1.1.1.1.

An OVERVIEW An OVERVIEW An OVERVIEW An OVERVIEW

OF OF OF OF

MARKETINGMARKETINGMARKETINGMARKETING1

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Whom to Build better

Relationships with ?

�Example: Best Buy

�Two types of Customers:

Angels and Demons

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OutlineOutlineOutlineOutlineOutlineOutlineOutlineOutline

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Scope of MarketingScope of MarketingScope of MarketingScope of Marketing

� Products

� Services

� Experiences

� Places

� Persons

� Ideas

�Organizations

What is Marketing

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�Identifying and meeting needs of

target markets profitably.

�Managing profitable customer

relationships.

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DefiningDefiningDefiningDefining MarketingMarketingMarketingMarketing

What is Marketing

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� Negative Demand

� No Demand

� Latent Demand

� Declining Demand

� Irregular Demand

� Full Demand

�Overfull Demand

� Unwholesome Demand

MarketingMarketingMarketingMarketing TasksTasksTasksTasks

Marketing Tasks

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�Customer Management:

Marketers select customers that can be

served well and profitably.

� Demand Management:

Managing the level, timing and

organization of demands.

MarketingMarketingMarketingMarketing ManagementManagementManagementManagement

Marketing Tasks

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Demarketingof Driving alone: Commuter

Connections

promotes the use

of mass transit

and carpooling as an alternative

to driving alone.

CommuterConnections

MarketingMarketingMarketingMarketing ManagementManagementManagementManagement

Marketing Tasks

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Figure 1-1:

Core Marketing ConceptsCore Marketing ConceptsCore Marketing ConceptsCore Marketing Concepts

Core Marketing Concepts

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� Target Market

�Customer Orientation

�Coordinated Marketing

� Profitability

CoreCoreCoreCore MarketingMarketingMarketingMarketing ConceptsConceptsConceptsConcepts

Core Marketing Concepts

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�Production

�Product

�Selling

�Marketing

�Societal Marketing

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MarketingMarketingMarketingMarketing Management Management Management Management

OrientationOrientationOrientationOrientation

Marketing Management Orientation

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Market Integratedmarketing

Profits throughcustomer

satisfactionCustomer

needs

(b) The marketing concept

Factory Existingproducts

Selling andpromotion

Profits throughsales volume

Startingpoint Focus Means Ends

(a) The selling concept

CustomerCustomerCustomerCustomer DeliveredDeliveredDeliveredDelivered ValueValueValueValue

Marketing Management Orientation

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The set of marketing tools used to

achieve marketing objectives in the

target market.

�Product

�Promotion

�Place

�Price

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MarketingMarketingMarketingMarketing MixMixMixMix

Marketing Management Orientation

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�CRM – “is the overall process of building

and maintaining profitable customer

relationships by delivering superior

customer

value and satisfaction.”

CustomerCustomerCustomerCustomer RelationshipRelationshipRelationshipRelationship

ManagementManagementManagementManagement (CRMCRMCRMCRM)

Customer Relationship Management

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� It costs 5 to 10 times MORE to attract a

new customer than it does to keep a

current customer satisfied.

�Marketers must be concerned with the

lifetime value of the customer.

CRMCRMCRMCRM

Customer Relationship Management

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�Customer value/satisfaction

�Loyalty and retention

�Growing share of customer

• Cross-selling

• Up-selling

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AttractingAttractingAttractingAttracting, RetainingRetainingRetainingRetaining, andandandand

GrowingGrowingGrowingGrowing CustomersCustomersCustomersCustomers

Customer Relationship Management

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Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1998

Long TermLong TermProfitableProfitableRelationshipsRelationships

CustomerCustomerLoyaltyLoyalty

CustomerCustomerSatisfactionSatisfactionand Delightand Delight

SuperiorSuperiorCustomerCustomerValueValue

Figure1.4

Slide1-4

管理學院管理學院管理學院管理學院:Source:Creating value for customers by Churchill & Peter

管理學院管理學院管理學院管理學院:Source:Creating value for customers by Churchill & Peter

TheTheTheThe ConsequencesConsequencesConsequencesConsequences ofofofof

SuperiorSuperiorSuperiorSuperior CustomerCustomerCustomerCustomer ValueValueValueValue

Customer Relationship Management

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� Value-Delivery Network (Supply Chain)

�Competition is between networks not

companies

HowHowHowHow totototo CreateCreateCreateCreate SuperiorSuperiorSuperiorSuperior

ValueValueValueValue totototo CustomersCustomersCustomersCustomers

Customer Relationship Management

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Figure 1-2:

Elements of a Elements of a Elements of a Elements of a

Modern Marketing SystemModern Marketing SystemModern Marketing SystemModern Marketing System

Customer Relationship Management

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�Connecting via technology;

�Connecting with customers more

directly, selectively, and in a more

lasting way;

�Connecting with marketing partners;

Inside partners, outside partners

�Connecting with the world.

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MarketingMarketingMarketingMarketing ChallengesChallengesChallengesChallenges

Marketing Challenges

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