Principles of Marketing

Instruction Research Technology Wellness

PRINMAR Principles of Marketing


Module 1: Introduction to Marketing

Module 2: Understanding the Market and the Marketplace

Module 3: Company and Marketing: Partnering to Build Customer Relationship

Basic Concepts of Marketing and its process.

TOPICS

Consumer and Business Buying Behavior

The Marketing Environment

Managing Marketing Information

Market Segmentation, Target Marketing and Market Positioning

Strategic Marketing Planning

Product Concept and Strategy

Pricing Concept and Strategy

Placing Products: Marketing Channels and Supply Chain Management

Promoting Products: Integrated Marketing Communication


Module 1:

Introduction to Marketing

Basic concepts of Marketing and its process.



Learning Objectives Define marketing and understand the marketing

process.

Explain the core customer and marketplace concepts.

Define marketing management and compare the five marketing management orientations.

Understand customer relationship management and strategies.

Describe the trends that are changing the marketing landscape.


Topic Outline

Definition of Marketing Definition of Marketing

The marketing processThe marketing process

Core customer and marketplace Core customer and marketplace conceptsconcepts

Marketing management orientations Marketing management orientations

Customer Relationship ManagementCustomer Relationship Management

The New Marketing LandscapeThe New Marketing Landscape




Marketing“The process by

which companies create value for customers and build strong relationships in order to capture value from customers in return.” (Kotler & Armstrong,2008, p.5)


Interacting Components of Marketing

3 c’s of Marketing (Josiah Go)

CUSTOMER

COMPANY COMPETITION


The Marketing Process

Understand the

marketplace and

customer needs and

wants

Design a customer-

driven marketing strategy

Construct an

integrated marketing program

that delivers superior

value

Build profitable

relationships and create customer

delight

Capture value from customers to create

profits and customer

equity

Create value for customers and build customer

relationships

Capture value from customers

in return


“Marketing process begins,

continues and ends with

customers.”


Step 1: Understanding the Marketplace and Customer Needs

Core customer and marketplace concepts

Marketing Process…


Market Offering

s

Value and satisfaction

Needs, Wants,

and demands

Exchanges and

relationships

Markets Core Customer

and Marketplace Concepts

Core Customer and

Marketplace Concepts


Human Needs

• States of felt deprivation

• Not created by marketers; part of the human make up– Physical needs (food,

clothing, warmth and safety)

– Social needs (belonging and affection)

– Individual needs ( knowledge and self expression)


Wants• form taken from

human needs that are shaped by culture and individual personality.

• Describe in terms of objects that will satisfy needs.


Demands

“wants backed by buying power.”


Market Offerings• Combination of goods, services,

information, or experiences offered to a market to satisfy a need or want.

• Tool to solve a consumer problem


Customer Perceived Value• The customer’s

evaluation of the difference between all the benefits all the costs of a market offering relative to those of competing offers.


Customer Satisfaction

• The extent to which a product’s perceived performance matches a buyer’s expectations.


Exchanges

• The act of obtaining a desired object from someone by offering something in return.


• The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

• Deals with all aspects of acquiring, keeping and growing customers.

Customer Relationship Management


Markets

are buyers who share particular need or want.

Actual Buyers

Potential Buyers


Step 2: Design customer-driven

marketing strategy



Marketing Management

“The art and science of choosing target markets and building profitable relationships with them.” (Kotler & Armstrong,2008, p.5)


“Marketing manager’s aim is to find, attract, keep, and grow target customers by creating, delivering

and communicating superior customer value.”


Functions•Customer Management

•Demand Management


Customer Management• Select customers that

can be served well and profitably.

• Choosing a Value Proposition– set of benefits or values it

promises to deliver to customers to satisfy their needs.


• Marketers must deal with different demand states ranging from no demand to too much demand.– Demarketing: to reduce

the number of customers or to shift their demand temporarily or permanently.

Demand Management


Marketing Management Orientations

Production, Product, Selling, Marketing and

Societal Marketing Concepts


Production ConceptProduction Concept

Product ConceptProduct Concept

Selling ConceptSelling Concept

Marketing ConceptMarketing Concept

Societal Marketing Concept

Societal Marketing Concept

• Customers will favor products that are available and highly affordable•Improve production & distribution efficiency

•Customers will favor products that offer the most quality, performance, and innovative features•Make continuous product improvements

•Customers will buy products only if the company promotes/ sells these products•Create sales transactions

•Focuses on needs/ wants of target markets & delivering satisfaction better than competitors

•Focuses on needs/ wants of target markets & delivering superior value and society’s well-being


Marketing Mix (4Ps of Marketing)


Step 3: Preparing an

Integrated Marketing Plan and Program


4Ps of Marketing

(Company’s View Point)• Product: a need-

satisfying market offer

• Price: charge for the offer

• Place: make the offer available to target market

• Promotion: communicate with target customers about the offer and persuade them of its merits.

4Cs of Marketing(Customer’s Viewpoint)• Customer’s

Solution

• Cost

• Convenience

• Communication


Step 4: Building Customer

Relationships

Customer Relationship Management

Partner Relationship Management



Trends in CRM• Relating with

more carefully selected customers

• Relating for long term

• Relating Directly


Partner Relationship Management

“Working closely with partners in other company departments and outside the company to jointly bring greater value to the customers.” (Kotler et. al,2008, p.18)


Step 5: Capturing value from customers



Outcomes of creating customer value

• Customer loyalty and retention– Customer lifetime value: the

value of the entire stream of purchases that a customer would make over lifetime of patronage.

• Growing share of customer– Share of customer: the portion

of the customer’s purchasing that a company gets in its product categories

• Building Customer Equity: – Customer equity: the total

combined customer lifetime values of all the company’s customers.


New Marketing Landscape• New digital age:

growth in computer, telecommunications, information, and transportation.

• Rapid globalization• Call for more ethics

and social responsibility

• Growth of not-for-profit marketing.


Summary:• Marketing is the process by which companies

create value for customers and build strong customer relationships in order to capture value from customers in return.

• Understanding customers’ needs, wants and demands will help the company to design want-satisfying market offerings and build value-laden customer relationships by which they capture customer lifetime value and greater share of customer.

• To design a winning marketing strategy, the company must decide who will it serve and how it will serve targeted customers.

• Marketers should take advantage of new opportunities for building relationships with their customer, their marketing partners and the world around them.


Documents

Principles of Marketing