MRK210T Chapter 1 - Creating and capturing customer value Flashcards Quizlet PDF

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Summary

MRK210T: CHAPTER 1 - Creating and capturing
customer value
Terms in this set (44)
1. What customers will we serve
(Who’s our target market ?)
• Divide the market into segments ( market
segmentation ), for example students, single
professionals and families w...

Description

9/21/21, 12:21 AM

MRK210T: CHAPTER 1 - Creating and capturing customer value Flashcards | Quizlet

MRK210T: CHAPTER 1 - Creating and capturing customer value Terms in this set (44) • Divide the market into segments ( market

1. What customers will we serve (Who’s our target market ?)

segmentation ), for example students, single professionals and families with children. • Then select which segments to go after ( target marketing ), for example single professional

- Customers make choices based on their

1.3 How do customers choose

expectations of value and satisfaction.

what to buy

- Marketers must therefore be careful to set expectations at the right level

3.1 What is the purpose of the

To build customer relationships by transforming the

marketing programme

marketing strategy into action

• Relate with more carefully selected customers

4.3 Firms must take into

• Relate for the long term

account the changing nature of

• Relate directly

customer relationships:

For example, FNB is the leader in convenient, digital banking

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*Nature of the target market-basic relationship *Full partnership with key customers - Standard

4.5 Customer relationship levels and tools :

Bank and FABCOS agreement giving SME's access to R400 million. Frequency marketing programs-frequent flyers, loyalty programs Clicks, Pick 'n Pay, Discovery, Dischem Club marketing programs - Harley Davidson club, Hilux Club etc....

this is the combined discounted customer lifetime values of all the firm's current and

3 Customer equity

potential customers; the more loyal the firm's profitable customers, the higher the customer equity

o Firms are connected globally with their customers and partners.

2 Rapid globalization

o Marketing managers must therefore take a global, not just a local view of the industry, competitors and opportunities

o It creates new ways to learn about and track customers. o It helps firms to distribute products more

1 Highly loyal but not profitable

efficiently and effectively. o It enables new ways to communicate and advertise. o It creates a connected marketing 'space'.

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A firm's success at building profitable relationships depends on how well the entire marketing system

1.7 The modern marketing

serves the needs of final consumers

system:

4 Build profitable relationship and create customer delight 5 Capture value from customers to create profits

3.4 The marketing process is a

and customer equity

five-step process

4.9 Marketing – pulling it all together

1.1 The basic concept underlying marketing is that of human needs: 1.2 Marketing myopia: 1. Understanding the marketplace and customer needs

1.3 How do customers choose what to buy 1.4 What happens when they buy? 1.5 Market: 1.6 Profitable customer relationships: 1.7 The modern marketing system: 1.8 Marketing: 1.9 The marketing process is a five-step process

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•Needs - states of felt deprivation (basic) •Wants - needs shaped by culture and personality •Demands - wants backed by buying power (needs amplified) Needs and wants are fulfilled through a market

1.1 The basic concept

offering - the

underlying marketing is that of

combination of products (for example, a Cadbury's

human needs:

chocolate), services (for example, from a hairdresser), information (for example, a first aid booklet) or experiences (for example, a hot air balloon ride) offered to satisfy a need or want

The mistake made by marketers

1.2 Marketing myopia:

by focusing more on the product than the benefits and experiences produced by the product

• Customers respond positively to an offering by

1.4 What happens when they buy?

buying what they desire (called an exchange ). • By focusing on building and maintaining relationships, marketers may develop desirable exchange relationships

1.5 Market:

The set of all potential buyers and sellers of a product or service

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Marketing is about managing markets to bring about profitable customer relationship • Sellers (for example companies) must search for buyers, identify their needs, create an attractive

1.6 Profitable customer

offering, promote it, store it and deliver it.

relationships:

• Buyers also conduct marketing when they search for what they want to buy. For example, if you want to buy a new car, you may read reviews in car magazines, visit different dealerships and test drive different car

The process by which firms create value for

1.8 Marketing:s

customers and build strong customer relationships to capture value from customers in return

1 Understand the marketplace and customer needs and wants 2 Design a customer-driven marketing strategy 3 Construct an integrated marketing program that delivers superior value

1.9 The marketing process is a five-step proces

4 Build profitable relationship and create customer delight 5 Capture value from customers to create profits and customer equity

2. Designing a customerdriven market strategy

2.1 Marketing management: 2.2 Questions the marketing manager must ask: 2.3 Marketing: 2.4 The marketing process is a five-step process:

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2.1 Marketing management:

MRK210T: CHAPTER 1 - Creating and capturing customer value Flashcards | Quizlet

The art and science of choosing target markets and building profitable relationships with them.

1. What customers will we serve (Who’s our target market ?) 2.2 Questions the marketing

2. How can we serve these customers? (What’s our

manager must ask:

value proposition ? 3. What philosophy should guide the marketing strategy

Decide how we will differentiate and position

2. How can we serve these customers? (What’s our value proposition ?

ourselves in the marketplace. What set of benefits and values can we offer to satisfy customers' needs? For example, a deli can offer single professionals 'quick and easy healthy meals for busy people

The process by which firms create value for

3. What philosophy should

customers and build strong customer relationships

guide the marketing strategy

to capture value from customers in return

The process by which firms create value for

2.3 Marketing:

customers and build strong customer relationships to capture value from customers in return

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3 Construct an integrated marketing program that delivers superior value 4 Build profitable relationship and create customer delight

2.4 The marketing process is a

5 Capture value from customers to create profits

five-step process:

and customer equity

3.1 What is the purpose of the marketing programme 3. Constructing an integrated

3.2 What does the programme consist of The firm’s

marketing programme

marketing mix (the four Ps):? 3.3 Marketing: 3.4 The marketing process is a five-step process

• Product – a product that will satisfy/solve a

3.2 What does the programme consist of The firm’s marketing mix (the four Ps):?

customer need • Price – how much to charge for the offer • Place – how the offer will be made available • Promotion – how to communicate with customers and persuade them of the merits of the production

The process by which firms create value for

3.3 Marketing:

customers and build strong customer relationships to capture value from customers in return

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4.1 Customer relationship management (CRM) 4.2 To build lasting relationships, marketers must create 4.3 Firms must take into account the changing 4. Building customer relationships

nature of customer relationships: 4.4 Partner relationship management: 4.5 Customer relationship levels and tools : 4.6 The outcomes of creating customer value : 4.7 Features of the current marketing landscape: 4.8 Features of the current marketing landscape: 4.9 Marketing – pulling it all together

4.1 Customer relationship management (CRM)

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

• Superior customer value - customers will buy from

4.2 To build lasting relationships, marketers must create

the firm that offers the highest perceived customer value. • Superior customer satisfaction - this is the extent to which the perceived performance of a product matches or exceeds the customer's satisfaction.

Also, firms need partners (internal and external) to

4.4 Partner relationship

build customer relationship

management:

* Working with partners to jointly bring greater value to customers.

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1 Customer loyalty and retention 2 Growing share of customer 3 Customer equity 1 Strangers 2 Butterflies 4.6 The outcomes of creating customer value :

3 True friends 4 Barnacles

1 Customer loyalty and

delighted customers remain loyal and talk

retention

favourably about the firm and its products

2 Growing share of customer

1 Strangers

2 Butterflies

3 True friends

4 Barnacles

this is an increase in the portion of a customer's purchasing in the firm's product categories

Low profitability and little loyalty

Profitable but not loyal

Profitable and loyal

Highly loyal but not profitable

4.7 Features of the current

1 Highly loyal but not profitable

marketing landscape:

2 Rapid globalisation

4.8 Features of the current

1 A call for more ethics and social responsibility

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o Marketers must take greater responsibility for the social and environmental impact of their actions.

1 A call for more ethics and social responsibility

o Firms that practice 'caring capitalism' set themselves apart by building social responsibility and action into the value of their business and mission statements

o Not-for-profit organisations, for example the

2 Growth of not-for-profit

Organ Donor Foundation or the SPCA, use sound

marketing

marketing to attract membership, support and donors

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