What is M Marketing? Attracting new customers Retaining and growing current customers 1-1
Marketing: Managing Profitable Customer Relationships h Chapter 1
Wh is Marketing? What M k ? • Marketing is managing profitable customer t relation...
Marketing: Managing Profitable Customer Relationships h Chapter 1
Wh is Marketing? What M k ? • Marketing is managing profitable customer t relationships l ti hi Attracting g new customers Retaining and growing current customers
• “Marketing Marketing”” is NOT synonymous with ith “sales sales” l ” or “advertising advertising” d ti i ” 1-1
Wh is Marketing? What M k ? • Kotler Kotler’’s social definition: “Marketing is a social and managerial g process p by y which individuals and groups obtain what they y need and want through creating and g g products p and exchanging value with others.” others.” 1-2
What is Marketing? Many Things Can Be Marketed! • Goods
• Places
• Services
• Properties
• Experiences p • Organizations g • Events
• Information
• Persons
• Ideas 1-3
What is Marketing? Core Marketing Concepts • Needs, wants, and demands • Marketing offers: including products, services and experiences
• Value and satisfaction • Exchange, transactions and relationships • Markets
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M k Marketing M Management • Marketing management is “the art and science of choosing target markets and building profitable relationships l ti hi with ith th them.” them.” Creating, delivering and communicating superior customer value is key. 1-5
M k Marketing M Management • Customer Management: Marketers select customers that can be served well and profitably. profitably
• Demand Management: g Marketers must deal with different demand states ranging from no demand to too much demand.
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Marketing Management M k Marketing M Management Management Orientations • Production concept
CRM • CRM – Customer relationship management . .. “is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.” satisfaction.”
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CRM • It costs 5 to 10 times MORE to attract a new customer than it does to keep a current customer t satisfied. ti fi d • Marketers must be concerned with the lifetime value of the customer. t 1-9
CRM Key Concepts • Attracting, retaining g and growing customers • Building customer relationships and customer equity
• Customer value/satisfaction Perceptions are key Meeting/exceeding expectations creates satisfaction • Loyalty and retention Benefits B fit off loyalty l lt Loyalty increases as satisfaction levels increase Delighting D li hti consumers should be the goal • Growing share of customer Cross Cross--selling 1 - 10
CRM Key Concepts • Attracting, retaining g and growing customers • Building customer relationships and customer equity
• Customer equity The total combined customer t lifetime lif ti values of all customers. Measures a firm’ firm’s performance, but in a manner that looks to the future.
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CRM Key Concepts • Attracting, retaining g and growing customers • Building customer relationships and customer equity
• Customer C t relationship l ti hi levels and tools Target market typically dictates type of relationship Basic relationships Full relationships
Customer loyalty and retention programs Adding financial benefits Adding social benefits Adding Addi structural t t l ti ties
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M k Marketing Ch ll Challenges • Technological advances, rapid globalization, l b li ti and d continuing ti i social i l and economic shifts are causing marketplace k t l changes. h • Major j marketing g developments p can be grouped under the theme Connecting. g. of Connecting 1 - 13
M k Marketing Ch ll Challenges Connecting • Via technology • With customers t g • With marketing partners • With th the world ld
• Advances in computers, telecommunications, video--conferencing, video conferencing etc etc. are major forces. Databases allow for customization of products, messages and analysis of needs.
• The Th IInternet t t Facilitates anytime, anywhere connections Facilitates F ilit t CRM Creates marketspaces 1 - 14
M k Marketing Ch ll Challenges Connecting • Via technology • With customers t g • With marketing partners • With th the world ld
• Selective relationship management is key. Customer profitability analysis separates winners from losers.
• Growing “share of customer”” customer CrossCross-selling and upupselling are helpful.
• Direct sales to buyers are growing. 1 - 15
M k Marketing Ch ll Challenges Connecting • Via technology • With customers t g • With marketing partners • With th the world ld
• Partner relationship management g involves: Connecting inside the company Connecting with outside partners Supply
chain management g Strategic alliances 1 - 16
M k Marketing Ch ll Challenges Connecting • Via technology • With customers t g • With marketing partners • With th the world ld
• Globalization Competition New opportunities
• Greater concern for environmental and social responsibility • Increased marketing g by nonprofit and public--sector entities public Social marketing campaigns 1 - 17