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Principles Marketing 12E Philip Kotler

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Principles Marketing 12E Philip Kotler Powered By Docstoc
					   International University
         of Sarajevo

Introduction to Marketing

            Chapter 1
  Marketing: Managing Profitable
     Customer Relationships


             Amel Kovačević
    Structure for today: 3
          questions
• Who is this guy?
• What are we going to do this
  semester?
 – Most importantly…how do I score
   some rockin’ grades?
• What’s the big deal about
  Marketing?
 – An introduction to the context in
   which Marketing fits
                      Chapter 1
              Introduction to Marketing
        Who is this guy?
• Amel Kovačević
• B.Sc. Economics, Master of Economics
  (International Islamic University
  Malaysia)
• 11 years in banking/financial sector
  – General Manager of BamCard dd Sarajevo
    since 2003
  – Visiting lecturer at IUS
• Recently appointed Bosnian
  ambassador to PR of China


                        Chapter 1
                Introduction to Marketing
              Course Goals
• To outline the marketing function and its role
  within a corporation’s business strategies, also
  hopefully generating a passion for the Marketing
  discipline and empowering you to evaluate
  Marketing as a possible career choice
• To introduce you to marketing strategy and to the
  elements of marketing analysis: customer analysis,
  company analysis, and competitor analysis
• To familiarize you with the elements of the
  marketing mix (product, pricing, promotion, and
  distribution strategies) and enhance your problem
  solving and decision making abilities in these
  operational areas of marketing tactics
            HAVE LOTS OF FUN!
                           Chapter 1
                   Introduction to Marketing
               TEXT BOOK



Principles of Marketing

Philip Kotler,
Gary Armstrong, (12e)




                        Chapter 1
                Introduction to Marketing
…and how do I score some really serious
                        grades?
• There’s no rocket science to getting good
  grades
• The secret: Work Hard!
A grade will be composed of:
  Class participation        5%
  Quizzes                 10%
  Midterm exam            25%
  Marketing plan          20%
  Final exam              40%
  TOTAL                  100%
The allocation of the percentage is subject to change.
                                Chapter 1
                        Introduction to Marketing
                    Concepts

1.   What Is Marketing?
2.   Understanding the Marketplace and Customer
     Needs
3.   Designing a Customer-Driven Marketing Strategy
4.   Preparing an Integrated Marketing Plan and
     Program
5.   Building Customer Relationships
6.   Capturing Value from Customers
7.   The New Marketing Landscape
8.   So, What Is Marketing? Pulling It All Together



                           Chapter 1
                   Introduction to Marketing
       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

                      Chapter 1
              Introduction to Marketing
         What Is Marketing?

        The Marketing Process

1.   Understand the marketplace and customer
     wants and needs
2.   Design a customer-driven marketing
     strategy
3.   Construct a marketing plan that delivers
     superior value
4.   Build profitable relationships and create
     customer satisfaction
5.   Capture value from customers to create
     profit and customer equity
                          Chapter 1
                  Introduction to Marketing
                  What Can Be
                   Marketed?
                            •   Goods
                            •   Services
                            •   Places
                            •   Ideas
                            •   Events
                            •   Persons
                            •   Properties
                            •   Organizations
                            •   Information
                            •   Experiences

                       What is being
                     marketed in this ad?
        Chapter 1
Introduction to Marketing
Understanding the Marketplace
    and Customer Needs
Maslow’s Pyramid of Needs




                          Chapter 1
                  Introduction to Marketing
  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
                      Chapter 1
              Introduction to Marketing
    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 backed by buying
  power       Chapter 1
              Introduction to Marketing
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
                     Chapter 1
             Introduction to Marketing
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
                Chapter 1
             Introduction to Marketing
  Understanding the Marketplace
      and Customer Needs

Customer Value and Satisfaction

• Expectations
  • Customers
    • Value and satisfaction
  • Marketers
    • Set the right level of expectations
       • Not too high or too low
                         Chapter 1
                 Introduction to Marketing
  Understanding the Marketplace
      and Customer Needs
  Exchanges and Relationships

Exchange is the act of obtaining a
  desired object from someone by
  offering something in return

Relationships consist of actions to
  build and maintain desirable
  relationships
                     Chapter 1
             Introduction to Marketing
Understanding the Marketplace
    and Customer Needs
Markets are the set of actual and potential
  buyers of a product
Marketing system consists of all of the actors
  (suppliers, company, competitors,
  intermediaries, and end users) in the system
  who are affected by major environmental
  forces
• Demographic
• Economic
• Physical
• Technological
• Political–legal
• Socio-cultural    Chapter 1
                Introduction to Marketing
 Understanding the Marketplace
     and Customer Needs
Marketing system consists of all of the actors
 in the system who are affected by major
 environmental forces




                         Chapter 1
                 Introduction to Marketing
   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?     Chapter 1
              Introduction to Marketing
   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
                    Chapter 1
            Introduction to Marketing
   Designing a Customer-Driven
        Marketing Strategy


 Selecting Customers to Serve

De-marketing: Marketing to reduce
  demand temporarily or
  permanently; the aim is not to
  destroy demand but to reduce or
  shift it.

                    Chapter 1
            Introduction to Marketing
 Designing a Customer-Driven
      Marketing Strategy

 Selecting Customers to Serve

Marketing management is:
• Customer management
• Demand management



                    Chapter 1
            Introduction to Marketing
 Designing a Customer-Driven
      Marketing Strategy

  Choosing a Value Proposition

The value proposition is the set of
  benefits or values a company
  promises to deliver to customers
  to satisfy their needs


                    Chapter 1
            Introduction to Marketing
        Chapter 1
Introduction to Marketing
        Chapter 1
Introduction to Marketing
    Designing a Customer-Driven
         Marketing Strategy
      Marketing Management
            Orientations

•   Production concept
•   Product concept
•   Selling concept
•   Marketing concept
•   Societal concept
                      Chapter 1
              Introduction to Marketing
 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

                     Chapter 1
             Introduction to Marketing
     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
                      Chapter 1
              Introduction to Marketing
 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

                    Chapter 1
            Introduction to Marketing
   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

                      Chapter 1
              Introduction to Marketing
        Chapter 1
Introduction to Marketing
   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
                      Chapter 1
              Introduction to Marketing
        Chapter 1
Introduction to Marketing
 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
                    Chapter 1
            Introduction to Marketing
    Preparing an Integrated
   Marketing Plan and Program


 Integrated Marketing Program

Integrated marketing program is
  a comprehensive plan that
  communicates and delivers the
  intended value to chosen
  customers

                   Chapter 1
           Introduction to Marketing
   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
                        Chapter 1
                Introduction to Marketing
   Building Customer Relationships

       Customer Relationship
            Management
              (CRM)

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

                         Chapter 1
                 Introduction to Marketing
        Chapter 1
Introduction to Marketing
       Building Customer Relationships
    Customer Relationship Management
                 (CRM)
     Customer Relationship Levels and
                    Tools

•   Basic relationship
•   Full relationships
•   Frequency marketing programs
•   Club marketing programs
                         Chapter 1
                 Introduction to Marketing
Building Customer Relationships
      The Changing Nature of Customer
                Relationships

Relating with more carefully selected customers uses
   selective relationship management to target fewer,
   more profitable customers
Relating for the long term uses customer relationship
   management to retain current customers and build
   profitable, long-term relationships
Relating directly uses direct marketing tools (telephone,
   mail order, kiosks, Internet) to make direct
   connections with customers



                            Chapter 1
                    Introduction to Marketing
Building Customer Relationships




                   Chapter 1
           Introduction to Marketing
   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



                         Chapter 1
                 Introduction to Marketing
Building Customer Relationships
         Partner Relationship
              Management

Partners inside the company is every function
   area interacting with customers
• Electronically
• Cross-functional teams

Partners outside the company is how
   marketers connect with their suppliers,
   channel partners, and competitors by
   developing partnerships


                         Chapter 1
                 Introduction to Marketing
  Building Customer Relationships

  Partner Relationship Management

Supply chain is a channel that stretches
  from raw materials to components to
  final products to final buyers
• Supply management
• Strategic partners
• Strategic alliances
                       Chapter 1
               Introduction to Marketing
Capturing Value from Customers

 Creating Customer Loyalty and
            Retention

Customer lifetime value is the
  value of the entire stream of
  purchases that the customer
  would make over a lifetime of
  patronage
                    Chapter 1
            Introduction to Marketing
  Capturing Value from Customers


  Growing Share of Customer

Share of customer is the portion of
  the customer’s purchasing that a
  company gets in its product
  categories


                    Chapter 1
            Introduction to Marketing
Capturing Value from Customers

    Building Customer Equity

Customer equity is the total
  combined customer lifetime
  values of all of the company’s
  customers



                     Chapter 1
             Introduction to Marketing
    Capturing Value from Customers

      Building Customer Equity

Building the right relationships
  with the right customers
  involves treating customers as
  assets that need to be managed
  and maximized
•   Different types of customers require different
    relationship management strategies
    • Build the right relationship with the
      right customers
                          Chapter 1
                  Introduction to Marketing
    The New Marketing Landscape

        Major Developments

•   Digital age
•   Globalization
•   Ethics and social responsibility
•   Not-for-profit marketing


                       Chapter 1
               Introduction to Marketing
    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
•   Create new customized products
•   Distribution
•   Communication
    •   Video conferencing
    •   Online data services



                              Chapter 1
                      Introduction to Marketing
 The New Marketing Landscape

      The New Digital Age

Internet—creates marketplaces and
  marketspaces
• Information
• Entertainment
• Communication

                    Chapter 1
            Introduction to Marketing
 The New Marketing Landscape


        Rapid Globalization

• The world is smaller
• Think globally, act locally




                      Chapter 1
              Introduction to Marketing
 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
                    Chapter 1
            Introduction to Marketing
    The New Marketing Landscape

    The Growth for Not-for-Profit
             Marketing

•   Colleges
•   Hospitals
•   Museums
•   Zoos
•   Orchestras
•   Religious groups


                          Chapter 1
                  Introduction to Marketing
        Chapter 1
Introduction to Marketing
        Chapter 1
Introduction to Marketing
        Chapter 1
Introduction to Marketing
        Chapter 1
Introduction to Marketing
        Chapter 1
Introduction to Marketing
                   Summary

1.   What Is Marketing?
2.   Understanding the Marketplace and Customer
     Needs
3.   Designing a Customer-Driven Marketing Strategy
4.   Preparing an Integrated Marketing Plan and
     Program
5.   Building Customer Relationships
6.   Capturing Value from Customers
7.   The New Marketing Landscape
8.   So, What Is Marketing? Pulling It All Together



                           Chapter 1
                   Introduction to Marketing

				
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