Transcript Course Name : Principles of Marketing Code : MRK 152 Semester

Course Name
Code
Chapter
: Principles of Marketing
: MRK 152
: One
I N T R O D U C T I ON T O M A R K E T I N G / B A S I C
CONCEPTS
M A R K E T I N G : C R E A T IN G
STAKEHOLDER VALUE
A ND
CAPTURING
Marketing
 Definition of Marketing: Marketing is managing
profitable customer relationships.
Marketing Definition conti….
 Marketing is the process by which companies
create value for customers and build strong
relationships in order to capture value from
customers in return.
Marketing Process
Understanding The Marketplace and
Customer Concepts
1.
Needs, Wants, and Demand
2.
Market offerings (Products, service, and
experiences)
3.
Value and satisfaction
4.
Exchanges and relationship; and
5.
Markets
Customer needs, wants and demand
 Needs – states of felt deprivation
 Wants – The form human needs takes as shaped by
culture and individual personality. Ex., Americans wear
pants and shirt and Saudis wear Thope
 Demand – When backed by buying power wants
become demands.
Market Offerings
 Customer needs and wants are fulfilled through
market offerings –
A combination of goods, services, information,
and experiences are offered to satisfy a need.
Customer Value and Satisfaction
 Customers
form expectations about the value and
satisfaction that various market offerings will deliver and
buy accordingly.
 Satisfied customers buy again and tell others about their
good experiences. Dissatisfied customers often switch to
competitors and disparage the products to others.
 Note: Marketers must be careful to set the right level of
expectations – Plz. discuss…..
Exchanges and Relationships
Exchange is the act of obtaining a desired
object from someone by offering something in
return
Marketers want to build strong relationships by
consistently delivering superior customer value
Market
 Market is the “Set of actual and potential
buyers of a product”.
A Modern Marketing System
Designing a Customer Driven Marketing
Strategy
 Marketing management is the art and science
of choosing target markets and building profitable
relationships with them.
Designing customer driven marketing
strategy
 Selecting customer
Market segmentation
Target Marketing
Marketing management
is customer
management and
demand management
 Value Proposition
Set of benefits or values
delivered to customers to
satisfy their needs
Answers why a customer
should buy your brand
rather
than
a
competitor’s
Marketing Concepts
 The Marketing Management philosophy holds that
achieving organizational goals depends on knowing
the needs and wants of the target markets and
delivering
desired
competitors do.
satisfactions
better
than
Marketing Management Orientations
Production
concept
Product
Concept
Selling
concept
Marketing
Concept
Societal
Marketing
Concept
The Societal Marketing Concept
 The idea that a company’s marketing decisions
should consider consumer’s wants, the company’s
requirements, consumers’ long run interests and
society’s long run interests.
Preparing an Integrated Marketing Plan
and Program
Price
Place
Product
Promotion
Building Customer Relationships
 Customer Relationship Management is the
overall process of building and maintaining
profitable
customer relationships by delivering
superior customer value and satisfaction.
Capturing Value from Customers
Creating
Customer
Loyalty
and
Retention
Growing
Share of
Customer
Building
Customer
Equity
Customer Loyalty and Retention
• Satisfied customers remain loyal.
• Talk favorably to others about the company and its
products.
• Its five times cheaper to keep an old customer than
to acquire a new one.
• Loosing the customer means losing the entire stream
of purchases that customer would make over a
lifetime of patronage.
Growing Share of Customer
• Good Customer Relationship Management can help
marketers to increase their share of customer – the share
they get of the customer’s purchasing in their product
categories for ex.,
Supermarkets and Restaurants want to get more “share
of stomach” Car companies want to increase “share of
garage” and airlines want greater “share of travel”
Building Customer Equity
 Customer equity is the total combined customer
lifetime values of all the company’s current and
potential customers. As such it’s the future value of
the company’s customer base.
Thank You!