Post on 06-Apr-2018
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Marketing: Managing Profitable
Customer Relationships
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Topic & Structure of the lesson
What is Marketing?
Core Marketing Concepts
Marketing management philosophies/ concepts
The selling and marketing conceptscontrasted
Marketing challenges of the newcentury
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Learning Outcomes
At the end of the lesson, you shouldbe able to:
Identify and explain the core concepts inmarketing
Identify and explain the marketingmanagement philosophies
Explain the challenges faced bymarketers in the new century
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Main Teaching Points
Marketing Concepts
Marketing Management Philosophies
Marketing Challenges
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What is Marketing?
Definition:
A social and managerial process by
which individuals and groups obtainwhat they need and want throughcreating and exchanging products andvalue with others.
Not telling and selling but satisfyingcustomer needs
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The Marketing Process
Five-step model of the marketing process
1. Understand the marketplace and customerneeds and wants
2. Design a customer-driven marketing strategy3. Construct a marketing program that delivers
superior value
4. Build profitable relationships and createcustomer delight
5. Capture value from customers to create profitsand customer quality
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Core Marketing Concepts
Needs, wants& demand
Marketing offers
(products and services)
Value and satisfactionExchange, transaction &
relationships
Markets Core MarketingConcepts
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Core Marketing Concepts
1. Needs states of felt deprivation
2. Wants the form taken by human
needs as they are shaped by cultureand individual personality
3. Demands human wants that arebacked by buying power
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Core Marketing Concepts (cont.)
4. Product anything that can be offered toa market for attention, acquisition, use, orconsumption that might satisfy a want or
need-Products not limited to physical products
-Also includes services, activities, benefits-intangibles that do not result in ownershipof anything
-Many marketers suffer from marketingmyopia
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Core Marketing Concepts (cont.)
5. Value the difference between thevalues the customer gains fromowning and using a product and the
costs of obtaining the product 6. Satisfaction the extent to which a
products perceived performancematches a buyers expectations.
-Marketers must be careful to set upthe right level of expectations
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Core Marketing Concepts (cont.)
7. Quality / Total Quality Management programmes designed to constantlyimprove the quality of products, services,and marketing processes
8. Exchange the act of obtaining adesired object from someone by offeringsomething in return
-Idea is to build and maintain desirableexchange relationships
-Retain customers through superiorcustomer value
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Core Marketing Concepts (cont.)
9. Transaction a trade between two
parties that involves at least twothings of value, agreed uponconditions, a time of agreement and aplace of agreement
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Core Marketing Concepts(cont.)
10. Relationship marketing the process ofcreating, maintaining and enhancingstrong, value laden relationships with
customers and other stakeholders 11. Market the set of all actual and
potential buyers of a product or service
-These buyers share a particular need or
want that can be satisfied throughexchange relationships
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Designing a Customer-DrivenMarketing Strategy
Marketing Management is the art andscience of choosing target marketsand building profitable relationshipswith them
Two important questions
1. What customers will we serve (whats
our target market?)2. How can we serve these customers best
(whats our value proposition?)
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Selecting Customers to Serve
Dividing the market into segments ofcustomers (market segmentation)
Selecting which segment to serve(target marketing)
Marketing mangers must understandthat it is not possible to serve all
customers
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Choosing a Value Proposition
A companys value proposition is the setof benefits or values it promises todeliver to customers to satisfy their
needs
They answer the customers question:
Why should I buy your brand ratherthan a competitors?
It answers the question:
How the company will differentiate and
position itself in the marketplace
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Marketing Management Orientations
1. The production concept holds thatconsumers will favour products that areavailable and highly affordable
Therefore management should focus onimproving production and distributionefficiency
Useful in two types of situations1. Demand for the product exceeds the supply
2. Products cost is too high and improvedproductivity is required to bring it down
Risk of Marketing Myopia
M k ti M t
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Marketing ManagementOrientations
2. Product concept holds thatconsumers will favour products thatoffer the most quality, performanceand innovative features
Therefore management should devoteenergy to making continuous product
improvements Risk of Marketing Myopia
M k ti M t
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Marketing ManagementOrientations
3. The selling concept holds thatconsumers will not buy enough of theorganisations products unless it undertakes
a large scale selling and promotion offer. 4. The marketing concept holds that
achieving organisational goals depends ondetermining the needs and wants of target
markets and delivering the desiredsatisfactions more effectively and efficientlythan competitors do.
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The selling and marketing conceptscontrasted
Selling concept Marketingconcept
Starting
point
Factory Market
Focus Existingproducts
Customer needs
Means Selling andpromoting
Integratedmarketing
Ends Profits throughsales volume
Profits throughcust.
satisfaction
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Marketing ManagementOrientations
5. The societal marketing concept holds that the organisation shoulddetermine the needs, wants andinterests of target markets.
It should then deliver superior valueto customers in a way that maintains
or improves the customers and thesocietys well being.
Marketing challenges of the new
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Marketing challenges of the newcentury
1. Growth of non-profit marketing
2. Rapid globalisation
3. The changing world economy 4. The call for more ethics and social
responsibility
5. The new marketing landscape