Chapter Nine Building Customer Relationships Through Effective Marketing

Chapter Nine

Building Customer Relationships Through

Effective Marketing

Copyright © Cengage Learning. All rights reserved.

Learning Objectives

1. Understand the meaning of marketing and the importance of management of customer relationships.

2. Explain how marketing adds value by creating several forms of utility.

3. Trace the development of the marketing concept and understand how it is implemented.

4. Understand what markets are and how they are classified.

5. Identify the four elements of the marketing mix and be aware of their importance in developing a marketing strategy.

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Learning Objectives (cont’d)

6. Explain how the marketing environment affects strategic market planning.

7. Understand the major components of a marketing plan.

8. Describe how market measurement and sales forecasting are used.

9. Distinguish between a marketing information system and marketing research.

10. Identify the major steps in the consumer buying decision process and the sets of factors that may influence this process.

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Chapter 9 Outline

– Managing Customer Relationships– Utility: The Value Added by Marketing– The Marketing Concept

• Evolution of the Marketing Concept• Implementing the Marketing Concept

– Markets and Their Classification– Developing Marketing Strategies

• Target Market Selection and Evaluation• Creating a Marketing Mix• Marketing Strategy and the Marketing

Environment– Developing a Marketing Plan

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Chapter 9 Outline (cont’d)

– Market Measurement and Sales Forecasting– Marketing Information

• Marketing Information Systems• Marketing Research• Using Technology to Gather and Analyze

Marketing Information– Types of Buying Behavior

• Consumer Buying Behavior• Business Buying Behavior

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• The activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large


Marketing

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Managing Customer Relationships

• Relationship marketing

• Customer relationship management (CRM)

• Customer lifetime value

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• The ability of a good or service to satisfy a human need

• Form utility

• Place utility

• Time utility

• Possession utility

Utility: The Value Added by Marketing

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The Marketing Concept

• A business philosophy that involves the entire organization in the process of satisfying customers’ needs while achieving the organization’s goals

• To achieve success, a business must– Talk to its potential customers to assess their

needs– Develop a good or service to satisfy those needs– Continue to seek ways to provide customer

satisfaction

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Implementing the Marketing Concept• Obtain information about present and potential

customers– Their needs; how well those needs are being

satisfied; how products might be improved; customer opinions about the firm

• Pinpoint specific needs and potential customers toward which to direct marketing activities and resources

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Implementing the Marketing Concept (cont’d)

• Mobilize marketing resources to– Provide a product that will satisfy customers– Price the product at an acceptable and

profitable level– Promote the product to potential customers– Ensure distribution for product availability

when and where wanted• Obtain information on the effectiveness of the

marketing effort and modify efforts as necessary

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Markets and Their Classification

• Market

• Consumer markets

• Business-to-business (industrial) markets

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Developing Marketing Strategies

• Marketing strategy

– Consists of• The selection and analysis of a target market• The creation and maintenance of an appropriate

marketing mix (a combination of product, price, distribution, and promotion developed to satisfy a particular target market)

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Developing Marketing Strategies (cont’d)

• Target market selection and evaluation– Target market

– Market segment

– Market segmentation

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Developing a Marketing Plan

• A written document that specifies an organization’s resources, objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group

• Elements of a marketing plan– Executive summary– Environmental analysis– Strengths and weaknesses– Opportunities and threats– Marketing objectives– Marketing strategies– Marketing implementation– Evaluation and control

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Market Measurement and Sales Forecasting

• Sales forecast

• Importance of measuring sales potential

• Estimates should do several things

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Marketing Information

• Marketing information system

• Internal data sources

• External data sources

• Outputs

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Marketing Information (cont’d)

The six steps of marketing research1. Define the problem2. Make a preliminary investigation3. Plan the research4. Gather factual information5. Interpret the information6. Reach a conclusion

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Types of Buying Behavior

• The decisions and actions of people involved in buying and using products

• Consumer buying behavior

• Business buying behavior

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The American Consumer

• Consumer income

– Personal income

– Disposable income

– Discretionary income

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Chapter Nine Building Customer Relationships Through Effective Marketing