Chapter 1: Creating and Capturing Customer

Value
What is Marketing?
A process by which individuals and groups

obtain what they need and want through

creating and exchanging products and value
with others.
Simpler definition: Marketing is the delivery

of customer satisfaction at a profit.

UMC, MS, MP, CR, CV
-understanding marketplace and customer needs,
-construct marketing strategy
-marketing plan
-costumer relationship
-capture costumer value
1
2

Understand marketplace and customer needs

a Five core customer and marketing
concepts
Designing a customer-driven marketing
strategy
a Marketing management (market
segmentation, target marketing, value
proposition)
Construct marketing plan
a Construct market strategy - outlines
which customers it will serve and how it
will create value.
b Constructs integrated marketing plan
that will deliver value to customers.
c Marketing mix: tools used to implement
the strategy: 4 P's: product, price,
place and promotion.
Building customer relationships
a 1, 2 and 3 lead to this
b Customer relationship management
(CRM) - overall process of building and
maintaing profitable customer
relationships by delivering superior
customer value and satisfactions.
c Customer satisfaction - perceived
performance ofproduct matches buyers
expectiations.
d Customer delight - more than what was
promised.
e Consumer generated marketing - brand
exchanges created by consumers
themselves, by which consumers are
playing an increasing role in shaping their
own brand experience s and those of
other consumers.
f
Partner relationship management
g SUPPLY CHAIN - a channels, from raw
material to final product and the
companies involved can be partners
through supply chain management.
Capturing customer value
a Customer lifetime value - value of the
entire stream of purchases thhat
customer would make over a lifetime of
patronage.
b Good CRM - increase share of customer
(portion of customers purchasing that a
company gets I its product ategories.

Customer equity - total combined

customer lifetime values of all of the
compan's customers.

The most dramatic change in technology is

the Internet, a vast public web of computer
networks that connects users of all types all around
the world to each other and an amazingly large
information repository.
Because of globalisation, companies are now globally
connected with their customers. Current times also
involve more sustainable marketing practices,
involving corporate ethics and social responsibility.

Five core customer marketing concepts ( (NWD

- MO - VS - E- M) - NWD MO (Victoria Secret)
Earn Market)
Marketing myopia - paying more attention to product
rather than benefits and experiences offered by the
product.
1 Needs, wants, demands
2 Market offerings - products and services
*marketing myopia
3 Value and satisfaction - quality
4 Exchanges and relationships
5 Markets
Major environmental forces: suppliers and
consumers
Designing a customer-driven marketing
strategy:
Marketing Management: Art and science of choosing
target markets and building profitable relationships
with them.
-Market Segmentation and target marketing.
-how to serve them: Value Proposition (set of
benefits/ values a companypromises to deliver)
Five alternative concepts that companies use to
carry out their marketing strategy (philosophies)
1 Production concept- (hanap ng sulit- favor
products avaialable and affordable - focus on
improving production and distribution)
2 Product Concept - favor products with most
quality, performance - continous producct
improvements
3 Selling concept - costumers will not buy enough
of the product unless it undertakes a large
scale selling and promotion effort
4 Marketing concept - achieving org goals
depengs on knowing the needs and wants of
target markets and delivering the desire
satisfaction beter than the competitors do.
"outside in view"
5 Societal marketingconcept - idea that a
companys marketing decisions should consider
consumer wants, the company's requirements,
consumers long term interests and society's
long term interests.