Customer Centric Marketing
Customer Centric Marketing
Prof. Barak Libai
1
Prof. Barak Libai
2
Prof. Barak Libai
3
Prof. Barak Libai
4
“Technology is creating a radical new business model that alters the whole dynamic of customer service “
And Marketing in general
Prof. Barak Libai
5
Next
How the customer centric view is becoming essential in modern marketing Customer profitability analysis
Prof. Barak Libai
6
A historical view of marketing
The product is the center of the marketing activity:
Emphasis on customer acquisition and market share
Prof. Barak Libai
7
Classic product–based marketing flow
Opportunity
Which relevant similar groups can we identify in the market ?
Segmentation
Targeting
Positioning
Which group(s) will we go after ? How do we want to be perceived in this market compared to our competitors?
Marketing Mix (4 P’s)
Product Price Promotion Place
Prof. Barak Libai
Quality, service, brand Demand based pricing Advertising, sales management, direct marketing Channels of distribution
8
The 1990’s
“Commodization”- stiffer competition and weaker productbased differentiation Information systems- faster, cheaper, can store more and collect more information Internet
Service economy- we know who you are
Initial findings from financial services- a high concentration of profits among customers
Prof. Barak Libai 9
The profit distribution of a west coast US bank
Prof. Barak Libai
10
The resulta move towards the customer as a unit of analysis
Prof. Barak Libai
11
At the end of the 1990’s a new buzzword appeared:
CRM (Customer Relationship Management)
To become one of the most important areas of attention for managers
The Economist,
April 7 2005
Prof. Barak Libai
12
Today some of us talk more about Customer Centric Marketing (CCM)
The management of business processes whose aim is to increase the long
Prof. Barak Libai
1
Prof. Barak Libai
2
Prof. Barak Libai
3
Prof. Barak Libai
4
“Technology is creating a radical new business model that alters the whole dynamic of customer service “
And Marketing in general
Prof. Barak Libai
5
Next
How the customer centric view is becoming essential in modern marketing Customer profitability analysis
Prof. Barak Libai
6
A historical view of marketing
The product is the center of the marketing activity:
Emphasis on customer acquisition and market share
Prof. Barak Libai
7
Classic product–based marketing flow
Opportunity
Which relevant similar groups can we identify in the market ?
Segmentation
Targeting
Positioning
Which group(s) will we go after ? How do we want to be perceived in this market compared to our competitors?
Marketing Mix (4 P’s)
Product Price Promotion Place
Prof. Barak Libai
Quality, service, brand Demand based pricing Advertising, sales management, direct marketing Channels of distribution
8
The 1990’s
“Commodization”- stiffer competition and weaker productbased differentiation Information systems- faster, cheaper, can store more and collect more information Internet
Service economy- we know who you are
Initial findings from financial services- a high concentration of profits among customers
Prof. Barak Libai 9
The profit distribution of a west coast US bank
Prof. Barak Libai
10
The resulta move towards the customer as a unit of analysis
Prof. Barak Libai
11
At the end of the 1990’s a new buzzword appeared:
CRM (Customer Relationship Management)
To become one of the most important areas of attention for managers
The Economist,
April 7 2005
Prof. Barak Libai
12
Today some of us talk more about Customer Centric Marketing (CCM)
The management of business processes whose aim is to increase the long