landscape.
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First Stop Zappos Creates Customer Value & Relationships
Creating Customer Value
• Goal: Provide the very best
customer service & customer experience.
Marketing Creating and Capturing Customer Value
Chapter 1
Rest Stop: Previewing the Concepts
1. Define marketing and the marketing process. 2. Explain the importance of understanding customers and identify the five
core marketplace concepts.
3. Identify the elements of a customer-driven marketing strategy and
discuss the marketing management orientations that guide strategy.
Building Relationships
• Service Culture: Built around 10
core principles; every new hire takes 4 weeks of customer loyalty training.
• Commitment: During training,
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Marketing Defined
• Marketing is the process by which companies create value for customers and
build strong customer relationships in order to capture value from customers in return.
OLD view of marketing: Making a sale - “telling and selling”
NEW view of marketing:
Satisfying customer needs
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The Marketel of the marketing process:
4. Discuss customer relationship management and identify strategies for
creating value for and capturing value from customers.
5. Describe the major trends and forces that are changing the marketing
• Customer-centric approach:
Free delivery, free returns, 365 day return policy & service upgrades.
• Results: 75% of sales come from
current customers, tremendous sales growth despite poor economy, 10 million customers served annually.
Understand the marketplace and customer needs and wants. Design a customer-driven marketing strategy. Construct an integrated marketing program that delivers superior value. Build profitable relationships and create customer delight. Capture value from customers to create profits and customer equity.
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Needs, Wants, and Demands
• Need:
employees are offered $2000 to quit; only 1% do so.
• Lifelong relationships are the goal: Employees comparison shop other Web sites; social networking is used for direct contact with customers; customer feedback and criticism is strongly encouraged and valued.
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What Is Marketing? Simple definition:
Marketing is managing profitable customer relationships. Goals:
1. Attract new customers by promising superior value. 2. Keep and grow current customer-base by delivering satisfaction.
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Core Concepts
• Marketers must understand five core customer and marketplace concepts:
Needs, wants, and demands Market offerings Value and satisfaction Exchanges and relationships Markets