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Concepts of Marketting

VIEWS: 18 PAGES: 18

									Marketing in a Changing World:
 Creating Customer Value and
          Satisfaction


                                 1
   What is Marketing?
 Process by which individuals and
 groups obtain what they need and
     want through creating and
   exchanging products and value
            with others.

Simply put: Marketing is the delivery
  of customer satisfaction at a profit.

                                          2
 Core Marketing Concepts

                    Needs, wants,
                    and demands

    Markets                           Products
                                    and services



   Exchange,                     Value,
 transactions,                satisfaction,
and relationships              and quality
                                                   3
      What are Consumer’s Needs,
      Wants and Demands?
   Needs - state of felt deprivation for basic items
    such as food and clothing and complex needs
    such as for belonging. i.e. I am hungry.
   Wants - form that a human need takes as
    shaped by culture and individual personality.
    i.e. I want a hamburger, French fries, and a
    soft drink.
   Demands - human wants backed by buying
    power. i.e. I have money to buy this meal.
                                                        4
        What Will Satisfy Consumer’s
        Needs and Wants?
                            Products
Anything that can be Offered to a Market to Satisfy a Need or Want


   Experiences               Persons                  Places


  Organizations            Information               Ideas



                            Services
    Activities or Benefits Offered for Sale That Are Essentially
    Intangible and Don’t Result in the Ownership of Anything
                                                                   5
  How Do Consumers Choose
  Among Products and
  Services?
   Value Gained From Owning a Product and
       Costs of Obtaining the Product is
              Customer Value

 Product’s Perceived Performance in Delivering Value
          Relative to Buyer’s Expectations is
             Customer Satisfaction


Total Quality Management Involves Improving the
          Quality of Products, Services, and
                Marketing Processes

                                                       6
How Do Consumers Obtain
Products and Services?


  Exchanges               Transactions


              Relationships
          Building a Marketing
         Network Consisting of
         The Company and All
             Its Supporting
              Stakeholders

                                         7
       Who Purchases Products and
       Services?
 People Who
 Exhibit Need       Market –        Actual
                 Ethical who
                   Buyers
                     Factors
                                    Buyers
                      share a
                   Situational
                   Unexpected
 Resources to    particular need
 Exchange          or want that
                 can be satisfied
                    Attitudes
                     through
                        of          Potential
                   exchange or
                      Others         Buyers
Willingness to    relationships.
Exchange

                                                8
              Modern Marketing System
                              Suppliers

                                            Company
                Competitors
                                           (Marketer)
Environment




                                                        Environment
                            Marketing
                          Intermediaries


                              End User
                               Market
                                                                      9
        Marketing Management
 Marketing        Demand         Profitable
Management       Management      Customer
                                Relationships
Implementing      Finding and
   programs        increasing   Attracting new
   to create     demand, also   customers and
  exchanges      changing or     retaining and
 with target        reducing        building
    buyers       demand such     relationships
  to achieve          as in      with current
organizational   Demarketing       customers
     goals

                                                 10
        Marketing Management
        Philosophies
                             •Consumers favor products that are
  Production Concept            available and highly affordable.
                             •Improve production and distribution.

                             •Consumers favor products that offer
   Product Concept             the most quality, performance, and
                               innovative features.

    Selling Concept          •Consumers will buy products only if
                               the company promotes/ sells these
                               products.
   Marketing Concept         •Focuses on needs/ wants of target
                                markets & delivering satisfaction
                                better than competitors.
Societal Marketing Concept   •Focuses on needs/ wants of target
                                markets & delivering superior value.
                                                                       11
     Marketing and Sales
     Concepts Contrasted
Starting
           Focus        Means           Ends
 Point
                        Selling        Profits
           Existing
Factory                  and          through
           Products   Promoting       Volume

               The Selling Concept



                                        Profits
           Customer   Integrated
 Market                                through
            Needs     Marketing
                                     Satisfaction

             The Marketing Concept
                                                    12
          Societal Marketing Concept
                         Society
                      (Human Welfare)




                         Societal
                        Marketing
                         Concept

  Consumers                             Company
(Want Satisfaction)                     (Profits)
                                                    13
         Marketing Challenges in the
         New “Connected” Millennium
                                    Connections with Customers
 Connecting                              Connecting more selectively
Technologies                                 Connecting for life
  Computer                                  Connecting Directly
 Information
Communication
Transportation                                         Connections
                                                       with the world
                   Connections with                    around us
                   Marketing Partners                  •Global Connections
                 •Connecting with other                •Connections with
                 company departments                   values and
                 •Connecting with suppliers            responsibilities
                 and distributors                      •Broadened
                 •Connecting through                   connections
                                                                             14
                 strategic alliances
      Technologies for Connecting
  Learn About &                                                       Create Products &
 Track Customers                                                     Services Tailored to
 With Databases                                                     Meet Customer Needs
               Connecting Technologies in
                        Computers,
                   Telecommunications,
              Information, & Transportation
                         Help To:

  Communicate With                                   Text page 26
                                                                    Distribute Products
Customers in Groups                                                  More Efficiently &
                               What aspects of
                               the Internet
                               make it a good
                               forum for
                               marketing?



  Or One-on-One                How do Web
                               companies
                               compete with
                                                                         Effectively
                               brick and mortar
                               companies?

                              Click or press spacebar to return




                                                                                          15
        The Internet
   The Internet has been hailed as the technology
    behind a new model for doing business.
   New applications include:
       Internet – connecting with customers,
       Intranets – connecting with others in the company,
        and
       Extranets – connecting with strategic partners,
        suppliers, and dealers.
   Purchasing will be over $1.4 trillion in 2003.
   400,000 companies are now using the Internet
    to do business.
                                                             16
Connections With Customers
             Most marketers are targeting
              fewer, potentially more
              profitable customers.
             Asking:
                 What value does the customer
                  bring to the organization?
                 Are they worth pursuing?
             Focus has shifted to:
                 keeping current customers, and
                 building lasting relationships
                  based on superior satisfaction
                  and value.
                                                 17
          Direct Connections With
          Customers
   Many companies use technologies to let them
    connect more directly with their customers.
       Products available via telephone, mail-order catalogs,
        kiosks and e-commerce.
       Some firms sell only via direct channels (i.e. Dell
        Computer, www.Amazon.com), others use a
        combination.
   Direct marketing is redefining the buyer’s role in
    connecting with sellers.
       Buyers are active participants in shaping the marketing
        offer and process; some buyers design their own
        products online such as at www.LandsEnd.com.
                                                                 18

								
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