14th edition
1
Defining
Marketing
for the
21st Century
Kotler
Keller
Boston Beer
Company,
maker of
Samuel
Adams,
constantly
innovates
CHP: 1&5-2
What is Marketing?
What is Marketing?
Marketing Defined:
Marketing is a social and managerial
process by which individuals and groups
obtain what they need and want through
creating and exchanging value with
others
Marketing is about managing profitable
customer relationships
Attracting new customers
Retaining and growing current
customers
CHP: 1&5-4
CHP: 1&5-7
Understanding the
Marketplace
Core Concepts
Needs, wants, and
demands
Marketing offers:
including products,
services and experiences
Value and satisfaction
Exchange, transactions
and relationships
Markets
Need
State of felt deprivation
Example: Need food
Wants
The form of needs as
shaped by culture and the
individual
Example: Want a Big Mac
Demands
Wants which are backed by
buying power
CHP: 1&5-8
Understanding the
Marketplace
Core Concepts Marketing offer
Needs, wants, and
demands
Marketing offers:
including products,
services and experiences
Value and satisfaction
Exchange, transactions
and relationships
Markets
Combination of
products, services,
information or
experiences that
satisfy a need or
want
Offer may include
services, activities,
people, places,
information or ideas
CHP: 1&5-9
Understanding the
Marketplace
Core Concepts Value
Needs, wants, and
demands
Marketing offers:
including products,
services and experiences
Value and satisfaction
Exchange, transactions
and relationships
Markets
Customers form
expectations regarding
value
Marketers must deliver
value to consumers
Satisfaction
A satisfied customer will
buy again and tell others
about their good
experience
CHP: 1&5-10
Understanding the
Marketplace
Core Concepts Exchange
Needs, wants, and
demands
Marketing offers:
including products,
services and experiences
Value and satisfaction
Exchange, transactions
and relationships
Markets
Understanding the
Marketplace
Core Concepts Market
Needs, wants, and
demands
Marketing offers:
including products,
services and experiences
Value and satisfaction
Exchange, transactions
and relationships
Markets
CHP: 1&5-14
What is Marketed?
Goods
Goods
Services
Services
Events
Events &
& Experiences
Experiences
Persons
Persons
Places
Places &
& Properties
Properties
Organizations
Organizations
Information
Information
Ideas
Ideas
CHP: 1&5-15
Demand States
Negative
Nonexistent
Irregular
Declining
Full
Latent
Overfull
Unwholesome
CHP: 1&5-16
CHP: 1&5-17
CHP: 1&5-18
Company Orientations
Production
Product
Selling
Marketing
CHP: 1&5-20
Marketing Management
Philosophies
Production Concept
Product Concept
Selling Concept
Marketing Concept
Holistic Marketing Concept
CHP: 1&5-22
CHP: 1&5-23
The Four Ps
CHP: 1&5-24
Four Cs
Customer solution
Customer cost
Convenience
Communication
CHP: 1&5-25
CHP: 1&5-26
Marketing-Mix Strategy
CHP: 1&5-27
Factors Influencing
Marketing Strategy
CHP: 1&5-28
Shaping market
offerings
Delivering value
Communicating
value
Creating long-term
growth
CHP: 1&5-29
Marketing Debate
Does Marketing
Create or Satisfy Needs?
CHP: 1&5-30
MARKETING MANAGEMENT
14th edition
5
Creating
Customer Value,
Satisfaction, and
Loyalty
Kotler
Keller
Determinants of
Customer Perceived Value
Total customer benefit
Product benefit
Monetary cost
Services benefit
Time cost
Personal benefit
Energy cost
Image benefit
Psychological cost
CHP: 1&5-33
Determinants of Customer-Delivered
Value
Customerdelivered
value
Total
customer
value
Product
value
Total
customer
cost
Monetary
cost
Personal
value
Energy
cost
CHP: 1&5-34
Loyalty
CHP: 1&5-35
Measuring Satisfaction
Periodic
Periodic Surveys
Surveys
Customer
Customer Loss
Loss Rate
Rate
Mystery
Mystery Shoppers
Shoppers
Monitor
Monitor competitive
competitive
performance
performance
CHP: 1&5-37
CHP: 1&5-38
TQM is an organization-wide
approach to continuously
improving the quality of
all the organizations processes,
products, and services.
CHP: 1&5-39
Customer
Profitability
Customer
Equity
Lifetime
Value
CHP: 1&5-40
Customer-Product Profitability
Analysis
CHP: 1&5-41
CRM Strategies
Reduce
Reduce the
the rate
rate of
of defection
defection
Increase
Increase longevity
longevity
Enhance
Enhance share
share of
of wallet
wallet
Terminate
Terminate low-profit
low-profit
customers
customers
Focus
Focus more
more effort
effort on
on
high-profit
high-profit customers
customers
CHP: 1&5-43
One-to-One
Individual customer
Customer profile
Customized market
offering
Customized
production
Economies of scope
Share of customer
CHP: 1&5-44
Customer Retention
Acquisition of customers can cost 5 times
more than retaining current customers.
The average company loses 10% of its
customers each year.
A 5% reduction to the customer defection
rate can increase profits by 25% to 85%.
The customer profit rate increases over the
life of a retained customer.
CHP: 1&5-45
CHP: 1&5-46
The Customer-Development
Process
Suspects
Prospects
First-time
customers
Disqualified
Repeat
customers
Ex-customers
Clients
Members
Partners
CHP: 1&5-47
Building Loyalty
Partnership
Proactive
Accountable
Reactive
Basic
CHP: 1&5-48
Add structural
ties
CHP: 1&5-49