John Name: Surej P John University: Assumption University (ABAC) Website: Phone:

Evaluation & Grading Quizzes (2x10%) 20% In-Class Assignment 10% Midterm Examination 30% Final Examination 40% Total100% 1-3

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-4 Marketing: Managing Profitable Customer Relationships 1 Marketing : An Introduction An Asian Perspective Armstrong, Kotler & da Silva

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-5

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-6 What Is Marketing? Simple Definition: Marketing is managing profitable customer relationships. Goals: 1.Attract new customers by promising superior value. 2.Keep and grow current customers by delivering satisfaction.

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-7 Marketing Old vs. New Old view of marketing: Making a sale -- “Telling and Selling” New view of marketing: Satisfying customer needs

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-8 Marketing Defined 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.

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-9 Core Marketing Concepts Figure 1.3

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-10 Needs, Wants, & Demands Need: State of felt deprivation including physical, social, and individual needs. Physical: –Food, clothing, shelter, safety Social: –Belonging, affection Individual: –Learning, knowledge, self-expression

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva Physical needs 1-11 I am hungry!!!

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva Social needs 1-12

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-13 Wants: Form that a human need takes, as shaped by culture and individual personality. Wants + Buying Power = Demand Needs, Wants, & Demands

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva Demand 1-14

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-15 Need / Want Fulfillment Needs and Wants Fulfilled through a Marketing Offer : –Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-16 Products Anything that can be Offered to a Market to Satisfy a Need or Want Products Anything that can be Offered to a Market to Satisfy a Need or Want Persons Places Organizations Ideas Information What Satisfies Consumers’ Needs and Wants? Services Activity or Benefit Offered for Sale That is Essentially Intangible and Does Not Result in the Ownership of Anything Services Activity or Benefit Offered for Sale That is Essentially Intangible and Does Not Result in the Ownership of Anything

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva Persons 1-17

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva Places 1-18

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva Organizations 1-19

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-20 Marketing Myopia Sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products. They focus on the “wants” and lose sight of the “needs”

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-21 Value and Satisfaction Expectation Performance 810 If performance is lower than expectations, satisfaction is low. If performance is higher than expectations, satisfaction is high. ExpectationPerformance 108

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva Customer Value Customer value is the difference between the values the customer gains from owning and using a product and the costs of obtaining the product. Customer Value = Benefits / Price 1-22 Price = Baht Price = 2000 baht

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva Customer satisfaction 1-23 Dependent on the product’s perceived performance relative to a buyer’s expectations.

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-24 Exchange vs. Transaction Exchange: –Act of obtaining a desired object from someone by offering something in return. Transaction : –A trade of values between two parties. –One party gives X to another party and gets Y in return. Can include cash, credit, or check.

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-25 What is a Market? The set of actual and potential buyers of a product. These people share a need or want that can be satisfied through exchange relationships.

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-26 Elements of a Modern Marketing System Figure 1.4

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva Suppliers Supplies the raw material to manufacturers. 1-27

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva Competitors Selling identical products to the market. 1-28

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva Marketing Intermediaries Those who are in between Manufacturer and customer in the supply chain management. Eg. Retailors, Wholesalers, Brokers, banks etc 1-29

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-30 Marketing Management The art and science of choosing target markets and building profitable relationships with them. Questions to ask: 1.What customers will we serve? What is our target market? 2.How can we best serve these customers?

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-31 Segmentation and Target Marketing Market Segmentation: Divide the market into segments of customers Target Marketing: Select the segment to cultivate #1#2

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-32 Marketing Management Finding and increasing demand, also changing or reducing demand, such as in demarketing. Demand Management Temporarily or permanently reducing the number of customers or shifting their demand. Demarketing

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva Demarketing 1-33

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-34 Marketing Management Philosophies Production Concept Product Concept Selling Concept Marketing Concept Societal Marketing Concept

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva The idea that consumers will favor products that is available and highly affordable. The production concept is useful under two situations: When the demand for a product exceeds the supply When the product cost is too high and improved productivity is needed to bring it down The production concept

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva The Product Concept 1-36 The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continues product improvements. Thus an organization should devote energy to making continuous product improvements.

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-37 Marketing and Sales Concepts Contrasted Figure 1.6

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-38 Societal Marketing Concept The societal marketing concept is an idea that holds that a company should make good marketing decisions by considering consumers' wants, the company's requirements, and society's long-term interests

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-39 The Marketing Philosophies Compared Figure 1.8

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-40 Customer Relationship Management The process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-41 Customer Perceived Value Customers evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-42 Customer Perceived Value Is FedEx’s service worth the higher price? FedEx thinks so. It promises reliability, speed, and peace of mind. FedEx ads say “Need to get it there or else? Don’t worry. There’s a FedEx for that.”

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-43 Customer Satisfaction Dependent on the product’s perceived performance relative to a buyer’s expectations.

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-44 Customer Lifetime Value –The entire stream of purchases that the customer would make over a lifetime of patronage. Share of Customer –The share a company gets of the customers purchasing in their product categories. Customer Loyalty & Retention

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-45 Customer Lifetime Value To keep customers coming back, Stew Leonard’s has created the “Disneyland of dairy stores.” Rule #1— the customer is always right. Rule #2 —if the customer is ever wrong, reread Rule #1.

Marketing : An Introduction An Asian Perspective © Armstrong, Kotler & da Silva 1-46 Customer Equity Customer equity is the total combined customer lifetime values of all the company’s customers.