Principles of Marketing

PRINMAR Principles of Marketing

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TOPICS Module 2: Understanding the Market and the Marketplace

Module 1: Introduction to Marketing

Basic Concepts of Marketing and its process.

Consumer and Business Buying Behavior The Marketing Environment Managing Marketing Information Market Segmentation, Target Marketing and Market Positioning

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Module 3: Company and Marketing: Partnering to Build Customer Relationship Strategic Marketing Planning Product Concept and Strategy Pricing Concept and Strategy Placing Products: Marketing Channels and Supply Chain Management

Promoting Products: Integrated Marketing Communication Technology

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Module 1: Introduction to Marketing Basic concepts of Marketing and its process.

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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.

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Module 1: Introduction to Marketing

Topic Outline Definition of Marketing

The marketing process Core customer and marketplace concepts Marketing management orientations Customer Relationship Management

The New Marketing Landscape Instruction

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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)

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Interacting Components of Marketing 3 c’s of Marketing (Josiah Go) CUSTOMER

COMPANY

COMPETITION Instruction

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The Marketing Process Capture value from customers in return

Create value for customers and build customer relationships Understand the marketplace and customer needs and wants

Design a customerdriven marketing strategy

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Construct an integrated marketing program that delivers superior value

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Build profitable relationships and create customer delight

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Capture value from customers to create profits and customer equity

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“Marketing process begins, continues and ends with customers.”

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Marketing Process…

Step 1: Understanding the Marketplace and Customer Needs Core customer and marketplace concepts

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Needs, Wants, and demands Markets

Market Offerings

Core Customer and Marketplace Concepts

Exchanges and relationships

Value and satisfaction Instruction

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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)

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Wants • form taken from human needs that are shaped by culture and individual personality. • Describe in terms of objects that will satisfy needs.

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Demands “wants backed by buying power.”

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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

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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. Instruction

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

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

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Customer Relationship Management • 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. Instruction

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Actual Buyers

Markets are buyers who share particular need or want.

Potential Buyers

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Marketing Process…

Step 2: Design customer-driven marketing strategy

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Marketing Management

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

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“Marketing manager’s aim is to find, attract, keep, and grow target customers by creating, delivering and communicating superior customer value.”

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Functions • Customer Management • Demand Management

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Customer Management • Select customers that can be served well and profitably. • Choosing a Value Proposition

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set of benefits or values it promises to deliver to customers to satisfy their needs.

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Demand Management • 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. Instruction

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Marketing Management Orientations Production, Product, Selling, Marketing and Societal Marketing Concepts

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Production Concept

Product Concept

Selling Concept

Marketing Concept Societal Marketing Concept Instruction

• 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 Research and society’s Technology well-being Wellness

Marketing Process…

Step 3: Preparing an Integrated Marketing Plan and Program Marketing Mix (4Ps of Marketing)

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4Ps of Marketing (Company’s View Point)

4Cs of Marketing (Customer’s Viewpoint)

• Product: a needsatisfying 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.

• Customer’s Solution

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• Cost • Convenience • Communication

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Marketing Process…

Step 4: Building Customer Relationships

Customer Relationship Management Partner Relationship Management

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Trends in CRM • Relating with more carefully selected customers • Relating for long term • Relating Directly Instruction

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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) Instruction

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Marketing Process…

Step 5: Capturing value from customers Instruction

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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. Instruction

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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.

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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. Instruction

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