Transcript File

MKT 202
Spring 2015
INTRODUCTION TO MARKETING
Instructor: Mr. Qudrat-E-Elahi Asif (QEA)
Profile of Instructor
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Undergraduation:
North South
University (Major – Marketing & HRM)
Postgraduation: Deakin University
Australia (Major – Marketing)
Experience: Worked in ROBI AXIATA
LTD., Beximco Textiles Limited in
Bangladesh.
In Energy Deal in Australia.
CHAPTER 1
MARKETING: CREATING &
CAPTURING CUSTOMER VALUE
LEARNING OBJECTIVES
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Define Marketing & Outline the Steps of Marketing
Process
Discuss the Importance of Understanding Customers
& Marketplace
Identify the 5 Core Marketplace Concepts
Identify the Key Elements of a Customer—driven
Marketing Strategy & discuss the Marketing
Management Orientations
Explain CRM & identify Strategies to Capture Value
from Customers
Discuss the Major Trends & Forces which are
Changing the Marketing Landscape
CONCEPT OF MARKETING

A way of Managing Profitable Customer
relationship

Marketers have assembled new Marketing
Approaches to reach Customers directly &
personally
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Kotler & Armstrong (2009), “The process by
which companies create value for customers and
build strong customer relationships in order to
capture value from customers in return.”
OUTLINE MARKETING PROCESS

5 Step Process forms the overall Framework of
Marketing (Figure 1.1 – Simple Model of Marketing Process)
Understand the
Marketplace &
Needs
Capture Value
from
Customers to
Create Profits
Design a
Customer Driven
Strategy
Construct
Integrated
Marketing
Program
Build Profitable
Relationship &
Create Delight
UNDERSTANDING CUSTOMERS &
MARKETPLACE
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There are 5 core Customer and Marketplace concepts
which should be examined –
Customer Needs, Wants & Demand
Needs vary from culture to culture. Wants are also shaped by
one’s society and are expressed in terms of Objects.
e.g. Southwest Airlines, P&G.

Market Offerings – Products, Services, Experiences
It is a combination of 3 elements. Marketers use this
combination to fulfill the needs and wants of customers. (pp.6)
Smart marketers orchestrate several services and products to
creates Brand Experiences, e.g. HP.
A major mistake in point of view:
Marketing Myopia
UNDERSTANDING CUSTOMERS &
MARKETPLACE (CON’T..)
 Customer Value & Satisfaction
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- satisfied customers do Rebuy.
- dissatisfied customers Switch to competitors products.
Exchanges & Relationships
- marketers try to bring out Responses to offered products
and services.
Response may be simply more than just buying products or
services
- through providing superior value, marketers try to build
and grow a long-term relationship with customers.
Markets
A set of actual and potential buyers of a Product or Service.
- both the Marketer and the Customer do marketing.
ELEMENTS OF CUSTOMER DRIVEN
MARKETING STRATEGY
 Marketers first do some initial activities before going to
i.
build a Marketing Strategy.
Segmentation
Dividing the market into reachable and
profitable customer segments.
ii.
Targeting
Selecting which segments to enter and
cultivate in future.
iii.
Positioning
Map the product or service into the
mind of the targeted customers in a way that will stand out
from the competitors offers.
e.g. Coca Cola brand name.
MARKETING MANAGEMENT
ORIENTATION
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Organizations carry out their marketing strategies
under 5 alternative orientations –
Production Concept
The idea holds that consumers
will buy those products which are readily available and
affordable. E.g. LENOVO Computers.
Companies following this strategy runs a major risk of
focusing too narrowly to their own profit and misunderstand
the actual needs of the customers.
Product Concept
It holds that consumers will
prefer those products and services which are best in quality,
performance and innovative features.
The major drawback of this concept is, it can create
Marketing Myopia.
MARKETING MANAGEMENT ORIENTATION
(CON’T..)
A theory which holds the idea that
consumers will not buy an organization’s product
unless the firm undertakes a large-scale selling &
promotion effort.
But, it carries high risk. e.g. Insurance, Blood
Donation.
 Selling Concept
Starting Point
Factory
Focus
Means
Existing Products Selling & Promoting
Ends
Profit
Through
Sales
MARKETING MANAGEMENT ORIENTATION
(CON’T..)

Marketing Concept The philosophy that
projects, achieving organizational goals depends on
knowing the needs and wants of target markets and
delivering the desired satisfactions better than
competitors.
An outside-in perspective. E.g. Southwest Airlines
does not consider Marketing department, rather it
is Customer Dept.
Starting Point
Market
Focus
Means
Ends
Customer Needs Integrated Marketing
Profits
Through
Customer Satisfaction
MARKETING MANAGEMENT ORIENTATION
(CON’T..)
 Societal Marketing Concept
The concept holds that
marketing strategy should deliver value to customers in a
way that maintains or improves both the consumer’s &
society’s well-being.
e.g. ‘Green Packaging’ of bottled water.
Society
(human welfare)
Societal
Marketing
Concept
Consumers(want satisfaction)
Company(profit)
WHAT IS CRM?
 Marketing program consists of Marketing Mix tools (the 4
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P’s), builds relationship by transforming strategy into action.
‘The overall process of building & maintaining
profitable customer relationships by delivering
superior customer value.’ (pp.13)
It involves carefully managing ‘Customer Touch-points’ to
increase customer loyalty.
The 2 important customer relationship building blocks are –
a) Customer Perceived Value
Customer’s evaluation of
the difference between all the benefits & costs of a marketing
offer relative to those of competing offers.
b) Customer Satisfaction
The extent to which a
products perceived performance matches buyer’s expectation.
‘Delighted’ customers become loyal & spread good Word-ofmouth.
KEY STRATEGIES TO CAPTURE
VALUE FROM CUSTOMERS
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Marketers aim is to build right relationship with right
customers.
Firms adapt ways to make profit not by lowering the prices of
the products but through delivering high quality product
and service in market price.
 A useful strategy to attract customers can be – Frequency
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Marketing Programs. e.g. Airlines industries run frequent
flyer programs, Hotels give room upgrades to their frequent
guests.
Consumer Generated Marketing is another useful
strategy. Here, the ads, messages and brand exchanges all
are created by customer themselves.
e.g. HEINZ run contests for consumer generated TV
commercials.
KEY STRATEGIES TO CAPTURE
VALUE FROM CUSTOMERS (CON’T..)
 Creating Customer Loyalty & Retention
It can
be done through several ways –
Creating Customer Lifetime Value
The value of
the entire stream of purchases that the customers would
make throughout their lifetime.
Losing a customer means losing more than 1 Sales.
Share of Customers
The portion of the customer’s
purchasing a company gets in it’s product categories.
A company variety of products to increase Share of
Customer.
Customer Equity is the total combined customer
lifetime values of all the company’s customers.
The more Loyal a firm’s customer, the higher is the
customer equity for that firm.
TRENDS & FORCES CHANGING
THE MARKETPLACE
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After examining the major trends & forces that are changing
the marketing landscape, we found 4 major developments –
 The Digital Age
The digital age has provided marketers with exciting new
ways to learn about & track customers & to create products
& services tailored to individual customer needs.
Digital technology has brought a new wave of
communication, advertising & relationship building tools,
e.g. Internet.
A current trend is : Online Marketing
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Rapid Globalization
Marketers are now connected Globally with customers. As
a result, many local firms or brands are challenged by their
international rivals. e.g. Toyota, Nokia, Samsung, Nestle.
TRENDS & FORCES CHANGING
THE MARKETPLACE (CON’T..)
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More Ethical & Social Responsibility
Consumerism and Environmentalism movements have
matured worldwide.
Consumers consistently expect the marketers to deliver
exactly the same things which they advertise in media.
Everything a company does effects the brand in the eyes of
it’s customers. e.g. Google using solar energy for it’s server.
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Growth of Not-for-Profit Marketing
Society’s not-for-profit organizations is in need of
sponsorship & promotion. Such as, School, Colleges, Club.
Government organizations are now-a-days coming forward
to design marketing campaigns. e.g. Social Marketing
Campaign design to discourage smoking. U.S. Postal Service
developed campaigns to promote Stamps, Postcards.
END OF THE CHAPTER 1
Thank You