2. • 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.

3. • 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.

4. 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

5. 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.

7. 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.

8. 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.

9. • 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.

10. 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.

11. 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.

12. 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.

13. • 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.

14. 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.

15. • 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.

16. 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.

17. 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.

18. 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.

20. 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.

21. 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.

22. 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.

24. 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.

26. 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.

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

28. 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.

29. • 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).

30. THANK YOU
UNNATI SHAH