1. Building Customer Relationships Through Effective Marketing
Chapter Twelve
Building Customer Relationships Through Effective Marketing

2. Learning Objectives
Understand the meaning of marketing and the importance of management of customer relationships.
Explain how marketing adds value by creating several forms of utility.
Trace the development of the marketing concept and understand how it is implemented.
Understand what markets are and how they are classified.
Identify the four elements of the marketing mix and be aware of their importance in developing a marketing strategy.
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3. Learning Objectives (cont’d)
Explain how the marketing environment affects strategic market planning.
Understand the major components of a marketing plan.
Describe how market measurement and sales forecasting are used.
Distinguish between a marketing information system and marketing research.
Identify the major steps in the consumer buying decision process and the sets of factors that may influence this process.
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4. Chapter 12 Outline Managing Customer Relationships
Utility: The Value Added by Marketing
The Marketing Concept
Evolution of the Marketing Concept
Implementing the Marketing Concept
Markets and Their Classification
Developing Marketing Strategies
Target Market Selection and Evaluation
Creating a Marketing Mix
Marketing Strategy and the Marketing Environment
Developing a Marketing Plan
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12 | 4

5. Chapter 12 Outline (cont’d)
Market Measurement and Sales Forecasting
Marketing Information
Marketing Information Systems
Marketing Research
Using Technology to Gather and Analyze Marketing Information
Types of Buying Behavior
Consumer Buying Behavior
Business Buying Behavior
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12 | 5

6. Marketing
The activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
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7. Managing Customer Relationships
Relationship marketing
Customer relationship management (CRM)
Customer lifetime value
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8. Utility: The Value Added by Marketing
The ability of a good or service to satisfy a human need
Form utility
Place utility
Time utility
Possession utility
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9. The Marketing Concept
A business philosophy that involves the entire organization in the process of satisfying customers’ needs while achieving the organization’s goals
To achieve success, a business must
Talk to its potential customers to assess their needs
Develop a good or service to satisfy those needs
Continue to seek ways to provide customer satisfaction
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10. Implementing the Marketing Concept
Obtain information about present and potential customers
Their needs; how well those needs are being satisfied; how products might be improved; customer opinions about the firm
Pinpoint specific needs and potential customers toward which to direct marketing activities and resources
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11. Implementing the Marketing Concept (cont’d)
Mobilize marketing resources to
Provide a product that will satisfy customers
Price the product at an acceptable and profitable level
Promote the product to potential customers
Ensure distribution for product availability when and where wanted
Obtain information on the effectiveness of the marketing effort and modify efforts as necessary
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12. Markets and Their Classification
Consumer markets
Business-to-business (industrial) markets
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13. Developing Marketing Strategies
Marketing strategy
Consists of
The selection and analysis of a target market
The creation and maintenance of an appropriate marketing mix (a combination of product, price, distribution, and promotion developed to satisfy a particular target market)
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14. Developing Marketing Strategies (cont’d)
Target market selection and evaluation
Target market
Market segment
Market segmentation
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15. Developing a Marketing Plan
A written document that specifies an organization’s resources, objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group
Elements of a marketing plan
Executive summary
Environmental analysis
Strengths and weaknesses
Opportunities and threats
Marketing objectives
Marketing strategies
Marketing implementation
Evaluation and control
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16. Market Measurement and Sales Forecasting
Importance of measuring sales potential
Estimates should do several things
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17. Marketing Information
Marketing information system
Internal data sources
External data sources
Outputs
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18. Marketing Information (cont’d)
The six steps of marketing research
Define the problem
Make a preliminary investigation
Plan the research
Gather factual information
Interpret the information
Reach a conclusion
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19. Types of Buying Behavior
The decisions and actions of people involved in buying and using products
Consumer buying behavior
Business buying behavior
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20. The American Consumer Consumer income Personal income
Disposable income
Discretionary income
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