Marketing: Managing

Profitable Customer
Relationships
 What is Marketing?

Marketing is managing profitable

customer relationships
 Attracting new customers
 Retaining and growing current
customers
“Marketing” is NOT synonymous
with “sales” or “advertising”
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 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.”

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What Can Be
Marketed?
Goods
Services
Places
Ideas
Events
Persons
Properties
Organizations
Information
Experiences
What is being
marketed in this ad?
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 Figure 1-1:
Core Marketing Concepts

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 Figure 1-2:
Elements of a
Modern Marketing System

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Marketing Management

Marketing management is “the

art and science of choosing
target markets and building
profitable relationships with
them.”
 Creating, delivering and
communicating superior
customer value is key.
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Marketing Management

Customer Management:
 Marketers select customers that
can be served well and profitably.
Demand Management:
 Marketers must deal with different
demand states, ranging from no
demand to too much demand.

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 Marketing Management

Production Management Product

Concept Orientations Concept

Selling Marketing
Concept Concept
Societal
Marketing
Concept

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 Figure 1-3:
The Selling and Marketing
Concepts Contrasted

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 Figure 1-4:
Considerations Underlying the
Societal Marketing Concept

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 Figure 1-5:
Relationship Between Customer
Satisfaction and Loyalty

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 CRM

Customer relationship
management (also called CRM)
is defined as:
“the overall process of building
and maintaining profitable
customer relationships by
delivering superior customer
value and satisfaction.”
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 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
customer.
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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.

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 Figure 2-4:
The Marketing Process

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 The Marketing Process
The strategic planning
Key Elements and business portfolio
analysis processes
Analyzing marketing help to identify and
opportunities evaluate marketing
Selecting target opportunities.
markets The purpose of the
Developing the marketing process is
marketing mix to help the firm plan
how to capitalize on
Managing the
these opportunities.
marketing effort
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 The Marketing Process
The segmentation
Key Elements process divides the
total market into
Analyzing marketing market segments.
opportunities Target marketing
Selecting target chooses which
markets segment(s) are
Developing the pursued.
marketing mix
Market positioning
Managing the for the product is
marketing effort then determined.
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 The Marketing Process
Competitor analysis
Key Elements guides competitive
marketing strategy
development.
Analyzing marketing Strategy leads to tactics
opportunities via the marketing mix:
Selecting target  The “Four Ps” – product,
markets price, place, promotion
(seller viewpoint)
Developing the  The “Four Cs” –
marketing mix customer solution, cost,
convenience, and
Managing the communication
marketing effort (customer viewpoint)

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 Figure 2-5:
The Marketing Mix

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 The Marketing Process
Marketing analysis
Key Elements  Provides information
helpful in planning,
implementation, and
Analyzing marketing control
opportunities Marketing planning
Selecting target  Strategies and tactics
markets Marketing
implementation
Developing the
 Turns plans into action
marketing mix
Marketing control
Managing the  Operating control
marketing effort  Strategic control

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