THE MARKETING PROCESS:

CORE CONCEPTS
 THE MARKETING PROCESS

Marketing is:
The process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return (Kotler and Armstrong,
2012).

Marketing is to establish, maintain and enhance relationships with customers and

other partners, at a profit, so that the parties involved are met. This is achieved by
mutual exchange and fulfilment of promises (Grönroos, 1997).

Peter Drucker, 1. Understand consumer needs

“The aim of marketing is to make 2. Develop products that provide superior
selling unnecessary.”
customer value
3. Price, distribute, and promote them effectively

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 THE MARKETING PROCESS

MARKETING IS ABOUT…

Highlight competitive Communicate Achieving

advantages objectives

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 THE MARKETING PROCESS

OTHER CONCEPTS

Exchange transactions
The act of obtaining a desired object from someone by offering
something in return

Relationship marketing
The process of creating, maintaining and enhancing strong valued
relationships with consumers, customers, suppliers, distributor and
dealers.

Market
The set of all actual and potential buyers of a product or service

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 THE MARKETING PROCESS

THE MARKETING PROCESS

Understand Construct an Create

Build value from
the Design a integrated
profitable
marketplace customer- marketing customers
relationship
and driven program to create
s and create
customer marketing that delivers profits and
customer
needs and strategy superior customer
delight
wants value loyalty

(Kotler and Armstrong, 2012)

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 THE MARKETING PROCESS

Understand PEOPLE HAVE: COMPANIES OFFER

the
marketplace Products
and
Needs
customer States of felt deprivation. Anything that can be offered to a market
needs and for acquisition, use or consumption that
wants Wants might satisfy a want or a need.
The form human needs
take as they are shaped Services
by culture and individual Activities, benefits or satisfactions that are
personality. offered for sale. Normally intangible

Demands Experiences
Human wants that are Going beyond: integrated experience
backed by buying power. Ex: F1, HP “nothing is more personal”

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 THE MARKETING PROCESS

Understand Maslow’s hierarchy of needs (1943)

the
marketplace
and
customer
needs and
wants

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Marketing management
Design a The art and science of choosing target markets
customer-
driven
and building profitable relationships with them.
marketing
strategy What customers will we serve?
(what’s our target market)

Segmentation & Targeting

How can we serve these customers best?

(what’s our value proposition)
Positioning & Differentiation

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 THE MARKETING PROCESS

Construct an
integrated
marketing
program
that delivers
superior Marketing Marketing
value Strategy (plan) Programme
• Goals • Strategy in
• Target Market action
• Satisfy Demand • Marketing Mix
• Create Value (7Ps)

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 THE MARKETING PROCESS

A lasting customer relationships depends on customer value and

Build satisfaction.
profitable
relationship
s and create Consumer value: the consumer’s assessment of the product’s overall
customer capacity to satisfy his or her needs. They compare*
delight
Consumer satisfaction: The extent to which a product’s perceived
performance matches a buyer’s expectations. If the product’s
performance falls short of expectations, then the consumer is dissatisfied

Quality: could be defined as “freedom from defects”. Companies must

ensure they are consistent in delivering these satisfactions

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 THE MARKETING PROCESS

The changing communications environment have affected how

Build companies and brands relate to customers
profitable
relationship
s and create Customer-managed relationships
customer Marketing relationships in which customers,
delight
empowered by today’s new digital
technologies, interact with companies and
with each other to shape their relationships
with brands.

Consumer-generated marketing
Brand exchanges created by consumers themselves—both
invited and uninvited— by which consumers are playing an
increasing role in shaping their own brand experiences and
those of other consumers.

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 THE MARKETING PROCESS

Create
value from ‘It’s five times cheaper to keep an old
customers customer than acquire a new one’
to create
profits and Loosing a customer Customer lifetime value
customer means loosing: The value of the entire stream of
loyalty purchases that the customer would make
over a lifetime of patronage.

Share of customer
increases The portion of the customer’s purchasing that a
A good customer company gets in its product categories.
relationship
management Customer equity
The total combined customer lifetime values
Gains
of all of the company’s customers.

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 THE MARKETING PROCESS
http://youtu.be/mVPCupr-690
LETS DO SOME PRACTICE http://youtu.be/LtNVVe4ZCY0
http://youtu.be/bAzxAetRMrI
Watch the following spots and:
Define needs, wants and demand from consumers point of view
(Maslow’s)
Define:
product/service
market: which may be the target market?
customer’s expectations:
consumer value: compare to other market options (better/worse)
satisfaction: do you think the product satisfies the expectations? To
which extent?

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 Thank you
Abhishek Jain

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