Chapter 1

MARKETING : CREATING AND CAPTURING CUSTOMER VALUE

BY: AZIMUL ISLAM

What is Marketing?

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at-large.

More simply: Marketing is the delivery of customer satisfaction at a profit.

What Motivates a Consumerto Take Action?

NeedsNeeds – NOT invented by marketers. They are a basic parts of human makeup:states of felt deprivation including physicalphysical needs for food, socialsocial needs for belonging and individualindividual needs for self-expression. E.g. I am thirsty.

WantsWants - form that a human need takes as shaped by culture and individual personality. E.g. I want a coca-cola.

DemandsDemands - human wants backed by buying power. E.g. I have money to buy a coca-cola.

Value

Value means differences between benefit and cost.(Benefit-Cost = Value)

Customer Satisfaction /Delight

Customer satisfaction is the ultimate goal of marketers

Customer delight occurs when set up expectations is less than provided service.

Market

“Market” in marketing term:A set of all actual and potential buyers of a product or service.

Marketing ManagementPhilosophies(1)

Production Concept

• Demand > supply

• Consumers favor products that are available and highly affordable

• Improve production and distribution efficiency

• Run a risk of focusing too narrowly on their own operation• Chinese PC,Mobile,CP fried chicken

Marketing ManagementPhilosophies(2)

Product Concept

• Consumers favor products that offer the most quality, performance, and innovative features

• Continuous product improvement

• lead to Marketing Myopia• Railroad: trains vs. transportation

Marketing ManagementPhilosophies(3)

Selling Concept

• Consumers will not buy enough of the organization’s products unless the organization undertake a large-scale promotion/selling

•Sell what they make rather than what the market want• focus on trade not long-term relationship• Unsought goods: encyclopedias, insurance

Marketing ManagementPhilosophies(4)

Marketing Concept

• Focuses on needs/ wants of target markets & delivering satisfaction more effectively & efficiently than competitors

• Total customer satisfaction

•Overlook conflicts between consumer short-run wants and long-run welfare

Selling vs. MarketingConcepts Contrasted

Factory ExistingProducts

Sellingand

Promoting

Profitsthrough Sales

Volume

Market CustomerNeeds

IntegratedMarketing

Profitsthrough Customer

Satisfaction

StartingPoint

Focus Means EndsThe Selling Concept: inside-out

The Marketing Concept: Outside-in

Marketing Myopia

When organization doesn't consider customer need and want, competitors product, future opportunity only narrowly focuses on own product

Marketing Management Philosophies (5)

Society(Human Welfare)

Consumers(Wants)

Company(Profits)

SocietalMarketingConcept

Eg: Grameen Dano “ Shakti Doi ”

Marketing Mix.

Marketing mix is set of control over element which must be control by organization.

4 p’s of marketing (From Marketers point of view)i. Productii. Priceiii. Placeiv. Promotion

4 C’s (from Customer point of view)

i. Customer needii. Costiii. Convenient Locationiv. Communication

The Marketing Process

•Understand the marketplace and customer needs and wants

•Design a customer Driven marketing strategy

•Construct a marketing program that delivers superior value

•Build profitable relationships and create customer delight

•Capture value from customers to create profits and customer quality

‘’Quotes….. ‘’

“Our goal is to lead customers where they want to go before they know where they want to go.”

The End