This document discusses key concepts in marketing including understanding customer needs, the marketing process, and developing a customer-driven marketing strategy. It defines marketing and explains that the goal is managing profitable customer relationships. The marketing process involves understanding the marketplace and customer needs, then designing a customer-driven strategy. This involves market segmentation, targeting, differentiation, and positioning to create superior customer value. The document provides examples and definitions for each concept.

1. UNDERSTANDING
MARKETING AND
THE MARKETING
PROCESS
Chapter 2

2. LEARNING OUTCOME
At the end of this chapter the students are
expected to:
1. Understand and explain the core concepts of
marketing by giving examples.
2. Know the Marketing Process.
3. Understand the Market place and consumer
needs.
4. Know what is Marketing Management Orientation.
5. Be familiar on how to prepare a marketing plan
6. Learn about Building Customer Relations
7. Learn the challenges of Marketing.

3. WHAT IS MARKETING?
Marketing is managing profitable
customer relationships
Attracting new customers
Retaining and growing current
customers
“Marketing” is NOT synonymous
with “sales” or “advertising”

4. MARKETING DEFINED
Marketing consists of the strategies and
tactics used to identify, create and maintain
satisfying relationships with customers that
result in value for both the customer and the
marketer.
Marketing is a social and managerial
process by which individuals and groups
obtain what they need and want through
creating and exchanging value with others
Marketing is the process by which
companies create value to customer
relationships in order to capture value from
customers in return

5. THE MARKETING PROCESS

6. 1. Understanding the
Marketplace and
Consumer Needs
MARKETING PROCESS

7. 1.Needs, Wants, and Demands
2.Marketing Offers
3.Value Satisfaction
4.Exchange, Transactions and
Relationships
5.Markets
Core Customer and
Marketplace Concepts

8. Needs, Wants and
Demands
Needs – a state of felt deprivation.
The basic human requirement
Wants – the form taken by a
human needs as shaped by
culture and individual personality.
Wants are described in terms of
objects that will satisfy needs.
Demands – human wants that are
backed by buying power.

9. Marketing Offers
Some combination of products,
services, information, or experiences
offered to a market to satisfy a need
or want.
Marketing offers also include persons,
places, organizations and ideas.
Marketing Myopia – focus only on
existing wants and lose sight of
underlying customer needs.
Forgetting the fact that product is only
the tool to solve consumer problem.

10. Marketing Offers
Some combination of products,
services, information, or experiences
offered to a market to satisfy a need
or want.
Marketing offers also include persons,
places, organizations and ideas.
Marketing Myopia – focus only on
existing wants and lose sight of
underlying customer needs.
Forgetting the fact that product is only
the tool to solve consumer problem.

11. Marketing Offers

12. Customer Value and
Satisfaction
Key building blocks for developing
and managing customer relationships
Customer Value is the difference
between the customer gains from
owning and using the product and
the costs of obtaining the product
Customer Satisfaction is the extent to
which a product’s perceived
performance matches a buyer’s
expectation

13. Exchange, Transactions
and Relationships
Exchange – the act of
obtaining a desired object
from someone by offering
something in return
Transactions – a trade of
values between two parties

14. Markets
“The set of all actual and potential buyers
of a product or services”
Types of Market
Pure Competition – many buyers and many
seller trading in a uniform commodity
Monopolistic Competition – many buyers and
sellers who trade over a range of prices
Oligopolistic competition – few sellers who are
highly sensitive to each other pricing and
marketing strategies
Pure monopoly – market consist of one seller

15. 2. Designing a
Customer-Driven
Marketing Strategy
MARKETING PROCESS

16. Customer-Driven
Marketing Strategy
Marketing strategy is the process by
which the company hopes to create
customer value and achieve
profitable customer relationships.
Customer-driven marketing strategy is
a marketing strategy that helps
companies target and meet the need
of a specific group of customers.

17. Steps on Designing a
Customer-Driven
Marketing Strategy
1. Market Segmentation
2. Market Targeting
3. Differentiation
4. Positioning

18. Market Segmentation
Market segmentation is the
process of dividing the market
into groups of customers with
similar needs, characteristics,
and buying behavior.
A market segment is a group of
consumers who respond in a
similar way to a given set of
marketing efforts.

19. Market Targeting
Market Targeting is the
process of evaluating each
market segment’s
attractiveness and selecting
one or more segments to
enter.

20. Positioning
It is the process of arranging the
product to occupy a clear,
distinctive, and desirable place
relative to competing products in
the minds of target consumers.
 Size and scope of the market
Competitive situation
Price-value relationship
Brand name recognition:
Value perceptions

21. Differentiation
process of differentiating the
market offering to create
superior customer value.
a key to competitive
advantage
based on market
segmentation or an existing
product category.

22. Steps on Designing a
Customer-Driven
Marketing Strategy
1. Market Segmentation
2. Market Targeting
3. Differentiation
4. Positioning

23. References
https://whaleshares.io/@kaizen/marke
ting-101-understanding-the-
marketplace-and-customer-needs
https://neostrom.in/market-offering/
https://neostrom.in/customer-driven-
marketing-strategy/
https://www.studysmarter.co.uk/expla
nations/marketing/customer-driven-
marketing-strategy/