Professional Documents
Culture Documents
Profitable Customer
Relationships
Chapter 1
Objectives
• Be able to define marketing
and discuss its core
concepts.
• Be able to define marketing
management and compare
the five marketing
management orientations. 1-2
Objectives
• Understand customer
relationship management
and strategies.
• Realize the major
challenges facing
marketers in the new
“connected” millennium. 1-3
Case Study
Amazon.com
• Strong sales, • Provides
no profits great
• Customer- selection,
driven to its good value,
core discovery
• Each and
customer’s convenience
Discussion: Will Amazon.com Survive?
experience is • A true online1 - 4
What is Marketing?
• Marketing is managing
profitable customer
relationships
Attracting new customers
Retaining and growing
current customers
• “Marketing” is NOT
synonymous with “sales” or 1-5
What is Marketing?
• Kotler’s social definition:
“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.” 1-6
What is Marketing?
1 - 11
CRM
• CRM – Customer
relationship
management . . .
“is the overall process of
building and maintaining
profitable customer
relationships by delivering
superior customer 1 - 12
CRM
• It costs 5 to 10 times
MORE to attract a new
customer than it does to
keep a current customer
satisfied.
• Marketers must be
concerned with the
lifetime value of the 1 - 13
CRM
• Customer
Key Concepts value/satisfaction
Perceptions are key
Meeting/exceeding
• Attracting, expectations creates
satisfaction
retaining and • Loyalty and retention
growing Benefits of loyalty
Loyalty increases as
customers satisfaction levels
increase
• Building Delighting consumers
customer should be the goal
• Growing share of
relationships customer 1 - 14
CRM
• Customer equity
Key Concepts The total
combined
• Attracting, customer lifetime
retaining and values of all
growing customers.
customers Measures a firm’s
performance, but
• Building in a manner that
customer looks to the
relationships future.
1 - 15
CRM
• Customer
Key Concepts relationship levels
and tools
• Attracting, Target market
typically dictates
retaining and type of relationship
growing Basic relationships
Full relationships
customers Customer loyalty
• Building and retention
programs
customer Adding financial
relationships benefits
Adding social benefits
1 - 16
Marketing Challenges
• Technological advances, rapid
globalization, and continuing
social and economic shifts are
causing marketplace changes.
• Major marketing
developments can be grouped
under the theme of
Connecting.
1 - 17
Marketing Challenges
Connecting • Advances in
computers,
telecommunications,
• Via video-conferencing,
etc. are major forces.
technology Databases allow for
customization of
• With products, messages
and analysis of
customers needs.
• The Internet
• With Facilitates anytime,
anywhere
marketing connections 1 - 18
Marketing Challenges
Connecting • Selective
relationship
management is
• Via key.
technology Customer
profitability
• With analysis separates
winners from
customers losers.
• Growing “share of
• With customer”
marketing Cross-selling and
1 - 19
Marketing Challenges
Connecting • Partner
relationship
• Via management
involves:
technology Connecting inside
• With the company
Connecting with
customers outside partners
• With Supply chain
management
marketing Strategic 1 - 20
Marketing Challenges
• Globalization
Connecting Competition
New opportunities
• Via • Greater concern
technology for environmental
and social
• With responsibility
customers • Increased
marketing by
• With nonprofit and
marketing public-sector
entities 1 - 21