Professional Documents
Culture Documents
PRINCIPLES OF
MARKETING
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
Lecture 1:
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
Creating and capturing customer value Objectives
Objective Outline
Outline
What is marketing
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
Creating and capturing customer value What is Marketing
Marketing Defined
Simple definition:
Managing profitable customer relationships
Marketing Defined
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
Creating and capturing customer Understanding the Marketplace and Consumer
value Needs
The Five Core Customer and Marketplace
Concepts
Needs, Wants, and Demands
Marketing Offers
Markets
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
5 Core Customer and Marketplace
Creating and capturing customer value Concepts
Wants
The form taken by a human need as shaped by culture and
individual personality
They are described in terms of objects that will satisfy needs
Marketers influence wants
Demands
Human wants that are backed by buying power
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
5 Core Customer and Marketplace
Creating and capturing customer value Concepts
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
5 Core Customer and Marketplace
Creating and capturing customer value Concepts
Market Offerings
Consumers needs and wants are fulfilled through Market Offerings
Marketing Myopia:
The mistake of paying more attention to the specific products a company
offers than to the benefits and experiences produced by these products
Focus only on existing wants and lose sight of underlying customer needs,
forgetting the fact that product is only the tool to solve consumer problem
Smart marketers look beyond the attributes of the products and services
they sell, and create brand experiences for consumers
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
5 Core Customer and Marketplace
Creating and capturing customer value Concepts
Exchange:
The act of obtaining a desired object from someone by
offering something in return
Conditions for exchange to take place:
There must be at least two parties
Each party must have something that might be of value
to the other party
Each party is capable of communication and delivery
Each party is free to accept or reject the offer
Each party believes it is appropriate or desirable to deal
with the other party
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
5 Core Customer and Marketplace
Creating and capturing customer value Concepts
Relationships:
Exist between two parties who grow more trust, are
more knowledgeable and interested in helping each
other
Relationship marketing cuts down on transaction costs
and time
Its ultimate outcome is the building of a unique
company asset known as marketing network
Marketing network consist of the company and the firms
with which it has built solid, dependable business
relationships
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
5 Core Customer and Marketplace
Creating and capturing customer value Concepts
Markets
The concept of exchange and relationships lead to the concept of a market
It consist of all the actual and potential buyers of a product or service who
share a particular need or want that can be satisfied through exchange
relationships
The size of a market depends upon the number of persons who exhibit the
need, have resources that interest others, and are willing to offer these
resources in exchange for what they want
Examples of markets as used by Business people:
Needs Markets such as diet-seeking market
Society (Human
welfare)
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
Building Customer
Creating and capturing customer value
Relationships
Relationship Building Blocks: Customer Value and
Satisfaction
Customer perceived value: customers evaluation of the difference
between all the benefits and all the costs of a market offering relative to
those of competing offers
Value proposition: intended value at the companys side
Evaluation: subjective and personal; difference among
How we make a purchase decision; select brand with greatest CPV
Customer satisfaction: the extent to which a products perceived
performance matches a buyers expectations
an extent of match, between; highly satisfied and delighted
Higher levels of CS lead to greater customer loyalty, better
company performance in turn
CRM: process of building and maintaining profitable customer relationships
by delivering superior customer value & satisfaction
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
Building Customer
Creating and capturing customer value
Relationships
Customer Relationship Levels and Tools
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
Capturing Value from
Creating and capturing customer value
Customers
Creating Customer Loyalty and Retention
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
Capturing Value from
Creating and capturing customer value
Customers
Growing Share of Customer
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
Capturing Value from
Creating and capturing customer value
Customers
Building the Right Relationship with the Right
Customers
Different types of customer require different relationship
management strategies. The goal is to build right relationships
with right customers
Butterflies: True friends:
Potential profitability
Good fit between offerings and Good fit between companys offerings
High customers needs; high profit and customers needs; highest profit
profitability potential potential
Projected loyalty
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
Capturing Value from
Creating and capturing customer value
Customers
The Changing Marketing Landscape
Connecting Advances in computers,
Via technology telecommunications,
video-conferencing, etc.
are major forces.
Databases allow for
customization of
products, messages
and analysis of needs.
The Internet
Facilitates anytime,
anywhere connections
Facilitates CRM
Creates market spaces
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
Capturing Value from
Creating and capturing customer value
Customers
The Changing Marketing Landscape
Connecting Partner relationship
With marketing partners management involves:
Connecting inside the
company
Connecting with outside
partners
Supply chain
management
Strategic alliances
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
Capturing Value from
Creating and capturing customer value
Customers
The Changing Marketing Landscape
Connecting Globalization
With the world Competition
New opportunities
Greater concern for
environmental and social
responsibility
Increased marketing by
nonprofit and public-
sector entities
Social marketing
campaigns
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School
Creating and capturing customer value
The End
THANK YOU
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GBUS207 Principles of Marketing (First Semester, 2014/15
Otto Afiuc GIMPA Business School