JRE410 paper
Lecture 6 Customers and Customer Value
• Marketing involves:
1. Managing profitable customer relationships
2. Awareness – attracting/retaining customers
3. Increasing a customer’s willingness to pay
• Breadth and Depth of Marketing o Market: people with desire and ability to buy a specific product o All organizations market and people market themselves
• Dating, PEY o Ideas and values are marketed o Buyers may be different than end customer (B2B, B2C) o Social Marketing: influence behavior of individuals, benefit to individuals or society not marketer
• Anti-smoking
• Consumer Behaviour (B2C/B2B) o Heart of marketing satisfying needs and wants of consumers better than competition o Value is only what is perceived by consumer o Customer’s see solutions for delivering customer value, not in terms of attributes
• Fundamental Principles of Marketing o What are drivers of customer value? Their benefits/costs
• Consumers o Who are the competitors that satisfy the similar needs
• The competitors o Offer a product/service whose attributes deliver the value as good as or better than the competitors
• The Company
• Methods of Discovering customer behavior o Needs: Psychological deprivation (food, shelter) o Wants: Needs shaped by culture and the individual (burger vs. Tofu) o Qualitative research o Quantitative Research o Feedback o Competitive intelligence o Socio-economic trends
Consumer purchase decision process • Buyers may skip a stage depending on how involved they are in the purchase: o High involvement if product is:
• Expensive
• Serious personal consequences
• Reflects social image o High involvement results in consideration of
• More brands
• More product attributes
• More information sources
• More time spent searching o High involvement
• Provide education about category and info on product o Low involvement
• Buyers react to price, convenience and familiarity
• The Marketing Process o Identify
• Marketing involves:
1. Managing profitable customer relationships
2. Awareness – attracting/retaining customers
3. Increasing a customer’s willingness to pay
• Breadth and Depth of Marketing o Market: people with desire and ability to buy a specific product o All organizations market and people market themselves
• Dating, PEY o Ideas and values are marketed o Buyers may be different than end customer (B2B, B2C) o Social Marketing: influence behavior of individuals, benefit to individuals or society not marketer
• Anti-smoking
• Consumer Behaviour (B2C/B2B) o Heart of marketing satisfying needs and wants of consumers better than competition o Value is only what is perceived by consumer o Customer’s see solutions for delivering customer value, not in terms of attributes
• Fundamental Principles of Marketing o What are drivers of customer value? Their benefits/costs
• Consumers o Who are the competitors that satisfy the similar needs
• The competitors o Offer a product/service whose attributes deliver the value as good as or better than the competitors
• The Company
• Methods of Discovering customer behavior o Needs: Psychological deprivation (food, shelter) o Wants: Needs shaped by culture and the individual (burger vs. Tofu) o Qualitative research o Quantitative Research o Feedback o Competitive intelligence o Socio-economic trends
Consumer purchase decision process • Buyers may skip a stage depending on how involved they are in the purchase: o High involvement if product is:
• Expensive
• Serious personal consequences
• Reflects social image o High involvement results in consideration of
• More brands
• More product attributes
• More information sources
• More time spent searching o High involvement
• Provide education about category and info on product o Low involvement
• Buyers react to price, convenience and familiarity
• The Marketing Process o Identify