and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build proﬁtable relationships and create customer delight 5. Capture value from customers to create proﬁts and customer equity Wednesday, February 6, 13
- States of felt deprivation. Wants - The form human needs take as they are shaped by culture and individual personality. Demands - Human wants that are backed by buying power. Wednesday, February 6, 13 Understanding can be improved by research. Customer data, surveys, focus groups, social media.
offerings - Some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Exchange - The act of obtaining a desired object from someone by offering something in return. Markets - The set of all actual and potential buyers of a product or service. Wednesday, February 6, 13 Consumers’ needs and wants are fulﬁlled through market offerings. Some combination of products, services, information, or experiences. Services are not tangible - air travel, banking, tax preparation, home repair. Can’t pay more attention to products than customers. An exchange occurs when our market offerings intersect with customer demands.
serve (what’s our target market)? Use segmentation and targeting to ﬁnd customers we can serve well and proﬁtably. How can we serve these customers best (what’s our value proposition)? Use differentiation and positioning to create our value proposition, the set of beneﬁts or values we promise to deliver to consumers to satisfy their needs. Wednesday, February 6, 13 Marketing management is: The art and science of choosing target markets and building proﬁtable relationships with them. More vital in small business.
The ﬁrm must ﬁrst create a need-satisfying market offering (product) It must decide how much it will charge for the offering (price) It must determine how it will make the offering available to target consumers (place). It must communicate with target customers about the offering and persuade them of its merits (promotion) Wednesday, February 6, 13
the customer’s evaluation of the difference between all the beneﬁts and all the costs of a marketing offer relative to those of competing offers. Customer satisfaction: the extent to which a product’s perceived performance matches a buyer’s expectations. Wednesday, February 6, 13 Customer perceived value is not necessarily objective or accurate. Relationships can be measured and managed. Targeted offers, ﬁring customers. Direct interaction over social media.
equity Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage. Customer equity is the total combined customer lifetime values of all of the company’s customers. Wednesday, February 6, 13 Increasing our share of customer is often more efficient than acquiring new customers. We need to be focused on the right customers.
equity Strangers (low potential proﬁtability and little projected loyalty) Butterﬂies (potentially proﬁtable but not yet loyal) True Friends (loyal and proﬁtable) Barnacles (loyal but unproﬁtable) Wednesday, February 6, 13 We need to be focused on the right customers.