1. Marketing: Creating and Capturing Customer Value
Philip Kotler | Gary Armstrong | Prafulla Y. Agnihotri | Ehsan ul Haque

2. Opening Case Procter & Gamble Product: Tide detergent
Strategy: Building customer relationship
Implementation: “knows fabrics best”
Result: Increase in market share, most successful detergent in the market

3. What is Marketing?
Marketing is ‘managing profitable customer relationship’.
A process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
Why do companies invest heavily in marketing?
Class activity:
Write down one sentence that is your own personal slogan. The aim is to impress an employer who would employ you based on your slogan.

4. Wal-Mart: ‘Save money. Live better’
Disney theme park: ‘Make a dream come true today’
Apple: ‘Think different'

5. The Marketing Process

6. Understanding the Marketplace and Customer Needs
Customer needs, wants and demands
Market offerings - Products, services, and experiences
Customer value and satisfaction
Exchanges and relationships
Markets

7. Designing a customer driven marketing strategy
Selecting customers to serve
Choosing a value proposition
Marketing management orientations
The production concept
The product concept
The selling concept
The marketing concept
The societal marketing concept

8. Preparing an integrated marketing program
The 4 Ps: Product, Price, Place and Promotion
To be discussed in detail later.

9. Building customer relationships
Customer Relationship Management
Relationship building blocks: customer value and customer satisfaction.
Customer relationship levels and tools
The changing nature of customer relationships
Selective relationship management: Best Buy, consumer electronics; angels and demons
Relating more deeply and interactively

10. Capturing value from customers
Creating customer loyalty and retention
Growing share of customers
Building customer equity
Customer equity: the total combined customer lifetime values of all the company’s customers. Cadillac and BMW.
Building the right relationship with the right customers

12. The changing marketing landscape
The digital age
Rapid globalization
The call for more ethics and social responsibility
The growth of not-for-profit marketing

13. Home assignment
Ask five businesspeople from different industries (for example, food service, retailing, consumer-product manufacturing, education and so on) what they think marketing is. Evaluate their definitions and discuss whether or not they are consistent with the goal of creating customer value and managing profitable customer relationships.