Organization Chart
Top Management
Middle Management
Front-line people
Customers
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Customer-Oriented Organization Chart
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Evolving Views of Marketings Role
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Evolving Views of Marketings Role
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Evolving Views of Marketings Role
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Determinants of Customer Delivered Value
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Satisfaction is a persons feelings of pleasure
or disappointment resulting from comparing a
products perceived performance (or outcome) in
relation to his or her expectations.
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Satisfied Customers

• Are loyal longer
• Buy more (new products upgrades)
• Spread favorable word-of-mouth
• Are more brand loyal (less price sensitive)
• Offer feedback
• Reduce transaction costs

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Capturing value from customers

• Building customer relationship
• Creating customer loyalty and retention
• Customer lifetime value
• Growing share of customer
• share of customer
• Building customer equity
• customer equity the total combined customer
  lifetime values of all of the companys customers.