MARKETING

Definition

The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return

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.

Marketing ProcessDesign a customer driven marketing strategy

Construct a marketing program that delivers superior value

Build profitable relationships and create customer delight

Capture value from customers to create profits and customer quality

Understand the market place and customer needs and wants

Company Orientation Towards the Marketplace The Production Concept

Consumers will prefer products that are widely available and inexpensive

The Product Concept Consumers will favour those products that offer the most quality,

performance or innovative features The Selling Concept

Consumers will not buy enough of the organization’s products if left alone

The Marketing Concept Business shifted to customer centered Sense and respond philosophy

The Holistic Marketing Concpet Based on the development, design and implementation of marketing

programs, processes and activities that recogonizes their breadth and interdependencies.

Relationship Marketing – aim of building mutually satisfying long term relationships with key parties – customer, suppliers, distributors andother marketing partners

The Societal Marketing Concept

A principle of enlightened marketing that holds that a company should make good marketing decisions by considering consumer’s wants, the company’s requirements, consumers long term interests and society’s long run interests

Society

(Human welfare)

Consumers

(Want satisfaction)

Company

(Welfare)

Customer Relationship Management The overall process of building and maintaining

profitable customer relationships by delivering superior customer value and satisfaction

Customer Perceived Value - The difference between total customer value and total customer cost

Customer Satisfaction – The extent to which a product’s perceived performance matches a buyer’s expectation.

Marketing Network

Consists of company and its supporting stakeholders with whom it has built mutually profitable business relationships.

Integrated Marketing - Traditional depiction of marketing activities is in term of marketing mix

Marketing Mix

Four P’s Product

Price

Place

Promotion

Four C’s Customer solution

Customer cost

Convenience

Communication

Marketplace and Customer Needs, Wants and Demands Human needs are state of felt deprivation

Physical needs – food, clothing, warmth and safety Social needs - belonging and affection Individual needs - knowledge and self expression

Wants are the form human needs take as they are shaped by culture and individual personality

When wants are backed by the purchasing power, wants become demand

Target Markets, Positioning and Segmentation

Division of market – Segmenting Identifying and profiling distinct groups of

buyers who might prefer or require varying product and services

Target Market – the segment which present the greatest opportunity

Marketing Environment

Task Environment

Company

Suppliers Distributors

Dealers

Target customers

Broad Environment

Demographic environment

Economic environment

Physical environment

Technological environment

Political legal environment

Social cultural environment

Marketing Research and Information System

Marketing Research is a systematic, objective process of getting information about potential customers to guide marketing decisions.

Primary data and secondary data Marketing Information System

New Marketing Landscape

The pace of change is so rapid that the ability to change has now become a competitive advantage – Richard Love, HP

The digital age The Internet

Ethics and Social Responsibility

The growth of not for profit marketingStakeholders of Organizations Customers Employees Local communities Government Intermediaries Suppliers

Marketing Environment

A company's marketing environment consists of the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationship with target customers.

Micro environment Macro environment

Company

Suppliers

Marketing Intermediaries Customers

Competitors

Public

The Company’s Micro Environment

The Company Suppliers

Form an important link in the company’s overall customer value delivery system.

Provide the resource needed by the company to produce its goods and services

Customers Consumer market Business market Reseller market Government market International market

Marketing IntermediariesFirms that help the company to promote, sell

and distribute its goods to final buyers,Physical distribution firmsMarketing services agencies

Competitors Public

Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives

Demographic forces

Economic forces

Natural forces Technological forces

Political forces

Cultural forces

The Company’s Macro Environment

Demographic environmentStudy of human population in terms of size,

density, location, age, gender, race, occupation and other statistics.

Economic environmentChanges in incomeChanging consumer spending patterns

Natural EnvironmentGrowing shortage of raw materials Increased pollution Increased government intervention

Technological Environment

Political environment Increasing legislation Increased emphasis on ethics and socially

responsible actions Cultural environment

Persistence of cultural valuesShift in secondary cultural values