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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
Capture value from
customers in return
Create value for customers and build customer
relationships
Understand
the
marketplace
& customer
needs &
want
1
Design a
customerdriven
marketing
strategy
2
Construct
an
integrated
marketing
program
that deliver
superior
value
3
Build
profitable
relationships
and create
customer
delight
Capture
value from
customers
to create
profits and
customer
equity
4
5
UNDERSTANDING THE MARKETPLACE
AND CUSTOMER NEEDS
CUSTOMER NEEDS, WANTS, AND
DEMANDS = ?
Customer Needs, Wants, and
Demands
• Needs = States of felt deprivation
Basic physical needs for food, clothing, warmth,
and safety
Social needs for belonging and affection
Individual needs for knowledge and selfexpression
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
Make &
Starting
point
The selling
concept
Factory
Focus
Means
Existing
products
Selling &
promoting
Ends
sell
(inside-out)
Profits through
sales volume
Sense &
respond
(outside-in)
The marketing
concept
Market
Customer
needs
Integrated
marketing
Profits through
customer
satisfaction
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.
Society
(Human welfare)
Societal
marketing
concept
Consumers
(Want satisfaction)
Company
(Profits)
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
Macroenvironment
• Demography
• Economic
• Natural – shortages of raw materials, natural
disaster, increased pollution, increased
government intervention
• Technological
• Political
• Cultural
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
Macroenvironment
•
•
•
•
•
•
Demography
Economic
Natural
Technological
Political
Cultural – forces that affect society’s basic
values, perceptions, preferences, and
behaviors
1st Assignment : Analyze 1 week in your life on activities, time
frame, media you use or face regarding to these categories:
Wake-up Morning Lunch @
time @ activitie (time/
place)
s
(time/
place/
activity)
Mon
Tue
Wed
Thu
Fri
Sat
Sun
Afterno
on
activitie
s
(time/
place/
activity)
Dinner
@
(time/
place)
Evening
activitie
s (time/
place/
activity)
Bed
time @