Marketing: Creating Customer Value and Engagement

Marketing: Creating Customer Value and Engagement
Learning Objectives

1.1 Define marketing and outline the steps in the marketing process.

  • Definition of Marketing: Engaging customers and managing profitable customer relationships to attract new customers (superior value) and keep/grow current ones (value and satisfaction).

  • Steps in the Marketing Process:

    1. Understand Customer Needs, Wants, and Demands.

    2. Develop a Customer-Driven Marketing Strategy.

    3. Develop a Marketing Program.

    4. Build and Manage Customer Relationships.

1.2 Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.

  • Five Core Marketplace Concepts:

    1. Needs, Wants, and Demands

    2. Market Offerings

    3. Customer Value and Satisfaction

    4. Exchanges and Relationships

    5. Markets

1.3 Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy.

  • Customer Value-Driven Marketing Strategy:

    • Target Market Selection: Market segmentation (dividing markets) and target marketing (selecting segments).

    • Value Proposition: Differentiating to serve customers better.

  • Marketing Management Orientations:

    • Production Concept: Focus on production efficiency and distribution.

    • Product Concept: Focus on product quality and uniqueness.

    • Selling Concept: Focus on sales efforts to push products.

    • Marketing Concept: Focus on meeting customer needs for profits.

    • Societal Marketing Concept: Balancing societal, consumer, and company needs.

1.4 Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.

  • Customer Relationship Management (CRM): Managing customer relationships for superior value/satisfaction to build long-term relationships.

  • Strategies to Capture Value:

    • Customer Loyalty Programs.

    • Increasing Share of Customer (cross-selling, up-selling).

    • Building Customer Equity (total combined lifetime value of all customers).

1.5 Describe the major trends and forces that are changing the marketing landscape in this age of relationships.

  • Trends:

    • Digital Age: Online, mobile, social media marketing.

    • Not-for-Profit Marketing: Adopting marketing principles for funds/support.

    • Globalization: Growth in global markets.

    • Sustainable Marketing: Balancing social responsibility and profitability.

Marketing Process Overview

Figure 1.1: The Marketing Process

  1. Understand the marketplace and customer needs/wants.

  2. Design a customer value-driven marketing strategy.

  3. Construct an integrated marketing program.

  4. Engage customers and build profitable relationships.

  5. Capture value from customers to create profits and customer equity.

Marketing Beyond Advertising

  • Understanding Needs/Demands: Fast food needs (Quality, Service, Cleanliness, Value - QSCV).

  • Marketing Mix (Four Ps):

    • Product: Adapting offerings to consumer preference.

    • Price: Setting right price for perceived value.

    • Promotion: Utilizing contests and coupons.

    • Place: Establishing appealing atmosphere.

Customer and Marketplace Concepts

Core Concepts

  • Needs: States of felt deprivation (Physical, Social, Individual).

  • Wants: Needs shaped by culture and personality.

  • Demands: Wants backed by purchasing power.

Market Offerings

  • Definition: Products, services, info, or experiences to satisfy needs/wants.

  • Marketing Myopia: Over-focus on existing products rather than benefits.

Customer Value and Satisfaction

  • Customer Expectations: Formed based on perceived value; satisfaction drives repeat purchases.

Managing Customer Relationships

Key Tools and Concepts

  1. Customer Engagement Marketing: Integrating brands into consumers' lives.

  2. Consumer-Generated Marketing: Brands created by consumers.

  3. Partner Relationship Management: Collaborating with internal/external partners.

  4. Customer Lifetime Value (CLV): Economic value of a customer's relationship over time.

  5. Building Customer Equity: Overall future value from all customer relationships.

The Changing Marketing Landscape

Major Trends

  1. Digital Marketing: New channels for direct customer engagement.

  2. Social Media Marketing: Real-time marketing on platforms.

  3. Big Data and AI: Personalized experiences and behavior analysis.

  4. Globalization: Adapting to international markets.

  5. Sustainable Marketing: Balancing societal impact and business goals.

Conclusion

Skills Developed

  • Critical Thinking

  • Problem-Solving

  • Communication

  • Technology and Marketing Analytics

  • Collaboration and Teamwork

  • Business Ethics and Social Responsibility