A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. " "Managing profitable customer relationships". Creating, delivering, and communicating superior customer value Evolution: Production (noel sales (one way, marketing (two way) What can be marketed: Goods, Services, Places, Persons, Ideas, Events, Organizations, Information, Experiences. Make Myopia: Focusing on short-term profits instead of long-term customer relationships.CLC: NP of all profits over lifetime of customer. Needs: Basic human requirements.
Become wants when directed to specific objects. Demands wants for specific products Segmentation: distinct, operational, profitable. Bases and profiles. Demographics (Value and Lifestyles (VAL'S)), industrial markets. Motivation and resources.
Benefits sought Market segmentation: niche, local, individual. Targeting: develop measures. Single segment, product specialization, market, full market coverage. Positioning: mat mix. Co's: Customer, company, competition AS: Price, Promotion, Place(distribution), Product (lifestyle) Profit Impact- (Unit Contribution x units Sold) - Fixed Costs Value Proposition: Net value= total benefits - total costs. Making a decision: Conjunctive(good at everything), Lexicographic (best at what matters most), Disjunctive (really good at something) Multi-dimensional scaling (MEDS) a perceptual map.
Identify attributes. Links segmentation and targeting/ positioning Conjoint Analysis: Uses real decisions to Infer the way that attributes are traded off by consumers Perceptual Biases: Context Effects, Dominating Options,Anchoring. Marketers should be aware that consumer perceptions & decision processes are often biased Economic Value to the customer (PVC): Compared to reference product, includes savings and incremental value. Competitive advantage and customer inducement.
Variables: intensity of product usage, geographical scope, business growth, nature of the application. Expansion of PVC: reduce lifestyle cost, functional redesign, Intangibles. Buying decision process: problem recognition, information search, evaluation of alternatives, purchase decision, postprocessor behavior.Buying center: initiators, users, influences, deciders, approvers, buyers, gatekeepers. Make myopia mitts: Growth is assured by expanding population, There's no substitute for our industry product, We can protect ourselves with mass production, R will ensure growth.
SOOT: Helps us match firm resources & capableness to the environment In which we operate. Portfolio Analysis: The Firm as Sum of Its Parts. (BCC) Matrix: Star, ? , cash cow, dog. X- market growth rate, Y-market share. GEE McKinney Model: Market growth rate replaced by market attractiveness, Market share placed by business strength.
Make Metrics: Relative Product Performance= (Product Performance/Average Performance) x 100 Relative Customer Value= (Customer Value / Average Customer Value) x 100 Customer Value = Relative Performance - Relative Price Relative Service Quality'= (Service Quality / Average Service Quality) x 100 Marketing ROI = (Net Marketing Contribution / Make. Expenses) x 100 Five forces: Segment rivalry, new entrants, substitutes, buyers power, suppliers power. Market leader, challenger, follower, niches, Value net: Players, added values, rules, tactics, scope (PARTS).
