Creating Customer Value
Creating Customer Value
01/03/17
Marketing - the process of building profitable customer relationships by creating value for customers and capturing value in return - telling and selling - attracts new customers and grow current customers in the long term Creating Value - understand customer’s needs (necessities), wants (desires) and demands (luxuries) - customer-driven marketing strategy - integrated marketing program – superior value - build profitable relationships, customer delight Capture Value - Sales, profit, long-term customer equity Market Offering - A product offered to a market to satisfy a need or want - goods, services, places, persons, ideas, organisation, experiences, information Marketing Organisation - Set of benefits or values that it promises to deliver to customers to satisfy needs - Should differentiate brands and position them in the marketplace Exchange - Process of obtaining a desired object from someone by offering something in return Transaction - Trade between two parties, involving at least 2 things of value - Agreed upon conditions and a time and place of agreement Market = set of actual buyers + set of potential buyers Buyers share a particular need or want that can be satisfied through exchange relationships Marketing Management - Art and science of choosing target markets and building profitable relationships with them Managing Customer Demand - Sources of demand – new, potential customers and repeat, existing customers - Marketing decisions – finding, increasing and retaining demand as well as changing or reducing demand De-marketing - Permanently – to discourage anti-social behaviours - Temporarily – to cope with peak demand periods and overfull demand Marketing Management Orientation Concepts - Production – production and distribution efficiency – highly available and affordable - Product – continuous product improvements – offer most quality, performance and innovative features
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Selling – Large scale selling and promotion Marketing – Understanding customer needs and wants, delivering satisfaction efficiently Societal marketing – deliver value in ways that maintain both consumer and society’s wellbeing
Selling
Starting Point Factory
Focus Existing products
Marketing
Market
Customer needs
Means Selling and promoting Integrated marketing
Ends (Profits) Sales volume Customer satisfaction
Marketing Program - Builds customer relationships by transforming the marketing strategy into action - Consists of the firm’s marketing mix – marking tools used to implement marketing strategy Customer Relationship Management (CRM) - Overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Customer Perceived Value - Customer’s perceived benefits – economic, functional and psychological - Customer’s resources used – money, time, effort - What customer gives vs what the get Customer Satisfaction - Perception of performance compared to expectation of performance Customer Lifetime Value (CLV) - Value of an entire stream of purchases Reflection - Define marketing. How has your opinion about marketing changed after today's activities? If so in what ways has your opinion changed? - What conditions must exist before a marketing exchange can take place? - What forces shape the marketing environment? - As a small business owner, how can these forces influence your ability to facilitate the marketing exchange.
01/03/17
Marketing - the process of building profitable customer relationships by creating value for customers and capturing value in return - telling and selling - attracts new customers and grow current customers in the long term Creating Value - understand customer’s needs (necessities), wants (desires) and demands (luxuries) - customer-driven marketing strategy - integrated marketing program – superior value - build profitable relationships, customer delight Capture Value - Sales, profit, long-term customer equity Market Offering - A product offered to a market to satisfy a need or want - goods, services, places, persons, ideas, organisation, experiences, information Marketing Organisation - Set of benefits or values that it promises to deliver to customers to satisfy needs - Should differentiate brands and position them in the marketplace Exchange - Process of obtaining a desired object from someone by offering something in return Transaction - Trade between two parties, involving at least 2 things of value - Agreed upon conditions and a time and place of agreement Market = set of actual buyers + set of potential buyers Buyers share a particular need or want that can be satisfied through exchange relationships Marketing Management - Art and science of choosing target markets and building profitable relationships with them Managing Customer Demand - Sources of demand – new, potential customers and repeat, existing customers - Marketing decisions – finding, increasing and retaining demand as well as changing or reducing demand De-marketing - Permanently – to discourage anti-social behaviours - Temporarily – to cope with peak demand periods and overfull demand Marketing Management Orientation Concepts - Production – production and distribution efficiency – highly available and affordable - Product – continuous product improvements – offer most quality, performance and innovative features
-
Selling – Large scale selling and promotion Marketing – Understanding customer needs and wants, delivering satisfaction efficiently Societal marketing – deliver value in ways that maintain both consumer and society’s wellbeing
Selling
Starting Point Factory
Focus Existing products
Marketing
Market
Customer needs
Means Selling and promoting Integrated marketing
Ends (Profits) Sales volume Customer satisfaction
Marketing Program - Builds customer relationships by transforming the marketing strategy into action - Consists of the firm’s marketing mix – marking tools used to implement marketing strategy Customer Relationship Management (CRM) - Overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Customer Perceived Value - Customer’s perceived benefits – economic, functional and psychological - Customer’s resources used – money, time, effort - What customer gives vs what the get Customer Satisfaction - Perception of performance compared to expectation of performance Customer Lifetime Value (CLV) - Value of an entire stream of purchases Reflection - Define marketing. How has your opinion about marketing changed after today's activities? If so in what ways has your opinion changed? - What conditions must exist before a marketing exchange can take place? - What forces shape the marketing environment? - As a small business owner, how can these forces influence your ability to facilitate the marketing exchange.
