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1、Marketing: Managing Profitable Customer RelationshipsChapter 10ObjectivesBe able to define marketing and discuss its core concepts.Be able to define marketing management and compare the five marketing management orientations.1ObjectivesUnderstand customer relationship management and strategies.Reali
2、ze the major challenges facing marketers in the new “connected” millennium.2Strong sales, no profitsCustomer-driven to its coreEach customers experience is uniqueProvides great selection, good value, discovery and convenienceA true online communityADiscussion: Will A Survive?Case Study3What is Marke
3、ting?Marketing is managing profitable customer relationshipsAttracting new customersRetaining and growing current customers“Marketing” is NOT synonymous with “sales” or “advertising”4What is Marketing?Kotlers social definition: “Marketing is a social and managerial process by which individuals and g
4、roups obtain what they need and want through creating and exchanging products and value with others.”5GoodsServicesExperiencesEventsPersonsPlacesPropertiesOrganizationsInformationIdeasMany Things Can Be Marketed!What is Marketing?6Needs, wants, and demandsMarketing offers: including products, servic
5、es and experiencesValue and satisfaction Exchange, transactions and relationships MarketsCore Marketing ConceptsWhat is Marketing?7Marketing ManagementMarketing management is “the art and science of choosing target markets and building profitable relationships with them.”Creating, delivering and com
6、municating superior customer value is key.8Marketing ManagementCustomer 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.9Marketing ManagementProduction conceptPro
7、duct conceptSelling concept Marketing concept Societal marketing conceptManagement OrientationsMarketing Management10CRMCRM Customer relationship management . . .“is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfacti
8、on.”11CRMIt 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.12CRMAttracting, retaining and growing customersBuilding customer relationships and customer equityCustomer value/satis
9、factionPerceptions are keyMeeting/exceeding expectations creates satisfactionLoyalty and retentionBenefits of loyalty Loyalty increases as satisfaction levels increaseDelighting consumers should be the goalGrowing share of customerCross-sellingKey Concepts13CRMCustomer equityThe total combined custo
10、mer lifetime values of all customers.Measures a firms performance, but in a manner that looks to the future.Key ConceptsAttracting, retaining and growing customersBuilding customer relationships and customer equity14CRMCustomer relationship levels and toolsTarget market typically dictates type of re
11、lationshipBasic relationshipsFull relationshipsCustomer loyalty and retention programsAdding financial benefitsAdding social benefitsAdding structural tiesAttracting, retaining and growing customersBuilding customer relationships and customer equityKey Concepts15Marketing ChallengesTechnological adv
12、ances, rapid globalization, and continuing social and economic shifts are causing marketplace changes.Major marketing developments can be grouped under the theme of Connecting.16Marketing ChallengesVia technologyWith customersWith marketing partnersWith the worldAdvances in computers, telecommunicat
13、ions, video-conferencing, etc. are major forces.Databases allow for customization of products, messages and analysis of needs.The InternetFacilitates anytime, anywhere connectionsFacilitates CRMCreates marketspacesConnecting17Marketing ChallengesSelective relationship management is key.Customer prof
14、itability analysis separates winners from losers.Growing “share of customer” Cross-selling and up-selling are helpful.Direct sales to buyers are growing.ConnectingVia technologyWith customersWith marketing partnersWith the world18Marketing ChallengesPartner relationship management involves:Connecting inside the companyConnecting with outside partnersSupply chain managementStrategic alliancesConnectingVia technologyWith customersWith marketing partnersWith the world19Marketing ChallengesGlobalizationCompetitionNew op
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