Download What Is Marketing?

Chapter One
Marketing: Managing Profitable
Customer Relationships
Lecture Plan
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
1-2
What Is Marketing?
Simple Definition:
Marketing is managing profitable
customer relationships.
Goals:
1. Attract new customers by promising
superior value.
2. Keep and grow current customers by
delivering satisfaction.
1-3
Marketing Defined
 A social and managerial process by
which individuals and groups obtain
what they need and want through
creating and exchanging products and
value with others.
OLD View
of Marketing:
Making a Sale –
“Telling & Selling”
NEW
New View
View
of
ofMarketing:
Marketing:
Satisfying
Satisfying
Customer
customerNeeds
needs
1-4
Lecture Plan
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
1-5
The Marketing Process
 A simple model of the marketing process:
– Understand the marketplace and customer needs
and wants.
– Design a customer-driven marketing strategy
(4 Ps – Marketing Mix).
– Construct a marketing program that delivers
superior value.
– Build profitable relationships and create customer
delight.
– Capture value from customers to create profits
and customer quality.
1-6
Lecture Plan
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
1-7
Needs, Wants, & Demands
 Need:
State of felt deprivation including
physical, social, and individual needs.
– Physical needs:
• Food, clothing, shelter, safety
– Social needs:
• Belonging, affection
– Individual needs:
• Learning, knowledge, self-expression
1-8
Needs, Wants, & Demands
 Wants:
Form that a human need takes, as
shaped by culture and individual
personality.
 Wants + Buying Power = Demand
1-9
Need / Want Fulfillment
 Needs and wants are fulfilled through a
Marketing Offer:
Some combination of products, services,
information, or experiences offered to a
market to satisfy a need or want.
1-10
Need / Want Satisfiers
 Products:
– Persons
– Places
– Organizations
– Information
– Ideas
 Services
– Activity or benefit
offered for sale
that is essentially
intangible and
does not result in
ownership.
1-11
Lecture Plan
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
1-12
Marketing Myopia
 Marketing myopia occurs when sellers
pay more attention to the specific
products they offer than to the benefits
and experiences produced by the
products.
 They focus on the “wants” and lose
sight of the “needs.”
1-13
Lecture Plan
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
1-14
Value & Satisfaction
 Care must be taken when setting
expectations:
– If performance is lower than expectations,
satisfaction is low.
– If performance is higher than expectations,
satisfaction is high.
1-15
Lecture Plan
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
1-16
Exchange vs. Transaction
 Exchange:
– Act of obtaining
a desired object
from someone
by offering
something in
return.
 Transaction:
– A trade of
values between
two parties.
– One party gives
X to another
party and gets Y
in return. Can
include cash,
credit, or check.
1-17
Lecture Plan
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
1-18
What Is a Market?
 The set of actual and potential buyers
of a product.
 These people share a need or want that
can be satisfied through exchange
relationships.
1-19
Lecture Plan
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
1-20
Modern Marketing Systems
 Main elements in a modern marketing
system include:
– Suppliers
– Company (marketer)
– Competitors
– Marketing intermediaries
– Final users
1-21
Lecture Plan
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
1-22
Marketing Management
 The art and science of choosing target
markets and building profitable
relationships with them.
– Requires that consumers and the
marketplace be fully understood
1-23
Marketing Management
 Designing a winning marketing
strategy requires answers to the
following questions:
1. What customers will we serve?
What is our target market?
2. How can we best serve these
customers?
What is our value proposition?
1-24
Marketing Management
 Demand
Management
– Finding and
increasing
demand, also
changing or
reducing
demand, as in
demarketing.
 Demarketing
– Temporarily or
permanently
reducing the
number of
customers or
shifting their
demand.
1-25
Lecture Plan
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
1-26
Value Proposition
 The set of benefits or values a
company promises to deliver to
consumers to satisfy their needs.
– Value propositions dictate how firms will
differentiate and position their brands in
the marketplace.
1-27
Lecture Plan
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
What is Marketing?
The Marketing Process
Needs, Wants, and Demands
Marketing Myopia
Value and Satisfaction
Exchange vs Transaction
What is a Market?
Modern Marketing Systems
Marketing Management
Value Proposition
Marketing Management Philosophies
1-28
Marketing Management
Philosophies





Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
1-29
The Marketing Plan
 Transforms the marketing strategy into
action
 Includes the marketing mix and 4 P’s of
marketing:
– Product
– Price
– Place (Distribution)
– Promotion
1-30