Course Name Code Chapter : Principles of Marketing : MRK 152 : One I N T R O D U C T I ON T O M A R K E T I N G / B A S I C CONCEPTS M A R K E T I N G : C R E A T IN G STAKEHOLDER VALUE A ND CAPTURING Marketing Definition of Marketing: Marketing is managing profitable customer relationships. Marketing Definition conti…. Marketing is the process by which companies create value for customers and build strong relationships in order to capture value from customers in return. Marketing Process Understanding The Marketplace and Customer Concepts 1. Needs, Wants, and Demand 2. Market offerings (Products, service, and experiences) 3. Value and satisfaction 4. Exchanges and relationship; and 5. Markets Customer needs, wants and demand Needs – states of felt deprivation Wants – The form human needs takes as shaped by culture and individual personality. Ex., Americans wear pants and shirt and Saudis wear Thope Demand – When backed by buying power wants become demands. Market Offerings Customer needs and wants are fulfilled through market offerings – A combination of goods, services, information, and experiences are offered to satisfy a need. Customer Value and Satisfaction Customers form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly. Satisfied customers buy again and tell others about their good experiences. Dissatisfied customers often switch to competitors and disparage the products to others. Note: Marketers must be careful to set the right level of expectations – Plz. discuss….. Exchanges and Relationships Exchange is the act of obtaining a desired object from someone by offering something in return Marketers want to build strong relationships by consistently delivering superior customer value Market Market is the “Set of actual and potential buyers of a product”. A Modern Marketing System Designing a Customer Driven Marketing Strategy Marketing management is the art and science of choosing target markets and building profitable relationships with them. Designing customer driven marketing strategy Selecting customer Market segmentation Target Marketing Marketing management is customer management and demand management Value Proposition Set of benefits or values delivered to customers to satisfy their needs Answers why a customer should buy your brand rather than a competitor’s Marketing Concepts The Marketing Management philosophy holds that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering desired competitors do. satisfactions better than Marketing Management Orientations Production concept Product Concept Selling concept Marketing Concept Societal Marketing Concept The Societal Marketing Concept The idea that a company’s marketing decisions should consider consumer’s wants, the company’s requirements, consumers’ long run interests and society’s long run interests. Preparing an Integrated Marketing Plan and Program Price Place Product Promotion Building Customer Relationships Customer Relationship Management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Capturing Value from Customers Creating Customer Loyalty and Retention Growing Share of Customer Building Customer Equity Customer Loyalty and Retention • Satisfied customers remain loyal. • Talk favorably to others about the company and its products. • Its five times cheaper to keep an old customer than to acquire a new one. • Loosing the customer means losing the entire stream of purchases that customer would make over a lifetime of patronage. Growing Share of Customer • Good Customer Relationship Management can help marketers to increase their share of customer – the share they get of the customer’s purchasing in their product categories for ex., Supermarkets and Restaurants want to get more “share of stomach” Car companies want to increase “share of garage” and airlines want greater “share of travel” Building Customer Equity Customer equity is the total combined customer lifetime values of all the company’s current and potential customers. As such it’s the future value of the company’s customer base. Thank You!