Unit 1- Principles of Marketing

7/31/2019 Unit 1- Principles of Marketing

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Unit 1: Overview of

Marketing Pt. 1

Principles of Marketing

Lecturer: Sherwayne Cammock


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Learning Goals

1. Define what is Marketing

2. Outline the basic concepts behind

Marketing3. Distinguish between the major

marketing philosophies

4. Outline the Marketing Process


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What is Marketing?Marketing Defined:

Marketing is a social and managerialprocess by which individuals andgroups obtain what they need andwant through creating andexchanging value with others(Kotler)

Marketing is about managingprofitable customer relationships

Attracting new customers Retaining and growing current

customers


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The Marketing Process

A Five-Step Process1. Understand the marketplace and

customer needs and wants2. Design a customer-driven marketing

strategy3. Construct a marketing program that

delivers superior value4. Build profitable relationships and

create customer delight5. Capture value from customers tocreate profits and customer quality


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Understanding the

Marketplace

Needs, wants, and

demandsMarketing offers:including products,services andexperiences

Value and satisfactionExchange, transactions

and relationshipsMarkets

Need State of felt deprivation

Example: Need for food

Wants The form of needs as

shaped by culture andthe individualpersonality.

Example: Want a Lexus

Demands Wants which are backed

by buying power.

Core Concepts


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Understanding the

Marketplace

Needs, wants, and




Core Concepts Marketing offer Combination of

products, services,

information orexperiences offeredto a market to satisfya need or want.

Offer may include

services, activities,people, places,information or ideas


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Understanding the

Marketplace

Needs, wants, and




Value Customers form

expectations regarding

value Marketers must deliver

value to consumers

Satisfaction A satisfied customer will

buy again and tell othersabout their goodexperience

Core Concepts


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Understanding the

Marketplace

Needs, wants, and




Exchange The act of obtaining a

desired object from

someone by offeringsomething in return

One exchange is not thegoal, relationships withseveral exchanges are

the goal Relationships are built

through delivering valueand satisfaction

Core Concepts


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Understanding the

Marketplace

Needs, wants, and




Market Set of all actual and

potential buyers of a

product or service. Marketers seek buyers

that are profitable.

Core Concepts


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Marketing Management

Marketing management is the artand science of choosing target

markets and building profitablerelationships with them. This definition must include answers

to two questions:

What customers will we serve? How can we serve these customers

best?


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Selecting Customers and

Creating ValueCustomer Management

What customers will we serve?

Marketers select customers that can beserved profitably

Value Proposition How can we serve these customers best?

Includes the set of benefits or values acompany promises to deliver to consumersto satisfy their needs.


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Production concept

Product concept

Selling concept

Marketing concept

Societal marketing concept

Marketing Orientations


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OrientationsThe Production Concept:

-Holds that consumers willfavor products that areavailable and highlyaffordable.

-Mgt. should focus onimproving production and

distribution efficiency.

-The oldest orientation thatguide sellers.

The Product Concept:

-Holds that consumers willfavor products that offerthe most in quality,performance andinnovative features.

-Marketing Strategy

focuses on makingcontinuous improvements.


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OrientationsThe Selling Concept

-Holds that consumers willnot buy enough of the

firms products unless itundertakes a large scaleselling and promotioneffort.

-Typically practiced withunsought goods- those thatbuyers do not normallythink of buying such asinsurance and blooddonations.

The Marketing Concept

-Holds that achievingorganizational goals

depends on knowing theneeds and wants of targetmarkets and delivering thedesired satisfactions betterthan competitors do.

-Customer focus and valueare the paths to sales andprofits.


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OrientationsThe Societal Marketing Concept

- Holds that companies should makegood marketing decisions by consideringconsumers wants, the companysrequirements, consumers long-runinterests and societys long run interestse.g. the debate with fast foodrestaurants over high calorie unhealthyfoods.


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The Marketing Plan

Transforms the marketing strategyinto action

Includes the marketing mix and the4Ps of marketing

Product

Price

Place

Promotion


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Building Customer

RelationshipsCRM Customer relationshipmanagement

The overall process of building andmaintaining profitable customerrelationships by delivering superiorcustomer value and satisfaction. It

deals with all aspects of acquiring,keeping and growing customers.


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Value and Satisfaction

Perceived Value The customers evaluation of the

difference between benefits andcosts.

Customers often do not judge valuesand costs accurately or objectively.

Customer Satisfaction Products perceived performance

relative to customers expectations.


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Not All Customers

are EqualBasic Relationships

Low-margin customers

Full Partnerships Key customers (few customers with

high profitability levels)

Selective relationship management Weeding out unprofitable customers


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Capturing Value from

Customers

Customer Loyaltyand Retention

Share of

CustomerCustomer Equity

Customer delightleads to emotional

relationships andloyalty

Customer Lifetime

Value shows trueworth of acustomer

Key Concepts


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Customers


Share of


Share ofcustomers

purchase in aproduct category.

Achieved through

offering greatervariety, cross-selland up-sellstrategies.

Key Concepts


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Customers


Share of


The combinedcustomer lifetimevalues of all current

and potentialcustomers.

Measures a firmsperformance, but in a

manner that looks tothe future.

Choosing the bestcustomers is key

Key Concepts


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The New Marketing

LandscapeGrowth of theInternet

Advances intelecommunications,information,transportation

Customer research and

tracking Product development Distribution New advertising tools 24/7 marketing through

the Internet

Challenges

Digital ageGlobalization

Ethics and socialresponsibility

Not-for-profitmarketing

Marketingrelationships


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Marketing Landscape





Geographical andcultural distances

have shrunk Greater market

coverage

More options forpurchasing andmanufacturing

Increased competitionfrom foreigncompetitors

Challenges


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Marketing Landscape





Marketers need totake great

responsibility for theimpact of theiractions

Caring capitalism

(being civic mindedand responsible) is away to differentiate

your company

Challenges


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Marketing Landscape





Many organizationsare realizing the

importance ofstrategic marketing

Performing arts

Government agencies

Colleges

Hospitals

Churches

Challenges


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Marketing Landscape





Profits throughmanaging long-term

customer equity Improve customer

knowledge

Target profitablecustomers

Keep profitablecustomers

Challenges


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What is Marketing

The process of building profitablecustomer relationships by creatingvalue for customers and capturing

value in return


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Questions, Queries, Concerns,Feedback!!

The End.

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Unit 1- Principles of Marketing

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