An Orientation to Marketing

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					An Orientation to Marketing

          Issue: One
What is Marketing?
American Marketing Association defines…
Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at large
(January, 2008).
Marketing is an organizational function and a set of processes for
creating, communicating, and delivering value to customers and for
managing customer relationships in ways that benefit the
organization and its stakeholders. (Previous definition)
Marketing Process
The process comprising of five steps –
 Understanding the marketplace and customer needs and wants

 Design a customer-driven marketing strategy

 Construct an integrated marketing program that delivers superior
value
 Build profitable relationships and create customer delight

 Capture value from customers to create profits and customer
equity
What Is Marketed?

Goods                   Experiences

Services                  Persons

Events      Marketing    Properties

Places                  Organization

 Ideas                  Information
Physical Goods
Services
Events




  Rolling Stone
Places




  Las Vegas
Experiences




  Disney
Persons




Professor Philip Kotler
                          LeBron James
Marketplace and Customer
The underlying concepts:
 Customer needs, Wants, and Demands

 Products, Services, and Experiences

 Customer Value and Satisfaction

 Exchange and Relationships

 Markets
Marketplace and Customer (Continued)
Customer Needs, Wants, and Demands
 Needs are the states of deprivation for food, shelter, clothing,
affection as well as for knowledge and self-expression.
 Wants are objects that will satisfy needs, which are shaped by
ones own culture and individual personality.
 Demands are the fulfillment of certain wants as backed by the
buying power of an individual customer.
Market Offering
Market offering refers to some combination of products, services,
information, or experiences offered to a market to satisfy a need or
want.
  Product is anything that can be a offered to a market for
attention, acquisition, and consumption to satisfy a need.
 Services are the type of products which are essentially intangible
in nature and does not result in the ownership of anything.
Example: Physical Goods
Example: Services
Market (Economists’ View)
A market is an agreement whereby buyers and sellers
interact to determine the prices and quantities of a
commodity.
In some instances,
 Markets take place in physical locations
 Markets are conducted over the telephone or are
organized by other technologies (i.e. computer)
Market
A market is the set of actual and potential buyers of a
product who shares a particular need or want that can be
satisfied through exchange relationships.
The core marketing activities involve:
 Product development
 Research
 Communication
 Distribution
 Pricing, and service
Modern Exchange Economy
Marketing System


            Company

                            Marketing            Final
Suppliers                 Intermediaries         Users


            Competitors



                    Major environmental forces
Customer-driven Marketing Strategy
Selection of Customers
 Who will be the customers of a physical good or service?

 What will be the level, timing, and nature of their demand?



                                          Segment
     Segment       Segment                   D
        A             B
                                                       Target
                                                       Market
     Segment       Segment
        C             D

                                            Market Segmentation
Customer-driven Marketing Strategy
Selection of a Value Proposition
 How the targeted customers will be served?

 How the product will differentiate itself from others?

 How the product will be positioned?


Value proposition gives customers a compelling reason to buy or
select a particular product over others.
Marketing Concepts
The Production Concept
The idea that consumers will favor products that are available and
highly affordable. Here, organization usually focuses on improving
production and distribution efficiency.

The Product Concept
The concept holds that consumers will favor products that offer the
most in quality, performance, and innovative features. Here,
organization focuses on making continuous product developments.
Marketing Concepts (Continued)
The Selling Concept
The concept holds that consumers will not buy enough of the firm’s
products unless it undertakes a large-scale selling and promotion
effort.

The Marketing Concept
The concept holds that achieving organizational goals depends on
knowing the needs and wants of the target markets and delivering
the desired satisfactions better than the competitors do.
Marketing Concepts (Continued)
 Starting       Focus        Means            Ends
  Point
                             Selling
               Existing                  Profits through
 Factory                      and
               Products                   Sales Volume
                           Promoting




                                         Profits through
              Customer      Integrated
 Market                                    Customer
               Needs        Marketing
                                          Satisfaction

  Selling Concept         Marketing Concept
Marketing Concepts (Continued)
The Societal Marketing                        Society
Concept                                (Human Welfare)

The concept holds that
marketing          strategy
should deliver value to
customers in a way that                    Societal
                                          Marketing
maintains or improves                      Concept
both the consumer’s and
the society’s well-being.
                              Consumers                  Company
                        (Want Satisfaction)              (Profits)
Holistic Marketing Concept
Integrated Marketing Program
Marketing program transforms marketing strategy into actions that
builds customer relationships. This include:
   Product: A need-satisfying offering
   Price: A charge attached to a market offering
Place: A method to distribute an offering among the target
customers
 Promotion: A method to communicate about an offering to create
favorable reaction among the target customers
Traditional 4Ps
Customer Relationship
Management
The overall process of building and maintaining profitable customer
relationships by delivering superior customer value and
satisfaction.

       Customer Perceived Value
                                                   Customer
                                                  Relationships
         Customer Satisfaction
Customer Relationship
Management (Continued)
Customer Perceived Value: The customer’s evaluation of the
difference between all the benefits and all the costs of a market
offering relative to those of competing offers.

Customer Satisfaction: Customer satisfaction derives from a
product’s perceived performance relative to a buyer’s expectations.
But, there is always a trade-off between delivering highest level of
customer satisfaction and maintaining profits.
Customer Relationship
Management (Continued)

1.    Product Performance            Customer Expectation

                  Result: Customer Dissatisfaction


2.    Product Performance            Customer Expectation

                    Result: Customer Satisfaction



3.    Product Performance            Customer Expectation

        Result: High Customer Satisfaction or Delight
End of Session

				
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posted:9/26/2012
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