PRINCIPLES OF MARKETING
By
STEPHEN B. NKETIAH
Stephen Nketiah GCUC
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Objectives
• Define marketing and outline the steps in the marketing process.
• Explain the importance of understanding customers and the
marketplace and identify the five core marketplace concepts.
• Identify the key elements of a customer-driven marketing strategy
and discuss the marketing management orientations that guide
marketing strategy.
• Discuss customer relationship management and identify strategies for
creating value for customers and capturing value from customers in
return.
Stephen Nketiah GCUC
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•Marketing in a Changing World:
Creating Customer Value and
Satisfaction
Stephen Nketiah GCUC
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Introduction
• Today’s successful companies have one thing in common:
• These companies share a passion for understanding and satisfying customer
needs in well-defined target markets.
• They motivate everyone in the organization to help build lasting customer
relationships based on creating value.
• Many people have had a wrong impression about what marketing is all about.
• Like most subjects, people do not have accurate definition of those subjects.
Marketing is no exception.
• Before we, please take time to define marketing.
• What do you think is the definition of marketing?
• Today, marketing must be understood not in the old sense of making a sale—
“telling and selling”—but in the new sense of satisfying customer needs.
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Introduction Cont.
• Your definition will by all means contain selling or advertising.
• Or ask a fellow student about what marketing is all about and eight
out of ten will talk about selling or advertising.
• In USA, 300 college administrators were asked about the meaning of
marketing.
• As many as 90 percent said marketing was selling, advertising and/or
public relations.
• It is no wonder that all over the world, consumers are inundated with
TV commercial, newspaper advertising etc.
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Evidence from KNUST
• The same happened in KNUST School of Business where students
who were being introduced to marketing were asked to define
marketing and more than 90 percent of the definitions were not
without sales and/or advertising.
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Definitions of Marketing
• The management process which identifies, anticipates, and supplies
customer requirements efficiently and profitably” (CIM)
• The process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create
exchange and satisfy individual and organizational objectives. (AMA)
• A social and managerial process by which individuals and groups
obtain what they need and want through creating and exchanging
products of value with others (Kotler et al…….)
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Marketing and Selling Distinguished
• Selling is indeed part and parcel of marketing.
• As Kotler puts it “Selling is only the tip of the marketing iceberg”.
• Peter Drucker - the aim of marketing is to identify and understand
customers so well that the product on offer fits them well and sells
itself
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The Marketing Process
1. Understand the marketplace and customer needs and wants
2. Design a customer-driven marketing strategy
3. Construct an integrated marketing program that delivers superior
value
4. Build profitable relationships and create customer delight
5. Capture value from customers to create profits and customer equity
• In the first four steps, companies work to understand consumers,
create customer value, and build strong customer relationships. In the
final step, companies reap the rewards of creating superior customer
value.
Stephen Nketiah GCUC
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Core Marketing Concepts
NEEDS: State of felt deprivation
WANTS: Forms human needs take as they are shaped by
culture and individual personality
VALUE: Ratio of perceived benefit and satisfaction to cost of
acquisition
EXCHANGE: Making sacrifices to another in order to obtain
something of value.
DEMANDS are human wants that are backed by purchasing
power
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Product, Offering and Brand
• Companies address needs by putting forth value propositions.
• Value proposition is a set of benefits organisations offer to satisfy the need
of customers.
• Philip Kotler defines a product as ‘anything that can be offered to a market
for attention, acquisition, use or consumption that might satisfy a need or
want.
• A product therefore is anything that is capable of satisfying a need. It also
includes services.
• The physical product and services of an organisation are also referred to as
an offering.
• The American Marketing Association defines a brand as a name, term, sign,
symbol, or design, or a combination of them intended to identify the goods
and services of one seller and to differentiate them from those of the
competition.
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Exchange, Transaction and Relationships
• Exchange is the act of obtaining desired products from someone by
offering something in return
• The other ways are coercion, begging, and self production.
• Transaction is a trade between two parties that involves at least two
things of value, conditions agreed upon, a time and place of
agreement
• Most transactions are monetary but some are not- BARTER
transaction
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Who is a customer?
 Current
 Prospective
 Previous
• Collectively known as market; the most important component of
any business
-Simply, without customers, there is no business
-They help attract other customers a business
-Customers serve as feedback for your firm
-Help evaluate the prospects of your business
-Note that not every customer is beneficial.
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Evolution of Marketing/ Marketing Concepts
• Production Concept
Consumers will favour products that are available and highly affordable so
management should focus on production and distribution efficiency
• Product concept
Consumers favour quality and high performance products so management’s efforts
should aim at continuous product development and innovative features. There is
the likelihood of marketing myopia
• Selling Concept
Consumers will not buy enough of a firm’s product unless it embarks on aggressive
selling and promotion effort.
• Marketing Concept
An approach where production is aimed at customer satisfaction whilst taking into
account the offers of competitors.
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Societal Marketing Concept
• An Organization should determine the needs of target markets,
deliver the desired satisfactions more effectively and efficiently than
competitors in a way that maintains or improves the customer’s and
society’s well-being.
• Environmentalism; Consumerism; Stakeholder interest (CSR):
investors, employees, customers, suppliers, community
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Preparing an Integrated Marketing
Plan and Program
• The company’s marketing strategy outlines which customers it will
serve and how it will create value for these customers.
• Next, the marketer develops an integrated marketing program that
will actually deliver the intended value to target customers.
• The marketing program builds customer relationships by transforming
the marketing strategy into action.
• It consists of the firm’s marketing mix, the set of marketing tools the
firm uses to implement its marketing strategy.
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Preparing an Integrated Marketing
Plan and Program cont’d
• The major marketing mix tools are classified into four broad groups,
called the four Ps of marketing: product, price, place, and promotion.
• To deliver on its value proposition, the firm must first create a needsatisfying market offering (product).
• It must decide how much it will charge for the offering (price) and
how it will make the offering available to target consumers (place).
• Finally, it must communicate with target customers about the offering
and persuade them of its merits (promotion).
• The firm must blend each marketing mix tool into a comprehensive
integrated marketing program that communicates and delivers the intended value to chosen customers.
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Customer Relationship Management
• Customer relationship management is the over-all process of building
and maintaining profitable customer relationships by delivering
superior customer value and satisfaction.
• It deals with all aspects of acquiring, keeping, and growing customers.
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• Relationship Building Blocks: Customer Value and Satisfaction
• Customer-perceived value—the customer’s evaluation of the
difference between all the benefits and all the costs of a market
offering relative to those of competing offers.
• Importantly, customers often do not judge values and costs
“accurately” or “objectively.” They act on perceived value.
• Customer Satisfaction. Customer satisfaction depends on the
product’s perceived performance relative to a buyer’s expectations.
• If the product’s performance falls short of expectations, the customer
is dissatisfied. If performance matches expectations, the customer is
satisfied.
• If performance exceeds expectations, the customer is highly satisfied
or delighted.
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The Scope of Marketing
Products
Services
Personalities
Organizations
Information
Others
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Qualities of a good marketer
• Business- oriented.
• Diplomatic and people-oriented
• Inquisitive by nature
• Technologically-Inclined
• Analytical and strategic
• listener and admit faults
• a track record of delivery
• Global perspective
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Criticism of Marketing
 Marketing encourages people to purchase what they do not need
 Marketers embellish product claims
 Marketing discriminates in customer selection
 Marketing contributes to environmental waste
 Marketing encroaches on customers’ right to privacy
 etc
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THANK YOU
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