050121 Principles of Marketing

Suwattana Sawatasuk

WHAT IS MARKETING?

What is Marketing?

• The process by which companies create value for customers and build strong customer relationships in order to capture value from customer in return.

Marketing Process

Understand the

marketplace & customer

needs & want

Design a customer-

driven marketing strategy

Construct an

integrated marketing program

that deliver superior

value

Build profitable

relationships and create customer

delight

Capture value from customers to create

profits and customer

equity

1 2 3 4 5

Create value for customers and build customer relationships

Capture value from customers in return

UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS

Customer Needs, Wants, and Demands

• Needs = States of felt deprivation

Basic physical needs for food, clothing, warmth, and safety

Social needs for belonging and affectionIndividual needs for knowledge and self-

expression

Customer Needs, Wants, and Demands

• Wants = The form human needs take as shaped by culture and individual personality– Dandy needs food but wants to eat sushi at Fuji

Restaurant.

• When human wants are backed by buying power, wants become demands of products with benefits that add up to the most value & satisfaction.

Market Offerings–Products, Services, and Experiences

• Market offering = some combination of products, services, information, or experiences offered to a market to satisfy a need or want

Marketing Management

• The art and science of choosing target markets and building profitable relationships with them

• There are 5 alternative concepts under which organizations design and carry out their marketing strategies: the production, product, selling, marketing, and

societal marketing concepts.

I. Production Concept

• The idea that consumers will favor products that are available and that the organization should therefore focus on improving production and distribution efficiency.

II. Product Concept

• The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements.

III. Selling Concept

• The idea that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.

IV. Marketing Concept

• The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

The Selling and Marketing Concepts Contrasted

Factory Existing products

Selling & promoting

Profits through sales volume

The selling concept

Market Customer needs

Integrated marketing

Profits through customer satisfaction

The marketing concept

Starting point

Focus Means Ends

The set of actual

& potential

buyers of

product or

service

Make & sell

(inside-out)

Sense & respond

(outside-in)

V. Societal Marketing Concept

• The idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.

Societal marketing

concept

Society(Human welfare)

Company(Profits)

Consumers(Want satisfaction)

ANALYZING THE MARKETING ENVIRONMENT

Marketing Environment

• The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers

• 2 Levels of marketing environment:– Microenvironment– Macroenvironment

Microenvironment

• The actors close to the company that affect its ability positively or negatively to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.

Microenvironment

• The company – top management (mission, objectives, strategies, policies), R&D, purchasing, operations, and accounting

• Suppliers • Marketing intermediaries• Competitors• Publics• Customers

Microenvironment

• The company• Suppliers – supply shortages or delays, labor

strikes, rising supply costs• Marketing intermediaries• Competitors• Publics• Customers

Microenvironment

• The company• Suppliers• Marketing intermediaries – firms that help company

to promote, sell, and distribute its goods to final buyers includes resellers, distribution firms, marketing services agencies, and financial intermediaries

• Competitors• Publics• Customers

Microenvironment

• The company• Suppliers• Marketing intermediaries• Competitors• Publics• Customers

Microenvironment• The company• Suppliers• Marketing intermediaries• Competitors• Publics – any group that has an actual or potential

interest in or impact on an organization’s ability to achieve its objectives such as financial, media, government, citizen action, local, general, and internal publics

• Customers

Microenvironment

• The company• Suppliers• Marketing intermediaries• Competitors• Publics• Customers – consumer markets, business

markets, reseller markets, government markets, and international markets

Macroenvironment

• The larger societal forces that affect the micro environment—demographic, economic, natural, technological, political, and cultural forces.

Macroenvironment

• Demography – human populations in terms of size, density, location, age, gender, race, occupation and other statistics

• Economic• Natural• Technological• Political• Cultural

Macroenvironment

• Demography• Economic – factors that affect consumer buying

power and spending patterns such as income, cost of living, interest rates, and saving and borrowing patterns

• Natural• Technological• Political• Cultural

• Demography• Economic• Natural – shortages of raw materials, natural

disaster, increased pollution, increased government intervention

• Technological• Political• Cultural

Macroenvironment

Macroenvironment

• Demography• Economic• Natural• Technological – forces that create new

technologies, creating new product and market opportunities

• Political• Cultural

QR Code (2D Bar Code)

Macroenvironment

• Demography• Economic• Natural• Technological• Political – laws, government agencies, and

pressure groups that influence and limit various organizations and individuals in a given society

• Cultural

• Demography• Economic• Natural• Technological• Political• Cultural – forces that affect society’s basic

values, perceptions, preferences, and behaviors

Macroenvironment