Chapter 1 MARKETING 16

Part 1: Marketing Strategy & customer relationships Chapter 1: An overview of strategic marketing Chapter An overview of strategic marketing - Pham Khac Thong, MBA Chapter 1: An overview of strategic marketing THE PURPOSE OF A BUSINESS IS TO CREATE AND RETAIN THE RIGHT CUSTOMER Chapter An overview of strategic marketing - Pham Khac Thong, MBA The role of marketing What is Marketing? A1 the Old and new Concepts A.2 Conflicting Management Philosophies Chapter An overview of strategic marketing - Pham Khac Thong, MBA Warm up • How would you define the function of marketing? • Do you agree with Peter Drucker when he said, “ the aim of marketing is to make selling superfluous” ? Chapter An overview of strategic marketing - Pham Khac Thong, MBA What is Marketing? Manufacturer All activities Distributing goods activities through the process of 4Ps exchanges end-users to satisfy customer’s needs& wants Chapter An overview of strategic marketing - Pham Khac Thong, MBA Chapter 1: An overview of strategic marketing Defining Marketing Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products and value with others Chapter An overview of strategic marketing - Pham Khac Thong, MBA Chapter An overview of strategic marketing - Pham Khac Thong, MBA Marketing Mix: The Four Ps Marketing Mix Place (Distribution) Product Price Chapter An overview of strategic marketing - Pham Khac Thong, MBA Promotion The Promotional Mix Promotional Mix Advertising Public relations Personal Sales selling Chapter An overview of strategic marketing - Pham Khac Thong, MBA Promotion The Promotional Mix Advertising  Sales promotion  Packaging  Personal selling  Public relations  Chapter An overview of strategic marketing - Pham Khac Thong, MBA 10 Why Satisfaction May Not Lead To Customer Loyalty • Some customers never return to an area – but they can still recommend • Some customers shop for the best price differentiate your product • Some customers like to have different purchase experiences – like to stay or dine at different places Chapter An overview of strategic marketing - Pham Khac Thong, MBA 16 Why Managers Should Be Concerned About Customer Loyalty • Customer loyalty leads to increased profit • Customer loyalty leads to increased partnership • Lower marketing and sales costs Chapter An overview of strategic marketing - Pham Khac Thong, MBA 17 Exchange, Transactions, and Relationships • Exchange is the act of obtaining a desired object from someone by offering something in return • A transaction is marketing’s unit of measurement and consists of a trade of values between two parties • Relationship marketing builds relationships with valued customers, distributors, dealers, and suppliers by promising and consistently delivering high-quality products, good service, and fair prices Chapter An overview of strategic marketing - Pham Khac Thong, MBA 18 Importance of Customer Retention 5% increase adds bottom line Chapter An overview of strategic marketing - Pham Khac Thong, MBA 19 25 - 125% to The Life Time Value of the Customer Revenue and profits by average customer over a lifetime by segment  Increase average purchase, frequency of visit, life  Chapter An overview of strategic marketing - Pham Khac Thong, MBA 20 ... satisfy customer’s needs& wants Chapter An overview of strategic marketing - Pham Khac Thong, MBA Chapter 1: An overview of strategic marketing Defining Marketing Marketing is a societal process... value with others Chapter An overview of strategic marketing - Pham Khac Thong, MBA Chapter An overview of strategic marketing - Pham Khac Thong, MBA Marketing Mix: The Four Ps Marketing Mix Place... marketing? • Do you agree with Peter Drucker when he said, “ the aim of marketing is to make selling superfluous” ? Chapter An overview of strategic marketing - Pham Khac Thong, MBA What is Marketing?