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Concepts in Marketing

Dr. Saad BsataFeb- 2010

New Horizon

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Henry Ford

• The story about car color !

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We do marketing for..

What’s available (surplus)??

What the customer demand!!!

Examples: Olive oil , Pullover ..

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NASCAR experience• It is not car race -only- anymore !

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NOW…

What is Marketing ??

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Marketing is:• Primarily it deals:

- more than any other activity- with..

CUSTOMERs

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Old Marketing concept Telling & Selling !

New Marketing

concept Satisfying customers needs

The aim of marketing is making

Selling unnecessary . Peter Drucker

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Marketing ProcessSimple five – step Model.

1st 4 steps = understanding customer.

Last (5th ) step= companies reap rewards.

understand Strategy Program RelationCapture

Value

1 2 3 4 5

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CustomerNeeds, wants, demands

Food= Need

Burger+ Fries+ Coke = Want

Wants (backed by buying power)= Demand

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Market offerings

Products

Services

Experiences

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Marketing Myopia

By definition:

Paying more attention to

products than benefits !

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Customer Satisfaction & Expectations

Customer form E, and buys accordingly. If satisfied will buy again, and tell others.

Marketers should be careful about E. Over E vs. Under E !!

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Exchange relationship

• It takes place when: obtain desired object by offering something else in return.

•

•

•

• or BARTER !!!

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Concept of Market A market:

Is a set of actual & Potential buyers of a product.

Buyers share a

particular need or

want could be

satisfied through

exchange relationships.

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Elements of Modern Marketing system

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SuppliersMarketing

intermediaries

Competitor

FinalUsers

CompanyMarketer

Major environmental forces

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Design of Customer drivenMarketing strategy

After it understands:

Consumer + Marketplace

Then strategy prepared.

Marketing management= Art + Science

Of selecting target market & Build profitable relationships.

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To design marketing strategy

What customers will we serve !

(target market).

Note (Av. & St.)!

How can we serve these customers?

(our value preposition).

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Customer Selection

1. Market segmentation.

2. Target marketing

Marketing= serve as much customers (!!!) We can not serve all customers.. Select customer to serve well & profit.

@ cases of excess demand De marketing.

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Company Value proposition

Co- decide how to differentiate & position @ marketplace.

Co- value proposition = benefits + values it promises customer.

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Company Value proposition

SAAB : “fly without leaving ground”.

Subaru: “Airbags saves lives”.

Red Bull: “Gives u wiiings”.

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Marketing Management Orientation

o Philosophy to guide:

o What weight is given to Interests of ?

Customers. Org-. Society.

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Production Concept

Oldest orientations. Still useful philosophy. Can lead to M myopia.

Customers:Favor products available & affordable.Management focus on:Production + distribution !

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Product Concept

It holds that consumer will favor product: Quality Performance Innovation

o Can lead to Myopia!

o “Mousetrap” example …

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Selling Concept

Poor assumptions (customer will like what he bought or else..).

Aggressive Creates sales transaction

rather than build long term relation. Focus on products that buyers

don’t think of

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Marketing Concept Not find right consumers for your product Find the right product for your consumer Sense & Respond rather than make & Sell

By:

Know customer needs & wants Deliver that better than competitors

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Selling Concept..

Factory Existing products Selling & Promoting Profits thru sales . Promoting volume

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Marketing Concept.

Marketing Concept

.

Market Customer needs Integrated Profits thru Customer . Marketing Satisfaction

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