Fundamental of marketing

1. Define Marketing
Marketing is a process by which companies create value for
customers and build strong customer relationships in
order to capture value from customers in return.
Today, marketing must be understood not in the old sense of
making a sale—“telling and selling”—but in the new
sense of satisfying customer needs.

2. The twofold goals of marketing
(1) attract new customers by promising superior value
(2) grow current customers by delivering satisfaction

3. Marketing Process
In the first four steps, companies work to understand consumers, create
customer value, and build strong customer relationships. In the final
step, companies reap the rewards of creating superior customer value.

4. 1. Understanding the marketplace
Customer Needs, Wants, and Demands
Market Offerings—Products, Services, and Experiences
Customer Value and Satisfaction
Exchanges and Relationships
Markets

5. 2. Design a customer driven marketing strategy
Selecting Customers to Serve
Choosing a Value Proposition
Marketing Management Orientations
 Production concept
 Product concept
 Selling concept
 Marketing concept
 Societal marketing concept

6. Marketing Management Orientations/ Philosophy/alternative
Concepts
Production concept is the idea that consumers will favor
products that are available or highly affordable, therefore
organization should focus on improving production and
distribution efficiency.
Product concept is the idea that consumers will favor products
that offer the most quality, performance, and features.
Organization should therefore devote its energy to making
continuous product improvements.
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.

7. Continued….
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.
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.

8. The selling and marketing concepts contrasted

9. SL Marketing Selling
1 Marketing starts with the buyer and
focuses constantly on buyer's needs.
Selling starts with the seller and is preoccupied all the
time with the seller's needs.
2 Seeks to convert customer’s need
into products.
Seeks to convert products into Cash.
3 Views business as a customer satisfying
process.
Views business as a goods producing process
4 Consumers determine the price; price
determines the cost.
Cost determines the price.
5 Customers’ satisfaction is the primary
motive.
Sales are the primary motive.
6 It is a broad composite and worldwide
concept more so in this era of
globalization.
It is a narrow concept related to product, seller, and
sales activity.
7 External market orientation. Internal company orientation

10. 3. Preparing an integrated Marketing program plan
The company’s marketing strategy outlines which
customers it will serve and how it will create value for
these customers. The marketing program builds
customer relationships by transforming the marketing
strategy into action. It consists of the firm’s marketing
mix, the set of marketing tools the firm uses to
implement its marketing strategy.

11. 4. Building strong customer relationship
 Customer relationship management- 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 marketing offer relative to those of competing
offers.
 Customer satisfaction
 Consumer-generated marketing
 Partner relationship management

12. Customer Relationship Group

13. 5. Capturing Value from Customers
Creating Customer Loyalty and Retention
 Growing Share of Customer- The portion of the
customer’s purchasing that a company gets in its
product categories.
 Building Customer Equity- The total combined
customer lifetime values of all of the company’s
customers.
Building the Right Relationships with the Right
Customers

14. 4P, 4C, and 4A of Marketing
Four Ps Four Cs Four As
Product Customer solution Acceptability
Price Customer cost Affordability
Place Convenience Accessibility
Promotion Communication Awareness

15. THANK YOU