STRATEGIC MARKETING INTRO

Chapter 1:
Marketing
Creating Customer Value and Engagement
“ A brand for a company is like a reputation for
a person. You earn reputation by trying to do
hard things well”
By: RHEA ON-POO, MBA
1-1

Copyright © 2016 Pearson Education, Inc.
Marketing: Creating Customer Value and Engagement
Amazon.com’s deep-down
passion for creating
customer engagement,
value, and relationships has
made it the world’s leading
online retailer.
Amazon has become the
model for companies that
are obsessively and
successfully focused on
delivering customer value.
1-2

 Objective 1: Define marketing and outline the steps in the
marketing process.
 Objective 2: Explain the importance of understanding the
marketplace and customers and identify the five core
marketplace concepts.
Learning Objectives
1-3Copyright © 2016 Pearson Education, Inc.

 Objective 3: Identify the key elements of a customer-driven
marketing strategy and discuss the marketing management
orientations that guide marketing strategy and define
Marketing Strategy
Learning Objectives
1-4Copyright © 2016 Pearson Education, Inc.

 Objective 4: Discuss customer relationship management and
identify strategies for creating value for customers and
capturing value from customers in return.
 Objective 5: Describe the major trends and forces that are
changing the marketing landscape in this age of
relationships.
Learning Objectives
Copyright © 2016 Pearson Education, Inc. 1-5

Marketing is a process by which companies create
value for customers and build strong customer
relationships in order to capture value from
customers in return.
MARKETING IS THE PROCESS OF CONTINOUSLY AND
PROFITABLY SATISFYING TARGET CUSTOMER’S
NEEDS, WANTS AND EXPECTATIONS SUPERIOR TO
COMPETITION- JOSIAH GO, 2018
Marketing Defined

 MARKETING IS THE PROCESS OF CONTINUOUSLY AND
PROFITABLY SATISTFYING TARGET CUSTOMERS, NEEDS,
WANTS AND EXPECTATIONS SUPERIOR TO COMPETITION
EXHIBIT 1.1 TWO INTERACTING COMPONENTS OF MARKETING
COMPANY MARKET

THE STRATEGIC 3C’S OF MARKETING
Customer Competition
COMPANY
CUSTOMERS
COMPETITION

OLD view of marketing:
Making a sale—“telling and
selling
NEW view of
marketing:
Satisfying
customer needs

What Is Marketing?

• States of deprivationNeeds
• Form that needs takeWants
• Wants backed by buying
power
Demands
Customer Needs, Wants, and Demands
Copyright © 2016 Pearson
Education, Inc.
1-13
Wants + Buying Power = Demand

Customer Value and Satisfaction
1-
13
Customers
• Value and
satisfaction
Marketers
• Set the right
level of
expectations

1-15
Markets

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?
Selecting Customers to Serve

Choosing a Value Proposition
A brand’s value
proposition is
the set of
benefits or
values it
promises to
deliver to
customers to
satisfy their
needs.
Twitter, Inc.

Productio
n concept
Product
concept
Selling
concept
Marketin
g concept
Societal
Marketin
g concept
Marketing Management Orientations

Production concept:
Consumers will favor products that are available and
highly affordable.
Education, Inc. 1-19

Product concept:
Consumers favor products that offer the most
quality, performance, and features.
The focus is on continuous product improvements.
Education, Inc.
1-20

Selling concept:
Consumers will not buy enough of the firm’s products
unless the firm undertakes a large-scale selling and
promotion effort.

Marketing concept:
Know the needs and wants of the target markets and deliver the
desired satisfactions better than competitors.

Societal marketing:
The company’s marketing decisions should consider
consumers’ wants, the company’s requirements,
consumers’ long-run interests, and society’s long-
run interests.

Customer relationship management is the overall
process of building and maintaining profitable
customer relationships by delivering superior
customer value and satisfaction.
Customer Relationship Management
Copyright © 2016 Pearson Education,
1-27

MARKETING STRATEGY- A firm’s target market, marketing mix,
and method of obtaining a sustainable competitive advantage.
SUSTAINABLE COMPETITIVE ADVANTAGE- Something the firm
can persistently do better than its competitors.
“competitive advantage acts like a wall that the firm has built
around its position in a market. This wall makes it hard for
outside competitors to contact customers inside”- Grewal &
Levy 2019

 LOW PRICES OR EXCELLENT SERVICE
 SOUTHWEST AIRLINES CONSISTENTLY HAS POSITIONED ITSELF
AS A CARRIER THAT PROVIDES A GOOD SERVICE AT A GOOD
VALUE. SOUTHWEST HAS BUILT A VERY HIGH WALL AROUND
ITS POSITION AS THE PREMIER VALUE PLAYER IN THE AIRLINE
INDUSRTY, WHICH HAS RESULTED IN A HUGE CADRE OF LOYAL
CUSTOMERS.

CUSTOMER
VALUE
CUSTOMER
EXCELLENCE
OPERATIONAL
EXCELLENCE
PRODUCT
EXCELLENCE
LOCATIONAL
EXCELLENCE

EFFECTIVE MARKETING DOESN’T JUST HAPPEN. FIRMS LIKE
PEPSI CAREFULLY PLAN THEIR MARKETING STRATEGIES TO
REACT TO CHANGES IN THE ENVIRONMENT, THE
COMPETITION AND THEIR CUSTOMERS BY CREATING A
MARKETING PLAN.

Customer equity is
the total
combined
customer lifetime
values of all of
the company’s
customers.
1-32
Building Customer Equity

Building the Right Relationships with the Right
Customers
Building Customer Equity
FIGURE
1.5
Customer
Relationsh
ip Groups

Digital and social media marketing involves using
digital marketing tools such as web sites, social
media, mobile ads and apps, online videos, e-mail,
and blogs that engage consumers anywhere, at any
time, via their digital devices.
The Digital Age: Online, Mobile, and Social Media
Marketing
1-34

The Changing Marketing
Landscape

STRATEGIC MARKETING INTRO

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