1-marketing defined and process.pdf

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Marketing Represents 5 credits of the 7 credits course. 4 credits will be specifically for the Marketing as general

topic, and1creditwill be locked/ conditional on completing,and submitting the year long business plan.

Book: Principles of Marketing. Kotler, Armstrong, 12e ornewer

If not available, any book by Philip kotler called Principles

of Marketing, or Introduction to marketing, orPrinciples of marketing The European edition will dothe job.

Topics covered, viewed in the next slide, can be checkedagainst the other editions you may choose to read.

Topics Covered! According to 12th edition Cha.1: Defining Marketing and the marketing Process.

Cha.2: Company and marketing strategy.

Cha.3: The marketing environment

Cha.4.: Managing Marketing information.

Cha.5: Consumer markets and consumer behavior.

Cha.6: Business markets and business buyer behavior.

Cha.7: Customer driven Marketing strategy.

Cha.8: Product, service, and branding strategy. Cha.9: New product development and product life cycle strategies.

Cha.10 & 11: Pricing products and pricing strategies.

Cha.12: Marketing channels and Supply Chain Management

Cha.14: Communicating customer value: communications strategy

Cha.15: Advertising and public relations

Cha. 16: Personal selling and sales promotion

Cha. 17: Direct Marketing

All together 16 chaptersto be covered! However, it is better if you can readuncovered ones.


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Marketing

Marketing ismanaging profitablecustomer relationship.

This is done by:

1.Attracting new customers by promisingsuperior value,

2.Keep and grow current customers by

delivering satisfaction.

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Marketing & The Marketing Process

Marketing is the process by which companies createvalue for customers and build strong customerrelationships to capture value from customers inreturn

The Marketing Process

1. Understand the marketplaceand customer wants and needs2. Design a customer-driven marketing strategy

3. Construct a marketing planthat delivers superior value

4. Build profitable relationshipsand create customersatisfaction

5. Capture value from customersto create profit and customerequity.


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Understanding the Marketplace

and Customer Needs

Customer Needs, Wants, and Demands

Needsare states of deprivation

Physicalfood, clothing, warmth, safety

Socialbelonging and affection

Individualknowledge and self-expression

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Understanding the Marketplaceand Customer Needs

Customer Needs, Wants, and Demands

Wantsare the form that needs take as they are shaped

by culture and individual personality Demandsare wants backed by buying power

Need FoodWant an apple Demandan apple if you have money

Wants + Buying Power = Demand


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Understanding the Marketplace

and Customer Needs

Market Offerings -Products,Services,and Experiences

Market offeringsare some combination of products,services, information, or experiences offered to a marketto satisfy a need or want

Exchangeis the act of obtaining a desired object fromsomeone by offering something in return

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Understanding the Marketplaceand Customer Needs

Marketsare the set of actual and potential buyers of aproduct

Marketing systemconsists of all of the actors(suppliers,company, competitors, intermediaries, and end users)in the system

who are affected by major environmental forces Demographic

Economic

Physical

Technological

Politicallegal


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Designing a Customer-Driven Marketing

StrategyMarketing Management

Marketing management is the art and science ofchoosing target markets and building profitablerelationships with them

What customers will we serve?(target market)

How can we best serve these customers?(Value proposition)

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Designing a Customer-Driven MarketingStrategy

Selecting Customers to Serve

Market segmentation: Dividing the markets into segmentsof customers

Target marketing:Which segments to go after

De-marketing:Marketing to reduce demand temporarily orpermanently; the aim is not to destroy demand but to reduceor shift it.


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Strategy

Choosing a Value Proposition

The value proposition is the set of benefits or values acompany promises to deliver to customers to satisfytheir needs

Red Bull Gives You Wiiings!

The value proposition is a drink that help you fightfatigue.

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Marketing Management Orientations

Production concept Product concept

Selling concept

Marketing concept

Societal concept


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Production concept is the idea that consumers will favorproducts that are available or highly affordable

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Product concept is the idea that consumers will favor

products that offer the most quality, performance, andfeatures for which the organization should therefore devoteits energy to making continuous improvements

Marketing myopiais focusing only on existing wants and losingsight of underlying consumer needs


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Strategy


Selling concept is the idea that consumers will not buyenough of the firms products unless it undertakes a largescale selling and promotion effort

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Marketing concept is the idea that achieving organizational

goals depends on knowing the needs and wants of the targetmarkets and delivering the desired satisfactions better thancompetitors do


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Societal marketing conceptis the idea that a companyshould make good marketing decisions by consideringconsumers wants, the companys requirements, consumerslong-term interests, and societys long-run interests

A re fast food meals healthy on the long run?

Is increasing fuel consumption good for the environment? Is it ethical to use children as labor?

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Preparing an Integrated Marketing Planand Program

Marketing Mix

The marketing mix is the set of tools (four Ps) thefirm uses to implement its marketing strategy

Product

Price

Promotion

Place


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Preparing an Integrated Marketing Plan

and Program

Integrated Marketing Program

Integrated marketing programis a comprehensiveplan that communicates and delivers the intendedvalue to chosen customers

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Building Customer Relationships

Customer perceived value is the difference betweentotal customer value and total customer cost

Customer satisfaction is the extent to which aproducts perceived performance matches a buyersexpectations


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The Changing Nature of Customer Relationships

Relating with more carefully selected customersusesselective relationship management to target fewer, moreprofitable customers

Relating for the long termuses customer relationshipmanagement to retain current customers and buildprofitable, long-term relationships

Relating directlyuses direct marketing tools (telephone, mailorder, Internet) to make direct connections with customers

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Partner Relationship Management

Partner relationship management refers to workingclosely with partners in other company departments andoutside the company to jointly bring greater value tocustomers


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Partner Relationship Management

Partners inside the company is every function areainteracting with customers

Electronically Cross-functional teams

Partners outside the companyis how marketers connectwith their suppliers, channel partners, and competitorsby developing partnerships

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Capturing Value from Customers

Creating Customer Loyalty and Retention

Customer lifetime valueis the value of the entire

stream of purchases that the customer wouldmake over a lifetime of patronage

What is your estimated lifetime value for(Lidl, or CityMarket, or Prisma)?


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Capturing Value from Customers

Building Customer Equity

Customer equityis the total combined customer lifetimevalues of all of the companys customers

Building the right relationships with the rightcustomers involves treating customers as assets that needto be managed and maximized

Different types of customers require different relationshipmanagement strategies

Build therightrelationship with therightcustomers

1-marketing defined and process.pdf

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