1) Marketing is defined as a process of creating value for customers and building relationships to capture value from customers in return. It involves understanding customer needs and designing strategies to satisfy those needs better than competitors. 2) The marketing process includes understanding customer needs and the marketplace, designing a customer-driven strategy that involves selecting target customers and a value proposition, preparing an integrated marketing plan using the marketing mix of product, price, place, and promotion, and building customer relationships through satisfying customer value and expectations. 3) The document outlines the key concepts in marketing including customer needs, market offerings, customer value and satisfaction, exchanges and relationships, and marketing orientations like the production, product, selling, and marketing concepts that guide strategy.

1. LOGO
CHAPTER 1:
Marketing – Creating
and Capturing
Customer Value
Principles of Marketing
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2. Topic Outline
Define marketing and outline the steps in the
marketing process
Understanding the Marketplace and Customer Needs
Designing a Customer-Driven Marketing Strategy
Preparing an Integrated Marketing Plan and Program
Building Customer Relationships
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3. WHAT IS MARKETING?
Marketing is a process by which companies create value for
customers and build strong customer relationship to capture
value from customers in return.
 From managerial definition:
“The art of selling products”
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4. What is
Marketed?
• Goods
• Information
• Services
• Ideas
• Events
• Places
• Properties
• Experiences
• Organizations
• Persons
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Understanding the Marketplace
and Customer Needs
Customer needs, wants, and demands
Market offerings
Customer Value and satisfaction
Exchanges and relationships
Markets
Core Concepts

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• States of deprivation
• Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-
expression
Needs
• Form that human needs take as they are
shaped by culture and individual
personality
Wants
• Human wants backed by buying powerDemands
Customer Needs, Wants, and Demands

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Market offerings are some
combination of products, services,
information, or experiences offered to a
market to satisfy a need or want.
Marketing myopia is focusing only on
existing wants and losing sight of
underlying consumer needs
Understanding the Marketplace
and Customer Needs

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Customer Value and Satisfaction
Expectations
Customers
• Value and
satisfaction
Marketers
• Set the right level of
expectations
• Not too high or low
Understanding the Marketplace
and Customer Needs

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Exchange is the act of obtaining a
desired object from someone by offering
something in return
Understanding the Marketplace
and Customer Needs

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Markets are the set of actual and
potential buyers of a product or service
Understanding the Marketplace
and Customer Needs

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Designing a Customer-Driven
Marketing Strategy
Marketing management is the art and
science of choosing target markets and
building profitable relationships with
them
 What customers will we serve?
 How can we best serve these customers?

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Market segmentation refers to dividing
the markets into segments of customers
Target marketing refers to which
segments to go after
Selecting Customers to Serve
Designing a Customer-Driven
Marketing Strategy

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Selecting Customers to Serve
Designing a Customer-Driven
Marketing Strategy
Demarketing is marketing to reduce
demand temporarily or permanently; the
aim is not to destroy demand but to
reduce or shift it

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Designing a Customer-Driven
Marketing Strategy
The value proposition is the set of
benefits or values a company promises
to deliver to customers to satisfy their
needs
Choosing a Value Proposition

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Production
concept
Product
concept
Selling
concept
Marketing
concept
Societal
concept
Marketing Management Orientations
Designing a Customer-Driven Marketing
Strategy

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Production concept is the idea that
consumers will favor products that are
available or highly affordable

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Product concept is the idea that
consumers will favor products that offer
the most quality, performance, and
features. Organizations should
therefore devote its energy to making
continuous product improvements.

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Selling concept is the idea that
consumers will not buy enough of the
firm’s products unless it undertakes a
large scale selling and promotion effort

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Marketing concept is the idea that
achieving organizational goals depends
on knowing the needs and wants of the
target markets and delivering the
desired satisfactions better than
competitors do

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Societal marketing concept is the idea
that a company should make good
marketing decisions by considering
consumers’ wants, the company’s
requirements, consumers’ long-term
interests, and society’s long-run
interests

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The marketing mix
Integrated marketing program
Preparing an Integrated Marketing Plan
and Program

22. The Four P’s (Marketing Mix)
Product Price Promotion Place
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23. When marketing their products firms need to create a
successful mix of:
the right product
sold at the right price
in the right place
using the most suitable promotion
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24. Integrated marketing program is a
comprehensive plan that communicates
and delivers the intended value to chosen
customers.
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Preparing an Integrated Marketing Plan
and Program

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

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Relationship Building Blocks: Customer Value
and Satisfaction
Customer
perceived value
• The difference
between total
customer value
and total
customer cost
Customer
satisfaction
• The extent to
which a product’s
perceived
performance
matches a
buyer’s
expectations
Building Customer Relationships

27. CLASS ACTIVITY
Write on a piece of paper :
List of specification / features of a
smartphone that you own / want to buy.
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28. NEXT CLASS…
Company and Marketing Strategy: Partnering to
Build Customer Relationships
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29. THANK YOU…
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