2. Course Goals
• To outline the marketing function and its role
within a corporation’s business strategies, also
hopefully generating a passion for the Marketing
discipline and empowering you to evaluate
Marketing as a possible career choice
• To introduce you to marketing strategy and to the
elements of marketing analysis: customer analysis,
company analysis, and competitor analysis
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Introduction to Marketing
company analysis, and competitor analysis
• To familiarize you with the elements of the
marketing mix (product, pricing, promotion, and
distribution strategies) and enhance your problem
solving and decision making abilities in these
operational areas of marketing tactics
HAVE LOTS OF FUN!HAVE LOTS OF FUN!
3. TEXT BOOK
Principles of Marketing
Chapter 1
Introduction to Marketing
Philip Kotler,
Gary Armstrong, (12e)
4. …and how do I score some really serious
grades?
• There’s no rocket science to getting good
grades
• The secret: Work Hard!
A grade will be composed of:
Quizzes 5%
Chapter 1
Introduction to Marketing
Quizzes 5%
Assignments 10%
Project/ Presentation 10%
Midterm exam 25%
Final exam 50%
TOTAL 100%
The allocation of the percentage is subject to change.
5. Concepts
1. What Is Marketing?
2. Understanding the Marketplace and Customer
Needs
3. Designing a Customer-Driven Marketing Strategy
4. Preparing an Integrated Marketing Plan and
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4. Preparing an Integrated Marketing Plan and
Program
5. Building Customer Relationships
6. Capturing Value from Customers
7. The New Marketing Landscape
8. So, What Is Marketing? Pulling It All Together
6. What Is Marketing?
Marketing Defined
Marketing is the process by which
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Introduction to Marketing
Marketing is the process by which
companies create value for
customers and build strong customer
relationships to capture value from
customers in return
7. What Is Marketing?
The Marketing Process
1. Understand the marketplace and customer
wants and needs
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wants and needs
2. Design a customer-driven marketing
strategy
3. Construct a marketing plan that delivers
superior value
4. Build profitable relationships and create
customer satisfaction
5. Capture value from customers to create
profit and customer equity
8. What Can Be
Marketed?
• Goods
• Services
• Places
• Ideas
• Events
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Introduction to Marketing
• Events
• Persons
• Properties
• Organizations
• Information
• Experiences
What is being
marketed in this ad?
10. Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and
Demands
• Needs are states of deprivation
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• Needs are states of deprivation
• Physical—food, clothing, warmth,
safety
• Social—belonging and affection
• Individual—knowledge and self-
expression
11. Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and
Demands
Wants are the form that needs take as
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Introduction to Marketing
Wants are the form that needs take as
they are shaped by culture and
individual personality
Demands are wants backed by buying
power
12. Understanding the Marketplace
and Customer Needs
Market Offerings—Products,
Services, and Experiences
Marketing myopia is focusing only
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Marketing myopia is focusing only
on existing wants and losing sight
of underlying consumer needs
Exchange is the act of obtaining a
desired object from someone by
offering something in return
13. Understanding the Marketplace
and Customer Needs
Markets are the set of actual and potential
buyers of a product
Marketing system consists of all of the actors
(suppliers, company, competitors,
intermediaries, and end users) in the system
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intermediaries, and end users) in the system
who are affected by major environmental
forces
• Demographic
• Economic
• Physical
• Technological
• Political–legal
• Socio-cultural
14. Understanding the Marketplace
and Customer Needs
Marketing system consists of all of the actors
in the system who are affected by major
environmental forces
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Introduction to Marketing
15. Designing a Customer-Driven
Marketing Strategy
Marketing Management
Marketing management is the art and
science of choosing target markets
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science of choosing target markets
and building profitable relationships
with them
• What customers will we serve?
• How can we best serve these
customers?
16. Designing a Customer-Driven
Marketing Strategy
Selecting Customers to Serve
Market segmentation: Dividing
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Market segmentation: Dividing
the markets into segments of
customers
Target marketing: Which
segments to go after
17. Designing a Customer-Driven
Marketing Strategy
Selecting Customers to Serve
De-marketing: Marketing to reduce
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De-marketing: Marketing to reduce
demand temporarily or
permanently; the aim is not to
destroy demand but to reduce or
shift it.
18. Designing a Customer-Driven
Marketing Strategy
Selecting Customers to Serve
Marketing management is:
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Marketing management is:
• Customer management
• Demand management
19. Designing a Customer-Driven
Marketing Strategy
Choosing a Value Proposition
The value proposition is the set of
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The value proposition is the set of
benefits or values a company
promises to deliver to customers
to satisfy their needs
20. Designing a Customer-Driven
Marketing Strategy
Marketing Management
Orientations
• Production concept
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• Production concept
• Product concept
• Selling concept
• Marketing concept
• Societal concept
21. Designing a Customer-Driven
Marketing Strategy
Marketing Management
Orientations
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Production concept is the idea
that consumers will favor
products that are available or
highly affordable
22. Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
Product concept is the idea that
consumers will favor products that
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consumers will favor products that
offer the most quality, performance,
and features for which the
organization should therefore devote
its energy to making continuous
improvements
23. Designing a Customer-Driven
Marketing Strategy
Marketing Management
Orientations
Selling concept is the idea that
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Selling concept is the idea that
consumers will not buy enough of
the firm’s products unless it
undertakes a large scale selling
and promotion effort
24. Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
Marketing concept is the idea that
achieving organizational goals depends
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achieving organizational goals depends
on knowing the needs and wants of the
target markets and delivering the
desired satisfactions better than
competitors do
26. Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
Societal marketing concept is the idea
that a company should make good
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that a company should make good
marketing decisions by considering
consumers’ wants, the company’s
requirements, consumers’ long-term
interests, and society’s long-run
interests
27. Preparing an Integrated
Marketing Plan and Program
Marketing Mix
The marketing mix is the set of
tools (four Ps) the firm uses to
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tools (four Ps) the firm uses to
implement its marketing strategy
• Product
• Price
• Promotion
• Place
28. Preparing an Integrated
Marketing Plan and Program
Integrated Marketing Program
Integrated marketing program is
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Integrated marketing program is
a comprehensive plan that
communicates and delivers the
intended value to chosen
customers
29. Building Customer Relationships
Customer Relationship Management
(CRM)
Customer relationship management is
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Customer relationship management is
the overall process of building and
maintaining profitable customer
relationships by delivering superior value
and satisfaction
30. Building Customer Relationships
Customer Relationship
Management
(CRM)
Customer perceived value is the difference
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Customer perceived value is the difference
between total customer value and total
customer cost
Customer satisfaction is the extent to which a
product’s perceived performance matches a
buyer’s expectations
31. Building Customer Relationships
Partner Relationship Management
Supply chain is a channel that stretches
from raw materials to components to
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from raw materials to components to
final products to final buyers
• Supply management
• Strategic partners
• Strategic alliances
32. Capturing Value from Customers
Creating Customer Loyalty and
Retention
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Customer lifetime value is the
value of the entire stream of
purchases that the customer
would make over a lifetime of
patronage
33. Capturing Value from Customers
Growing Share of Customer
Share of customer is the portion of
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Share of customer is the portion of
the customer’s purchasing that a
company gets in its product
categories
34. Capturing Value from Customers
Building Customer Equity
Customer equity is the total
combined customer lifetime
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combined customer lifetime
values of all of the company’s
customers
35. The New Marketing Landscape
Major Developments
• Digital age
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• Globalization
• Ethics and social responsibility
• Not-for-profit marketing
36. The New Marketing Landscape
The New Digital Age
• Recent technology has had a major impact
on the ways marketers connect with and
bring value to their customers
• Market research
• Learning about and tracking customers
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• Learning about and tracking customers
• Create new customized products
• Distribution
• Communication
• Video conferencing
• Online data services
37. The New Marketing Landscape
Rapid Globalization
• The world is smaller
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• The world is smaller
• Think globally, act locally
38. The New Marketing Landscape
The Call for More Ethics and
Social Responsibility
Social marketing campaigns
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Social marketing campaigns
encourage energy conservation
and concern for the environment
or discourage smoking, excessive
drinking, and drug use
39. The New Marketing Landscape
The Growth for Not-for-Profit
Marketing
• Colleges
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• Colleges
• Hospitals
• Museums
• Zoos
• Religious groups
40. Summary
1. What Is Marketing?
2. Understanding the Marketplace and Customer
Needs
3. Designing a Customer-Driven Marketing Strategy
4. Preparing an Integrated Marketing Plan and
Chapter 1
Introduction to Marketing
4. Preparing an Integrated Marketing Plan and
Program
5. Building Customer Relationships
6. Capturing Value from Customers
7. The New Marketing Landscape
8. So, What Is Marketing? Pulling It All Together