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PRINCIPLE OF MARKETING
Chapter 01
Learning Objectives
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After studying this chapter, you should be able to: Define marketing and outline the steps in the marketing process Explain the importance of understanding customers and the marketplace, and identify the five core marketplace concepts Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy Discuss customer relationship management, and identify strategies for creating value for customers and capturing value from customers in return Describe the major trends and forces that are changing the marketing landscape in this age of relationships
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Chapter Concepts
1. 2. 3. 4. 5. 6. 7. 8.
What Is Marketing? Understanding the Marketplace and Customer Needs Designing a Customer-Driven Marketing Strategy Preparing an Integrated Marketing Plan and Program Building Customer Relationships Capturing Value from Customers The New Marketing Landscape So, What Is Marketing? Pulling It All Together
What Is Marketing?
Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return
What Is Marketing?
The Marketing Process
1. 2. 3. 4. 5.
Understand the marketplace and customer wants and needs Design a customer-driven marketing strategy Construct a marketing plan that delivers superior value Build profitable relationships and create customer satisfaction Capture value from customers to create profit and customer equity
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What Is Marketing?
The Marketing Process
Physicalfood, clothing, warmth, safety Socialbelonging and affection Individualknowledge and self-expression
Customer Needs, Wants, and Demands Wants are the form that needs take as they are shaped by culture and individual personality Demands are wants backed by buying power
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Market OfferingsProducts, Services, and Experiences Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs
Expectations
Customers
Marketers
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Marketing management is 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?
Selecting Customers to Serve Market segmentation refers to dividing the markets into segments of customers Target marketing refers to which segments to go after
Selecting Customers to Serve Demarketing is marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it.
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Production concept Product concept Selling concept Marketing concept Societal concept
Marketing Management Orientations Production concept is the idea that consumers will favor products that are available or highly affordable
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Marketing Management Orientations Product concept is the idea that consumers will favor products that offer the most quality, performance, and features that the organization should therefore devote its energy to making continuous improvements
Marketing Management Orientations Selling concept is the idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort
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Marketing Mix The marketing mix is the set of tools (four Ps) the firm uses to implement its marketing strategy Product Price Promotion Place
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4 Cs C1: Customer needs and wants C2: Cost to the customer C3: Convenience C4: Communication
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Basic relationship Full partnerships Frequency marketing programs Club marketing programs
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Digital age Rapid globalization Ethics and social responsibility Not-for-profit marketing
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Marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers
Assess the information needs Develop needed information Analyze information Distribute information
MIS provides information to the companys marketing and other managers and external partners such as suppliers, resellers, and marketing service agencies
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Characteristics of a good MIS balances the information users would like to have against what they need and what is feasible to offer
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Disadvantages Incomplete information Wrong form for decision making Timeliness of information Amount of information Need for sophisticated equipment and techniques
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Marketing Research
Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
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Marketing Research
Defining the Problem and Research Objectives
Marketing Research
Developing the Research Plan
Research plan outlines sources of existing data and spells out the specific research approaches, contact methods, sampling plans, and instruments that researchers will use to gather data
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Secondary data consists of information that already exists somewhere, having been collected for another purpose Primary data consists of information gathered for the special research plan
Advantages
Disadvantages
Speed Cost Provides data that a company cannot collect on its own
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To To To To
understand customers better provide higher levels of customer service develop deeper customer relationships identify high-value customers
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