marketing lecture 2

8/10/2019 Marketing Lecture 2

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The Marketing Concept

and ProcessLecture 1


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The Marketing Concept: What It Is and

What It Is Not

The marketing concept

Customer focus, profits, andintegration of organizationalefforts.


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What It Is Not

Customer orientation

Satisfying its customers at a profit

Determining the needs and wants oftarget markets

Discovering the wants of a target

audience and then creating the goodsand services to satisfy them


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What It Is Not

Kotlers social definition:Marketing is a social and

managerial process by which

individuals and groups obtain

what they need and want through

creating and exchanging products

and value with others


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Goods Services

Experiences Events

Persons

Places Properties

Organizations Information

Ideas

Many Things Can Be Marketed!


What It Is Not


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Needs wants

and demands

Marketing offers:

including

products

services and

experiences

Value and

satisfaction

Exchange

transactions and

relationships

Markets

Core Marketing Concepts

What is Marketing?


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What It Is Not

The conditionsunder which themarketing concept offers theproper guidance to themarketer:


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What It Is Not

To the extent that the organizationrelies on exchangeas the means ofobtaining compliance withorganizations needs, we describe thatorganization as engaging inmarketing.


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What It Is Not

it is important to recognize thatunder

some circumstances, the productionconceptor the sales conceptwould be a

more appropriate managementphilosophy for the organization than themarketing concept.

Can you give some examples?


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What It Is Not

.customers are not necessarily good

sources of information about

their needs a decade from now

sometimes customers have to learn

about new technologies, beliefs, andways of behaving


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What is Marketing?

Marketing is managing profitablecustomer relationships

Attracting new customers

Retaining and growing current

customers

Marketing is NOT synonymouswith sales or advertising


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Marketing Management

Marketing managementis the artand science of choosing targetmarkets and building profitablerelationships with them.

Creating delivering and

communicating superior customer

value is key.


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Customer Management:

Marketers select customers that can

be served well and profitably.

Demand Management:

Marketers must deal with different

demand states ranging from no

demand to too much demand.


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Productionconcept

Product concept

Selling concept

Marketing

concept

Societal marketing concept

Management Orientations



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CRM

RM ustomer relationshipmanagement. . .

is the overall process of buildingand maintaining profitablecustomer relationships by

delivering superior customervalue and satisfaction.


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CRM

It costs 5 to 10 times MOREto attract a new customer than

it does to keep a currentcustomer satisfied.

Marketers must be concernedwith the lifetime value of thecustomer.


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CRM

Attracting,retaining and

growing customers

Building customerrelationships andcustomer equity

Customer value/satisfaction

Perceptions are key

Meeting/exceedingexpectations creates

satisfaction Loyalty and retention

Benefits of loyalty

Loyalty increases assatisfaction levels increase

Delighting consumersshould be the goal

Growing share of customer

Cross-selling

Key Concepts


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CRM

Customer equity

The total combinedcustomer lifetimevalues of allcustomers.

Measures a firms

performance, but ina manner that looksto the future.

Key Concepts


growing customers



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CRM Customer relationship

levels and tools Target market typically

dictates type ofrelationship Basic relationships

Full relationships

Customer loyalty and

retention programsAdding financial benefits

Adding social benefits

Adding structural ties


growing customers


Key Concepts


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Marketing Challenges

Technological advances, rapidglobalization, and continuing social

and economic shifts are causingmarketplace changes.

Major marketing developments can

be grouped under the theme ofonnecting.


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Via technology

With customers

With marketingpartners

With the world

Advances in computers,telecommunications,video-conferencing, etc.

are major forces. Databases allow for

customization ofproducts, messages andanalysis of needs.

The Internet Facilitates anytime,

anywhere connections Facilitates CRM Creates marketspaces

Connecting


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Selective relationshipmanagement is key.

Customer profitabilityanalysis separateswinners from losers.

Growing share ofcustomer Cross-selling and up-

selling are helpful.

Direct sales to buyersare growing.

Connecting

Via technology

With customers


With the world


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Partner relationshipmanagement involves:

Connecting insidethe company

Connecting withoutside partners

Supply chainmanagement

Strategic alliances

Connecting

Via technology

With customers


With the world


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Globalization Competition

New opportunities

Greater concern forenvironmental andsocial responsibility

Increased marketingby nonprofit andpublic-sector entities Social marketing

campaigns

Connecting

Via technology

With customers


With the world

marketing lecture 2

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