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Name: Surej
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University: Assumption University
Email: [email protected]
Phone: 0809091393
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Marketing : An Introduction
An Asian Perspective
Armstrong, Kotler
& da Silva
1
Marketing:
Managing Profitable Customer
Relationships
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-4
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-5
What Is Marketing?
•
Simple Definition: Marketing is
managing profitable customer
relationships.
Goals:
1. Attract new customers by promising
superior value.
2. Keep and grow current customers
by delivering satisfaction.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-6
Marketing Old vs. New
Old view of marketing:
Making a sale -- “Telling and
Selling”
New view of marketing:
Satisfying customer needs
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-7
Marketing Defined
A social and managerial
process by which individuals
and groups obtain what they
need and want through
creating and exchanging
products and value with
others.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-8
Core Marketing Concepts
Figure 1.3
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Needs, Wants, & Demands
• Need: State of felt deprivation including physical,
social, and individual needs.
• Physical:
– Food, clothing, shelter, safety
• Social:
– Belonging, affection
• Individual:
– Learning, knowledge, self-expression
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-10
Physical needs
I am hungry!!!
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-11
Social needs
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Needs, Wants, & Demands
• Wants: Form that a human need takes, as
shaped by culture and individual
personality.
• Wants + Buying Power = Demand
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-13
Demand
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-14
Need / Want Fulfillment
• Needs and Wants Fulfilled through a
Marketing Offer :
– Some combination of products, services,
information, or experiences offered to a
market to satisfy a need or want.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-15
What Satisfies Consumers’
Needs and Wants?
Products
Anything that can be Offered to a Market to Satisfy a Need or Want
Persons
Places
Information
Organizations
Ideas
Services
Activity or Benefit Offered for Sale That is Essentially
Intangible and Does Not Result in the Ownership of Anything
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-16
Persons
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-17
Places
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-18
Organizations
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-19
Marketing Myopia
• Sellers pay more
attention to the
specific products they
offer than to the
benefits and
experiences produced
by the products.
• They focus on the
“wants” and lose sight
of the “needs”
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-20
Value and Satisfaction
Expectation
8
Performance
Expectation
Performance
10
8
10
If performance is lower than expectations, satisfaction is low.
If performance is higher than expectations, satisfaction is high.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-21
Customer Value
• Customer value is the difference between
the values the customer gains from
owning and using a product and the costs
of obtaining the product.
• Customer Value = Benefits / Price
Price = 15000 Baht
Price = 2000 baht
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-22
Customer satisfaction
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Exchange vs. Transaction
• Exchange:
• Transaction:
– Act of obtaining
a desired object
from someone
by offering
something in
return.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
– A trade of values
between two
parties.
– One party gives
X to another
party and gets Y
in return. Can
include cash,
credit, or check.
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What is a Market?
• The set of actual and potential
buyers of a product.
• These people share a need or
want that can be satisfied through
exchange relationships.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-25
Elements of a Modern Marketing
System
Figure 1.4
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Suppliers
• Supplies the raw material to
manufacturers.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-27
Competitors
• Selling identical
products to the
market.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Marketing Intermediaries
• Those who are in between Manufacturer
and customer in the supply chain
management.
• Eg. Retailors, Wholesalers, Brokers,
banks etc
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Marketing Management
•
The art and science of choosing target
markets and building profitable
relationships with them.
Questions to ask:
1. What customers will we serve?
What is our target market?
2. How can we best serve these customers?
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-30
Segmentation and Target Marketing
#1
#2
Market Segmentation:
Divide the market into
segments of customers
Target Marketing:
Select the segment to
cultivate
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-31
Marketing Management
Demand
Management
Demarketing
© Armstrong, Kotler & da Silva
Finding and increasing
demand, also changing or
reducing demand, such as in
demarketing.
Temporarily or permanently
reducing the number of
customers or shifting their
demand.
Marketing : An Introduction
An Asian Perspective
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Demarketing
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-33
Marketing Management Philosophies
Societal Marketing Concept
Marketing Concept
Selling Concept
Product Concept
Production Concept
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-34
The production concept
The idea that consumers will favor products
that is available and highly affordable.
The production concept is useful under two
situations:
When the demand for a product
exceeds the supply
When the product cost is too high
and improved productivity is needed to
bring it down.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-35
The Product Quality
The idea that consumers will favor products that offer
the most quality, performance, and features and that
the organization should therefore devote its energy to
making continues product improvements.
Thus an organization should devote energy to making
continuous product improvements.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-36
Marketing and Sales Concepts Contrasted
Figure 1.6
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Societal Marketing Concept
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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The Marketing Philosophies Compared
Figure 1.8
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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Customer Relationship Management
• The process of
building and
maintaining
profitable customer
relationships by
delivering superior
customer value and
satisfaction.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-40
Customer Perceived Value
• Customer’s evaluation of the difference
between all the benefits and all the
costs of a marketing offer relative to
those of competing offers.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-41
Customer Perceived Value
Is FedEx’s service worth the higher price? FedEx
thinks so. It promises reliability, speed, and peace
of mind. FedEx ads say “Need to get it there or
else? Don’t worry. There’s a FedEx for that.”
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-42
Customer Satisfaction
• Dependent on the product’s perceived
performance relative to a buyer’s
expectations.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-43
Customer Loyalty & Retention
• Customer
Lifetime Value
– The entire
stream of
purchases that
the customer
would make
over a lifetime
of patronage.
© Armstrong, Kotler & da Silva
• Share of
Customer
– The share a
company
gets of the
customers
purchasing in
their product
categories.
Marketing : An Introduction
An Asian Perspective
1-44
Customer Lifetime Value
To keep customers
coming back, Stew
Leonard’s has created
the “Disneyland of
dairy stores.” Rule
#1— the customer is
always right. Rule #2
—if the customer is
ever wrong, reread
Rule #1.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
1-45
Customer Equity
• Customer equity is the total
combined customer lifetime
values of all the company’s
customers.
© Armstrong, Kotler & da Silva
Marketing : An Introduction
An Asian Perspective
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