principle of marketing chap 1

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principle of marketing chap 1

  1. 1. LOGO CHAPTER 1: Marketing – Creating and Capturing Customer Value Principles of Marketing 1
  2. 2. Topic Outline Define marketing and outline the steps in the marketing process Understanding the Marketplace and Customer Needs Designing a Customer-Driven Marketing Strategy Preparing an Integrated Marketing Plan and Program Building Customer Relationships 2
  3. 3. WHAT IS MARKETING? Marketing is a process by which companies create value for customers and build strong customer relationship to capture value from customers in return.  From managerial definition: “The art of selling products” 3
  4. 4. What is Marketed? • Goods • Information • Services • Ideas • Events • Places • Properties • Experiences • Organizations • Persons 4
  5. 5. 5 Understanding the Marketplace and Customer Needs Customer needs, wants, and demands Market offerings Customer Value and satisfaction Exchanges and relationships Markets Core Concepts
  6. 6. 6 • States of deprivation • Physical—food, clothing, warmth, safety • Social—belonging and affection • Individual—knowledge and self- expression Needs • Form that human needs take as they are shaped by culture and individual personality Wants • Human wants backed by buying powerDemands Customer Needs, Wants, and Demands
  7. 7. 7 Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs Understanding the Marketplace and Customer Needs
  8. 8. 8 Customer Value and Satisfaction Expectations Customers • Value and satisfaction Marketers • Set the right level of expectations • Not too high or low Understanding the Marketplace and Customer Needs
  9. 9. 9 Exchange is the act of obtaining a desired object from someone by offering something in return Understanding the Marketplace and Customer Needs
  10. 10. 10 Markets are the set of actual and potential buyers of a product or service Understanding the Marketplace and Customer Needs
  11. 11. 11 Designing a Customer-Driven Marketing Strategy Marketing management is the art and science of choosing target markets and building profitable relationships with them  What customers will we serve?  How can we best serve these customers?
  12. 12. 12 Market segmentation refers to dividing the markets into segments of customers Target marketing refers to which segments to go after Selecting Customers to Serve Designing a Customer-Driven Marketing Strategy
  13. 13. 13 Selecting Customers to Serve Designing a Customer-Driven Marketing Strategy Demarketing is marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it
  14. 14. 14 Designing a Customer-Driven Marketing Strategy The value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs Choosing a Value Proposition
  15. 15. 15 Production concept Product concept Selling concept Marketing concept Societal concept Marketing Management Orientations Designing a Customer-Driven Marketing Strategy
  16. 16. 16 Production concept is the idea that consumers will favor products that are available or highly affordable
  17. 17. 17 Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Organizations should therefore devote its energy to making continuous product improvements.
  18. 18. 18 Selling concept is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort
  19. 19. 19 Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do
  20. 20. 20 Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long-run interests
  21. 21. 21 The marketing mix Integrated marketing program Preparing an Integrated Marketing Plan and Program
  22. 22. The Four P’s (Marketing Mix) Product Price Promotion Place 22
  23. 23. When marketing their products firms need to create a successful mix of: the right product sold at the right price in the right place using the most suitable promotion 23
  24. 24. Integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers. 24 Preparing an Integrated Marketing Plan and Program
  25. 25. 25 Building Customer Relationships The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Customer Relationship Management (CRM)
  26. 26. 26 Relationship Building Blocks: Customer Value and Satisfaction Customer perceived value • The difference between total customer value and total customer cost Customer satisfaction • The extent to which a product’s perceived performance matches a buyer’s expectations Building Customer Relationships
  27. 27. CLASS ACTIVITY Write on a piece of paper : List of specification / features of a smartphone that you own / want to buy. 27
  28. 28. NEXT CLASS… Company and Marketing Strategy: Partnering to Build Customer Relationships 28
  29. 29. THANK YOU… 29

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