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@agatestudio
What is
Marketing?
Andrew
A summary from:
Principle of Marketing 14th ed
Publishing
Agate Studio
@agatestudio
What is Marketing?
It is not about telling and selling anymore
Marketing is:
managing profitable customer relationship
@agatestudio
Marketing Process
@agatestudio
UNDERSTANDING THE MARKETPLACE AND
CUSTOMER NEEDS, WANTS, AND DEMANDS
Step I
@agatestudio
Understanding:
• Needs, wants and demands
– Needs?
– Wants?
– Demands?
• Market offerings
– Market offerings?
– Marketing myopia
• Customer-perceived Value & Satisfaction
• Exchanges and Relationships
• Markets
@agatestudio
DESIGN A CUSTOMER DRIVEN
MARKETING STRATEGY
Step II
@agatestudio
Marketing Strategy
• What customer will we serve?
– Segmenting & Targeting
• How can we serve these customer best?
– Differentiate & Positioning
“Some people think of marketing management
as finding as many customers as possible and
increasing demand. But marketing managers
know that they cannot serve all customers in
every way. By trying to serve all customers, they
may not serve any customers well”. Kotler,
Phillip.
@agatestudio
INTEGRATED MARKETING PLAN &
PROGRAM
Step III
@agatestudio
Marketing Mix
• Product
– What is the need-satisfying market offering?
• Price
– How much to charge for the offering?
• Place
– How it will make the offering available to target
customers?
• Promotion
– How to communicate the offering and persuade the
customers of its merits?
@agatestudio
BUILDING PROFITABLE CUSTOMER
RELATIONSHIP
Step IV
@agatestudio
Customer Value and Satisfaction
Ritz – Carlton
Without ever asking, they seem to
know that you’re allergic to peanuts
and want a king-size bed, a non-
allergenic pillow, the blinds open
when you arrive, and breakfast with
decaffeinated coffee in your room.
Each day, hotel staffers—from those
at the front desk to those in
maintenance and housekeeping—
discreetly observe and record even
the smallest guest preferences.
@agatestudio
Profitable Customer Relationship
Progressive Insurance
It asks prospective customers a series
of screening questions to determine if
they are right for the firm. If they’re
not, Progressive will likely tell them,
“You might want to go to Allstate.” A
marketing consultant explains: “They’d
rather send business to a competitor
than take on unprofitable customers.”
@agatestudio
CAPTURE VALUE FROM CUSTOMER
TO CREATE PROFIT & CUST. EQUITY
Part V
@agatestudio
Capturing Value
• Creating Customer Loyalty and Retention
– Customer Lifetime Value?
• Growing Share of Customer
– Share of Customer?
• Building Customer Equity
– Customer Equity?
@agatestudio
Pulling it All Together
What is Marketing? by Andrew

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