This document provides an overview of key marketing concepts including needs, wants, demand, products, exchanges, transactions, markets and marketing strategies. It discusses understanding customer needs and wants, designing a customer-driven strategy, implementing tactics through the marketing mix, and building profitable customer relationships. The goal of marketing is to create superior customer value in order to increase loyalty, market share and profits through heavy users and loyal customers while limiting costs from less profitable customers.

1. Faculty guide:
Prof. Mr. A.A.Patil
Presented by:
Ankit.Porwal

2. “It’s a process by which companies create
value for customers and build a strong
customers relationship in order to capture
value from customers in return”

3.  Needs
 Wants
 Demand
 Products
 Exchanges
 Transactions
 Markets

4. Need is a state of felt deprivation.
a)Primary needs…….food, shelter etc..
b)Acquired needs…….car, TV, bike etc….
 Wants
The form taken by human needs as they are
shaped by culture and individual personality are called
wants

5. Wants which backed by buying power are called
demands
 Negative demand: e.g. wearing of helmets, fastening of
seat belts
 No demand: It means totally
uninterested in product e.g. using MRF tiers to cars …..

6.  Latent demand: e.g. non harmful cigarettes, fuel
efficiency cars
 Falling demand: e.g. b/w TV, razors, transistors

7.  Irregular demand: it is seasonal ,e.g.: gold, health
resorts….
 Full demand: It means the company has just the
amount of demand that can handle

8.  Over full demand: e.g. Disney land, water parks……etc

9. A product is anything that can be offered to
market for attention, acquisition use or consumption and
that might satisfy a need or want.

10. It is act of obtaining a desired object from someone by
offering something in return.
conditions must in this process……..
a) 2 parties must participate
b) Each must have something of value to others
c) Each party must want to deal with other
d) Each should be free to accept or reject the others offer
e) Each party should
communicate and deliver

11. It is trade of values between the parties….
It involves at least 2
things of values i.e. conditions that are agreed
upon place and time of agreement
 Markets
It is set of actual and potential buyers of a
product

12. Goals of marketing systems
 Maximizing consumption
 Maximize customer satisfaction
 Maximize choice
 Maximize life quality

14.  Production concept
 Product concept
 Selling concept
 Marketing concept
 Societal concept

15. Understanding the
market place &
customers needs
wants
Design a
customer driven
marketing
strategy
Construct an
integrated marketing
program that delivers
superior value
Build profitable
relationship & create
customer delight
Capture value from
customers to create
profits & customers
equity

16. This is the first step of the process where marketers try
to understand their customers needs and wants ,the markets
they are going to operate, the competitors in the market, their
strengths, weaknesses , opportunities and threats.
Many marketers make the mistake of paying more
attention to the specific products than to the benefits and
experiences produced by these products .This is known as
Marketing Myopia.

17. The second step after analyzing the market and the customer’s
needs & wants is to design a customer driven marketing strategy. The
company needs to ask 2 basic questions to itself:
1. What customers do we serve?
2. How can we serve these customers best?
3. Market Segmentation
4. Target Market
5. Product positioning
Successful positioning revolve around two principles:
 Benefits: The benefits that a product provides rather than the features.
 Unique selling preposition (USP): A distinct benefit of difference.

18. Marketing mix “it is a set of tools that the firm
uses to implement the strategy. It consists of every thing
that a firm can do to influence the demand for its product”,
The marketing mix consists of the 4 p’s i.e.:
1. Product
2. Price
3. Place
4. Promotion

19.  Superior customer value: Companies need to create customer
value and customer satisfaction to ensure loyalty of customers and to
gain a large market share
a) Providing customer value
b) Customer satisfaction
A wide study was conducted to link level of customer
satisfaction with customer behavior and the results were as under:
1. Loyalists
2. Apostles
3. Defectors
4. Terrorists
5. Hostages
6. mercenaries

20.  Creating customer loyalty
 Share of customers
 Customer equity
 Building the right relationship with right customers

21. Studies have shown that small defections produce
significant increase in profits because,
 Loyal customers buy more products
 Loyal customers are less price sensitive
 They pay less attention to competitors advertisements
 Servicing existing customers who are familiar with the
firms offering and processes is cheaper
 Loyal customers spread positive word of mouth and refer
other customers.

22.  Customer profitability:
1. Platinum tier: heavy users who are not price
sensitive and are willing to try new offerings.
2. Gold tier: heavy users but not as profitable because
they are price sensitive than the higher tier. They ask
for more discount
3. Iron tier: their spending value and volume do not
merit mention or special treatment.
4. Lead tier: customers who actually cost the company
money because they claim more attention than is
merited by spending. They tie up company resources
and spread negative word of mouth