Principles of Marketing

PRINMAR

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

Module 1:

Introduction

to Marketing

Basic concepts of

Marketing and its

process.

Module 1: Introduction to Marketing

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

The marketing process

Core customer and marketplace

concepts

Marketing management orientations

Customer Relationship Management

Marketing

“The process by which

companies create

value for customers

and build strong

relationships in

order to capture

value from

customers in return.”

Interacting Components of Marketing

3 c’s of Marketing (Josiah Go)

CUSTOMER

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

“Marketing

process begins,

continues and

ends with

customers.”

Step 1:

Understanding the

Marketplace and

Customer Needs

Core customer and marketplace concepts

Market

Offerings

Value and

satisfaction

Needs, Wants,

and demands

Exchanges and

relationships

Markets

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

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

Customer Satisfaction

• The extent to

which a product’s

perceived

performance

matches a

buyer’s

expectations.

Exchanges

• The act of obtaining a desired object

• 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

Step 2:

Design customer-driven

marketing strategy

Marketing Management

“

The art and science of

choosing target markets

and building profitable

“

Marketing manager’s aim is to

find,

attract, keep, and grow

target

customers by

creating, delivering and

communicating

superior customer

Functions

• Customer

Management

• Demand

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

Marketing Management

Orientations

Production, Product, Selling,

Marketing and Societal

Production Concept

Product

Concept

Selling Concept

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

Marketing Mix (4Ps of Marketing)

Marketing Process…

Step 3:

Preparing an Integrated

Marketing Plan and

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

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

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.