Introduction to Marketing
Marketing
The process by which companies create value for customers and build
strong customer relationships in order to capture value from customer
in return.
The Marketing Process
Understand Construct an Build Capture value
Design a
the integrated profitable from
customer-
marketplace marketing relationships customers to
driven
and customer program that & create create profit &
marketing
needs & delivers customer customer
strategy
wants superior value delight equity
Understanding the Marketplace & Customer
Needs
• First step of marketing process, in which marketers need to
understand customer needs and wants and the marketplace within
which they operate.
• Following are the 5 core customer and marketplace concepts:
- Needs, wants and demands
- Market offerings
- Value and satisfaction
- Exchange and relationships
- Markets
Understanding the Marketplace & Customer
Needs (cont.)
• Customer Needs, Wants and Demands
- Needs include basic physical needs for food, clothing, and safety.
Social need for belonging and affection and individual need for
knowledge and self-expression.
- Wants are the form human needs take as they are shaped by culture
and individual personality.
- Demands are the human wants that are backed by buying power.
Understanding the Marketplace & Customer
Needs (cont.)
• Market Offerings
- Consumers’ needs and wants are fulfilled through market offerings
which include some combination of products, services, information
etc.
• Customer Value and Satisfaction
- Customers form expectations about the value sand satisfaction that
various market offerings will deliver and buy accordingly.
Understanding the Marketplace & Customer
Needs (cont.)
• Exchange and Relationships
- Exchange is the act of obtaining a desired object from someone by
offering something in return.
- Relationship involves attracting new customers and creating
transactions, the goal is to retain customers and grow their business
with the company.
• Market
- Market is a set of actual and potential buyers of a products.
Designing a Customer-Driven Marketing
Strategy
• Selecting Customers to Serve
- Customers are selected on the basis of market segmentation and target
market.
• Choosing a Value Proposition
- A company’s value proposition is the set of benefits or values it promises to
deliver to consumers to satisfy their needs.
• Marketing Management Orientations
- Marketing management wants to design strategies that will build profitable
relationships with target consumers.
- There are 5 alternative concepts under which organizations carry out their
marketing strategies:
Designing a Customer-Driven Marketing
Strategy (cont.)
• The Production Concept
- The idea that consumers will favor products that are available and
highly affordable and that the organization should therefore focus on
improving production and distribution efficiency.
• The Product Concept
- The idea that consumers will favor products that offer the most
quality, performance, and the features and the organization should
therefore devote its energy to making continuous product
improvements.
Designing a Customer-Driven Marketing
Strategy (cont.)
• The Selling Concept
- The idea that consumers will not buy enough of the products unless it
undertakes a large-scale selling and promotion effort.
• The Marketing Concept
- The idea of achieving organizational goals depends on knowing the needs
and wants of target markets and delivering the desired satisfaction better
than competitors do.
• The Societal Marketing Concept
- The idea that a company’s marketing decisions should consider consumers’
wants, the company’s requirements, consumer’s long-run interests, and
society’s long-run interests.
Preparing an Integrated Marketing Plan and
Program
• The company’s marketing strategy outlines which customers the
company will serve and how it will create value for these customers.
• The marketing program builds customer relationships by transforming
marketing strategy into action through marketing mix.
• Marketing mix consists of four P’s of marketing i.e. product, price,
place and promotion.
Building Customer Relationships
• The overall process of building and maintaining profitable customer
relationships by delivering superior customer value and satisfaction.
• 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: it depends on the product’s perceived
performance relative to buyer’s expectations. If the product’s
performance falls short of expectations, customer is dissatisfied. If
performance matches the expectations, the customer is satisfied.
Capturing Value from Customers
• Creating customer loyalty and retention
• Growing share of customer
• Building customer equity
