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1、1 - 0,Marketing: Managing Profitable Customer Relationships,Chapter 1,1 - 1,Objectives,Be able to define marketing and discuss its core concepts. Be able to define marketing management and compare the five marketing management orientations.,1 - 2,Objectives,Understand customer relationship managemen
2、t and strategies. Realize the major challenges facing marketers in the new “connected” millennium.,1 - 3,Strong sales, no profits Customer-driven to its core Each customers experience is unique,Provides great selection, good value, discovery and convenience A true online community,A,Discussion: Will
3、 A Survive?,Case Study,1 - 4,What is Marketing?,Marketing is managing profitable customer relationships Attracting new customers Retaining and growing current customers “Marketing” is NOT synonymous with “sales” or “advertising”,1 - 5,What is Marketing?,Kotlers social definition:“Marketing is a soci
4、al and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.”,1 - 6,Goods Services Experiences Events Persons,Places Properties Organizations Information Ideas,Many Things Can Be Marketed!,What is Marketing?,
5、1 - 7,Needs, wants, and demands Marketing offers: including products, services and experiences,Value and satisfaction Exchange, transactions and relationshipsMarkets,Core Marketing Concepts,What is Marketing?,1 - 8,Marketing Management,Marketing management is “the art and science of choosing target
6、markets and building profitable relationships with them.” Creating, delivering and communicating superior customer value is key.,1 - 9,Marketing Management,Customer Management: Marketers select customers that can be served well and profitably. Demand Management: Marketers must deal with different de
7、mand states ranging from no demand to too much demand.,1 - 10,Marketing Management,Production concept Product concept,Selling concept Marketing concept,Societal marketing concept,Management Orientations,Marketing Management,1 - 11,CRM,CRM Customer relationship management . . . “is the overall proces
8、s of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.”,1 - 12,CRM,It costs 5 to 10 times MORE to attract a new customer than it does to keep a current customer satisfied. Marketers must be concerned with the lifetime value of the cust
9、omer.,1 - 13,CRM,Attracting, retaining and growing customers Building customer relationships and customer equity,Customer value/satisfaction Perceptions are key Meeting/exceeding expectations creates satisfaction Loyalty and retention Benefits of loyalty Loyalty increases as satisfaction levels incr
10、ease Delighting consumers should be the goal Growing share of customer Cross-selling,Key Concepts,1 - 14,CRM,Customer equity The total combined customer lifetime values of all customers. Measures a firms performance, but in a manner that looks to the future.,Key Concepts,Attracting, retaining and gr
11、owing customers Building customer relationships and customer equity,1 - 15,CRM,Customer relationship 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
12、Adding structural ties,Attracting, retaining and growing customers Building customer relationships and customer equity,Key Concepts,1 - 16,Marketing Challenges,Technological advances, rapid globalization, and continuing social and economic shifts are causing marketplace changes. Major marketing deve
13、lopments can be grouped under the theme of Connecting.,1 - 17,Marketing Challenges,Via technology With customers With marketing partners With the world,Advances in computers, telecommunications, video-conferencing, etc. are major forces. Databases allow for customization of products, messages and an
14、alysis of needs. The Internet Facilitates anytime, anywhere connections Facilitates CRM Creates marketspaces,Connecting,1 - 18,Marketing Challenges,Selective relationship management is key. Customer profitability analysis separates winners from losers. Growing “share of customer” Cross-selling and u
15、p-selling are helpful. Direct sales to buyers are growing.,Connecting,Via technology With customers With marketing partners With the world,1 - 19,Marketing Challenges,Partner relationship management involves: Connecting inside the company Connecting with outside partners Supply chain management Stra
16、tegic alliances,Connecting,Via technology With customers With marketing partners With the world,1 - 20,Marketing Challenges,Globalization Competition New opportunities Greater concern for environmental and social responsibility Increased marketing by nonprofit and public-sector entities Social marketing campaigns,Connecting,Via technology With customers With marketing partners With the world,
