Marketing: An Introduction

Chapter 1

Marketing: an activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large

The marketing process Create value FOR customers understand the marketplace and customer needs and wants construct an integrated marketing program that delivers superior value Capture value FROM Build profitbale relationship s and create usomter delight capture value from customers to create profits and customer equity

Design a customerdriven marketing strategy

Customer needs, wants and demands Needs: a statee of felt depreviation of some basic satisfaction o Not created by society or by marketers, o They are natural and exist in the very texture of human biology Wants: dsire for specific satisfiers of the deeper needs o Continually shaped and reshaped by scial forces such as families, religion, schools, business organisations. Demands wants for specific products that are backed by an ability and willingness to buy them Customer perceived value and satisfaction Customer perceived value: the customers evaluation of the difference between all the beneitds and all the costs of a market offereing relativeto those competing offers Value= perceived benefits-cost of obtaining it Customer satisfaction: the extent to which a products perceived performance matches a buyers expectations.

Satisfied customers make repeat purchases and they tell others about their good experiences with the product

Exchanges, transactions and relationships Exchange is the act of obtaining a desired object from someone by offering something in return For an exchange to take place, several conditions must be satisfied. o two participants, each must have something of value to one another, o must be able to communicate and deliver A transaction is marketings unit of measures which consists of a trade of values between two parties. Relationship marketing is the process of creating, maintaining and enhancing strong, value-laden relationships with customers and other stakeholders. Markets and Marketers Markets: All the potential byers and sellers of a product Marketer: someone seeking a resource from someone else and willing to offer something of value in exchange Managing demand Negative demand: major part of the market dislikes the product No demand: target consumers are unaware or uninterested in the product Latent demand: demand is more than being satisfied Declining demand: demand for the product is declining Irregular demand: demand pattern is irregular, i.e., seasonal Full demand: company is satisfied with the volume it sells Overfull demand: demand is more than the company can handle Unwholesome demand: demands for unwholesome products Marketing management orientations The production concept

o Consumers will favour those prodcuts that are widely available and low in costs o One of the oldest philosphies that guides sellers The product concept o Consumers will favour those products that are of high quality, performance or innovative features The selling concept: o Consumers will not buy enough of companys products unless the organisations undertakes a large-scale selling effort o Management emphasis must be on aggressive selling and promotion efforts The marketing concept o Key to achieving organisational goals consists in determining the needs and wants f target matkets and deliverying the desired satisfications more effectively and efficiently o Main focuses of marketing concept are: target market, ustomer needs, coordinated marketing and profitablily

The societal markteig concept o The organizations task is to determine the needs, wants and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumers and the societys well being. o Three main pillars of societal marketing concept are: company profit, customer need and want satisfaction, and public interest

Preparing an integrated marketing program

marketing mix: set of marketing tools the firm uses to implement its marketing strategt o product o price o place o promotion

Building customer relationships customer relationship management o overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction relationship building blocks: o key to lasting customer realtionships is to creat superior customer value and satisfaction changing nature of customer relationships o relating with more carefully selected customers known as selective relationship management o relating for the long term companies are trying to retain customers and build profitale, long term relationships with them. Partner relationship management o Companies must work closely with a variety of marketing oartners. Capturing value from customers asd