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,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,1-,*,Marketing:Managing Profitable Customer Relationships,Chapter 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,Objectives,Understand customer relationship management and strategies.,Realize the major challenges facing marketers in the new“connected”millennium.,2,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 A Survive?,Case Study,3,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”,4,What is Marketing?,Kotlers,social definition:,“Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.”,5,Goods,Services,Experiences,Events,Persons,Places,Properties,Organizations,Information,Ideas,Many Things Can Be Marketed!,What is Marketing?,6,Needs,wants,and demands,Marketing offers:including products,services and experiences,Value and satisfaction,Exchange,transactions and relationships,Markets,Core Marketing Concepts,What is Marketing?,7,Marketing Management,Marketing management,is“the art and science of choosing target markets and building profitable relationships with them.”,Creating,delivering and communicating superior customer value is key.,8,Marketing Management,Customer Management:,Marketers select customers that can be served well and profitably.,Demand Management:,Marketers must deal with different demand states ranging from no demand to too much demand.,9,Marketing Management,Production concept,Product concept,Selling concept,Marketing concept,Societal marketing concept,Management Orientations,Marketing Management,10,CRM,CRM,Customer relationship management,.,“is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.”,11,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 customer.,12,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 increase,Delighting consumers should be the goal,Growing share of customer,Cross-selling,Key Concepts,13,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 growing customers,Building customer relationships and customer equity,14,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,Adding structural ties,Attracting,retaining and growing customers,Building customer relationships and customer equity,Key Concepts,15,Marketing Challenges,Technological advances,rapid globalization,and continuing social and economic shifts are causing marketplace changes.,Major marketing developments can be grouped under the theme of,Connecting,.,16,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 analysis of needs.,The Internet,Facilitates anytime,anywhere connections,Facilitates CRM,Creates,marketspaces,Connecting,17,Marketing Challenges,Selective relationship management is key.,Customer profitability analysis separates winners from losers.,Growing“share of customer”,Cross-selling and up-selling are helpful.,Direct sales to buyers are growing.,Connecting,Via technology,With customers,With marketing partners,With the world,18,Marketing Challenges,Partner relationship management involves:,Connecting inside the company,Connecting with outside partners,Supply chain management,Strategic alliances,Connecting,Via technology,With customers,With marketing partners,With the world,19,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,20,
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