chapter 12 building customer relationships through effective marketing n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Chapter-12 Building Customer Relationships Through Effective Marketing PowerPoint Presentation
Download Presentation
Chapter-12 Building Customer Relationships Through Effective Marketing

Loading in 2 Seconds...

play fullscreen
1 / 42

Chapter-12 Building Customer Relationships Through Effective Marketing - PowerPoint PPT Presentation


  • 352 Views
  • Uploaded on

Chapter-12 Building Customer Relationships Through Effective Marketing. Dr. Gehan Shanmuganathan , (DBA). Apple rings up $ 43 billion in annual revenue, selling 10 million Macintosh computers, 8 million iPods, and 20 million iPhones every year. Learning Objectives. Learning Objectives.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Chapter-12 Building Customer Relationships Through Effective Marketing' - nam


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
chapter 12 building customer relationships through effective marketing

Chapter-12 Building Customer Relationships Through Effective Marketing

Dr. GehanShanmuganathan, (DBA)

slide2
Apple rings up $ 43 billion in annual revenue, selling 10 million Macintosh computers, 8 million iPods, and 20 million iPhones every year
learning objectives1
Learning Objectives
  • Understand the meaning of marketing and the importance of management of customer relationships.
  • Explain how marketing adds value by creating several forms of utility.
  • Trace the development of the marketing concept and understand how it is implemented.
  • Understand what markets are and how they are classified.
  • Identify the four elements of the marketing mix and be aware of their importance in developing a marketing strategy.
learning objectives cont d
Learning Objectives (cont’d)
  • Explain how the marketing environment affects strategic market planning.
  • Understand the major components of a marketing plan.
  • Describe how market measurement and sales forecasting are used.
  • Distinguish between a marketing information system and marketing research.
  • Identify the major steps in the consumer buying decision process and the sets of factors that may influence this process.
marketing
Marketing
  • The activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
managing customer relationships1
Managing Customer Relationships
  • Relationship marketing- establishing long-term, mutually satisfying buyer-seller relationships
  • Customer relationship management (CRM)- using information about customers to create marketing strategies that develop and sustain desirable customer relationship
  • Customer lifetime value- measure of a customer’s worth (sales minus costs) to business over one’s life time
utility the value added by marketing1
Utility: The Value Added by Marketing
  • Utility- the ability of a good or service to satisfy a human need
  • Form utility- utility created by converting production inputs into finished products
  • Place utility- utility created by making product available at a location convenient for customer to purchase
  • Time utility- utility created by making a product available when customers wish to purchase it
  • Possession utility- utility created by transferring title (ownership) of a product to a buyer
the marketing concept1
The Marketing Concept
  • A business philosophy that firm should provide goods and services that satisfy customer’s needs through a coordinated set of activities that allow the firm to achieve its objectives
  • To achieve success, a business must
    • Talk to its potential customers to assess their needs
    • Develop a good or service to satisfy those needs
    • Continue to seek ways to provide customer satisfaction
production concept
Production Concept

“ The production concept holds that consumers will favour those products that are widely available and low in cost. Managers of production oriented organisations concentrate on achieving high production efficiency and wide distribution coverage”.

  • Companies that follow this concept is called production oriented
product concept
Product Concept

“The product concept contends that consumers will favour those products that offer the most quality, performance or innovative features. Managers in these product oriented organisations focus their energy on making superior products and improving them over time.”

  • A company following this concept is called

“Myopic”

selling concept
Selling Concept

“The selling concept holds that consumers, if left alone, will ordinarily not buy enough of the organisations products. The organisation must therefore undertake an aggressive selling and promotional effort.”

  • A company following this concept is called sales oriented
marketing concept
Marketing Concept

The marketing concept rests on four pillars

  • Target market – This is where the marketing effort is directed towards a chosen market sector.
  • Customer needs - The marketing activities start with the customers needs in mind.
  • Coordinated marketing – This is where a coordinated effort is put in meeting the requirements of the customers across various functions of the organisation.
  • Profitability– The ultimate outcome would be profits for a business organisation or an excess in terms of effort for non profit organisations.
societal marketing concept
Societal Marketing Concept

Societal Marketing is a management process responsible for identifying, anticipating and satisfying customer requirements at a profit in a socially acceptable manner.  

implementing the marketing concept1
Implementing the Marketing Concept
  • Obtain information about present and potential customers
    • Their needs; how well those needs are being satisfied; how products might be improved; customer opinions about the firm
  • Pinpoint specific needs and potential customers toward which to direct marketing activities and resources
implementing the marketing concept cont d
Implementing the Marketing Concept (cont’d)
  • Mobilize marketing resources to
    • Provide a product that will satisfy customers
    • Price the product at an acceptable and profitable level
    • Promote the product to potential customers
    • Ensure distribution for product availability when and where wanted
  • Obtain information on the effectiveness of the marketing effort and modify efforts as necessary
markets and their classification1
Markets and Their Classification
  • Market- group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase such products
  • Consumer markets (B to C)
  • Business-to-business (industrial- B to B) markets
developing marketing strategies
Developing Marketing Strategies
  • Marketing strategy
    • Consists of
      • The selection and analysis of a target market
      • The creation and maintenance of an appropriate marketing mix (a combination of product, price, distribution, and promotion developed to satisfy a particular target market)
developing marketing strategies cont d
Developing Marketing Strategies (cont’d)
  • Target market selection and evaluation
    • Target market- a group of individuals or organizations for which the firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group
    • Market segment- a group of individuals or organizations within a market that share one more common characteristics
    • Market segmentation- the process of dividing a market into segments
slide27

Undifferentiating

Seg 1

One Marketing Mix

Seg 2

Seg 3

Differentiating

Marketing Mix 1

Seg 1

Seg 2

Marketing Mix 2

Seg 3

Marketing Mix 3

Concentrated

One Marketing Mix

Seg 1

definition of marketing environment
Definition of Marketing Environment

A company’s marketing environment consists of the actors and forces external to the marketing management function of the firm that impinge on the marketing management’s ability to develop and maintain successful transaction with its target customers.

- Kotler : 2001:42 -

slide30

Marketing Environment

Internal Environment

External Environment

5 M’s 7 S’s

Micro Environment

Macro Environment

Customers, Distributors, Suppliers & Competitors

PESTEEL Factors

developing a marketing plan1
Developing a Marketing Plan
  • A written document that specifies an organization’s resources, objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group
  • Elements of a marketing plan
    • Executive summary
    • Environmental analysis
    • Strengths and weaknesses
    • Opportunities and threats
    • Marketing objectives
    • Marketing strategies
    • Marketing implementation
    • Evaluation and control
market measurement and sales forecasting
Market Measurement and Sales Forecasting
  • Sales forecast- an estimate of the amount of a product that an organization expects to sell during a certain period of time based on a specific level of marketing effort
  • Importance of measuring sales potential
marketing information
Marketing Information
  • Marketing information system- a system for managing marketing information that is gathered continually from internal and external sources
  • Internal data sources
  • External data sources
  • Outputs
marketing information cont d
Marketing Information (cont’d)

The six steps of marketing research

  • Define the problem
  • Make a preliminary investigation
  • Plan the research
  • Gather factual information
  • Interpret the information
  • Reach a conclusion
types of buying behavior
Types of Buying Behavior
  • Buying behavior- the decisions and actions of people involved in buying and using products
  • Consumer buying behavior- the purchasing of products for personal or household use, not for business purposes
  • Business buying behavior- the purchasing of products by producers, resellers, governmental units, and institutions
buying process
Buying Process

Need Recognition

Identification of Alternatives

Evaluation of Alternatives

Purchase Decision

Post Purchase Evaluation

what we discussed today1
What we discussed today..
  • Understand the meaning of marketing and the importance of management of customer relationships.
  • Explain how marketing adds value by creating several forms of utility.
  • Trace the development of the marketing concept and understand how it is implemented.
  • Understand what markets are and how they are classified.
  • Identify the four elements of the marketing mix and be aware of their importance in developing a marketing strategy.
what we discussed today cont d
What we discussed today.. (cont’d)
  • Explain how the marketing environment affects strategic market planning.
  • Understand the major components of a marketing plan.
  • Describe how market measurement and sales forecasting are used.
  • Distinguish between a marketing information system and marketing research.
  • Identify the major steps in the consumer buying decision process and the sets of factors that may influence this process.