Marketing Lec 1-3

Foundations of
Marketing
MKTG 1001
University of Newcastle
Dr. Kym Cowley
Slide 1
Copyright 2015 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781486002696 / Armstrong / Principles of Marketing 6e
People in the Course

Course Coordinator
Dr. Kym Cowley
Office: S110
Tel: 612 49217471
Email: Kym.Cowley@newcastle.edu.au
Teaching Staff
Kym Cowley kym.cowley@newcastle.edu.au
Jacqui Calvo jacqui.calvo@newcastle.edu.au
Nimay Kalyani nimay.kalyani@newcastle.edu.au
Jim Jackson jim.jackson@newcastle.edu.au
And you!
Slide 2
Overview of Assessment
Assessment
Methods
Weighting
(%)
Marketing Report
(Individual)
20%
Due
Date
Friday 22nd April 2016

@ 11:59pm
Method of
Submission
Turnitin via BBd
Each Quiz will open at

commencement of
Online
relevant week & remain
open for two weeks.
Returnable (yes/no)
YES
Online closed book timed

quizzes x 6 (15 questions
each)
(best 5 out of 6)
Situation Analysis(Group)
30%
Friday 20th May 2016 @

Turnitin Via Bbd. YES
11:59 pm
Formal Exam (short

answer and essay style)
35%
Exam Period
15%
N/A
NA
NO
Slide 3
This Course has ESSENTIAL CRITERIA

In order to pass this course each student will need to:
1. submit all assessment tasks, AND
2. achieve a mark of at least 50 percent for all individual assessments
combined, (that is, at least 35/70). You do not have to pass each item.
AND
3. Achieve at least 50% in the course overall.
Slide 4
Learning Outcomes for the whole course are,

To ensure that you can:
1. Discuss key concepts and principles of marketing;
2. Identify and explain main factors involved in understanding the
marketplace;
3. Understand the steps involved in marketing planning;
4. Analyse components of the marketing mix and
5. Access, analyse, evaluate and synthesize information appropriate for
marketing activities.
6. Work collaboratively to challenge and develop ideas, and to communicate
outcomes in both oral and written contexts
Slide 5
What Is Marketing?
An activity, set of institutions and processes for creating,
communicating, delivering and exchanging offerings that have
value for customers, clients, organisations and society at large.
Slide 6
What is Marketing?
Slide 7
What is the Marketing Process?
Slide 8
MARKETS What is a Market?

A Market is a set of current and potential customers.
A Marketplace is the situation in which a market is
located. This may influence the behaviour of the
market.
An Industry is a group of sellers.
Slide 9
Customer needs, wants and demands
Needs
Wants
Demands
http://www.youtube.com/watch?v=TWjkEZdPglI
Slide 10
Needs, Wants and Demands (1)

Human needs are the most basic concept underlying marketing.
Humans have many complex needs including physiological, psychological, & social
needs.
Marketers stimulate rather than create these needs, they are part of human make up.
When a need is not satisfied, a person will either try to reduce the need or look for an
object that will satisfy it.
People in less economically developed societies might try to reduce their desires and
satisfy them with what is available.
People in industrial societies might try to develop objects that will satisfy their needs.
11
Slide 11
What is VALUE? How do Individuals

measure Value?
Customer Value = Benefits Costs
Maslows Hierarchy of
Needs
Slide 12

Wants are the form taken by human needs and are
shaped by culture and individual personality.
For example, a hungry person in Australia, Singapore
or Hong Kong might want something different for
lunch from a hungry person in the South Pacific.
As a society evolves, the wants of its members
expand.
Marketers try to provide more want-satisfying goods
and services.
13
Slide 13

Demands are the human wants that are backed up by buying power.
Customers view products as bundles of benefits and choose the products that give them
the best bundle for their money.
Outstanding companies go to great lengths to learn about and understand their
customers needs, wants and demands.
They conduct customer research, analyse and monitor customer behaviour, complaints,
inquiry, warranty and service performance data.
Understanding customer needs, wants, and demands in detail provides important input
for designing marketing strategies.
14
Slide 14
Market offerings: Goods, services and

experiences
Customer needs and wants are fulfilled through market offerings
Monkey Business Images | Dreamstime.com
Slide 15
Market Offerings: Products are Goods,

Services, Experiences, Ideas.
A market offering is a product that is some combination of goods, services,
experiences and ideas that can be offered to a market to satisfy a need or
want.
A product includes physical objects, services, persons, places, ideas and
organisations. Anything that satisfies a need can be called a product.
Marketers often use the expression goods and services to distinguish
between tangible and intangible ones. However these should be viewed as
continuum and not as a basic dichotomy.
Click on this link to visit the Raffles Singapore Hotel website
This is a good example of a product that incorporates all elements of goods,
services and experiences.
16
Slide 16
Customer Perceived Value and Satisfaction

1. Customer perceived value is the difference between the values the customer
gains in owning and using a product and the costs associated with obtaining the
product. (V=B-C)
2. Customer Satisfaction is the extent to which a products perceived performance
matches a buyers expectations.
Is this transaction resulting in customer satisfaction?

http://www.youtube.com/watch?feature=endscreen&NR=1&v=93BzW2ZcoMs
17
Slide 17
Learning Activity: Whats your usual supermarket? Why do you

value it over others? As a marketer, how would your company assess that
perception of value? How might you work to improve customers perception of
value?
http://education-portal.com/academy/lesson/what-is-customer-value-marketing-definition-quiz.html
Your customer costs included?

(Costs are time, $, opportunity costs, psychic costs eg. risk)
The benefits to you were.?

(Benefits could be social, esteem, psychological, convenience (efficient use of time thereby reducing costs),
anything that helps to satisfy needs on the Maslow hierarchy.)
Slide 18
Exchanges, transactions and relationships

Exchange is the act
of obtaining a desired
object from someone by
offering something in
return
Slide 19
Exchange, Transactions and Relationships (1)

1. Exchange is the act of obtaining a desired object from
someone by offering something in return.
2. Exchange means that people do not need to prey on others,
depend on donations or possess the skills to produce every
necessity for themselves.
3. Exchange is the core concept of marketing. For an exchange
to take place, several conditions must be satisfied:
At least two parties must participate and each must have
something of value to the other.
Each party must want to deal with the other and be free to
accept or reject an offer.
Each party must be able to communicate and deliver.
Slide 20
Exchange, Transactions and Relationships (2)

1. A transaction is marketings unit of measurement.
2. A transaction consists of a trade of value between two parties.
3. In transactions it must be possible to state that what each
party is giving and gaining.
4. Relationship marketing is the process of creating, maintaining
and enhancing strong, value-laden relationships with
customers and other stakeholders.
21
Slide 21
Building customer relationships

Customer relationship management is the overall process
of building and
maintaining
profitable
customer
relationships
by delivering
superior
customer value
and satisfaction
Edhar Yralaits |
Dreamstime.com
Slide 22
Building customer relationships
Capturing value from customers
Slide 23
The marketing process
Slide 24
Learning Activity: Do you have a

relationship with your supermarket? Do
they want to have a relationship with you?
What are the elements of your relationship with your supermarket?
1.
2.
3.
4.
Are you satisfied?

Do you conduct frequent transactions?
Do you favour one supermarket over another?
Why? What does your favourite mean to you?
What are the elements of your supermarkets relationship with you?

5.
6.
7.
How do they try to gain your loyalty?

How have they attempted to gain greater share of your spending?
How do they know what you need and want? How do they access information about you?
Slide 25
Designing a customer-driven marketing

strategy
Selecting
customers to
serve
Choosing a
value
proposition
Marketing
management
orientations
AAMI Insurance Australia
Slide 26
Designing a Customer-Driven Marketing

Strategy
Marketing management is:
The analysis, planning, implementation and control of programs designed to create,
communicate and deliver value to customers and facilitate managing customer
relationships in ways that enable the organisation to meet its objectives and those of
its stakeholders.
A winning marketing strategy asks What customers will we serve? and Who is our
target market?
Slide 27
Selecting Customers to Serve

1. Managing demand means managing customers who come from two
groups: new and repeat customers.
2. Keeping existing customers is important as the cost to attract new
customers is five times as much.
3. Marketers retain customers by ensuring that branded goods, services and
experiences offer intrinsic value and that there is a sense of excitement or
enjoyment associated with the marketing offering and communication used.
4. Context is important - excitement is not always appropriate.
5. The key to offering excitement is involvement and interactivity.
Slide 28
Choosing a Value Proposition

1.
2.
The organisation must decide how it will serve targeted customers - how it will differentiate and position
itself in the marketplace.
A value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.
Slide 29
Preparing an Integrated Marketing Program

1.
2.
3.
The companys marketing

strategy outlines which
customers the company
will serve and how it will
create value.
The integrated marketing
program is developed to
actually deliver the value to
target customers.
The program builds
relationships by
transforming the strategy
into action, it consists of
the marketing mix.
Slide 30
The marketing landscape is changing
Slide 31
Slide 32
So, what is marketing? Pulling it all together
Slide 33

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Foundations of

People in the Course

Friday 22nd April 2016

Turnitin via BBd

Each Quiz will open at

Online closed book timed

Friday 20th May 2016 @

Formal Exam (short

This Course has ESSENTIAL CRITERIA

Learning Outcomes for the whole course are,

What is the Marketing Process?

MARKETS What is a Market?

Customer needs, wants and demands

Needs, Wants and Demands (1)

What is VALUE? How do Individuals

Needs, Wants and Demands (2)

Needs, Wants and Demands (3)

Market offerings: Goods, services and

Monkey Business Images | Dreamstime.com

Market Offerings: Products are Goods,

Customer Perceived Value and Satisfaction

Is this transaction resulting in customer satisfaction?

Learning Activity: Whats your usual supermarket? Why do you

Your customer costs included?

The benefits to you were.?

Exchanges, transactions and relationships

Exchange, Transactions and Relationships (1)

Exchange, Transactions and Relationships (2)

Building customer relationships

Building customer relationships

Capturing value from customers

The marketing process

Learning Activity: Do you have a

Are you satisfied?

What are the elements of your supermarkets relationship with you?

How do they try to gain your loyalty?

Designing a customer-driven marketing

Designing a Customer-Driven Marketing

Selecting Customers to Serve

Choosing a Value Proposition

Preparing an Integrated Marketing Program

The companys marketing

The marketing landscape is changing

So, what is marketing? Pulling it all together

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