Marketing Notes.docx

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Published on 7 Apr 2013
Department
Course
Professor
Customer Value and Marketing Planning 4/3/2013 7:51:00 PM
Intro
Marketing is managing profitable customer relationships
o Needs, wants, demands
o Market offerings
o Myopia: paying attention to products not
needs/wants/benefits/experiences
Customer Driven Marketing Strategy/Customer Value
Segmentation followed by targeting
Customer and demand management
Value proposition: how it will differentiate and position itself in
the market, set of benefits, values offered to satisfy needs
Marketing management concepts (get people to buy):
o Production: favour affordable and available
o Product: highest quality, performance, innovation
o Selling: large-scale selling and promotion
o Marketing: know needs and wants and delivering better than
competitors
o Societal marketing: consider consumer wants, company
needs, consumer and society long run interests
Integrated Marketing Plan and Program
Marketing mix: product, price, place, promotion
Building Customer Relationships
Understand market and customer needs
Design customer driven marketing strategy
Constructing marketing programs
Building profitable customer relationships
o Delivering superior value and satisfaction (customer based
value based on benefits and costs, perceived performance vs.
expectations, compared to others)
o Basic to full relationships
Frequency marketing programs
Club marketing programs
Changing nature of customer relationships
o Target fewer, more profitable
o Attraction not intrusion
o Customer managed relationships
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o Consumer generated marketing
Partner relationship management
o Working with partners to bring greater customer value
o Supply chain management
Capturing Value from Customers
Creating customer loyalty and retention
o Delighted customers (word of mouth spread from this)
o Customer lifetime value
Growing share of customer
o Portion of customer’s purchasing that company gets
Building customer equity
o Total combined customer lifetime values of all company’s
customers
o Groups depend on fit of offerings and needs
o High profit/short term: butterflies
o Low profit/short term: strangers
o High profit/long term: true friends
o Low profit/long term: barnacles
Marketing Planning: Defining Marketing’s Role
Marketing concept, input to strategic planners, strategies to reach
objectives
Strategic planning: process of developing and maintaining a
strategic fit between organizations goals and capabilities and its
changing marketing opportunities
Defining market oriented mission
o Mission statement/purpose defined in terms of customer
needs and market oriented
Setting company objectives and goals
o Turns mission into supporting objectives for each level of
management
Business portfolio
o Collection of businesses and products that make up company,
analyze and shape future
o Designing: analysis of portfolio and its strategic business
units based on growth share matrix
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High growth/market share: star (high invest to finance
growth)
Low growth/high market share: cash cow (support for
company)
High growth/low market share: question mark (high
invest to keep steady)
Low growth/market share: dog (enough to maintain
itself)
Build, hold, harvest, divest
Doesn’t take future into account, only current
o Product/market expansion grid, growth/downsizing (Ansoff):
Existing product/market: market penetration
(marketing mix improvements)
Existing product/new market: market development
(reach new markets, new uses, directed marketing)
New product/existing market: product development
(market new products to current customers)
New product/market: diversification (complete shift in
marketing efforts)
Partnering to Build Customer Relationships
Value delivery network
o Value chain: series of internal departments that have value
creating activities to design, produce, market, deliver, and
support and firm’s product
o Support within company, can mean poorer job in their terms
o Increased competition based upon value delivery
Marketing Strategy and Marketing Mix
Marketing strategy: marketing logic that company uses to create
customer value and achieve profitable relationships
Customer driven strategy:
o Segmentation: dividing market into distinct groups of buyers
based on needs, characteristics, behaviours, may require
separate products/marketing programs; group of customers
who respond similarly
o Targeting: process of evaluating each market segment’s
attractiveness and selecting one or more to enter
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