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Marketing
Represents 5 credits of the 7 credits course. 4 credits will be specifically for the Marketing as general topic, and 1 credit will be locked/conditional on completing, and submitting the year long business plan. Book: Principles of Marketing. Kotler, Armstrong, 12e or newer If not available, any book by Philip kotler called Principles of Marketing, or Introduction to marketing, or Principles of marketing The European edition will do the job. Topics covered, viewed in the next slide, can be checked against the other editions you may choose to read.

Topics Covered!

According to 12th edition

Cha.1: Defining Marketing and the marketing Process. Cha.2: Company and marketing strategy. Cha.3: The marketing environment Cha.4.: Managing Marketing information. Cha.5: Consumer markets and consumer behavior. Cha.6: Business markets and business buyer behavior. Cha.7: Customer driven Marketing strategy. Cha.8: Product, service, and branding strategy. Cha.9: New product development and product life cycle strategies. Cha.10 & 11: Pricing products and pricing strategies. Cha.12: Marketing channels and Supply Chain Management Cha.14: Communicating customer value: communications strategy Cha.15: Advertising and public relations Cha. 16: Personal selling and sales promotion Cha. 17: Direct Marketing All together 16 chapters to be covered! However, it is better if you can read uncovered ones.

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Marketing Marketing is managing profitable

customer relationship.
This is done by: 1. Attracting new customers by promising superior value, 2. Keep and grow current customers by delivering satisfaction.

Marketing & The Marketing Process

Marketing is the process by which companies create value for customers and build strong customer relationships to capture value from customers in return The Marketing Process
1. 2. 3. 4. 5. Understand the marketplace and customer wants and needs Design a customer-driven marketing strategy Construct a marketing plan that delivers superior value Build profitable relationships and create customer satisfaction Capture value from customers to create profit and customer equity.
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Understanding the Marketplace and Customer Needs

Customer Needs, Wants, and Demands
Needs are states of deprivation Physicalfood, clothing, warmth, safety Socialbelonging and affection Individualknowledge and self-expression

Understanding the Marketplace and Customer Needs

Customer Needs, Wants, and Demands
Wants are the form that needs take as they are shaped by culture and individual personality Demands are wants backed by buying power

Need Food Want an apple an apple if you have money

Demand

Wants + Buying Power = Demand

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Understanding the Marketplace and Customer Needs

Market Offerings - Products, Services, and Experiences
Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want Exchange is the act of obtaining a desired object from someone by offering something in return
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Understanding the Marketplace and Customer Needs

Markets are the set of actual and potential buyers of a

product

company, competitors, intermediaries, and end users) in the system who are affected by major environmental forces
Demographic Economic Physical Technological Politicallegal

Marketing system consists of all of the actors (suppliers,

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Designing a Customer-Driven Marketing Strategy

Marketing Management
Marketing management is the art and science of choosing target markets and building profitable relationships with them

What customers will we serve? (target market) How can we best serve these customers?
(Value proposition)

Designing a Customer-Driven Marketing Strategy

Selecting Customers to Serve
Market segmentation: Dividing the markets into segments of customers Target marketing: Which segments to go after

De-marketing: Marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it.
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Designing a Customer-Driven Marketing Strategy

Choosing a Value Proposition
The value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs Red Bull Gives You Wiiings! The value proposition is a drink that help you fight fatigue.

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Designing a Customer-Driven Marketing Strategy

Marketing Management Orientations
Production concept Product concept Selling concept Marketing concept Societal concept
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Designing a Customer-Driven Marketing Strategy

Marketing Management Orientations
Production concept is the idea that consumers will favor products that are available or highly affordable

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Designing a Customer-Driven Marketing Strategy

Marketing Management Orientations
Product concept is the idea that consumers will favor products that offer the most quality, performance, and features for which the organization should therefore devote its energy to making continuous improvements Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs

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Designing a Customer-Driven Marketing Strategy

Marketing Management Orientations
Selling concept is the idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort

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Designing a Customer-Driven Marketing Strategy

Marketing Management Orientations
Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do

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Designing a Customer-Driven Marketing Strategy

Marketing Management Orientations
Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers wants, the companys requirements, consumers long-term interests, and societys long-run interests Are fast food meals healthy on the long run? Is increasing fuel consumption good for the environment? Is it ethical to use children as labor?
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Preparing an Integrated Marketing Plan and Program

Marketing Mix
The marketing mix is the set of tools (four Ps) the firm uses to implement its marketing strategy Product Price Promotion Place

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Preparing an Integrated Marketing Plan and Program

Integrated Marketing Program
Integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers

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Building Customer Relationships

Customer perceived value is the difference between total customer value and total customer cost Customer satisfaction is the extent to which a products perceived performance matches a buyers expectations

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Building Customer Relationships

The Changing Nature of Customer Relationships
Relating with more carefully selected customers uses selective relationship management to target fewer, more profitable customers Relating for the long term uses customer relationship management to retain current customers and build profitable, long-term relationships Relating directly uses direct marketing tools (telephone, mail order, Internet) to make direct connections with customers

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Building Customer Relationships

Partner Relationship Management
Partner relationship management refers to working closely with partners in other company departments and outside the company to jointly bring greater value to customers

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Building Customer Relationships

Partner Relationship Management

Partners inside the company is every function area interacting with customers Electronically Cross-functional teams Partners outside the company is how marketers connect with their suppliers, channel partners, and competitors by developing partnerships
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Capturing Value from Customers

Creating Customer Loyalty and Retention
Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage

What is your estimated lifetime value for (Lidl, or CityMarket, or Prisma)?

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Capturing Value from Customers

Building Customer Equity Customer equity is the total combined customer lifetime values of all of the companys customers Building the right relationships with the right customers involves treating customers as assets that need to be managed and maximized
Different types of customers require different relationship management strategies Build the right relationship with the right customers

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