02. introduction to marketing


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  • 02. introduction to marketing

    1. 1. Chapter | 1Introduction to MarketingLecture 2 – February 16, 2012Rajeev Shrestha A process by which a firm profitably translates customer needs into revenue. It is called… MARKETING
    2. 2. OVERVIEW•Concept and importance of marketing•Approaches to the study of marketing•Marketing mix and its components Marketing comes in a wide variety of flavors based on audience, media platform and business in today’s evolving and dynamic marketplace.
    3. 3. Marketing Strategy and Marketing MixMarket SegmentationMarket targetingMarket Differentiation and PositioningChoosing target markets and getting, keeping and growingcustomers through creating, delivering and communicatingsuperior customer value.The set of controllable tactical marketing tools that the firmblends to produce the response it wants in the targetmarkets.
    4. 4. Marketing MixPRODUCT : is the combination of goods and services thatthe company offers to target the market.PRICE : is the amount of money customers have to pay toobtain the product.PLACE : Various activities the company undertakes to makethe product accessible and available to target customers.PROMOTION : All activities the company undertakes tocommunicate and promote its products to the target market.
    5. 5. ProductIs the combination of goods and services that the companyoffers to target the market. Product Mix Varieties/ different items offered Quality: standard ,grading –high, medium, low Features: Colour, Styles Packaging: Wrapper , Container Brand: Name, Mark, Sign, Symbol Services : Presale, after sale services Warranties : Free repair & Maintenance
    6. 6. PlaceVarious activities the company undertakes to make theproduct accessible and available to target customers. Place Mix Channels: Retailers, Wholesalers Location Coverage Transport: Mode of transportation
    7. 7. PriceIs the amount of money customers have to pay to obtain theproduct. Price Mix List Price: One price for all Discounts / Allowances: Price Flexibility Terms of Sale: Credit Terms & Payment Period
    8. 8. PromotionAll activities the company undertakes to communicate andpromote its products to the target market. Promotion Mix Sales Promotion: Incentives to promote sales Advertising : Paid sales communication Public Promotion : To protect and promote company image Personal selling : Personal communication to promote buyers Direct Marketing
    9. 9. Marketing Mix 4P’s represent the sellers view of mktg. tools available forinfluencing buyers.From a buyers point of view each mktg. tool is designed todeliver a customer benefit.Therefore, sellers 4P’s corresponds to the customers 4C’s.
    10. 10. Marketing Mix 4Ps 4Cs Product Customer Solution (Needs, Wants) Price Customer Cost Place Convenience Promotion CommunicationWhile marketers, see themselves as selling products,customers see themselves as buying value or solutions totheir problems. Thus, winning companies will be those who can meetcustomer needs economically and conveniently with effectivecommunication.
    11. 11. Building Customer RelationshipsCustomer Relationship Management (CRM)The overall process of building and maintaining profitablecustomer relationships by delivering superior customer valueand satisfaction
    12. 12. Relationship Building Blocks:Customer Value and Satisfaction Customer Customer perceived value satisfaction • The difference • The extent to between total which a product’s customer value perceived and total performance customer cost matches a buyer’s expectations
    13. 13. Customer Relationship Levels and Tools Basic Relationships Full Partnerships
    14. 14. The Changing Nature of Customer RelationshipsRelating with more carefully selected customers usesselective relationship management to target fewer, moreprofitable customersRelating more deeply and interactively by incorporating moreinteractive two way relationships throughblogs, Websites, online communities and social networks
    15. 15. Building Customer RelationshipsPartner relationship management involves working closelywith partners in other company departments and outside thecompany to jointly bring greater value to customers
    16. 16. Partner Relationship ManagementPartners inside the company is every function areainteracting with customers•Electronically•Cross-functional teamsPartners outside the company is how marketers connect withtheir suppliers, channel partners, and competitors bydeveloping partnerships
    17. 17. Partner Relationship ManagementSupply chain is a channel that stretches from raw materials tocomponents to final products to final buyersSupply managementStrategic partnersStrategic alliances
    18. 18. Creating Customer Loyalty and RetentionCustomer lifetime value is the value of the entire stream ofpurchases that the customer would make over a lifetime ofpatronage
    19. 19. Growing Share of CustomerShare of customer is the portion of the customer’s purchasingthat a company gets in its product categories•Cross Sell•Up Sell
    20. 20. Building Customer EquityCustomer equity is the total combined customer lifetimevalues of all of the company’s customers
    21. 21. Building Customer EquityBuilding the right relationships with the right customersinvolves treating customers as assets that need to bemanaged and maximizedDifferent types of customers require different relationshipmanagement strategies •Build the right relationship with the right customers
    22. 22. Customer Relationship Groups True Butterflies Friends Potential Profitability Strangers Barnacles Projected Loyalty