1. Marketing: Creating and Capturing Customer Value
Chapter 1

2. (For a specific business)
Creating Customer Value & Building Customer Relationships
What is Marketing?
5 Core Marketing Dynamics
External Marketing System
Internal Business Planning
Marketing Plan Process
(For a specific business)

3. What Is Marketing? To generate profits in return.
The process by which companies:
-Create Value
-Develop customer relationships
To generate profits in return.

4. The Marketing Concept
Philosophy that holds that achieving organizational goals depends on:
Knowing the NEEDS and WANTS of target markets and
Satisfying those needs/wants BETTER than competition.
1-4

5. Making a sale—“telling and selling” Satisfying customer needs
Marketing Goals
Attract new customers by promising superior value.
Keep and grow current customers by delivering satisfaction, creating relationships.
OLD view of marketing:
Making a sale—“telling and selling”
NEW view of marketing:
Satisfying customer needs

6. BUILDING CUSTOMERS RELATIONSHIPS & CREATING CUSTOMER VALUE
Product Image
Product Availability
Packaging
Purchase Experience
Product Performance
Post purchase
CUSTOMER’S EXPERIENCE

7. 5 Core Marketing Concepts
Needs, wants, and demands
Market offerings
Value and satisfaction
Exchanges and relationships
Markets

8. 1. Needs, Wants, and Demands (Customer)
Need: Physical, social, and individual needs.
Wants: Shaped by culture and individual personality.
Wants + Buying Power = Demand.

9. 2. Market Offerings (Marketer)
Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
Marketing offers fulfill needs and wants

10. Marketing in Action
Market offerings are not limited to physical products. UNCF powerfully markets the idea that “A mind is a terrible thing to waste.”

11. Marketing Myopia
Occurs when sellers pay more attention to their products (market offerings) than to the benefits produced by their products.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall
1-11

12. 3. Customer Value & Satisfaction
Customer’s evaluation all of the benefits and all of the costs of a marketing offer relative to competing offers.
Quality/Experience
= VALUE
Price

13. 4. Exchanges and Relationships (Customer & Marketer)
Marketers build strong relationships by consistently delivering superior customer value.

14. Nature of Customer Relationships
Firms now relate more deeply and
interactively via social networking, websites, , video sharing (YouTube)
Must practice marketing by attraction – creating marketing messages/offerings that involve consumers, not interrupt them (eg TV ads)
Attraction NOT Intrusion
CRM = Customer Relationship Marketing

15. 5. Market (Where it all Happens!)
A market:
Is the set of actual and potential buyers of a product.
These people share a need or want that can be satisfied through exchange relationships with a company.

16. Changing Marketing Landscape
Uncertain Economic Environment
Digital Age, Mobile Marketing, Social Networking
Rapid Globalization
Growth of not-for-profit marketing

17. Marketing in Action
200,000 new donors contributed $30 million to the APSCA as a result of “The Ad”
66% of McDonald’s revenue now comes from outside the US.

18. Consumer Generated Marketing
Brand exchanges created by consumers themselves –
Invited AND Uninvited
Shapes consumers relationship with the brand and that of others.
Coke/Mentos video Coke Mentos Video

19. Marketing in Action
H.J. Heinz attempted to harness consumer-generated marketing and received 8,000 entries in a homemade ad contest for its ketchup brand on YouTube.

20. Capturing Value FROM Customers
Current Sales
Future Sales
Profit
Market Share – A company’s % of total sales in a given market.
Coke Market Share
Coke Sales = $ 50M = 50%
Total Sales of Soda = $ 100M