1. Principles of Marketing1
Principles of Marketing
Marketing: Managing Profitable Customer Relationships

2. What Is Marketing? Marketing Defined
Marketing is the process by which companies create value for customers and build strong customer relationships to capture value from customers in return
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3. The Marketing Process Create Value Company Capture Value Build Strong
relations

4. What Is Marketing? The Marketing Process
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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5. Understanding the Marketplace and Customer Needs
Customer Needs, Wants, and Demands
Needs are states of deprivation
Physical—food, clothing, warmth, safety
Social—belonging and affection
Individual—knowledge and self-expression
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6. Understanding the Marketplace and Customer Needs
Customer Needs, Wants, and Demands
Wants are the form that needs take as they are shaped by culture and individual personality
Demands are wants with by buying power
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7. Understanding the Marketplace and Customer Needs
Market Offerings—Products, Services, and Experiences
Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want
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8. Understanding the Marketplace and Customer Needs
Market Offerings—Products, Services, and Experiences
Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs
Exchange is the act of obtaining a desired object from someone by offering something in return
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9. Understanding the Marketplace and Customer Needs
Customer Value and Satisfaction
How do customers choose which product to buy?
They form expectations about value and satisfaction
Satisfied customers tell others
Dissatisfied switch to competitors and discourage others from buying it
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10. Understanding the Marketplace and Customer Needs
Exchanges and Relationships
Markets are the set of actual and potential buyers of a product who have a particular need or want
Relationships consist of actions to build and maintain desirable relationships
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11. Designing a Customer-Driven Marketing Strategy
Marketing Management
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?
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12. Designing a Customer-Driven Marketing Strategy
Selecting Customers to Serve
Market segmentation: Dividing the markets into segments of customers
Target marketing: Which segments to go after
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13. Designing a Customer-Driven Marketing Strategy
Choosing a Value Proposition
Why should I buy your brand rather than your competitors?
How it will differentiate and position itself?
The value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs (‘Redbull gives winds’, ‘BMW The ultimate driving machine’)
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14. Designing a Customer-Driven Marketing Strategy
Marketing Management Orientations
There are five alternative concepts under which org. design and carry out their marketing strategies
Production concept
Product concept
Selling concept
Marketing concept
Societal concept
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15. Designing a Customer-Driven Marketing Strategy
Marketing Management Orientations
Production concept is the idea that consumers will favor products that are available or highly affordable
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16. Designing a Customer-Driven Marketing Strategy
Marketing Management Orientations
Product concept is the idea that consumers will favor products that offer the most quality, performance, and features for which the organization should therefore devote its energy to making continuous improvements
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17. Designing a Customer-Driven Marketing Strategy
Marketing Management Orientations
Selling concept is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort
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18. Designing a Customer-Driven Marketing Strategy
Marketing Management Orientations
Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do
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19. Designing a Customer-Driven Marketing Strategy
Marketing Management Orientations
Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long-run interests (e.g.. Re-cycling, smoking packs with labels, unleaded petrol).
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20. Preparing an Integrated Marketing Plan and Program
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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21. Building Customer Relationships
Customer Relationship Management
(CRM)
Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior value and satisfaction
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22. Building Customer Relationships
Customer Perceived value is the difference between total customer value and total customer cost.
Customer Satisfaction is the extent to which a product’s perceived performance matches a buyer's expectations.

23. Building Customer Relationships
Partner Relationship Management
Partner Relationship Management: refers to working closely with partners in other company departments and outside the company to jointly bring greater value to customers
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24. The New Marketing Landscape
Major Developments
Digital age
Globalization
Ethics and social responsibility
Not-for-profit marketing
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25. The New Marketing Landscape
The New Digital Age
Recent technology has had a major impact on the ways marketers connect with and bring value to their customers
Market research
Learning about and tracking customers
Production
Distribution
Communication
Video conferencing
Online data services
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26. The New Marketing Landscape
The New Digital Age
Internet—creates marketplaces
Information
Entertainment
Communication
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27. The New Marketing Landscape
Rapid Globalization
The world is smaller – unified market
Think globally, act locally
Standardization of products, services, communications in the global markets
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28. The New Marketing Landscape
The Call for More Ethics and Social Responsibility
Social marketing campaigns encourage energy conservation and concern for the environment or discourage smoking, excessive drinking, and drug use
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29. The New Marketing Landscape
The Growth for Not-for-Profit Marketing
Colleges
Hospitals
Museums
Zoos
Orchestras
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