MARKETING: Managing Profitable Customer RelationshipCOLLEGE OF BUSINESS ADMINISTRATION CHUNGANG UNIVERSITY MARKETING: Managing Profitable Customer RelationshipCOLLEGE OF BUSINESS ADMINISTRATION CHUNGANG UNIVERSITY
1. MARKETING: Managing Profitable Customer Relationship Marketing - Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others COLLEGE OF BUSINESS ADMINISTRATION CHUNG-ANG UNIVERSITY PROF HYUNSUK SUH 2 The objectives of the current chapter are described. Objectives Be able to define marketing and discuss its core concepts Understand the marketing process Be able to understand five(5) marketing management orientations Understand the strategies for building lasting customer relationships 0. Objectives 3 1. Marketing Definition What is your definition of “MARKETING”? Is it for selling the product? ? ? Are you talking about advertising? Commercial transactions? Or customer satisfaction? Trade may be? Example 4 To explain marketing, let’s take a look at the following example. Marketing, What’s It All About? All Those Bicycles! Look at the Different Bicycles People Ride! Things a Firm should do in Producing a Bike Analyze Needs Predict Wants Estimate How Many Estimate Price Decide Promotion Provide Service 1. Marketing Definition Example 5 The definitions of the marketing are listed below. What is Marketing? Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. American Marketing Association, 1986 마케팅이란 기업이 최종고객들 ( 소비자들 ) 에게 가능한 한 최대한의 경쟁적 비교우위를 갖 는 가치를 제공해 주기 위해 내부적 고객들 ( 임직원 ) 및 외부적 고객들 ( 유통업체 등 ) 에게 가치 있는 기업으로 인식되도록 운영하는 활동 . Korean Scholars, 1993 1. Marketing Definition 6 The definitions of the marketing continues. What is Marketing? Managing markets to bring about exchanges and relationships for the purpose of creating value and satisfying needs and wants Social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others Delivering customer satisfaction at a profit Kotler & Armstrong, 2000 1. Marketing Definition 7 The definitions of the marketing continues. Kotler’s Social Definition of Marketing Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others Marketing is managing profitable customer relationship It is attracting new customers and retaining and growing current customers Kotler & Armstrong, 2008, 2010 Marketing is a process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return Kotler & Armstrong, 2011 1. Marketing Definition 8 The unspecified one to one relationship of marketing in the prehistoric days, passed through series of evolutions, ending up showing the same fashion today. 1. Marketing Definition 기업에서 제일 중요한 자산은 ‘고객’ 고객을 중요도와 충성도에 따라 분류 필요 고객의 공통적인 특징 발견 고객의 과거행동은 미래의 행동을 예측하는 근거 상품판매를 위해서는 고객의 욕구와 매체를 파악 정보통신의 발달 Internet, PC 통신 ,CATV 등 원시마케팅 원시마케팅 • Unspecified 1:1 • Word of mouth promotion • Mass media • To many and unspecified individuals 타겟마케팅 타겟마케팅 • Segment marketing 매스마케팅 매스마케팅 DB 마케팅 DB 마케팅 • Individualized • One to one • Relationship 효율적인 단순업무 처리 업무 자동화 , 생산효율 증대 의사결정 지원 BC 1930 1975 1990 2000 Evolution of Marketing 9 Needs Wants Demands Products Services Value Satisfaction Quality Market Exchange Relationship The marketing process is illustrated in following diagram. 1. Marketing Definition Marketing Process 10 Perceived Value The customers’ evaluation of the difference between benefits and costs. Customers often do not judge values and costs accurately or objectively. Customer Satisfaction Product’s perceived performance relative to customers’ expectations. The marketing process is illustrated in following diagram. Value and Satisfaction What does this ad trying to do? F C [...]... promoting Profits through sales volume THE MARKETING CONCEPT Market Customer needs Integrated marketing 12 Profits through How customer so? satisfaction 2 Marketing Management Concept The more advanced form of societal marketing takes into consideration of all three(3) important factors together: The welfare, profits, and satisfaction The Societal Marketing Concept 1 공해나 환경오염 , 자연환경훼손 , 자원낭비 , 생태계의 파괴 등... cereal, soda, and fast food.” QUESTIONS: 1 Do food ads children are exposed to on TV influence them to make unhealthy food choices? 2 Would you support government regulations directed at regulating food ads for children aged 6 to 11 ? 14 3 Customer is the Key What is customer equity? Customer Equity The combined customer lifetime values of all current and potential customers Measures a firm’s performance,...2 Marketing Management Concept The five(5) important marketing management concepts are described below Deliver customer a superior value that improve customer s and society’s well-being Creating long-term customer relationships based on the customer value and satisfaction Marketing Concept Selling Concept Sell what they make rather than... innovative features Product Concept Production Concept Societal Marketing Available and highly affordable 11 2 Marketing Management Concept The difference between the selling concept and the marketing concept is the process orientation: one is started from a ‘factory’ while the other started from the customer The Selling Concept vs Marketing Concept Starting point Focus Factory Existing products... future Choosing the “best” customers is key Example: Cadillac In the 19 70s and 19 80s, Cadillac had some of the most loyal customers in the industry To an entire generation of car buyers, the name “Cadillac” defined American luxury Cadillac’s share of the luxury car market reached a whopping 51% in 19 76 Based on market share and sales, the brand’s future looked rosy However Cadillac customers were getting... Consumers (want satisfaction) Society (Human Welfare) Societal Marketing Concepts 13 Company (Profits) 2 Marketing Management Concept Today, the standards of marketing practice have shifted from an emphasis on producers’ interests to consumers’ interests and a consideration of the social and environmental consequences of potential actions Ethics Many marketing issues are not specifically addressed by existing... getting older (average age 60) and average customer lifetime value was falling Many Cadillac buyers were on their last car Thus, although Cadillac’s market share was good, its customer equity was not Compare this with BMW Its more youthful and vigorous image didn’t win BMW the early market share war However it did win BMW younger customer with higher 15 3 Customer is the Key Test yourself with... following concepts Concept Check 1 The two very important marketing theme for today is to _ and _ 2 Based on _ concept, even if your customers had bad experiences with your product, if you do well on your sales part, they will forget about the terrible memories and repurchase will occur 3 Although the customers belong to the _ groups have long term relationship with your company,... metropolitan area wishes to increase its evening-school offerings of business-related courses such as marketing, accounting, finance, and management Who are the target market customers (students) for these courses? 17 6 Exercise Discuss the following problem Homework Botulinum Toxin A - page 1 of 2 In 19 90, Allergan was just a small specialty pharmaceutical firm selling little-known eye and skin drugs... with your company, they do not bring good profits 4 An organization can’t satisfy the needs of all the customers, so it must focus on one or more of subgroups, which are its _ 16 5 Discussions Consider the following issues Discussion End of Chapter Discussions DISCUSS THE FOLLOWING TOPICS 1 What consumer wants (or benefits) are met by the following products or services? (a) Breakfast Cereal, . with others Marketing is managing profitable customer relationship It is attracting new customers and retaining and growing current customers Kotler & Armstrong, 2008, 2 010 Marketing is. for customers and build strong customer relationships in order to capture value from customers in return Kotler & Armstrong, 2 011 1. Marketing Definition 8 The unspecified one to one relationship. 1. MARKETING: Managing Profitable Customer Relationship Marketing - Marketing is a social and managerial process by which individuals