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Principles of Marketing
Marketing: Managing
Profitable Customer
Relationships
What Is Marketing?
Marketing Defined
Marketing is the process by which companies
create value for customers and build strong
customer relationships to capture value from
customers in return
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The Marketing Process
Create Value
Company
Capture Value
Build Strong
relations
What Is Marketing?
The Marketing Process
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Understand the marketplace and customer wants
and needs
Design a customer-driven marketing strategy
Construct a marketing plan that delivers superior
value
Build profitable relationships and create customer
satisfaction
Capture value from customers to create profit and
customer equity
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Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands
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Needs are states of deprivation
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Physical—food, clothing, warmth, safety
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Social—belonging and affection
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Individual—knowledge and self-expression
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Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands
Wants are the form that needs take as they
are shaped by culture and individual
personality
Demands are wants with by buying power
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Understanding the Marketplace
and Customer Needs
Market Offerings—Products, Services, and
Experiences
Market offerings are some combination of
products, services, information, or
experiences offered to a market to satisfy a
need or want
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Understanding the Marketplace
and Customer Needs
Market Offerings—Products, Services, and
Experiences
Marketing myopia is focusing only on existing
wants and losing sight of underlying
consumer needs
Exchange is the act of obtaining a desired
object from someone by offering something
in return
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Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction
How do customers choose which product to buy?
They form expectations about value and satisfaction
Satisfied customers tell others
Dissatisfied switch to competitors and discourage
others from buying it
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Understanding the Marketplace
and Customer Needs
Exchanges and Relationships
Markets are the set of actual and
potential buyers of a product who have
a particular need or want
Relationships consist of actions to build
and maintain desirable relationships
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Designing a Customer-Driven
Marketing Strategy
Marketing Management
Marketing management is the art and
science of choosing target markets and
building profitable relationships with them
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What customers will we serve?
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How can we best serve these customers?
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Designing a Customer-Driven
Marketing Strategy
Selecting Customers to Serve
Market segmentation: Dividing the markets
into segments of customers
Target marketing: Which segments to go
after
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Designing a Customer-Driven
Marketing Strategy
Choosing a Value Proposition
Why should I buy your brand rather than
your competitors?
How it will differentiate and position itself?
The value proposition is the set of
benefits or values a company promises
to deliver to customers to satisfy their
needs (‘Redbull gives winds’, ‘BMW The
ultimate driving machine’)
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Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
There are five alternative concepts under which org.
design and carry out their marketing strategies
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Production concept
Product concept
Selling concept
Marketing concept
Societal concept
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Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
Production concept is the idea that
consumers will favor products that are
available or highly affordable
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Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
Product concept is the idea that consumers
will favor products that offer the most
quality, performance, and features for which
the organization should therefore devote its
energy to making continuous improvements
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Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
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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Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
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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Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
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 (e.g.. Re-cycling, smoking packs
with labels, unleaded petrol).
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Preparing an Integrated
Marketing Plan and Program
Marketing Mix
The marketing mix is the set of tools (four
Ps) the firm uses to implement its marketing
strategy
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Product
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Price
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Promotion
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Place
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Building Customer Relationships
Customer Relationship Management
(CRM)
Customer relationship management is the
overall process of building and maintaining
profitable customer relationships by
delivering superior value and satisfaction
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Building Customer Relationships
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Customer Perceived value is the
difference between total customer value
and total customer cost.
Customer Satisfaction is the extent
to which a product’s perceived
performance matches a buyer's
expectations.
Building Customer Relationships
Partner Relationship Management
Partner Relationship Management:
refers to working closely with partners
in other company departments and
outside the company to jointly bring
greater value to customers
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The New Marketing Landscape
Major Developments
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Digital age
Globalization
Ethics and social responsibility
Not-for-profit marketing
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The New Marketing Landscape
The New Digital Age
Recent technology has had a major impact on the
ways marketers connect with and bring value to
their customers
Market research
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Learning about and tracking customers
Production
Distribution
Communication
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Video conferencing
Online data services
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The New Marketing Landscape
The New Digital Age
Internet—creates marketplaces
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Information
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Entertainment
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Communication
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The New Marketing Landscape
Rapid Globalization
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The world is smaller – unified market
Think globally, act locally
Standardization of products, services,
communications in the global markets
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The New Marketing Landscape
The Call for More Ethics and Social Responsibility
Social marketing campaigns encourage
energy conservation and concern for the
environment or discourage smoking,
excessive drinking, and drug use
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The New Marketing Landscape
The Growth for Not-for-Profit Marketing
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Colleges
Hospitals
Museums
Zoos
Orchestras
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