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Introduction to Marketing

Lec 1b

Week 1b

BBA 2K10 (A)

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What is marketing?

2

The Marketing Process

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Needs, Wants, and

Demands Need:

State of felt deprivation including

physical, social, and individual needs. Physical needs: Food, clothing, shelter, safety

Social needs:

Belonging, affection Individual needs:

Learning, knowledge, self-expression

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Needs, Wants, and Demands

Wants:Form that a human need takes, as

shaped by culture and individual

personality.

Wants + Buying Power =Demand

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Need/Want Fulfillment

Needs and wants are fulfilled through a

Marketing Offer:

Some combination of products, services,

information, or experiences offered to amarket to satisfy a need or want.

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Market Offerings

Products:

Persons, places, organizations,information, ideas.

Services:Activity or benefit offered for sale that is

essentially intangible and does not resultin ownership.

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Understanding the Marketplace

and Customer Needs

Elements of a Marketing System

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Designing a Customer-Driven

Marketing StrategyMarketing managementis the art and science of

choosing target markets and building profitable

relationships with them What customers will we serve?

How can we best serve these customers?

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Designing a Customer-Driven

Marketing StrategySelecting Customers to Serve

Market segmentation refers todividing themarkets into segments of customers

Target marketing refers towhich segments to goafter

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Designing a Customer-Driven

Marketing StrategySelecting Customers to Serve

Demarketing is marketing to reduce demandtemporarily or permanently; the aim is not to

destroy demand but to reduce or shift it.

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Designing a Customer-Driven

Marketing StrategySelecting Customers to Serve

Marketing management is:

Customer management

Demand management

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Designing a Customer-Driven

Marketing Strategy

Choosing a Value Proposition

The value propositionisthe set of benefits orvalues a companypromises to deliver to

customers to satisfytheir needs

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Preparing an Integrated Marketing

Plan and Program

Marketing M ix

The marketing mixis the set of tools (four Ps)the firm uses to implement its marketingstrategy

Product

Price Promotion

Place

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Building Customer Relationships

The overall process ofbuilding and

maintaining profitable

customer relationships

by delivering superior

customer value and

satisfaction

Customer Relationship Management

(CRM)

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Building Customer Relationships

Customer Relationship Management

(CRM)

Relationship Building Blocks: Customer Value and Satisfaction

Customer perceived valueis the difference between totalcustomer value and total customer cost

Customer satisfactionis the extent to which a products

perceived performance matches a buyers expectations

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Customer Value and Satisfaction

Care must be taken when setting

expectations:

If performance is lowerthan expectations,

satisfaction is low. If performance is higherthan expectations,

satisfaction is high.

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Exchanges and Relationships

Exchange:Act of obtaining a

desired object fromsomeone byoffering somethingin return.

Relationships: Marketing actions

build and maintainrelationships withtarget audiencesinvolving an idea,product, service, or

other object.

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Capturing Value from

Customers

Customer lifetimevalue is the value of

the entire stream of

purchases that the

customer would

make over a lifetime

of patronage

Creating Customer Loyalty and Retention

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