• Marketing is managing profitable customer relationship.

• The twofold goal of marketing- Attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.

• Marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others.

• Hence, marketing is a process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Marketing Process

Understand the market

place & customer needs and

wants

Design a customer-

driven marketing strategy

Construct an integrated marketing

program that delivers

superior value

Build profitable

relationship and create customer

delight

Capture value from

customers to create profits and customer

equity

Simple 5 Step Model Of Marketing Process

• In the first 4 steps companies work to understand consumers, create customer values and build strong customer relationship.

• In the final step, companies reap the rewards of creating superior customer value, by in turn capturing profits and long-term consumer equity.

A. Understanding Marketplace And Customer Needs

5 core customer and market concepts.

1. Needs, wants and demands• Needs- States of deprivation. Includes physical, social

and individual needs. These are not created by the marketers, but already existing.

• Wants- Are the form human needs take as shaped by culture and individual personality.

• Example- when hungry, a person wants specific roti and rice from specific places.

• Demands- Human wants that are backed by buying power.

2. Market offerings- Consumers needs & wants are fulfilled through market offerings.• Some combination of products, services,

information or experiences offered to a market to satisfy a need or a want is market offerings.

• Market offerings are not limited to just physical products but also to services likes- banking, air travel, hotel stay, taxi etc.

• Marketing myopia- the mistake sellers make of paying more attention to the specific products they offer than to the benefits and experiences produced by these products.

• They focus on only the existing customer wants and lose sight of the underlying needs.

• These sellers have a problem if a new product comes along that serves the needs better or less effectively.

• The customer will have the same need but will want new product.

3. Customer Value and Satisfaction-• Customers form expectations about the

value and satisfaction that various market offering will deliver and buy accordingly.

• Satisfied customers buy again and tell others about their good experiences.

• Dissatisfied customers often switch to competitors and disparage the product to others.

4. Exchanges and Relationships-• Marketing occurs when ppl decide to

satisfy their needs and wants through exchange relationships.

• Exchange is the act of obtaining a desired object from someone by offering something in return.

5. Markets- • Concept of exchange leads to concept of

market.• Market is a set of all potential buyers of a

product or service.• Marketing means managing markets to

bring about profitable customer relationship.

• Sellers search for buyers, identify needs, design good market offerings, set prices, promotes and store and deliver.

• Marketing activities like- consumer research, product development, communication, distribution, pricing and services are carried.

• Even buyers carry marketing, in search of products.

B. Designing A Customer- Driven Marketing Strategy

• After understanding consumers and the marketplace, marketing management designs customer driven marketing strategy.

• Marketing Management is the art & science of choosing target market and building profitable relationship with them.

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

• For a winning marketing strategy, the marketing manager must answer 2 important questions.

1. What customers will we serve (our target market)?

2. How can we serves these customers better ( our value proposition) ?

• Marketing management is customer management and demand management.

1. Selecting customers to serve• Divides the market into segments of

customers. (market segmentation ) and selecting which segments it will go after (target marketing).

• Company knows it cannot serve everyone, hence it tries to select customers that it can sell well and profitable.

• Marketing managers decide which customers to target & the level, timing and nature of their demand.

2. Choosing a Value Proposition• Company must decide how it will serve

targeted customers- how it will differentiate and position itself from others in the marketplace.

• A company’s value propositions are its values and benefits it promises to deliver.

• Example- Nokia- “Connecting ppl-anywhere, anytime.”, Apple- “Touching is believing”

• Value prepositions differentiate one brand from another.

Marketing Management Orientations

• Marketing management design strategies that will build profitable relationship with targeted customers.

• 5 concepts under which organizations design and carry out marketing strategies.

1. The Production concept- The idea that consumers will favor products that are available and highly affordable & that the org should therefore focus on improving production and distribution effectively.

Example- computer maker Lenovo dominates the highly competitive, price-sensitive Chinese PC market through low labor costs, high production efficiency and mass distribution.

2. The Product Concept• Idea that consumers will favor products

that offer most quality, performance and features and that the organization should therefore devote its energy to making continuous product improvement.

• Product quality and improvement are important but focusing only on the company’s products can lead to myopia.

3. The selling Concept• Idea that consumers will not buy enough of

the firm’s products unless it undertakes a large-scale selling and promotion effort.

• Usually practiced with unsought goods- those that buyers do not normally think of buying such as insurance or blood donations.

• Takes and inside-out view that focuses on existing products and heavy selling.

• Aim is to sell what the company makes rather than making what the customer wants.

4. The Marketing concept• Idea holds that achieving organizational goals

depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do.

• Instead of a product- centered “make and sell” philosophy, the marketing concept is customer-centered “sense and respond” philosophy.

• Takes an outside-in view that focuses on satisfying customer needs as a path to profits.

5. The Societal Marketing Concept• The idea that a company’s marketing

decisions should consider consumer’s wants, the company’s requirements, consumer’s long-run interests, and society’s long-run interests.

• Example- Bottled water industry.

• Companies should balance 3 considerations in setting their marketing strategies: company’s profits, consumer wants and society’s interest.

C. Preparing An Integrated Marketing Plan & Program

• The company’s marketing strategy outlines which customers the company will serve and how it will create value for these customers.

• The marketing program consists of firms’s marketing mix, the set of marketing tools the firm uses to implement its marketing strategy.

• Marketing mix tools are classified into 4 groups called Ps of marketing: Product, price, place and promotion.

• To deliver value preposition, the firm must first create a need-satisfying market offering (product).

• It must decide how much it will charge (price) and how it will be made available to targeted customers (place)

• Finally must communicate with target customers about the offerings and persuade them of its merits (promotion).

THANK YOU

UNNATI SHAH