TRƯỜNG ĐẠI HỌC FPT CẦN THƠ

Chapter 1:
Marketing: Creating and Capturing
Customer Value
 Learning Objectives
1.1 Define marketing and outline the steps in the marketing
process.
1.2 Explain the importance of understanding the marketplace and
customers and identify the five core marketplace concepts.
1.3 Identify the key elements of a customer-driven marketing
strategy and discuss the marketing management orientations
that guide marketing strategy.
1.4 Discuss customer relationship management and identify
strategies for creating value for customers and capturing
value from customers in return.
1.5 Describe the major trends and forces that are changing the
marketing landscape in this age of relationships.

Marketing Principles 2
 1.1.1. What is Marketing?

Many people think of marketing as

selling & advertising?

“Marketing as the process by which

companies engage customers, build strong
customer relationships, and create customer
value in order to capture value from
customers in return”
Satisfy customer needs!
Better than
competitor

What’re customer needs?

Marketing Principles 3
 Difference between selling and marketing

Selling: Marketing:
Emphasis is on the product.
 Emphasis is on customers’ wants.
Company first makes the
 Company first determines
product and then figures out
customers’ wants and then figures
how to sell it. out how to make and delivers a
Management is sales volume product to satisfy those wants.
oriented.  Management is profit oriented
Planning is short run  Planning is long run oriented, in
oriented, in terms of today’s terms of new products, tomorrow’s
products and markets. market, and future growth.
Needs of sellers are stressed.  Wants of buyers are stressed.

Marketing Principles 4
 Difference between selling and marketing

Marketing Principles 5
 1.1.2. The Marketing Process

(1) Needs, wants, and demands;

Five core customer and
(2) Market offerings; marketplace concepts are
critical!
(3) Value and satisfaction;
(4) Exchanges and relationships; and (5) Markets.
Marketing Principles 6
 1.2.1. Understanding the Marketplace
and Customer Needs

Understand the (1) Needs (are states of felt deprivation)

marketplace  Wants (are the form human needs take as they
and customer are shaped by culture and individual personality)
needs and
wants  Demands are human wants that are
backed by buying power
(2) Market offerings:
are some combination of products, services, information, or experiences
offered to a market to satisfy a need or want
Marketing myopia:
• Paying more attention to the specific products a company offers than
to the benefits and experiences produced by these products
• Focusing only on existing wants and losing sight of underlying
consumer needs
Marketing Principles 7
 1.2.1. Understanding the Marketplace
and Customer Needs
thỏa mãn
Understand the 3. Customer Value and Satisfaction
mong muốn
marketplace  Customers form expectations about the value
and customer and satisfaction that various market offerings
needs and will deliver and buy accordingly
wants  Satisfied customers buy again and tell others
about their good experiences
cạnh tranh
trao đổi  Dissatisfied customers switch to competitors
4. Exchange is the and disparage the product to others
act of obtaining a
mong muốn
desired object from  Customer value and customer satisfaction
nền tảng
are key building blocks for developing and
someone by offering
managing customer relationships
something in return

Marketing Principles 8
 1.2.1. Understanding the Marketplace
and Customer Needs
tập hợp tiềm năng
(5) Market is the set of actual and potential buyers of a product

mkt trung gian

cung cấp

The main elements in a marketing system

Marketing Principles 9
 1.3. Designing a Customer Value-
Driven Marketing Strategy

Marketing management 2. How can we serve these customers

best (what’s our value
is the art and science of proposition)?
choosing target markets (Choosing a Strong Value Proposition)
and building profitable
Why should I buy your brand
relationships with them rather than a competitor’s?

The marketing manager’s aim

1. What customers will we serve is to engage, keep, and
(what’s our target market)? grow target customers by
(Selecting Customers to Serve)
creating, delivering, and
 Dividing the market into segments of
customers (market segmentation)  communicating superior
Selecting which segments it will go after customer value
(target marketing)
Marketing Priciples 10
 1.3. Designing a Customer Value-
Driven Marketing Strategy

Marketing management 2. How can we serve these customers

best (what’s our value
is the art and science of proposition)?
choosing target markets
and building profitable Choosing a value proposition:
relationships with them is the set of benefits or values
it promises to deliver to
consumers to satisfy their
1. What customers will we serve needs. (BMW promises “the
(what’s our target market)? ultimate driving machine”)
(Selecting Customers to Serve)
 Such value propositions
differentiate one brand from another

Marketing Principles 11
 1.3. Designing a Customer Value-
Driven Marketing Strategy

Five alternative concepts of marketing strategies?

Societal
Production Product Selling Marketing
Marketing
concept concept concept concept
concept

The production concept holds that

consumers will favor products that are
available and highly affordable Marketing
 Management should focus on improving myopia?
production and distribution efficiency
Marketing Principles 12
 1.3. Designing a Customer Value-
Driven Marketing Strategy
Five alternative concepts of marketing strategies?

Societal
Production Product Selling Marketing
Marketing
concept concept concept concept
concept

The product concept holds that consumers will

favor products that offer the most in quality,
Marketing
performance, and innovative features
myopia?
 Under this concept, marketing strategy focuses
on making continuous product improvements

Marketing Principles 13
 1.3. Designing a Customer Value-
Driven Marketing Strategy
Five alternative concepts of marketing strategies?

Societal
Production Product Selling Marketing
Marketing
concept concept concept concept
concept

The selling concept holds that consumers will not buy

enough of the firm’s products unless the firm undertakes a
large-scale selling and promotion effort
Marketing  The concept is typically practiced with unsought goods -
myopia? those that buyers do not normally think of buying, such
as insurance or blood donations
 These industries must be good at tracking down
prospects and selling them on product benefits
Marketing Principles 14
 1.3. Designing a Customer Value-
Driven Marketing Strategy
Five alternative concepts of marketing strategies?

Societal
Production Product Selling Marketing
Marketing
concept concept concept concept
concept

The marketing concept holds that achieving organizational goals

depends on knowing the needs and wants of target markets and
delivering the desired satisfactions better than competitors
 Customer focus and value are the paths to sales and profits
 Rather than a “make and sell” philosophy, it is a customer-
centered “sense and respond” philosophy
 The job is not to find the right customers for your product, but
to find the right products for your customers
Marketing Principles 15
 1.3. Designing a Customer Value-
Driven Marketing Strategy
Five alternative concepts of marketing strategies?

Societal
Production Product Selling Marketing
Marketing
concept concept concept concept
concept

 Customer-driven companies research current customers deeply

to learn about their desires, gather new product and service
ideas, and test proposed product improvements
 Customer-driven marketing requires understanding customer
needs even better than customers themselves do and creating
products and services that meet existing and latent needs

Marketing Principles 16
 1.3. Designing a Customer Value-
Driven Marketing Strategy

Focuses on the
company’s
existing
products, and
calls for heavy
selling and
promotion to
obtain
profitable sales

Focuses on
customer
needs, and
integrates all
the marketing
activities that
affect
customers

Marketing Principles 17
 1.3. Designing a Customer Value-
Driven Marketing Strategy
Five alternative concepts of marketing strategies?

Societal
Production Product Selling Marketing
Marketing
concept concept concept concept
concept

 The societal marketing concept questions whether the pure

marketing concept overlooks possible conflicts between
consumer short-run wants and consumer long-run welfare

 The societal marketing concept holds that marketing strategy
should deliver value to customers in a way that maintains or
improves both the consumer’s and society’s well-being
Marketing Principles 18
 Examples of Marketing myopia

Marketing Principles 19
 1.3. Designing a Customer Value-
Driven Marketing Strategy

Companies should
balance three
considerations in
setting their
marketing strategies:
company profits,
consumer wants, and
society’s interests

20
Marketing Priciples
 1.3. Designing a Customer Value-
Driven Marketing Strategy

• Need
• Want •Product
• Demand •Price
Target A brand’s value 4Ps/4Cs
Customer proposition (Plan & Implement Control
Pro.)
•Place
•Promotion
Competitors
Satisfactions better than competitors

Integrated Marketing Plan and Program

Marketing Principles 21
 1.3. Designing a Customer Value-
Driven Marketing Strategy

Product (Customer Solution) 4Ps/4Cs?

Price (Customer Cost)
Goods-and-services Amount of money
combination the customers have to
company offers to pay to obtain the
the target market Target product
Customers
Intended
Positioning
Activities that Activities that make
communicate the the product
Advertising
merits of the product available to target
Personal Selling
and persuade target Sales Promotion customers
customers to buy it Public Relations
Direct Marketing Place or Distribution
Promotion (Communication)
(Convenience)

Marketing Principles 22
 1.4. Managing Customer Relationships and
Capturing Customer Value
 Customer relationship management
The overall process of building and maintaining profitable customer
relationships by delivering superior customer value and satisfaction
 Customer-perceived value is the customer’s evaluation of the
difference between all the benefits and all the costs of a market
offering relative to those of competing offers.
 Customer satisfaction depends on the product’s perceived
performance relative to a buyer’s expectations
 If the product’s performance falls short of expectations, the
customer is dissatisfied
 If performance matches expectations, the customer is satisfied
 If performance exceeds expectations, the customer is highly
satisfied or delighted
Marketing Principles 23
 Understanding
the Marketplace and Customer Needs

Customer Value and Satisfaction

Customers usually face broad array of product and services that
might satisfy given need. How do they choose among these
many market offerings?
 Expectations: Customers
forms expectation about the
Value and satisfaction that
various marketing offers will
deliver and buy accordingly.
 Marketers: Set the right level
of expectations. Not too high
or too low

Marketing Principles 24
 Engaging Customer and managing
Customer relationship
Relationship Building Blocks: Customer Value and
Satisfaction
Satisfaction = Performance (P) – Expectation (E)
Expectations are largely based on marketer
information and promises – must create realistically
high expectations
Performance
Reality = satisfaction has been declining exceeds
expectations
Performance P>E
falls short of Performance
expectations matches Customer is
expectations highly
P<E
satisfied
Customer is P=E
dissatisfied or
Customer is delighted !
satisfied

Marketing Principles 25
 1.4. Managing Customer Relationships and
Capturing Customer Value

Customer Relationship Levels and Tools

•Full partnerships •Sales representatives

(few customers and high
 Frequency
margins) marketing
Customer programs
Relationship  Club marketing
Levels programs

•Basic relationships •Product experiences,

(A company with many low- brand-building
margin customers) advertising, websites,
and social media

Marketing Principles 26
 1.4. Managing Customer Relationships and
Capturing Customer Value

websites, online ads

and videos, mobile
Customer-Engagement Marketing
ads & apps, blogs Fosters direct and continuous customer
and the major social
involvement in shaping brand conversations,
media,…
experiences, and community
Engaging
Customers Consumer-Generated Marketing
Consumers are playing an increasing role in
shaping their own brand experiences and those
of other consumers
Partner relationship management
Working closely with partners in other company
departments and outside the company to jointly
bring greater value to customers
Marketing Principles 27
 1.4. Managing Customer Relationships and
Capturing Customer Value

websites, online ads Creating Customer Loyalty and Retention

and videos, mobile
ads & apps, and Customer lifetime value, the value of the entire
blogs and the major
stream of purchases a customer makes over a
social media,…
lifetime of patronage
Capturing
Value from Growing Share of Customer
Customers
The portion of the customer’s purchasing that a
company gets in its product categories

Building Customer Equity

is the total combined customer Building the Right
lifetime values of all of the Relationships with the
company’s current and Right Customers
Marketing Principles potential customers 28
 Building the Right Relationships with
the Right Customers
Right relationships
with the right
customers involves
treating customers as
assets that need to be
managed and
maximized.
Different types of
customers require
different relationship
management
strategies.
Marketing Principles 29
 1.5. The Changing Marketing Landscape

The Digital and social media marketing

Changing
Using digital marketing tools such as websites, social media,
Marketing
mobile apps and ads, online video, email, and blogs to engage
Landscape consumers anywhere, at any time, via their digital device
(Facebook, Instagram, Twitter, Google+, YouTube, Snapchat, Pinterest,LinkedIn)

Mobile Marketing

Not-for-profit marketing growth

Rapid globalization

Sustainable marketing
Marketing Principles 30
 An Expanded Model of the
Marketing Process

Marketing Principles 31
 Summary

Design a Construct an Engage customers,

Understand the integrated build profitable Capture value
marketplace and customer value– from customers to
marketing program relationships, and
customer needs driven marketing that delivers create profits and
strategy create customer customer equity
and wants superior value delight

Engage customers, build strong customer relationships,

websites, online ads & videos, Marketing and create customer value in order to capture value
mobile ads & apps, blogs and
the major social media,… Superior customer
value & satisfaction
Customer-
engagement
Target Customer
customer
marketing Differentiation & equity
positioning
(shaping brand conversations,
experiences, and community)
Customer relationship management
Engaging customers and building and maintaining profitable customer
relationships by delivering superior customer value and satisfaction

Marketing Principles 32
 Review Question
Construct an Engage customers,
Understand the integrated build profitable
Q1:andWhat is marketing?
marketplace marketing program relationships, and
customer needs
A. Identifying the needs and
and wants
that delivers
wants of consumers
superior value
create customer
delight
B. Providing consumers their needs and wants
C. Generating good customer relationships
D. All of the above

Marketing Principles 33
 Review Question
Construct an Engage customers,
Understand the integrated build profitable
Q2:and_______ is
marketplace a total system of business activities
marketing program relationships, and
customer needs
design to plan,
and wants
price, promote and distribute want-
that delivers
superior value
create customer
delight
satisfying goods and services to target market to
achieved organizational objectives.

A. Entrepreneurship
B. Business
C. Marketer
D. Marketing

Marketing Principles 34
 Review Question
Construct an Engage customers,
Understand the integrated build profitable
Q3:and_____
marketplace is the basic reason/minimum requirement
marketing program relationships, and
customer needs
consumers
and wants
look for in a product or service.
that delivers
superior value
create customer
delight

A. Expectations
B. Quality
C. Needs
D. Wants

Marketing Principles 35
 Review Question
Construct an Engage customers,
Understand the integrated build profitable
Q4:and __________
marketplace assumes that consumers are
marketing program relationships, and
customer needs
primarily interested
and wants
in the product itself, and buy on
that delivers
superior value
create customer
delight
the basis of quality.
A. Sales orientation
B. Product orientation
C. Production orientation
D. Marketing orientation

Marketing Principles 36
 Review Question
Construct an Engage customers,
Understand the integrated build profitable
Q5:andThe basis for the _________ way of thinking is
marketplace marketing program relationships, and
customer needs
that consumers are inherently reluctant to purchase,
and wants
that delivers
superior value
create customer
delight
and need every encouragement to purchase sufficient
quantities to satisfy the organization’s needs.
A. Sales orientation
B. Marketing orientation
C. Production orientation
D. Product orientation

Marketing Principles 37
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