Principles of Marketing (Chapter 1_Part 1)

7/23/2019 Principles of Marketing (Chapter 1_Part 1)

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Principles of MarketingFall 2015-16

Faculty: Shama Islam



Marketing:Managing Profitale !ustomer "elationships

Chapter #1





SO…WHAT IS MARKETING…?

Marketing is the process by which companies create value for customers and

build strong customer relationships to capture value from customers in return.

Marketing is a social and managerial process by which individuals and groups

obtain what they need and want, through creating, offering and exchanging

products (goods and services) of value with others.



SO…WHAT IS MARKETING…?

To define Marketing, Peter Drucker said,

‘The aim of marketing is to make selling unnecessary.’

n fact, selling and advertising are only part of larger !"arketing "ix# (a set of marketing tools that work together to satisfy customer needs and build customer

relationships).

Today, marketing must be understood in the new sense of satisfying customer needs but not in the old sense of making a sale (telling and selling).





1. Understand the market!a"e and "#st$mer %ants and

needs

&. 'esign a "#st$mer(dri)en marketing strateg*

+. ,$nstr#"t an integrated marketing r$gram that de!i)ers

s#eri$r )a!#e

-. #i!d r$/ita0!e re!ati$nshis and "reate "#st$mer

satis/a"ti$n

. ,at#re )a!#e /r$m "#st$mers t$ "reate r$/it and

"#st$mer e2#it*

#$% M&"'%#I() P"*!%SS



Source: Adapted from Kotler et al. (2008:7)

A Simple Model of the Marketing

Proce

#$% M&"'%#I() P"*!%SS



Needs, Wants &Demands

Market Offerings(Products, Services

& Experiences)

a!ue & Satisfaction

Markets

Exc"ange, #ransactions &$e!ations"ips

UN'ERSTAN'ING THE MARKET34A,E 5

,USTOMER NEE'S

Core Marketing Concepts



Customer Needs, Wants, and Demands

(ee+s are t"e states of fe!t deprivation in t"e mind of consumers%

(#"e asic "uman re'uirements) P"sica! need*food, c!ot"ing, +armt", safet Socia! need*e!onging and affection ndividua! need*kno+!edge and se!f-expression, recognition

,ants are t"e form t"at needs take, s"aped cu!ture andindividua! persona!it% Wants are descried in terms of o.ects t"at +i!! satisf needs% W"en +e can define or understand t"e p"sica!o.ect t"at can make so!ution to our needs, it is considered a +ant%


,USTOMER NEE'S







Customer Needs, Wants, and Demands

'emands are wants backed by buying power , where theaffordability and willingness to pay of the customers is important.


,USTOMER NEE'S




,USTOMER NEE'S

Customer Needs, Wants, and DemandsNeed6 need $ood% &lothes.

Wants6 's a angladeshi, want rice and fish as food, ungi and $otua as clothes, whereas an 'merican wants sandwich or burger as food and *eans, t+shirt as clothes.

'emands6"r. mil is a business tycoon and his demand is having rice and fish from -adisson hotel and clothes from a designer house. n the contrary, "r. -eehan is a student and his demand is having rice and fish from '/ canteen or 0tar 1ebab and clothes from 2ew market.

I/ Mr. Reehan demand 7$$d /r$m Radiss$n and ,!$thes /r$m designer h$#se

that %i!! 0e "$nsidered as his %ant as he d$es n$t ha)e the a0i!it* $/

0#*ing it8 #n!ess 0a"ked 0* s$me$ne.



Market Offerings - roducts,

!er"ices, and #$%eriences

Market $//erings are some

combination of physical goods and

services offered to a market to satisfy

a need or want of the customer.

0o the 3uestion is, what are the

different fferings that can be

marketed as Product4


,USTOMER NEE'S



WHAT CAN BE MARKETED?

%periences%periences PersonsPersons PlacesPlaces

*rgani.ations*rgani.ations I+easI+easInformationInformation

Physical GoodsPhysical Goods Ser/icesSer/ices %/ents%/ents

PropertiesProperties




Goods Services

Events Experiences

Persons




PlacesOrganizations

Information

Ideas

Properties



#$changes, Transaction and &elationshi%s

E9"hange is the act of obtaining a

desired ob*ect from someone by

offering something in return.

Transa"ti$n is a trade of values

between two or more parties. This is actually

exchange of something in between two or more

parties by setting the monetary value of their ob*ect.


,USTOMER NEE'S



#$changes, Transaction and &elationshi%s


,USTOMER NEE'S

Re!ati$nshis consist of actions to build and maintain desirable relationships

by delivering superior value to the customers.

$or an exchange to occur +

! There are at least two parties.

! ach party has something that might be of value to the other party.! ach party is capable of communication and delivery.

! ach party is free to re*ect the exchange offer.

! ach party thinks it is appropriate or desirable to deal with the other party.



Markets ' the Marketing !ystem


,USTOMER NEE'S

Markets are the set of actual and potential buyers of a product.

These buyers share a particular need or want that

can be satisfied through exchange relationships.

Marketing S*stem consists of all of the

actors (suppliers, company, competitors,

intermediaries, and end users) in the system

who are affected by ma*or environmental forces

(demographic, economic, geographic, technological, political+legal, socio+cultural).



Source: Adapted from Kotler et al. (2008:"#)

$lement of A Modern Marketing S%tem


,USTOMER NEE'S



Designing a Customer-Driven Marketing Strateg

Marketing Management

Marketing Management is the art and science of choosing target

markets and building profitable relationships with them.

$or managing customers properly we need think about5

- 6hat customers will we serve4

- 7ow can we best serve these customers4

- 7ow can we increase our profitability through satisfying ourtarget customers4



Designing a Customer-Driven Marketing Strateg

SEGMENTATION : TARGETING : 3OSITION

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Principles of Marketing (Chapter 1_Part 1)