...Case Study: Conroy’s Acura: Customer Lifetime Value and Return on Marketing Case Summary: Conroy’s Acura was founded in November 1986 by Ross Conroy, a veteran of the car industry who also owned a General Motors dealership to open in Toronto and one of the first in North America. Located in downtown Toronto, Conroy’s Acura sold both new and pre-owned vehicles, and its service department was dedicated to Acura Products. Conroy’s Acura was an independently owned dealership that held a franchise agreement with Honda Acura’s parent company. It has been a successful company amidst the number of competitors since 1986. And now, it needs to create less expense or cost efficient strategies to increase the number of customers and most importantly, sales. Allowing Employees and the other people in the work force to contribute to the brainstorming of new ideas, this became an interactive company work. Given that advertising will not be that purely effective for it, since it can only attract an indefinite number or potential customers. Statement of the Problem: What effective way/s should the Conroy’s Acura company be doing sto increase customer lifetime value on marketing, sales and profit? Analysis of the Data Data: Organizational Structure The company has a Functional Organizational Structure The company’s employees are organized by what they should do in their work. There is one top line manager, Terrence Conroy, he is the person who manages and controls the company...
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...Q: Describe how today’s customer relationship differs from prior eras oriented to production & selling. A: U.S. business history is divided into four periods: the production era, the sales era, the marketing concept era, and the current customer relationship era. The production era covers the period to the 1920s when buyers were willing to accept virtually any goods that were available. The central notion was that products would sell themselves. The sales era lasted from the 1920s to the 1960s. Manufacturers found they could produce more goods than buyers could consume, and competition grew, so the solution was to hire more salespeople to find new buyers. In the 1960s, the marketing concept era dawned, when organizations began to integrate marketing into each phase of the business. In today's customer relationship era, organizations focus their efforts on (a) continuously collecting information about customers' needs, (b) sharing this information across departments, and (c) using it to create customer value. The first objective in maintaining customer relationship is discovering the needs of prospective consumers. This is not an easy task because consumers may not always know or be able to describe what they need and want. A need occurs when a person feels physiologically deprived of basic necessities such as food, clothing, and shelter. A want is a felt need that is shaped by a person's knowledge, culture, and personality. Effective marketing can clearly shape a person's...
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...CHAPTER 2 COMPANY AND MARKETING STRATEGY: PARTNERING TO BUILD CUSTOMER VALUE AND RELATIONSHIPS PREVIEWING THE CONCEPTS – CHAPTER OBJECTIVES 1. Explain company-wide strategic planning and its four steps. 2. Discuss how to design business portfolios and develop growth strategies. 3. Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value. 4. Describe the elements of a customer-driven marketing strategy and mix and the forces that influence it. 5. List the marketing management functions, including the elements of a marketing plan, and discuss the importance of measuring and managing return on marketing investment. JUST THE BASICS CHAPTER OVERVIEW In this chapter, we dig deeper into steps two and three of the marketing process—designing customer-driven marketing strategies and constructing marketing programs. First, we look at the organization’s overall strategic planning. Next, we discuss how marketers partner closely with others inside and outside the firm to serve customers. We then examine marketing strategy and planning—how marketers choose target markets, position their market offerings, develop a marketing mix, and manage their marketing programs. Finally, we look at measuring and managing return on marketing investment. ANNOTATED CHAPTER NOTES/OUTLINE FIRST STOP Nike’s Customer-Driven Marketing: Building Brand Engagement and Community The Nike “swoosh”...
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...ideologies which include concepts and principles. However, the most important thing in business is marketing because it creates awareness to customers of the products of a business. As this is the case, managing directors and marketing managers should always make sure that they employ effective marketing principles in attracting customers and retaining them. The objective of marketing is to retain existing customers and attracting new ones. Business is about satisfying customers and thus increasing their activity with your business. As in most business sectors there is tough competition meaning that businesses can only gain competitive advantage when they are effective in marketing & good customer service, which includes creating good rapport via public relations. However, this is not as easy as it sounds and much work has to be done in order to attain it. Customers will make choices of where to go for goods or services based on many things - including their perception of the attitudes of employees. Four main aspects have been selected as the main determinants of the success of any business. They include the place where the business is located, the product(s) itself, the price of the product and the manner in which the company promotes its products. A combination of the 4 P’s and a PEST analysis are likely to improve or produce excellent results. Introduction Applying marketing principles are the building blocks in business growth and provide a business with in-depth exposure...
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...perceived value of a product is the difference between the potential customer's assessment of all the benefits and all the costs of an offering compared to the perceived alternatives. Value is the function of consumer’s evaluation thus it is subjective where the cost and benefit must be positive values. We can express as the following equation: Value = Benefits / Cost The consumer's perceived value of a good or service affects the price that he or she is willing to pay for it. For the most part, consumers are unaware of the true cost of production for the products they buy. Instead, they simply have an internal feeling for how much certain products are worth to them. Thus, in order to obtain a higher price for their products, producers may pursue marketing strategies to create a higher perceived value for their products. For an example of a reputed brand Boost; customer may think it comes up with energy for the professional cricket player with commercials Sachin Tendulkar is doing impossible. Let's take an example of famous brand Adidas. It has come up with special category of shoes named Air Jordan for the professional NBA players with advertisement Michael Jordan doing extraordinary performance. On the other hand Air Jordan announces a limited edition with customized amount available for which Adidas charges more price compare to other products. At the end all the publicity about the line of Air Jordan and its limited edition are customer perceived value. In marketing, value...
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...1 Principles of Marketing Marketing: Managing Profitable Customer Relationships Learning Objectives After studying this chapter, you should be able to: 1. Define marketing and outline the steps in the marketing process 2. Explain the importance of understanding customers and the marketplace, and identify the five core marketplace concepts 3. Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy 4. Discuss customer relationship management, and identify strategies for creating value for customers and capturing value from customers in return 5. Describe the major trends and forces that are changing the marketing landscape in this age of relationships 1-2 Chapter Concepts 1. 2. 3. 4. 5. 6. 7. 8. What Is Marketing? Understanding the Marketplace and Customer Needs Designing a Customer-Driven Marketing Strategy Preparing an Integrated Marketing Plan and Program Building Customer Relationships Capturing Value from Customers The New Marketing Landscape So, What Is Marketing? Pulling It All Together 1-3 What Is Marketing? Marketing Defined Marketing is the process by which companies create value for customers and build strong customer relationships to capture value from customers in return 1-4 What Is Marketing? The Marketing Process 1. 2. 3. 4. 5. Understand the marketplace and customer wants and needs Design a customer-driven marketing strategy Construct...
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...Marketing and the Marketing Process Marketing deals with customers more than any other business functions. Marketing is managing profitable customer relationships. Marketing has a twofold goal. They are to attract new customers by promising superior value, and keep and grow current customers by delivering satisfaction. The American Marketing Association defines marketing as “The Process of planning and executing the conception, pricing, promotion, and distribution of ideas, good, and services to create exchanges that satisfy individual and organizational objective”. The Marketing process is the method of evaluating openings, choosing the proposed customer, addressing the consumer needs and wants, describing the price, product, place and promotion and addressing the marketing campaign. The marketing process takes major responsibility to control overall marketing strategy. The marketing process has 5 steps that lead to a successful advertising campaign. In the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. In the final step, companies reap the reward of having superior customer value. Now, we will explore the steps of the marketing process. Step 1 is marketers need to understand the market place and the needs and wants of customers. There are five core customer and market place concepts. Needs, wants, and demands is one. Human needs are states of felt deprivation. Human wants are the form human needs...
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...fvdvdfbhnjkljjkhnbvc Does marketing create or satisfy needs? Take a position, marketing shapes or merely reflects needs and wants of conso answer these questions, we must know what market is. Market is the set of all actual and potential buyers of a product or service and marketing is a social and managerial process where by individuals and groups obtains what they need and want through creating and exchanging products and value with others. The traditional view of marketing is that the firm makes something and then sells it. In my words, marketing is how the producers create value to the customer and receive it by needs and wants. We must know that marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. Ever since man started to trading goods, marketing was created. Suppose that marketing was never exist, we cannot buying foods, houses, car, etc. Without marketing, this world is nothing. Marketing involves the satisfying customers’ needs and wants. Marketing has a value creation and delivery sequence that consists of three parts. That is choosing the value, providing the value, and communicating the value. From my understanding, marketing does both. It creates and satisfies needs of customers. Marketers must use the marketing development’s term to create needs. They must learn how to change in knowledge, behavior, attitudes, or creativity. Then, it helps customers to be motivated...
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...an export department with a sales manager and a few assistants (and limited marketing services). As they go after global business more aggressively, they can create an international division with functional specialists (including marketing) and operating units structured geographically, according to product, or as international subsidiaries. Finally, companies that become truly global organizations have top corporate management and staff plan worldwide operations, marketing policies, financial flows, and logistical systems. In these organizations, the global operating units report directly to top management, not to the head of an international division. Evaluating and Controlling the Marketing Process To deal with the many surprises that occur during the implementation of marketing plans, the marketing department has to monitor and control marketing activities continuously. Table 1.1 lists four types of marketing control needed by companies: annualplan control, profitability control, efficiency control, and strategic control. The Fourteenth Edition of Principles of Marketing! Still Creating More Value for You! The goal of every marketer is to create more value for customers. So it makes sense that our goal for the fourteenth edition is to continue creating more value for you—our customer. Our goal is to introduce new marketing students to the fascinating world of modern marketing in an innovative and comprehensive yet practical and enjoyable way. We’ve poured ...
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...www.jntuworld.com m o e e .c rs in g UNIT-I n E a F D a O o www.jntuworld.com LESSON 1 AN INTRODUCTION TO MARKETING MANAGEMENT CONTENTS 1.0 Aims and Objectives 1.1 Introduction 1.2 Marketing Concept 1.2.1 The Production Concept m o 1.2.2 The Selling Concept .c rs 1.2.3 The Marketing Concept 1.2.4 Relationship Marketing 1.2.5 The Societal Marketing Concept e e 1.2.6 Holistic Marketing Approach in g 1.2.7 Marketing Mix 1.2.8 Product (Customer Benefit) n E 1.2.9 Promotion (Marketing Communications) 1.2.10 Distribution (Customer Convenience) O o 1.2.11 Price (Customer Cost) 1.2.12 The Marketing Mix Coherency D a 1.2.13 The Marketing Mix Dynamics a F 1.3 Defining and Delivering Customer Value and Satisfaction 1.3.1 Customer Value and Satisfaction 1.4 Value Chain 1.5 Benchmarking 1.6 Delivery Network 1.7 Let us Sum up 1.8 Lesson-end Activity 1.9 Keywords 1.10 Questions for Discussion 1.11 Suggested Readings www.jntuworld.com Marketing Management 1.0 AIMS AND OBJECTIVES In this lesson we shall discuss about–An introduction to Marketing Management. After going through this lesson you will be able to: (i) Understand Marketing Concept and customer value and satisfaction. (ii) Describe Value Chain and Benchmarking. (iii) Convey delivery network. 1.1 INTRODUCTION While a product could represent many different things, a good, however, is...
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...What is Marketing? Fundamentals of Marketing Management Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Dr. P.V. (Sundar) Balakrishnan Simply put: Marketing is the delivery of customer satisfaction at a profit. Managing World-Class Organizations S #1 Balakrishnan The Marketing Objective Activities in the Marketing Process ... “Satisfy the needs of a group of customers better than the competition.” Distinguish from Selling or Advertising: – merely a subset of marketing actions used to satisfy consumer needs. Marketing focuses on the use of all the firm’s controllable influences to satisfy the customer. S #3 Balakrishnan S #2 Balakrishnan Broad Objective of Marketing Identify needs of customers that company can satisfy Design a Product (“bundle of benefits”) that satisfies those needs - better than existing products. Promote / communicate these benefits in order to motivate purchase Price at the right level so that consumers are willing & able to buy the product and the firm’s profit goals are met Make the product available at the right Place so that exchange is facilitated S #4 Balakrishnan Core Marketing Concepts To grow the business by adapting it to changes in the environment : by monitoring Needs, wants, and demands changes in customer needs changes in competition changes in the company’s own skills...
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...FUNDAMENTALS OF MARKETING Marketing is managing profitable customer relationships. The twofold goal of marketing is to attract new customers by promising superior value and keep and grow current customers by delivering satisfaction. Marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Needs States of felt deprivation. Wants The form human needs take as they are shaped by culture and individual personality. Demands Human wants that are backed by buying power. Market offerings Some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Marketing myopia The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. Exchange The act of obtaining a desired object from someone by offering something in return. Market The set of all actual and potential buyers of a product or service. Marketing management The art and science of choosing target markets and building profitable relationships with them. dividing the market into segments of customers (market segmentation) and selecting which segments it will go after (target marketing). Five alternative concepts under which organizations design and carry out their marketing strategies: Production concept The idea that consumers will favour products that are available...
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...2010.10.07. CRM – Customer Relationship Management Bianka Parragh, Phd Óbuda University Keleti Károly Faculty of Business and Management Institute of Enterprise Management • Approaches of Customer Relationship Management • The origins of CRM • The rise of CRM • The role of CRM • Types of CRM 1 2010.10.07. RE-INVENTING CRM In the late 1990s and early year of the 21th century, CRM was offered up as the next wave of marketing. The tools and techniques that would make traditional marketing obsolete. The automated approaches that would make customer relationships automatic and would enable the marketing organization to shell anything to anyone they chose. CRM was the single solution that would solve every marketing problem. Simply install the software, plug in the customer data and sit back and watch the profils roll in. But it wasn’t that simple. It wasn’t that easy. And, it simply didn’t work that way. Millions of dollars anp pounds and yen and Euros were spent on CRM systems, software and structures but, not enough seemed to come back. The five important things are about the book’s approach to CRM 1.Strategic, not more tactics. CRM is a business decision, made by business managers to achieve business goals. So, most of all, this approach to CRM is strategic. 2. Customers, not companies. Payne’s approach puts the company and the customer in perspective. If there is no benefits to the customer, there can be no benefit to the company. CRM is reciprocal process...
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...Chapter - Overview of Marketing Chapter 01 Overview of Marketing True / False Questions 1. Google, Facebook and YouTube are all innovative, and each company has succeeded because it provided value to its customers. True False 2. Marketing is an activity that only large firms with specialized departments can use. True False 3. Good marketing is not a random activity. True False 4. Understanding a market's needs and wants is fundamental to marketing success. True False 5. Marketers would prefer to sell their products and services to everyone but it is not practical to do so. True False 6. The four Ps include persistence, promotion, presence, and performance. True False 7. Thoughts, opinions, philosophies and intellectual concepts fit the concepts of neither goods nor services, and they cannot really be marketed. True False 1-1 Chapter 01 - Overview of Marketing 8. The goals of marketing promotion are youth, style, and sex appeal. True False 9. The group of firms that makes and delivers a given set of goods and services is known as a supply chain. True False 10. Value is what you get for what you give. True False 11. In co-creation, the customer is involved as a collaborator in the creation of a product or service, which provides additional value to the customer. True False 12. Value-based marketing supports developing long-term customer loyalty. True False 13. During the past decade or so, marketers have begun to realize that they need to think about their customer orientation in terms...
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...Lecture Outline – CH. 1 (2012) I. Marketing is the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. This definition is consistent with the American Marketing Association definition of marketing. A. Marketing Focuses on Customers 1. As the purchasers of the products that organizations develop, promote, distribute, and price, customers are the focal point of all marketing activities. 2. The essence of marketing is to develop satisfying exchanges from which both customers and marketers benefit. a) Both customer and marketer expect to gain something of value from the exchange. 3. Organizations generally focus their marketing efforts on a specific group of customers, or target market. B. Marketing Deals with Products, Distribution, Promotion, and Price 1. Marketing is more than simply advertising or selling a product; it involves developing and managing a product, making the product available in the right place and at a price acceptable to buyers, and communicating information to help customers determine if the product will satisfy their needs. 2. These activities—product, distribution, promotion, and pricing—are known as the marketing mix because marketers decide what type of each element to use and in what amounts. a)...
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