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Marketing: Managing Profitable Customer Relationships Chapter 1 Objectives Be able to define marketing and discuss its core concepts. Be able to define marketing management and compare the five marketing management orientations. Objectives Understand customer relationship management and strategies. Realize the major challenges facing marketers in the new “connected” millennium. Case Study Strong sales, no profits Customer-driven to its core Each customer’s experience is unique Provides great selection, good value, discovery and convenience A true online community What is Marketing? Marketing is managing profitable customer relationships Attracting new customers Retaining and growing current customers “Marketing” is NOT synonymous with “sales” or “advertising” What is Marketing? Kotler’s social definition: “Marketing is 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.” What is Marketing? Goods Services Experiences Events Persons Places Properties Organizations Information Ideas Needs, wants, and demands Marketing offers: including products, services and experiences Value and satisfaction Exchange, transactions and relationships Markets Marketing Management Marketing management is “the art and science of choosing target markets and building profitable relationships with them.” Creating, delivering and communicating superior customer value is key. Marketing Management Customer Management: Marketers select customers that can be served well and profitably. Demand Management: Marketers must deal with different demand states ranging from no demand to too much demand. Marketing Management Production concept Product concept Selling concept Marketing concept CRM CRM – Customer relationship management . . .“is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.” CRM It c
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