Faculty guide: Prof. Mr. A.A.Patil Presented by: Ankit.Porwal

“It’s a process by which companies create value for customers and build a strong customers relationship in order to capture value from customers in return”

Needs Wants Demand Products Exchanges Transactions Markets

Need is a state of felt deprivation. a)Primary needs…….food, shelter etc.. b)Acquired needs…….car, TV, bike etc….

Wants The form taken by human needs as they

are shaped by culture and individual personality are called wants

Wants which backed by buying power are called demands

Negative demand: e.g. wearing of helmets, fastening of seat belts

No demand: It means totally uninterested in product e.g. using MRF tiers to cars …..

Latent demand: e.g. non harmful cigarettes, fuel efficiency cars

Falling demand: e.g. b/w TV, razors, transistors

Irregular demand: it is seasonal ,e.g.: gold, health resorts….

Full demand: It means the company has just the amount of demand that can handle

Over full demand: e.g. Disney land, water parks……etc

A product is anything that can be offered to market for attention, acquisition use or consumption and that might satisfy a need or want.

It is act of obtaining a desired object from someone by offering something in return.

conditions must in this process……..a)2 parties must participate b)Each must have something of value to

othersc)Each party must want to deal with otherd)Each should be free to accept or reject the

others offere)Each party should

communicate and deliver

It is trade of values between the parties….

It involves at least 2 things of values i.e. conditions that are agreed upon place and time of agreement

Markets It is set of actual and potential buyers of a

product

Goals of marketing systems Maximizing consumption Maximize customer satisfaction Maximize choice Maximize life quality

Production concept Product concept Selling concept Marketing concept Societal concept

Understanding the market place

& customers needs wants

Design a customer

driven marketing strategy

Construct an integrated

marketing program that delivers

superior value

Build profitable relationship &

create customer delight

Capture value from customers to

create profits & customers equity

This is the first step of the process where marketers try to understand their customers needs and wants ,the markets they are going to operate, the competitors in the market, their strengths, weaknesses , opportunities and threats.

Many marketers make the mistake of paying

more attention to the specific products than to the benefits and experiences produced by these products .This is known as Marketing Myopia.

The second step after analyzing the market and the customer’s needs & wants is to design a customer driven marketing strategy. The company needs to ask 2 basic questions to itself:

1. What customers do we serve? 2. How can we serve these customers best? 3. Market Segmentation 4. Target Market 5. Product positioning

Successful positioning revolve around two principles: Benefits: The benefits that a product provides rather than the

features. Unique selling preposition (USP): A distinct benefit of

difference.

Marketing mix “it is a set of tools that the firm uses to implement the strategy. It consists of every thing that a firm can do to influence the demand for its product”,

The marketing mix consists of the 4 p’s i.e.: 1. Product 2. Price 3. Place 4. Promotion

Superior customer value: Companies need to create customer value and customer satisfaction to ensure loyalty of customers and to gain a large market share

a) Providing customer value b) Customer satisfaction A wide study was conducted to link level of customer

satisfaction with customer behavior and the results were as under:

1. Loyalists 2. Apostles3. Defectors4. Terrorists5. Hostages6. mercenaries

Creating customer loyalty Share of customers Customer equity Building the right relationship with right

customers

Studies have shown that small defections produce significant increase in profits because,

Loyal customers buy more products Loyal customers are less price sensitive They pay less attention to competitors

advertisements Servicing existing customers who are familiar

with the firms offering and processes is cheaper Loyal customers spread positive word of mouth

and refer other customers.

Customer profitability:1.Platinum tier: heavy users who are not price

sensitive and are willing to try new offerings.2.Gold tier: heavy users but not as profitable

because they are price sensitive than the higher tier. They ask for more discount

3.Iron tier: their spending value and volume do not merit mention or special treatment.

4.Lead tier: customers who actually cost the company money because they claim more attention than is merited by spending. They tie up company resources and spread negative word of mouth