Home Lecture (HL) Fundamentals of Marketing Chapter 1 What is marketing? Basic concepts of Marketing The evolution of marketing Societal marketing concept Holistic marketing concept The marketing process

1.
Prepared
by:
Faindra
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1Home
Lecture
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Faindra
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2. Chapter
Overview
• What
is
marke=ng?
• Basic
concepts
of
Marke=ng
• The
evolu=on
of
marke=ng
• Societal
marke=ng
concept
• Holis=c
marke=ng
concept
• The
marke=ng
process
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Lecture
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3. What
is
Marke=ng?
Marke1ng
is
a
process
by
which
companies
create
value
for
customers
and
build
strong
customer
rela=onships
to
capture
value
from
customers
in
return.
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Lecture
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4. Basic
concepts
of
Marke=ng
• A
simple
defini=on
of
marke=ng
is
about
managing
profitable
customer
rela=onship.
• 2
important
things
to
look
at:
-­‐
Managing
exis=ng
customers
and
-­‐
Acquiring
new
customers
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5. • States
of
felt
depriva1on
• Physical—
food,
clothing,
warmth,
safety
• Social—
belonging
and
affec1on
• Individual—
knowledge
and
self-­‐expression
• Eg:
I
am
thirsty
Needs
• Form
of
human
needs
that
are
shaped
by
culture
and
individual
personality.
• Eg:
A
hungry
person
needs
food,
but
what
do
you
want
for
food?
Capa1,
SpagheK,
Rice
or
vegetarian
food?
Wants
• Wants
that
is
backed
by
buying
power.
• Eg:
I’m
hungry,
I
have
money
to
but
Pizza
today.
Yesterday,
during
lunch
1me,
I
can
only
buy
a
RM1
nasi
lemak.
Demands
Customer
needs,
wants
and
demands
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6. Market
offerings
“…refer
to
a
some
combina=on
of
products,
services,
informa=on,
or
experiences
offered
to
a
market
to
sa=sfy
a
need
or
want…”
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7. Marke=ng
myopia
“Mistakes
made
by
the
organiza=on
where
they
are
too
focusing
on
exis=ng
wants
and
losing
sight
of
underlying
consumer
needs.”
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8. Market
offerings
• Products
-­‐
anything
that
can
be
offered
to
a
market
for
a[en=on,
use
or
consump=on
and
that
might
sa=sfy
a
need
or
want.
• Services
-­‐
ac=vi=es
or
benefits
offered
for
sale
that
are
essen=ally
intangible
and
don’t
result
in
the
ownership
of
anything.
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9. Customer
Value
&
Sa=sfac=on
• Customer
Value
-­‐
benefit
that
the
customer
gains
from
owning
and
using
a
product
compared
to
the
cost
of
obtaining
the
product.
A
customer
buys
from
the
firm
that
offers
the
highest
customer-­‐perceived
value.
• Customer
Sa1sfac1on
-­‐
depends
on
the
product’s
perceived
performance
in
delivering
value
rela=ve
to
a
buyer’s
expecta=ons.
• Product
Performance
vs
Customer
Sa=sfac=on.
Product’s
performance
>
buyer’s
expecta=on
=
Sa=sfied
Product’s
performance
<
buyer’s
expecta=on
=
Dissa=sfied
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10. What
is
Market?
A
set
of
actual
and
poten=al
buyers
of
a
product
who
share
a
par=cular
need
and
want
that
can
be
sa=sfied
through
exchange
rela=onships
.
• Consumer
market
–
customers
who
purchase
for
their
own
consump=on
• Industrial
market
–
customers
who
purchase
product
for
further
processing
or
for
reselling
to
other
businesses
or
consumers.
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11. The
Evolu=on
of
Marke=ng
Societal
marke=ng
concept
(1980s)
Marke=ng
concept
(1950s
–
1980s)
Selling
concept
(1920s
-­‐1950s)
Product
concept
(1869
–
1920s)
Produc=on
concept
(1869
–
1920s)
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12. Societal
Marke=ng
Concept
• Societal
• Marketing
• Concept
Society
(Long-term consumer & societal welfare)
Company
(Profits)
Consumers
(Short-term want
satisfaction)
Maintain & improve
long-term well-being
Social responsibility
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13. Holis=c
Marke=ng
Concept
• Four
components
of
holis=c
marke=ng
are:
§ Rela1onship
marke1ng
–
build
mutually
sa=sfying
long-­‐term
rela=onship
with
key
par=es;
customers,
suppliers,
distributors,
etc
§ Integrated
marke1ng
–
using
a
communica=on
mix
of
sales,
promo=on,
adver=sing,
sales
force,
public
rela=ons,
direct
mail,
telemarke=ng,
and
interac=ve
marke=ng
to
reach
the
trade
channels
and
target
customers
§ Internal
marke1ng
–
ensuring
everyone
in
the
organiza=on
embraces
appropriate
marke=ng
principles.
§ Socially
responsible
marke1ng
–
incorpora=ng
social
responsibility
marke=ng
&
understanding
broader
concerns,
and
the
ethical,
environmental,
legal,
and
social
context
of
marke=ng
ac=vi=es.
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14. The
marke=ng
process
5- 14
Understanding
Environment
Analysis of
market, their
needs and wants
Analysis of other
environment
factors affecting
marketing
Develop and
maintain
marketing
information
Develop
Market-
oriented
Marketing
Strategy
Choose
market to
serve
Develop
positioning
strategy for
the chosen
market
Develop
relationship
with
customers and
partners
Continuously
delight chosen
customers
Build good
relationship with
marketing
partners
Develop
Marketing
Mix (4 Ps)
Strategy
Product
strategy
Price strategy
Distribution
(Place)
strategy
Promotion
strategy
Create satisfied
customers
Capture customer
lifetime value
Increase share of
market and share of
customer
Offer value to market
Gain value from
customers
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Faindra
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15.
Prepared
by:
Faindra
Jabbar
15Home
Lecture
(HL)
with
Faindra
Jabbar