2. Key points: -
Marketing Concepts: Customer Value and Satisfaction,
Customers Delight,
Conceptualizing Tasks and Philosophies of Marketing
Management, Value chain,
Scanning the Marketing Environment. Contemporary
Issues: Introduction to Social
Marketing, Digital Marketing and CRM.
3. The analysis, planning, implementation, and control
of programs designed to create, build, and maintain
beneficial exchanges with target buyers for the
purpose of achieving organizational objectives.
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4. Demand Management : The organization has a desired level of
demand for its products. At any point in time, There may be no
demand, adequate demand, irregular demand, or too much
demand, and marketing management must find ways to deal with
these different demand states.
Building Profitable Customer Relationships : Beyond designing
strategies to attract new customers and create transactions with
them, companies now are striving to retain current customers
and build lasting customer relationships.
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5. The role that marketing plays within a company varies according
to the overall strategy and philosophy of each firm.
There are five alternative concepts under which organizations
conduct their marketing activities:
◦ Production concept
◦ Product concept
◦ Selling concept
◦ Marketing concept
◦ Societal marketing concepts
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6. The philosophy that consumers will favour products
that offer the most quality, performance, and
innovative features.
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7. The idea that consumers will not buy enough of the
organization’s products unless the organization
undertakes a large – scale selling and promotion
effort.
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8. The marketing management philosophy that holds
that achieving organizational goals depends on
determining the needs and wants of target markets
and delivering the desired satisfactions more
effectively and efficiently than competitors do.
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9. The idea that the organization should determine the
needs, wants, and interests of target markets and
deliver the desired satisfactions more effectively and
efficiently than competitors in a way that maintains
or improves the consumer’s and society’s well –
being.
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12. GROWTH OF NON-PROFIT MARKETING
THE INFORMANTION TECHNOLOGY BOOM
RAPID GLOBALIZATION
THE CHANGING WORLD ECONOMY
THE CALL FOR MORE ETHICS AND SOCIAL
RESPONSIBILITY
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13. The past decade taught business firms everywhere a
humbling lesson. Domestic companies learned that they can
no longer ignore global markets and competitors. Successful
firms in mature industries learned that they cannot
overlook emerging markets, technologies, and management
approaches. Companies of every sort learned that they
cannot remain inwardly focused, ignoring the needs of
customers and their environment.
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14. CUSTOMER VALUE :
The difference between what a customer gets from a product, and what he
or she has to give in order to get it.
Customer value is the benefit that a customer will get from a product or
service in comparison with its cost.
This benefit might be measured in monetary terms, such as when a product
helps save the customer money that would have been spent on something
else.
A benefit also can be difficult to quantify, such as the enjoyment that a
customer receives from a product or service. The term "customer value"
should not be confused with the value of customers to businesses.
It refers to the value that the customers receive, not to how valuable
customers are.
Customer value is defined as :
Value = Benefits - Price.
15. Realization vs. Sacrifice:
"Realization" is a formal term for what customers get out of their purchases.
Sacrifice is what they pay for the product or service.
Some business people explain customer value as realization compared with
sacrifice.
CUSTOMER VALUE : TYPES -
1. Desired Customer Value:
Desired value is the third tier of customer value hierarchy and involves
what the customer would like to have from the purchase and service
experience.
According to Destination Marketing's website, desired value presents the
first opportunity for a small business to move ahead of competitors by giving
the customer desirable add-on features to the purchase and service
experience.
For example, a retail location may provide a consistently friendly customer
service experience with staff willing to hunt around the store with the
customer to find the right outfit or specific clothing item.
16. 2. Unanticipated Customer Value :
Unanticipated value for the customer is receiving a service or purchase
experience that the customer literally does not expect.
These features can help a small business win consumer loyalty over the
competition and generate repeat sales over time.
For example, providing satisfaction guarantees on all purchases or hiring
staff with significant expertise in the business' industry can provide a
customer with a service experience that exceeds both expectation and desire
in terms of value.
CUSTOMER VALUE PROPOSITION :
In marketing, a customer value proposition (CVP) consists of the sum total
of benefits which a vendor promises a customer will receive in return for
the customer's associated payment (or other value-transfer).
17. Target Audiences
1. End user -
The initial and ongoing satisfaction of the end user is the goal
of every business. Customer satisfaction is achieved when
superior customer value is delivered. Establishing a lasting
business relationship will lead to future sales. Price and quality
are the most important factors in a consumer purchase.
2. Manufacturer/Distributor –
When the sales target is not the end user, but a manufacturer or
distributor of a product, the most important factor is conveying
superiority of one product over another. There may be other
factors besides price and quality that would affect a customer's
decision and communicating those as well is essential.
18. CUSTOMER VALUE MODEL:
A customer value model (CVM) is a data-driven representation of the
worth, in monetary terms, of what a company is doing or could do for
its customers.
Customer value models are tools used primarily in B2B markets where
the choice of a given product, service, or offering is based primarily
upon the amount customer value created.
Uses of customer value model:-
1. New product and service development and refinement:
The dialog and customer immersion that is part of a CVM is used to
discover and determine which potential product features and
functionality would create the most value for customers.
This on-site interaction can be used to frame and define those features
and functionality. Often a key is to focus on product or service
capabilities rather than on features.
19. Successful CVM efforts change the basis of the customer-supplier product
conversation away from features and functions and toward problems,
benefits, and value
2. Sales tools:
CVMs can serve as a quantified statement of value and benefits for a
customer that is used by the vendor sales staff to both sell into a new
account, as well as to reaffirm and validate value created for current
customers as a means to retain and grow current customer
Customer value model methods :
•There are several methods and approaches used to create customer value
models
•All of these approaches appear to depend on substantial customer
interaction and on-site interviews and observations of customers' challenges
related to the product or service being valued
•The CVMs are of varying complexity. One consulting firm has found it
useful to reverse-engineer customer P&Ls (profit and loss statements).
20. The degree of satisfaction provided by the goods or services of a
company as measured by the number of repeat customers.
Whether a buyer is satisfied after purchase depends on the products
performance in relation to the buyers expectation , and whether the
buyer interprets any deviations between the two .
If Performance falls short of expectation it is CUSTOMER
DISSATISFACTION.
If performance is equal to expectation it is CUSTOMER
SATISFACTION. (P=E)
If Performance exceeds the expectation it is CUSTOMER DELIGHT .
(P>E).
21. 1. Overall Satisfaction Measure (Emotional):
This measure's single greatest predictors of customer satisfaction are the
customer experiences that result in attributions of quality.
Perceived quality is often measured in one of three contexts:
Overall quality
Perceived reliability
Extent of customer’s needs fulfilled
Dissatisfaction is synonymous with purchase regret while satisfaction is
linked to positive ideas such as “It was a good choice” or “I am glad that
I bought it.”
Example question:
Overall, how satisfied are you with “APPLES I phone”?
This question reflects the overall opinion of a consumer’s satisfaction
experience with a product they have used.
22. 2. Loyalty Measurement (Affective, Behavioral):
In this measure customer loyalty reflects the likelihood of repurchasing
products or services.
Customer satisfaction is a major predictor of repurchase but is strongly
influenced by explicit performance evaluations of product performance, quality,
and value.
Loyalty is often measured as a combination of measures including overall
satisfaction, likelihood of repurchase, and likelihood of recommending the
brand to a friend.
A common measure of loyalty might be the sum of scores for the following
three questions:
Overall, how satisfied are you with [brand]?
How likely are you to continue to choose/repurchase [brand]?
How likely are you to recommend [brand] to a friend or family member?
Example question:
Would you recommend “Apple I phone” to your family and friends?
This single question measure is the core NPS (Net Promoter Score) measure.
23. 3. A Series of Attribute Satisfaction Measurements (Affective and Cognitive)
Affect (liking/disliking) is best measured in the context of product attributes or
benefits.
Customer satisfaction is influenced by perceived quality of product and service
attributes, and is moderated by expectations of the product or service.
The researcher must define and develop measures for each attribute that is
important for customer satisfaction.
Consumer attitudes toward a product develop as a result of :
Product information or any experience with the product, whether perceived or
real.
If product or service has been used by the customer . It is not meaningful to
measure satisfaction when a product or service has not been used.
Cognition refers to judgment:
The product was useful (or not useful);
Fit the situation (or did not fit);
Exceeded the requirements of the problem/situation (or did not exceed);
Was an important part of the product experience (or was unimportant)
24. Judgments are often specific to the intended use application and use occasion
for which the product is purchased, regardless if that use is correct or incorrect.
Affect and satisfaction are closely related concepts. The distinction is that
satisfaction is “post experience” and represents the emotional affect produced by
the product’s quality or value.
Example question:
How satisfied are you with the “service” of your i phone?
How important is “price” in your decision to select Apple i phone?
4. Intentions to Repurchase Measurements (Behavioral Measures)
Behavioral measures also reflect the consumer’s past experience with customer
service representatives.
Satisfaction can influence other post-purchase/post-experience actions like
communicating to others through word of mouth and social networks.
Additional post-experience actions might reflect heightened levels of product
involvement that in turn result in increased search for the product or
information, reduced trial of alternative products, and even changes in
preferences for shopping locations and choice behavior.
Example question:
Do you intend to return to the (product) in the next 30 days?
25. Customer delight is surprising a customer by exceeding his/her
expectations and thus creating a positive emotional reaction.
Customer Delight directly affects sales and profitability of a company as
it helps to distinguish the company and it’s products and services from
the competition. This leads to Word of Mouth.
The interaction is the greatest source of opportunities to create delight
as it can be personalized and tailored to the specific needs and wishes of
the customer.
During contacts with touch points in the company, more than just
customer service can be delivered.
The person at the front line can surprise by showing a sincere personal
interest in the customer, offer small attentions that might please or find
a solution specific to particular needs. Those front line employees are
able to develop a relationship between the customer and the brand.
Elements in creating motivated staff are: recruiting the right people,
motivating them continuously and leading them in a clear way .
26. ZONE OF TOLERANCE:
It seems that customers have two levels of expectation:
adequate - what they find acceptable
desired -what they hope to receive.
The distance between the adequate and the desired levels is known as the
'zone of tolerance'
The two levels may vary from customer to customer, and from one situation to
another for the same customer. You can probably remember situations in
which you have accepted services or products that, in other circumstances,
you would have refused or been disappointed by.
27. he marketing concept and philosophy is one of the simplest ideas in
marketing, and at the same time, it is also one of the most important
marketing philosophies. At its very core are the customer and his or her
satisfaction. The marketing concept and philosophy states that the
organization should strive to satisfy its customers' wants and needs
while meeting the organization's goals.
28. The marketing concept and philosophy evolved as the last of three
major philosophies of marketing. These three philosophies are the
product, selling, and marketing philosophies. Even though each
philosophy has a particular time when it was dominant, a philosophy
did not die with the end of its era of dominance. In fact, all three
philosophies are being used today.
PRODUCT PHILOSOPHY:- The product philosophy was the dominant
marketing philosophy prior to the Industrial Revolution and continued
to the 1920s. The product philosophy holds that the organization knows
its product better than anyone or any organization. The company
knows what will work in designing and producing the product and
what will not work. For example, the company may decide to
emphasize the low cost or high quality of their products. This
confidence in their ability is not a radical concept, but the confidence
leads to the consumer being overlooked. Since the organization has the
great knowledge and skill in making the product, the organization also
assumes it knows what is best for the consumer.
29. SELLING PHILOSOPHY:-
The selling era has the shortest period of dominance of the three
philosophies. It began to be dominant around 1930 and stayed in
widespread use until about 1950. The selling philosophy holds that an
organization can sell any product it produces with the use of marketing
techniques, such as advertising and personal selling. Organizations
could create marketing departments that would be concerned with
selling the goods, and the rest of the organization could be left to
concentrate on producing the goods.
MARKETING PHILOSOPHY.
The marketing era started to dominate around 1950, and it continues to
the present. The marketing concept recognizes that the company's
knowledge and skill in designing products may not always be meeting
the needs of customers. It also recognizes that even a good sales
department cannot sell every product that does not meet consumers'
needs. When customers have many choices, they will choose the one
that best meets their needs.
30. The value chain describes the full range of activities that firms and workers do to
bring a product from its conception to its end use and beyond. This includes
activities such as design, production, marketing, distribution and support to the
final consumer.
31. Inbound Logistics: raw materials brought into the company.
Operations: any part of the business that converts raw materials into products
and services
Outbound Logistics: Getting the products and services to the customers.
Technology Development: Advances and innovations adopted to add value to the
company.
Procurement: Acquiring raw materials for production/operations.
For example, if your company develops apps, you can gain cost leadership by
cutting contracting costs, or gain competitive differentiation by creating more
value in your product to demand a higher price tag. Both methods lead to a
boost in profit margin. You can also combine the two methods.
32. Environmental scanning is the ongoing tracking of trends and occurrences
in an organization's internal and external environment that bear on its
success, currently and in the future. The results are extremely useful in
shaping goals and strategies.
Consider Internal and External Factors
These indicators may include internal issues and trends that are inherent
to the institution, such as budget issues, enrollment fluctuations,
fundraising opportunities, and changes in leadership.
They may also include external factors in the environment outside of the
institution that our out of our control such as:
33. Demographics – locally, regionally, nationally, and increasingly
internationally (e.g., population, racial/ethnic mix, immigration
status, education levels, etc.)
Politics and public policy – changes in governmental regulation,
federal financial aid policies, and public attitudes toward institutions
of higher education
Economies – local, regional, national and international
Labor market – the demand in relevant fields and the associated skills
desired by employers
Academic interests – popular fields and the employment interests of
prospective students and their families
Technology – the increasingly rapid changes in which bear on nearly
every aspect of higher education
Research – changes in interests and funding from governmental,
private and foundation sources
34. 1. Research:
Environment scanning is conducted to learn about the latest trends of
the industry and the lurking threats so that opportunities can be
exploited and precautionary steps can be taken to reduce the impacts.
Research is an old method that has been used by various industries to
learn about the industry in detail. Even there is a different department
named as “Research and Development (R&D) department to conduct all
research.
2. Getting the opinions of experts:
In this method, the management of the organization take the opinion
experts who have deep knowledge about the industry and can easily
decode its latest trends and recognize the first appearance of the
opportunities.
35. 3.SWOT analysis:-
SWOT stands for Strength, Weaknesses, Opportunities, and Threats. This is a
strategic technique opted by an organization to learn about its internal
strengths and weaknesses. It is important to learn about business competition
and project planning. SWOT analysis is a technique to learn to identify
internal and external factors which can be helpful in achieving the goal of an
organization.
4. PEST analysis:- PEST analysis is done to learn about the external macro
environmental factors. PEST stands for P: Political, E: Economic, S: Social, T:
Technological. These external macro environmental factors put an impact on
the business of the organization and it is important for an organization to keep
a track of them.
Political factors are regulated by the government and the changes in the
political factors can put a great impact on the business environment, for
example, the change in the tax policy or employment laws, etc.
5. Analysis of industry:-
There is a different organization in an industry which can be your direct or
indirect competitors. They are part of the microenvironment. Environmental
scanning is done to learn and understand the business strategies of your
competitors in order to plan strategies to give competition to them.
36. Examples of Environmental scanning
The PepsiCo company is planning to shift its investment from producing
beverages to producing healthier and functional foods using the knowledge
from the environmental scanning and market research.
They are planning to collaborate with various food companies to produce
healthy food and beverages by following the demand of the time as more and
more people are now preferring healthy drinks and foods and not cold drinks
and fast food.
37. A contemporary issue refers to an issue that is currently
affecting people or places and that is unresolved. A
geographic issue refers to a topic, concern or problem,
debate, or controversy related to a natural and/or cultural
environment, which includes a spatial dimension.
Examples:-Abortion, world poverty, animal rights,
immigration, physician-assisted suicide, freedom of religion,
hate speech, cloning, income inequality, pornography, gun
rights, racial profiling, capital punishment, overpopulation,
prostitution, drug legalization, torture.
38. Social marketing is an approach used to develop activities
aimed at changing or maintaining people's behaviour for the
benefit of individual
Social marketing helps the business to build awareness
between people. ... Social Marketing Strategy empowers a
business with a kind of Social Awareness campaign that
their target audiences need.
39. Brands will continue to take a less is more posting approach.
Content value will beat production quality.
Conversational marketing will change its tone.
Consumers will crave snackable content.
Video will continue to take center stage.
More brands will go live.
Social media platforms could double as shopping channels.
Users will embrace gaming and VR.
Authenticity will be vital.
40. Customer relationship management (CRM) is a technology for managing
all your company's relationships and interactions with customers and
potential customers. How can CRM help in digital marketing?
Based on our experience, here are four great ways you can use a CRM
system for digital marketing purposes.
Get to know your audience. ...
Improve your data marketing targeting. ...
Track key performance indicators easily. ...
Report on stronger metrics.
41. Digital marketing allow the organizations to get access to the behavioral
activities of the social platforms to increase their information about their
customers. In this way organizations can divide their customers on the basis
of their behaviors, interests and attitude irrespective of their age group and
location. This type of information will enable the organizations to
communicate or send messages to their customers on the basis of their
interests, attitudes and behaviors instead of their demographic location.
Thus the data received from social platforms will be integrated with the
information existing with the CRM tools of the organization to become the
part of its actual CRM instead of dividing various types of customers present
on social media platforms. This overlaying of the information received from
digital social platforms on the existing information with the organizations
will provide them more personalized information about their customers.
42. User generated content
High quality branded content
Social commerce
Brand activism
Google core web vitals
Nostalgia
Going alive
