Chapter One
Creating and Capturing Customer
Value
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Creating and Capturing Customer Value
Topic Outline
1. Define marketing and outline the steps in the
marketing process
2. Understanding the Marketplace and Customer
Needs
3. Designing a Customer-Driven Marketing Strategy
4. Preparing an Integrated Marketing Plan and
Program
5. Building Customer Relationships
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1. What Is Marketing?
Marketing is a process by which
companies create value for customers
and build strong customer relationships
to capture value from customers in
return
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2. Understanding the Marketplace
and Customer Needs
Core Concepts
• Customer needs, wants, and demands
• Market offerings
• Customer Value and satisfaction
• Exchanges and relationships
• Markets
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2. Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands
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2. Understanding the Marketplace
and Customer Needs
• Market offerings are some
combination of products, services,
information, or experiences offered to a
market to satisfy a need or want
• Marketing myopia is focusing only on
existing wants and losing sight of
underlying consumer needs
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2. Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction
Expectations
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2. Understanding the Marketplace
and Customer Needs
Exchange is the act of obtaining a
desired object from someone by offering
something in return
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2. Understanding the Marketplace
and Customer Needs
Markets are the set of actual and
potential buyers of a product or service
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3. Designing a Customer-Driven
Marketing Strategy
Marketing management is the art and
science of choosing target markets and
building profitable relationships with
them
– What customers will we serve?
– How can we best serve these customers?
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3. Designing a Customer-Driven
Marketing Strategy
Selecting Customers to Serve
Market segmentation refers to dividing
the markets into segments of customers
Target marketing refers to which
segments to go after
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3. Designing a Customer-Driven
Marketing Strategy
Selecting Customers to Serve
Demarketing is marketing to reduce
demand temporarily or permanently; the
aim is not to destroy demand but to
reduce or shift it
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3. Designing a Customer-Driven
Marketing Strategy
Choosing a Value Proposition
• The value proposition is the set of
benefits or values a company promises
to deliver to customers to satisfy their
needs
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3. Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
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Production concept is the idea that
consumers will favor products that are
available or highly affordable
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Product concept is the idea that
consumers will favor products that offer
the most quality, performance, and
features. Organizations should
therefore devote its energy to making
continuous product improvements.
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Selling concept is the idea that
consumers will not buy enough of the
firm’s products unless it undertakes a
large scale selling and promotion effort
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Marketing concept is the idea that
achieving organizational goals depends
on knowing the needs and wants of the
target markets and delivering the
desired satisfactions better than
competitors do
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Societal marketing concept is the idea
that a company should make good
marketing decisions by considering
consumers’ wants, the company’s
requirements, consumers’ long-term
interests, and society’s long-run
interests
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4. Preparing an Integrated
Marketing Plan and Program
• The marketing mix is the set of tools
(four Ps) the firm uses to implement its
marketing strategy. It includes product,
price, promotion, and place.
• Integrated marketing program is a
comprehensive plan that communicates
and delivers the intended value to
chosen customers.
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5. Building Customer
Relationships
Customer Relationship Management (CRM)
• The overall process of building and
maintaining profitable customer
relationships by delivering superior
customer value and satisfaction
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Building Customer Relationships
Relationship Building Blocks: Customer Value and Satisfaction
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Building Customer Relationships
Customer Relationship Levels and Tools
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