The document discusses the marketing process and various marketing concepts. It describes a 5-phase marketing process: 1) understand customer needs, 2) design a customer-driven strategy, 3) construct an integrated marketing program, 4) build profitable customer relationships, and 5) capture value from customers. It also explains key concepts like the marketing mix, customer relationship marketing, partner relationship marketing, different orientations like production, product, selling, and societal marketing concepts. For societal marketing, an example would be a company that considers social and environmental impacts of its products in addition to profits and customer satisfaction. For frenemies, an example is when competitors cooperate on standardization or research

1. Defining Marketing and the Marketing Process -2
October, 2020

2. The Marketing Process (simple 5-phased model)
ted
A) B) C) D) E)
Understandthe
Marketplace &
Customer needs
andwants
Designa Customer-
driven Marketing
Strategy
Construct an
Integrated
Marketing program
that delivers superior
value
Buildprofitable
relationships and
createcustomer
satisfaction
Capturevaluefrom
customers in formof
sales,profit and
long-term
relationship
Understand customers, create value & build relationship Reap rewards of
created superior value

3. Marketing process (Second phase)
Designa Customer-
Driven Marketing
strategy
B) Selecting customers to serve!
Choosing a Value Proposition!
MARKETING MANAGEMENT
is the art and science of choosing target marketsand
building profitablerelationships with them!
Find– Attract – Keep– Growcustomers!

4. Marketing process (Second phase)
1) Selecting customers to serve!
Market Segmentation Targeting
Companies select only customers that they can
serve well & profitably!

5. Marketing process (Second phase)
1) Selecting customers to serve!
Swarovski stores profitably target rich customers!
AB Jewerly stores profitably target customers
with modest means!

6. Marketing process (Second phase)
2) Choosing a Value Proposition!
A COMPANY’S VALUEPROPOSITION
is the set of benefits, values that companies
promise to deliver to customers to satisfy their
needs!
- Differentiation-

7. Marketing process (Second phase)
Five Marketing Management Orientations (Concepts)
PRODUCTIONconcept
Marketing myopia

8. Marketing process (Second phase)
PRODUCT concept
Marketing myopia
Five Marketing Management Orientations (Concepts)

9. Marketing process (Second phase)
SELLINGconcept
Five Marketing Management Orientations (Concepts)
Marketing myopia

10. Marketing process (Second phase)
MARKETING concept
CONSUMER’S NEEDS & WANTS
ARE IMPORTANT!
Five Marketing Management Orientations (Concepts)

11. Marketing process (Second phase)
SELLINGconcept
MARKETING concept
Startingpoint Focus Means Ends
factory existing products selling and promotion profit from sales volume
market customer needs integrated marketing profit from customer satisfaction
Startingpoint Focus Means Ends
inside-out
outside-in
Five Marketing Management Orientations (Concepts)

12. Marketing process (Second phase)
MARKETING concept In many cases, customers don’t know what they want!
Five Marketing Management Orientations (Concepts)
3M Manager:
“Our goal is to lead customers
where they want to go, before
they know where they want to
go”

13. Marketing process (Second phase)
SOCIETALMARKETING concept
Five Marketing Management Orientations (Concepts)
CONSUMERS AND SOCIETY’S
WELFARE ARE IMPORTANT!

14. Marketing process (Second phase)
SOCIETALMARKETING concept
SOCIETY
(Human welfare)
CONSUMERS
(Want satisfaction)
COMPANY
(profits)
Five Marketing Management Orientations (Concepts)

15. The Marketing Process (simple 5-phased model)
ted
A) B) C) D) E)
Understandthe
Marketplace &
Customer needs
andwants
Designa Customer-
driven Marketing
Strategy
Construct an
Integrated
Marketing program
that delivers superior
value
Buildprofitable
relationships and
createcustomer
satisfaction
Capturevaluefrom
customers in formof
sales,profit and
long-term
relationship
Understand customers, create value & build relationship Reap rewards of
created superior value

16. Marketing process (Third phase)
Construct an
Integrated
Marketing program
that delivers superior
value
C) Мarketing Mix
Product Price Place Promotion

17. The Marketing Process (simple 5-phased model)
ted
A) B) C) D) E)
Understandthe
Marketplace &
Customer needs
andwants
Designa Customer-
driven Marketing
Strategy
Construct an
Integrated
Marketing program
that delivers superior
value
Buildprofitable
relationships and
createcustomer
satisfaction
Capturevaluefrom
customers in formof
sales,profit and
long-term
relationship
Understand customers, create value & build relationship Reap rewards of
created superior value

18. Marketing process (Fourth phase)
Buildprofitable
relationships and
createcustomer
satisfaction
D) CRM – Customer Relationship Marketing
Past Now
Overall Process of Building and
Maintaining Profitable
Customer relationships by
Delivering Superior Customer
Value and Satisfaction
ACQUIRE KEEP GROW

19. Marketing process (Fourth phase)
Buildprofitable
relationships and
createcustomer
satisfaction
D ) PRM– Partner Relationship Marketing
Partners inside
the company
Partners outside
the company
Marketing Department
Sales Department
Customer Support
Finance, production…..
All employees!
Supply chainparticipants
Strategicpartners
Competitors

20. Marketing process (Fourth phase)
Buildprofitable
relationships and
createcustomer
satisfaction
D) PRM– Partner Relationship Marketing
“Frenemies” / “Coopetition”

21. Exercise: Link the letters with adequate numbers!
A Marketing myopia 7 An orientation when in focus is aggressive promotion
B A company's value proposition 15 Act of obtaining a desired object from someone by offering something in return
C Marketing offerings 3 Goods, services, ideas, people, events, places that can be sell on the market
D Demands 6 Dividing a market into groups to serve them better
E Wants 13 Art and science of choosing target markets and building profitable relations with them
F Segmentation 12 a) Partner relationship marketing or b) Partnership relation management
G Selling concept 11 a) Customer relationship marketing or b) Consumers related management
I Marketing mix 10 Competitors that cooperate for some mutual interest
J Societal marketing concept 14 Set of actual and potential buyers of a product/ service
K Frenemies 1 Companies focus more on their products than to customer needs
L CRM stands for: 9 An orientation when besides consumer needs, long-run welfare is important
M PRM stands for: 8 Product, price, promotion, place
N Marketing management 2 Set of benefits, values that is promised to be delivered to the customers
O Market 5 Feeling that you miss something and want to buy it to feel comfortable
P Exchange 4 Wants backed by buying power (money)

22. Exercise Solution:
A Marketing myopia 1 Companies focus more on their products than to customer needs
B A company's value proposition 2 Set of benefits, values that is promised to be delivered to the customers
C Marketing offerings 3 Goods, services, ideas, people, events, places that can be sell on the market
D Demands 4 Wants backed by buying power (money)
E Wants 5 Feeling that you miss something and want to buy it to feel comfortable
F Segmentation 6 Dividing a market into groups to serve them better
G Selling concept 7 An orientation when in focus is aggressive promotion
I Marketing mix 8 Product, price, promotion, place
J Societal marketing concept 9 An orientation when besides consumer needs, long-run welfare is important
K Frenemies 10 Competitors that cooperate for some mutual interest
L CRM stands for: 11 a) Customer relationship marketing
M PRM stands for: 12 a) Partner relationship marketing
N Marketing management 13 Art and science of choosing target markets and building profitable relations with them
O Market 14 Set of actual and potential buyers of a product/ service
P Exchange 15 Act of obtaining a desired object from someone by offering something in return

23. Homework
Explain an example of societal marketing!
Give an example for frenemies!