Marketing I

Lecture 1
Winter Semester 2022/2023
Course Lecturers: Dr. Sara El-Deeb
Dr. Hadeer Hammad
Meet the Team

Sara El-Deeb Hadeer Hammad

Course Lecturer Course Lecturer
[email protected] [email protected]

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Course Assessment
Case Presentation: 5%
Quizzes: 5%
Group Assignment: 5%
Group Project: 25%

Midterm Exam: 20%

Final Exam: 40%

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Chapter 1:
Marketing: Creating and
Capturing Customer Value

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Agenda
Explain what is Design a customer- Build customer
Marketing driven stratgy relationships

1 3 5

2 4 6

Understand Prepare an integrated Capturing value

customer needs markteing plan from customers

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 “
Don’t Just teach your students to read.
Teach them to question what they read,
what they study. Teach them to doubt.
Teach them to think.
-Prof. Richard P. Feynman

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Where do you see MARKETING in your daily life?
What do you think MARKETING is all about?

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What is Marketing?

Marketing is a process by which companies create value for customers

and build strong customer relationships to capture value from customers
in return.

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What is Marketing?
The Marketing Process

Marketer Customer
Marketer 9
What is Marketing?
The Marketing Process

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Understanding the Marketplace and Customer Needs
Customer Needs, Wants and Demands

•States of deprivation:
•Physical—food, clothing, warmth, safety
Needs •Social—belonging and affection
•Individual—knowledge and self-expression

•Form that needs take as they are shaped by

Wants culture and individual personality

Demands •Wants backed by buying power

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Understanding the Marketplace and Customer Needs
Customer Needs, Wants and Demands

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Understanding the Marketplace and Customer Needs
Customer Needs, Wants and Demands: Example

Are Needs Created by Marketers?

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Understanding the Marketplace and Customer Needs
Are needs created by Marketers?

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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 its needs or wants.
Marketing Myopia is the mistake of paying more attention to the specific
products a company offers by focusing on existing wants and losing sight of
underlying customer needs.

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Understanding the Marketplace and Customer Needs

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Understanding the Marketplace and Customer Needs
Market Mypoia: Evolve or Die

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Understanding the Marketplace and Customer Needs
Customer Value and Satisfaction

Customers
• Value and satisfaction

Marketers
• Set the right level of expectations
• Not too high or low

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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.

Marketers aim at building desirable exchange relationships with consumers.

Marketers aim at building strong relationships by consistently delivering superior
customer value.

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Understanding the Marketplace and Customer Needs
Exchanges and Relationships

A Market is the set of actual and potential buyers of a product.

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Understanding the Marketplace and Customer Needs
Exchanges and Relationships

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What is Marketing?
The Marketing Process

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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? “Target Market”

⇾ How can we best serve these customers? “Value Proposition”

By trying to serve all customers, marketers may not serve any customers well!

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Designing a Customer-driven Marketing Strategy
Selecting Customers to Serve

Market segmentation refers to dividing the markets into segments of customers.

Target marketing refers to which segments to go after.

Demarketing is marketing to reduce the number of customers or shift demand

temporarily or permanently; the aim is not to destroy demand but to reduce or shift
it.

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Designing a Customer-driven Marketing Strategy
Demarketing: Example

Prime shipping only for essentials

Recommendations were reduced

Cancelling subscriptions

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Designing a Customer-driven Marketing Strategy
Demarketing: Example

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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.

Value Propositions differentiates the brand from one another.

It answers the question “why should I buy your brand rather than the competitors?”

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Designing a Customer-driven Marketing Strategy
Marketing Management Orientations

Production Product Selling Marketing Societal

concept concept concept concept concept

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Designing a Customer-driven Marketing Strategy
Marketing Management Orientations

Production concept is the idea that consumers will favor products that are
available and highly affordable and that the organization should focus on
improving production and distribution efficiency.

Mass production
Risk: Marketing Myopia!

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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 innovative features. An organization should therefore
devote its energy to making continuous product improvements.

Risk: Marketing Myopia

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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.

Risk: Focus on making sales rather than building long-term relationships.

Risk: Focus on selling what the company makes rather than making what
consumers want.

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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.

Instead of a product-centered “make and sell” philosophy, the marketing concept

is a customer-centered “sense and respond” philosophy. The job is to find the right
products for your customers.

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Designing a Customer-driven Marketing Strategy
The Selling and Marketing Concepts Contrasted

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Designing a Customer-driven Marketing Strategy
Choosing a Value Proposition

The societal marketing concept is the idea that a company’s marketing decisions
should consider consumers’ wants, the company’s requirements, consumers’
long-term interests, and society’s long-term interests.

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What is Marketing?
The Marketing Process

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Preparing an Integrated Marketing Plan and Program

The Marketing mix is the set of tools (four Ps) the firm uses to implement its
marketing strategy. It includes product, price, promotion, and place.

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Preparing an Integrated Marketing Plan and Program

Integrated marketing program is a comprehensive plan that communicates and

delivers the intended value to chosen customers.

+
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What is Marketing?
The Marketing Process

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Building Customer Relationships

Customer Relationship Management (CRM) is the overall process of building and

maintaining profitable customer relationships by delivering superior customer
value and satisfaction. It deals with acquiring, keeping and growing customers.

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Building Customer Relationships

Relating with more carefully selected customers: Uses selective relationship

management to target fewer, more profitable customers

Relating more deeply and interactively by incorporating more interactive, two

way relationships through blogs, websites, online communities and social
networks.
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Building Customer Relationships
Relationship Building Blocks: Customer Value and Satisfaction

Customer- perceived Value Customer Satisfaction

The customers’ evaluation The extent to which the

of the difference between product’s perceived
the total value and total performance matches a
costs of a market offering buyer’s expectations

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What is Marketing?
The Marketing Process

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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.

Companies are realizing that losing a customer means losing more than a single
transaction. It means losing the entire stream of purchases that the customer
would make over a lifetime.

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Capturing Value from Customers
Creating Customer Loyalty and Retention

Stew Leonard, who operates a highly profitable four-

store supermarket in New York, says that he sees
$50,000 flying out of his store every time he sees a
dissatisfied customer. Why?
Because his average customer spends about $100 a
week, shops 50 weeks a year, and remains in the area
for about 10 years.
For him:
Rule#1 customer is always right.
Rule #2 if the customer is ever wrong, re-read rule #1.

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Capturing Value from Customers
Creating Customer Loyalty and Retention

Customer equity is the total combined customer lifetime values of all of the
company’s customers.
It is a better measurement of firms’ performance than current sales and
market share. Sales and market share reflect the past, but the customer
equity suggest the future.

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So, What is Marketing?
Putting it All Together!

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The Changing Marketing Landscape

Digital and social media marketing involves using

digital marketing tools such as:
websites, social media, mobile ads and apps, online
videos, e-mail, and blogs that engage consumers
anywhere, at any time, via their digital devices.

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Thanks!
Any questions?

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