Introduction to Marketing,Part-2

1. Chapter | 1
Introduction to Marketing
Lecture 2 – February 16, 2012
Rajeev Shrestha
A process by which a firm
profitably translates customer
needs into revenue.
It is called…
MARKETING

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. Marketing Strategy and Marketing Mix
Market Segmentation
Market targeting
Market Differentiation and Positioning
Choosing target markets and getting, keeping and growing
customers through creating, delivering and communicating
superior customer value.
The set of controllable tactical marketing tools that the firm
blends to produce the response it wants in the target
markets.

4. Marketing Mix
PRODUCT : is the combination of goods and services that
the company offers to target the market.
PRICE : is the amount of money customers have to pay to
obtain the product.
PLACE : Various activities the company undertakes to make
the product accessible and available to target customers.
PROMOTION : All activities the company undertakes to
communicate and promote its products to the target market.

5. Product
Is the combination of goods and services that the company
offers 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. Place
Various activities the company undertakes to make the
product accessible and available to target customers.
Place Mix
Channels: Retailers, Wholesalers
Location
Coverage
Transport: Mode of transportation

7. Price
Is the amount of money customers have to pay to obtain the
product.
Price Mix
List Price: One price for all
Discounts / Allowances: Price Flexibility
Terms of Sale: Credit Terms & Payment Period

8. Promotion
All activities the company undertakes to communicate and
promote 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. Marketing Mix
4P’s represent the sellers view of mktg. tools available for
influencing buyers.
From a buyers point of view each mktg. tool is designed to
deliver a customer benefit.
Therefore, sellers 4P’s corresponds to the customers 4C’s.

10. Marketing Mix
4Ps 4Cs
Product Customer Solution (Needs, Wants)
Price Customer Cost
Place Convenience
Promotion Communication
While marketers, see themselves as selling products,
customers see themselves as buying value or solutions to
their problems.
Thus, winning companies will be those who can meet
customer needs economically and conveniently with effective
communication.

11. Building Customer Relationships
Customer Relationship Management (CRM)
The overall process of building and maintaining profitable
customer relationships by delivering superior customer value
and satisfaction

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. Customer Relationship Levels and Tools
Basic
Relationships
Full
Partnerships

14. The Changing Nature of Customer Relationships
Relating with more carefully selected customers uses
selective relationship management to target fewer, more
profitable customers
Relating more deeply and interactively by incorporating more
interactive two way relationships through blogs, Websites,
online communities and social networks

15. Building Customer Relationships
Partner relationship management involves working closely
with partners in other company departments and outside the
company to jointly bring greater value to customers

16. Partner Relationship Management
Partners inside the company is every function area
interacting with customers
•Electronically
•Cross-functional teams
Partners outside the company is how marketers connect with
their suppliers, channel partners, and competitors by
developing partnerships

17. Partner Relationship Management
Supply chain is a channel that stretches from raw materials to
components to final products to final buyers
Supply management
Strategic partners
Strategic alliances

18. Creating Customer Loyalty and Retention
Customer lifetime value is the value of the entire stream of
purchases that the customer would make over a lifetime of
patronage

19. Growing Share of Customer
Share of customer is the portion of the customer’s purchasing
that a company gets in its product categories
•Cross Sell
•Up Sell

20. Building Customer Equity
Customer equity is the total combined customer lifetime
values of all of the company’s customers

21. Building Customer Equity
Building the right relationships with the right customers
involves treating customers as assets that need to be
managed and maximized
Different types of customers require different relationship
management strategies
•Build the right relationship with the right customers

22. Customer Relationship Groups
True
Butterflies
Friends
Potential Profitability
Strangers Barnacles
Projected Loyalty