2. Session outline
Define the marketing and the marketing process
Explain the importance of understanding customers and the
market place
Identify five market place concepts
Identify the key elements of a customer driven marketing
strategy
Discuss customer relationship management & ways of creating
& obtaining value
Describe the major trends & forces changing today’s market
place
3. Background to the study
“Good marketing is no an accident, but a result of careful
planning and execution”
-Philip Kotler-
Marketing plays a vital role in today’s market place
Success or the failure of an organization heavily depend
on marketing
It enriches value of organizations as well as individuals in
the society
4. What is Marketing?
Marketing is a societal process by which individuals and
groups obtain what they need and want through creating,
offering, and freely exchanging products and services of value
with others.
-Philip Kotler-
Marketing is the management process responsible for
identifying, anticipating, and satisfying customer requirements
profitably.
-Chartered Institute of Marketing-
5. Marketing Process
A simple model of the marketing process:
Understand the marketplace and customer needs and wants.
Design a customer-driven marketing strategy.
Construct an integrated marketing program that delivers
superior value.
Build profitable relationships and create customer delight.
Capture value from customers to create profits and customer
quality.
6. Importance of Marketing
Ever growing competition in the market place
Customers tendency to become more and more
demanding
Financial success often depends on the marketing
ability
To ensure profitability and survival
7. What is marketed?
Places
Properties
Organizations
Information
Ideas
Goods
Services
Experiences
Events
Persons
8. All these things can be marketed
Events
Experience
Persons
Places
9. Core marketing concepts
Needs, Wants and Demands
Target Markets, Positioning and Segmentation
Offerings and Brands
Value and Satisfaction
Marketing Channels
Supply Chain
Competition
Marketing Environment
10. Needs, wants and demands
State of felt deprivation including physical, social, and
individual needs.
Needs become wants when they are directed to specific
objects that might satisfy the need.
Demands are wants for specific products backed by an
ability to pay.
11. Target Markets, Positioning and Segmentation
Differences in needs, behavior, demographics or
psychographics are used to identify segments.
The segment served by the firm is called the target
market.
The market offering is customized to the needs of the
target market.
Once the market offering is created firm should build a
unique position in the minds of customers
12. Offerings and Brands
A Product is any offering that can satisfy a need or want.
A brand is a specific offering from a known source. A
brand name carries many associations in people’s mind.
13. Value and Satisfaction
• Customer value: Difference between the
values that the customer gains from owning and
using a product versus the costs of obtaining the
product.
• Customer satisfaction: The extent to which a
product’s perceived performance in delivering value
matches a buyer’s expectations.
• Quality: the characteristics of a product or service
that bear on its ability to satisfy stated or implied
customer needs.
16. Supply chain
A supply chain stretches from raw materials to
components to final products that are carried to final
buyers.
Each company captures only a certain percentage of
the total value generated by the supply chain.
17. Competition
Competition includes all actual and potential rival offerings and
substitutes a buyer might consider.
Four levels of competition can be distinguished by the
level of product substitutability:
Brand competition-These are the most obvious
competitors. They are other firms which are similar
in size to ourselves and who offer similar products to
similar customers.
Industry competition - Offer similar products or
services to ourselves but differ in some important
way such as organization size or the precise type of
product offering or target market.
18. Form competition offer products or services which
fulfill the same customer needs as ourselves even though
the products or services are very different in form or
technology.
Generic competition All consumers have limited
incomes. Therefore, every firm is a potential competitor,
at least for expenditures of similar magnitude.
19. Company orientations towards market place
The orientation or philosophy of the firm typically guides
marketing efforts. Several competing orientations exist:
Production concept
Product concept
Selling concept
Marketing concept
Societal marketing concept
20. Product and Production Approach
Start Focus Means Ends
Factory Production
efficiency
Profits through
sales volume & low cost
Product
Product
Quality
Improveme
nt &
Innovation
Profits through
better product features
Output
PRODUCTION
PRODUCT
22. The idea is that the organization should determine the needs,
wants and interests of target markets and deliver the desired
satisfaction more effectively and efficiently than competitors in a
way that maintains or improves the consumer’s and society’s
well-being.
The Societal Marketing
Concept
Society (Human welfare)
Consumers
(Want satisfaction)
Company
(Profits)
Societal
Marketin
g
Concept
25. Outcomes of creating customer value
Customer loyalty and retention
Delighted customers remain loyal and talk favorably
to others about the company and it’s products and
turn to be life time value.
Share of market & share of customer
Many companies are increasing their variety of
products and services to increase their profits from
existing customers
Customer Equity
Total combined customer life time values of all the
company’s customers. They view customers as an
assets need to be maximized.
