MODULE 1:

 Marketing – Creating Customer Value & Engagement

o What is Marketing?
 Goals:
 Attract new customers by promising superior value.
 Keep & grow current customers by delivering value & satisfaction
 Process by which:
 Companies engage with customers
 Build strong & profitable customer relationships
o For the sustainability of company operations.
o Otherwise, the revenue will only be enough to pay for the
expenses, without any profit.
 Marketing:
 Create VALUE FOR CUSTOMERS vs Capture VALUE FROM
CUSTOMERS
o Create Value for Customers
 Satisfy customer needs
o Capture Value from Customers
 Monetary Value
 The Marketing Process

o Understanding the Marketplace and Customer Needs and Wants

 Needs, Wants, Demands
 Needs
o States of felt deprivation
o The essentials
 Wants
o Shaped by culture and individual personality
o The nonessentials
 Demands
o Backed up by buying power (capacity to buy)
o If you can purchase your wants
 
 Market Offerings
 Products offered to satisfy needs/wants or a market
 Tangible & Intangible Products
o People, places, organizations, information, idea,
experience, or service
 Marketing Myopia
 Focused on the products offered rather than the benefits &
experiences produced by these products.
 Ex: Apple offering new techs or products every year with very
minimal changes.
 Value & Satisfaction
 Customer Value
o What you offer to your customers
o Sets the expectations of the customers
 Customer Satisfaction
o Meeting the expectations of the customers
 Exchanges & Relationships
 Exchange
o The act of obtaining a desired object from someone by
offering something in return
 Marketplace
o The location where the exchange happens
o Talks about the location
 Market
o Set of actual & potential buyers of a product/service
o Talks about the buyers or customers
o Design a Customer Value-Driven Marketing Strategy
 The art & science of choosing target markets and building profitable
relationships
 STP Approach
 

 Marketing Management Orientations:

( [Link] )
 Production Concept
o Availability and affordability
 Product Concept
o (You believe that customers purchase products of) Quality,
performance, and feature
 Selling Concept
o Large-scale promotion
 Marketing Concept
o Addressing markets’ needs
 Societal Marketing Concept
o Addressing markets’ needs & society’s long-run interests
 Summary:
o

o Construct an Integrated Marketing Program that Delivers Superior Value

 Integrated
 Comprehensive plan that communicates and delivers intended
value to chosen customers.
 It summarizes the overall value of the business
 Purpose
 Delivers the intended value to customers
  Actualizes the marketing strategy into action
 Builds customer relationships
 Can be summarized through:
 Product
o A need-satisfying market offering
 Price
o How much it will change for the market offering
 Place
o How it will make the offering available to the customers
 Promotion
o Engage customers, communicate about the offering, and
persuade consumers of the offers’ merits.
o Engage Customers, Build Profitable Relationships, & Create Customer Delight
 Customer Relationship Management (CRM)
 The overall process of building and maintaining profitable
relationships by delivering superior customer value & satisfaction.
 Deals with the aspect of acquiring, engaging and growing
customers.
o Gather more customer groups to increase revenue.
 To not affect the sustainability of the business.
 Look for different customers and engage with them
using CRM
 Two Building Blocks:
o Customer-Perceived Value
 The difference between total customer value and
total customer cost
 The customer’s evaluation of the difference
between all the benefits and costs of a market
offering relative to those of competing offers.
 It is in the bias of the customer, as it is
subjective in the perspective of the target
market.
 Customer Satisfaction
 The extent to which a product’s perceived
performance matches a buyer’s
expectations.
 Customer Relationship Levels (Basic Relationship vs Full Partnership)
 Basic Relationship
o Creates engagement & relationships through product
experiences, brand-building, advertising, websites, and
social media.
 There is no lasting or face-to-face connections
between customers and the company
  Ex: Bag of chips.  You just eat the bag of
chips and it’s gone
 Full Partnership
o Creates engagement & relationships through direct
communication with ‘partners.’
 There is a lasting connection between the
customers and company
 Ex: iPhone  People use their phones
everyday as it is also considered a
necessity nowadays
 Customer Engagement
 Making the brand a meaningful part of consumers’ conversations
 Fostering direct & continuous customer involvement in shaping
brand conversations, experiences, and community.
 Partner Relationship Management
 Working closely with partners in other company departments &
outside the company to jointly bring greater value to customers.
o This dictates the quality of the goods and services we offer
to the customers (to address their needs and satisfy
them).
 Supply Chain:
o A longer channel, stretching from raw materials to
components to final products that are carried to final
buyers.
o
o Capture Value from Customers to Create Profits and Customer Equity
 Captured Value from Customers
 Monetary Value from customers
 In the form of sales, market share, and profits
o Sales = Initial Market Value
o Market Share = Total Revenue of the Industry
o Profits = Total Sales – Total Costs
 In return, we expect them to:

o
 Customer Lifetime Value
o The value of the entire stream of purchases a customer
makes over a lifetime of patronage.
o Total purchase in our lifetime
 Customer Equity
o Total combined customer lifetime values of all the
company’s current and potential customers.
 Share of Customer
o The portion of the customer’s purchasing that a company
gets in its product categories.
 The payment that you give to the business or the
institution as compared to customer equity.
o Summary of the Marketing Process:


 Customer Relationship Groups

 The Changing Marketing Landscape
o The Digital Age
 Internet of Things (IoT)
 A global environment where everything and everyone is digitally
connected to everything & everyone else.
 Digital Marketing
 Using digital marketing tools to engage consumers anywhere,
anytime.
o Ex: Text messaging, Application of Starbucks, Billboards,
 Social Media Marketing
 Sub-portion of digital marketing
 A platform for real-time marketing where companies can engage
to their customers.
o Marketing in different social media: IG, Twitter, FB
 Mobile Marketing
 Use of mobile tools such as smart phones for engaging customers
anytime, anywhere as they move through the buying process.
 Consumer-Generated Marketing
 Brand exchanges created by consumers themselves – both invited
& uninvited.
o The Economic Environment
 Sensible Consumption
  Consumers spending values emphasis on simpler living & more
value for the money
 Moving from ‘mindless’ to ‘mindful’ consumption.’
o Not-For-Profit Marketing
 Stiff competition for membership, funds, & support
 Their only form of support would be from donations.
 Highlights the purpose (or mission) of the organizations
o Globalization
 The growing interdependence in the global economy.
o Sustainable Marketing
 Meeting the present needs without harming the needs of future
generations.
 Ethics
 Set of Standards of ‘good’ or ‘bad’
 Corporate Social Responsibility
 The obligation of a business toward society.
 Positive impact to the environment, consumers, employees,
communities, and other stakeholders.
 Company & Marketing Strategy
o Strategic planning
 Definition
 The process of developing and maintaining a strategic fit between
the organization’s goals & capabilities and its changing marketing
opportunities.
 It sets the stage for the rest of planning in the firm.
 Steps in Strategic Planning

 Designing a Market-Oriented Mission

o Mission
 States the purpose of the organization/company
 What it wants to deliver to the market.
o Vision
 States the long-term goal of the organization
  What it wants to be in the future
o Ex:

o
 Setting Company Goals & Objectives
o Goals
 Describes the desired outcome, end date, &
amount of resources
 Answer the “What”
o Objectives
 Specific and measurable steps you take to attain
the goal
 Answer the “How”
 Designing the Business Portfolio
o Business Portfolio Definition
 The collection of businesses & products that make
up the company
 Fits the company’s strengths & weaknesses to
opportunities in the environment.
 Ex:


o Portfolio Analysis (BCG Matrix)

 The process of evaluating the products and
businesses that make up the company
 Strategic Business Units (SBUs)
 Boston Consulting Group (BCG) Matrix
 



o Business Portfolio Management Strategies
 Business portfolio management is a method for
businesses to effectively manage numerous
projects or individual initiatives.
 The finest project managers in an organization are
identified, and best management practices,
strategic goals, and important lessons acquired in a
project management office are used in the business
portfolio management process.


 Market Penetration
o You have an existing product and
you offer it to the existing market.
 Product Development
o Creating a new product to the
current market
 Market Development
o Existing product to a new market
 Diversification
 o New product to a new market
o Types of Diversification
 Related Diversification
 Unrelated Diversification 
The offerings of a business
are totally different with
each other, or belong to
different industries
o Planning Marketing & Other Functional Strategies


 Marketing strategy
 The marketing logic to which the company
hopes to create this customer value &
achieve these profitable relationships
o STP Approach
o Marketing Mix (4Ps)
 Market Analysis
 SWOT Analysis
 Competitors Analysis
 Industry Analysis
 Consumer Analysis
 Planning
 Develop Strategic plans & marketing plans
 Marketing Department Organization
 Functional Organization
o

 Geographic Organization
 o

 Product Management Organization

o

 Customer Management Organization

o

 Matrix Organization
o

 Marketing Control (Marketing ROI)



 Marketing Plan
 Market Background
 Competitor Profiles
 Market Positioning
 Year 1 Gross sales & Marketing
  Marketing Strategies (STP)
 Marketing Mix (4Ps)

o