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    Fundamental Marketing Concepts: Session 2

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    Harleen Kaur
    This document discusses fundamental marketing concepts related to achieving organizational goals through satisfying customer needs. It covers four pillars of the marketing concept: targeting a specific market, understanding customer needs, implementing integrated marketing strategies, and achieving profitability through customer satisfaction. Additional topics discussed include defining customer value and satisfaction, determining factors that influence delivered customer value, attracting and retaining customers through relationship management, and measuring customer profitability and lifetime value.

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    Fundamental Marketing Concepts: Session 2

    Uploaded by

    Harleen Kaur
    19 views15 pages
    This document discusses fundamental marketing concepts related to achieving organizational goals through satisfying customer needs. It covers four pillars of the marketing concept: targeting a specific market, understanding customer needs, implementing integrated marketing strategies, and achieving profitability through customer satisfaction. Additional topics discussed include defining customer value and satisfaction, determining factors that influence delivered customer value, attracting and retaining customers through relationship management, and measuring customer profitability and lifetime value.

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    Session 2

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    This document discusses fundamental marketing concepts related to achieving organizational goals through satisfying customer needs. It covers four pillars of the marketing concept: targeting a specific market, understanding customer needs, implementing integrated marketing strategies, and achieving profitability through customer satisfaction. Additional topics discussed include defining customer value and satisfaction, determining factors that influence delivered customer value, attracting and retaining customers through relationship management, and measuring customer profitability and lifetime value.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    19 views15 pages

    Fundamental Marketing Concepts: Session 2

    Uploaded by

    Harleen Kaur
    This document discusses fundamental marketing concepts related to achieving organizational goals through satisfying customer needs. It covers four pillars of the marketing concept: targeting a specific market, understanding customer needs, implementing integrated marketing strategies, and achieving profitability through customer satisfaction. Additional topics discussed include defining customer value and satisfaction, determining factors that influence delivered customer value, attracting and retaining customers through relationship management, and measuring customer profitability and lifetime value.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 15

    FUNDAMENTAL MARKETING CONCEPTS

    SESSION 2

    MM1: SESSION 2

    The Marketing Concept

    Achieving organizational goals requires that company be more effective than competitors in creating, delivering, and communicating customer value. Four pillars of the marketing concept:

    Target market Customer needs Integrated marketing Profitability through customer satisfaction

    MM1: SESSION 2

    Company Orientations Toward the Marketplace

    Integrated Marketing

    External marketing Internal marketing

    MM1: SESSION 2

    Defining Customer Value and Satisfaction

    Customer Perceived Value (CPV)


    Total customer value Total customer cost

    MM1: SESSION 2

    Determinants of Customer Delivered Value

    MM1: SESSION 2

    Attracting and Retaining Customers

    Customer relationship management (CRM)

    MM1: SESSION 2

    Attracting and Retaining Customers


    Attracting Customers Computing the Cost of Lost Customers


    Customer churn Lifetime value

    MM1: SESSION 2

    Attracting and Retaining Customers


    The Need for Customer Retention Measuring Customer Lifetime Value (CLV) Customer Relationship Management (CRM): The Key

    Customer equity Three drivers of customer equity


    Value equity Brand equity Relationship equity


    MM1: SESSION 2
    8

    Attracting and Retaining Customers

    Customer Relationship Marketing


    Reduce rate of customer defection Increase longevity of customer relationship Enhance growth potential through cross-selling and up-selling Make low profit customers more profitable or terminate them

    MM1: SESSION 2

    Customer Profitability, Company Profitability

    Measuring Profitability

    Profitable customer

    MM1: SESSION 2

    10

    Allocating marketing investment according to customer value

    MM1: SESSION 2

    11

    20 80 30 Rule

    20 80 Generate 80% of your profit 30 Half of your profit is lost


    20% of your customers

    serving the bottom 30% of your customer base


    MM1: SESSION 2

    12

    Customer Satisfaction

    Satisfaction is defined as . . .
    a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his or her expectations.

    MM1: SESSION 2

    13

    Customer Satisfaction

    To maximize satisfaction . . .

    Dont exaggerate the product / services capabilities in advertising or other communications

    Dissatisfaction will result Market size will be limited

    Dont set expectations too low

    MM1: SESSION 2

    14

    Satisfaction Trade-offs

    High

    Strong Satisfaction Low


    Low

    Satisfied or Neutral

    Dissatisfaction

    Market Size
    MM1: SESSION 2

    High
    15

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