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Chapter1MarketingCreatingandCapturingCustomerValueCopyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-21.Definemarketingandthemarketingprocess.2.Explaintheimportanceofunderstandingcustomersandidentifythefivecoremarketplaceconcepts.3.Identifytheelementsofacustomer-drivenmarketingstrategyanddiscussthemarketingmanagementorientationsthatguidestrategy.4.Discusscustomerrelationshipmanagementandidentifystrategiesforcreatingvalueforandcapturingvaluefromcustomers.5.Describethemajortrendsandforcesthatarechangingthemarketinglandscape.RestStop:PreviewingtheConceptsCopyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-3CreatingCustomerValue•Goal:Providetheverybestcustomerservice&customerexperience.•Customer-centricapproach:Freedelivery,freereturns,365dayreturnpolicy&serviceupgrades.•Results:75%ofsalescomefromcurrentcustomers,tremendoussalesgrowthdespitepooreconomy,10millioncustomersservedannually.ZapposCreatesCustomerValue&RelationshipsFirstStopBuildingRelationships•ServiceCulture:Builtaround10coreprinciples;everynewhiretakes4weeksofcustomerloyaltytraining.•Commitment:Duringtraining,employeesareoffered$2000toquit;only1%doso.•Lifelongrelationshipsarethegoal:EmployeescomparisonshopotherWebsites;socialnetworkingisusedfordirectcontactwithcustomers;customerfeedbackandcriticismisstronglyencouragedandvalued.Copyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-4WhatIsMarketing?Simpledefinition:Marketingismanagingprofitablecustomerrelationships.Goals:1.Attractnewcustomersbypromisingsuperiorvalue.2.Keepandgrowcurrentcustomer-basebydeliveringsatisfaction.Copyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-5MarketingDefined•Marketingistheprocessbywhichcompaniescreatevalueforcustomersandbuildstrongcustomerrelationshipsinordertocapturevaluefromcustomersinreturn.OLDviewofmarketing:Makingasale-“tellingandselling”NEWviewofmarketing:SatisfyingcustomerneedsCopyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-6TheMarketingProcess•Asimplemodelofthemarketingprocess:Understandthemarketplaceandcustomerneedsandwants.Designacustomer-drivenmarketingstrategy.Constructanintegratedmarketingprogramthatdeliverssuperiorvalue.Buildprofitablerelationshipsandcreatecustomerdelight.Capturevaluefromcustomerstocreateprofitsandcustomerequity.Copyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-7CoreConcepts•Marketersmustunderstandfivecorecustomerandmarketplaceconcepts:Needs,wants,anddemandsMarketofferingsValueandsatisfactionExchangesandrelationshipsMarketsCopyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-8Needs,Wants,andDemands•Need:Stateoffeltdeprivationincludingphysical,social,andindividualneeds.Physical,social,andindividualneeds•Wants:Formthatahumanneedtakes,asshapedbycultureandindividualpersonality.•Wants+BuyingPower=DemandCopyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-9MarketingOfferings•NeedsandwantsarefulfilledthroughaMarketingOffer:Somecombinationofproducts,services,information,orexperiencesofferedtoamarkettosatisfyaneedorwant.Copyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-10MarketOfferings•Products:Persons,places,organizations,information,andideas.•Services:Activityorbenefitofferedforsalethatisessentiallyintangibleanddoesnotresultinownership.•Brandexperiences:Shouldimmersetheconsumerinthebrandexperienceandmaybeintenselypersonal.Copyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-11MarketingMyopia•Marketingmyopia:Occurswhensellerspaymoreattentiontothespecificproductstheyofferthantothebenefitsandexperiencesproducedbytheproducts.Theyfocusonthe“wants”andlosesightofthe“needs.”Copyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-12CustomerValueandSatisfaction•Caremustbetakenwhensettingexpectationsformarketofferings:Ifperformanceislowerthanexpectations,satisfactionislow.Ifperformanceishigherthanexpectations,satisfactionishigh.Copyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-13ExchangesandRelationships•Exchange:Actofobtainingadesiredobjectfromsomeonebyofferingsomethinginreturn.•Relationships:Marketingactionsbuildandmaintainrelationshipswithtargetaudiencesinvolvinganidea,product,service,orotherobject.Valuebuildsrelationships.Copyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-14WhatIsaMarket?•Amarket:Isthesetofactualandpotentialbuyersofaproduct.•Thesepeopleshareaneedorwantthatcanbesatisfiedthroughexchangerelationships.Copyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-15ModernMarketingSystems•Mainelementsinamodernmarketingsysteminclude:SuppliersCompany(marketer)CompetitorsMarketingintermediariesConsumers•Majorenvironmentalforcesaffecteachelement.Copyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-16MarketingManagement•Theartandscienceofchoosingtargetmarketsandbuildingprofitablerelationshipswiththem.Aimistofind,attract,keep,andgrowcustomersbycreating,delivering,andcommunicatingsuperiorvalue.Copyright2011,PearsonEducationInc.PublishingasPrentice-Hall1-17MarketingManagement•Designingawinningma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