Marketing Concept

Disampaikan : Dr.Ibrahim Daud, MS

 Topics
• The Value Creation is the Basic of Business Process

• Company orientations toward the Marketplace

• What is Marketing Management ?

• The Core Concepts of Marketing

• Marketing’s Role in the Company

The previous AMA definition of marketing, active since 1985, was:
"Marketing is the process of planning and executing
conception, pricing, promotion and distribution of goods,
ideas and services to create exchanges that satisfy
individual and organizational goals.“
Customer Satisfaction concept

The new definition of marketing, unveiled at the AMA's Summer Educator's

Conference in August is:
"Marketing is an organizational function and a set of
processes for creating, communicating and delivering
value to customers and for managing customer
relationships in ways that benefit the organization and its
stakeholders." AMA, 2004

Customer Value concept

 Marketing Concept
Old New Strategic
Era Pre 1960 1960-1990 >2000

Focus Product Customer Way of doing

business

Means Telling & Integrated Knowledge

Selling marketing and experience
Profit Value Mutual
End beneficial
Relationship
 The Evolution of Marketing Concept

Marketing Distribution Selling Brand Individual

Concept management relationship
Products Single Few Many Huge,
product customised
Market size As big as National to Target Individual
Possible. Global. segments Customer.
Competitive Price, Advertising, Positioning, Dialogue,
Tools. Costs. selling Segmentation. Customisation.

Key technology Mass production Television, media. Market research. Internet

Key measures Production Market Brand equity Customer

costs,volume share,margins lifetime value
 The Basic of Business Process is
Managing the Exchange
from the Producers to the Consumers
and Vice Versa
Kotler, 1999
 Exchange Process ?

Producers Consumers
offer get
a product a product

Producers Consumers
set up pay
the price a product

Sisi
Producers Consumers
produsen
Side Side
Monroe, 1990
 Perceived Quality
Consumer
get It will effect on
a product Perceived Risk

Consumers
pay Perceived Quality
a product
It will effect on
Perceived Risk

Consumer
Side
 Perceived Quality
Customer
value =
Perceived Risk
 Managing Customer Value

Value

Vn

Building Relationship
Customer
Vo DVn

DVo DVc Superior Customer

Value

tn
Time
The Needs of Marketing Concept

Needs

Wants Loyalty

Demands Satisfaction

Products Expectations Value Exchange

Marketing isn’t somebody’s responsibility
marketing is everybody’s responsibility

Jack Welch, CEO

General Electric Co.
 Product

Exchange concept

Producers Consumers

Rp

The Basic of Business Process is

Managing the Exchange
from the Producers to the Consumers
and vice versa
Marketing management is:

The process of
1
planning and executing
the conception,
pricing,
promotion,and
2
distribution of
goods, services, and ideas
to create exchanges 3
that satisfy 4
individual and organizational goals 5
Marketing management is :

The process of
planning and executing 1 Managerial process
the conception,
pricing,
promotion,and Marketing mix
2
distribution of
goods, services, and ideas
to create exchanges 3 Exchange creation
that satisfy 4 Satisfaction
individual and organizational goals 5 Others goals
Company orientations toward the Marketplace

The Production Concept

The Product Concept Traditional

The Selling Concept

The Marketing Concept

Exchange
The Societal Marketing Concept Creation
 a) Traditional view ( physical process)

Make the product Sell the product

Design
Procure Make Price Sell Advertise Distribute Service
product

b) Exchange creation view (value-creating process)

Choose the value Provide the value Communicate the value

Market Sourcing Distributing
Customer Value Product Sales
selection Pricing Sales force
segmentation positioning development promotion
focus making Servicing Advertising
 Marketing Management
Marketing management is :

The process of
planning and executing 1 Managerial process
the conception,
pricing,
promotion,and Marketing mix
2
distribution of
goods, services, and ideas
to create exchanges 3 Exchange creation
that satisfy 4 Satisfaction
individual and organizational goals 5 Others goals

Choose the value Provide the value Communicate the value

Market Sourcing Distributing
Customer Value Product Sales
selection Pricing Sales force
segmentation positioning development promotion
focus making Servicing Advertising

• Market • Managing • Managing • Managing

Opportunities Products Channels Promotion
Analysis (MOA)
• Differentiating
and • Managing
Positioning Price

Exchange creation Marketing mix

 Choose the value Provide the value Communicate the value
Market Sourcing Distributing
Customer Value Product Sales
selection Pricing Sales force
segmentation positioning development promotion
focus making Servicing Advertising

Exchange creation
 The Core Concepts of Marketing

Products

Needs,
wants,
and
demands
 The Core Concepts of Marketing
Choose the value Provide the value Communicate the value
Market Sourcing Distributing
Customer Value Product Sales
selection Pricing Sales force
segmentation positioning development promotion
focus making Servicing Advertising

Provide the value Communicate the value

Products Sourcing Distributing
Product Sales
Pricing Sales force
development promotion
making Servicing Advertising

Needs,
Choose the value wants,
Customer
Market Value and
selection
segmentation
focus
positioning
demands
Exchange creation
 The Core Concepts of Marketing

Demand Wants Needs

Utilitarian
Ability
and Symbolic
willingness
to buy Specific Hedonic
product
 The Core Concepts of Marketing
Goods,
services, and
Products
ideas

= ?

Demand Wants Needs

Utilitarian
Ability
and Symbolic
willingness
to buy Hedonic
Specific
product
 Marketing’s Role in the Company

Production
Finance
Production Finance Production
Human
Marketing
Human Resources
Marketing Resources Marketing

(a) (b) (c)

Production
Marketing

Customer Customer

(d) (e)
 Company orientations toward the Marketplace

Production Finance The Production Concept

Human
Marketing Traditional
Resources The Product Concept

(a) The Selling Concept

: The Marketing Concept
:
Production Exchange
Marketing The Societal Marketing Concept Creation
Customer

(e)
 3 Prinsip Pemasaran
Product/ Nilai Pelanggan
Services ( Customer Value)
1. Create Value

Pesaing 3. Focus
 VALUE-BASED MARKETING FRAMEWORK
MARKET ORIENTATION

Customer COMPETITOR CO-ORDINATION

CUSTOMER VALUE
Perceive Quality Perceived Risk

Attract
new customers Retain Customers

Awareness Identity
Identity Relationship Community Advocacy

FIRM VALUE
-
LONGER FASTER HIGHER
 Evolution of Customer Value

Time

Content
Customer
Value
Brand Brand
Proposition
Quality Quality Quality

Price Price Price Price

Industrial age Information

age
1950 Time > 2000
 Digital Value Chain

A. Traditional Supply Chains

Cost Value

Supply
chain
Integration
Reduction
in cost Increase in value
Digital
Value
Chain
B.Info/Network Technology & Alliances
 Customer Value
Creation

Perceived Benefit
Customer =
value Perceived Risk
A 380, Airbus’ latest product
Marketing management is :
Product Consumers

The process of
planning and executing 1 Managerial process
the conception of
pricing,
promotion,and Marketing mix
2
distribution of
goods, services, and ideas

that create VALUE to 3 Customer Value

individual and organization 4 Others goals
 MARKETING AS A
VALUE CREATION PROCESS

Communicate
Choose the Value Provide the Value
the Value

Segment Positioning Pricing Sales

Product Promo
Target Distr. Adver-
+Service Sales
Development Servicing Force tising
 Perceived Benefit
Ambisius Kedamaian dunia
Independen Kesamaan
Imajinatif Kebebasan
Mampu Keamanan negara
Logis Penyelamatan
Berani Pengakuan sosial
Pemaaf Hidup yang menarik
Penolong Kesenangan
Gembira Prestasi diri
Penyayang Keindahan dunia
Sopan Kebijaksanaan
Kesehatan Ketenangan batin
Bersih (rapih) Penghargaan diri
Bertanggung Jawab Keamanan keluarga
Jujur Cinta yang mapan
Dapat menguasai diri Persahabatan sejati
Kebahagian
 Perceived benefit for
organizational

Organizational Pride Sense of Mission

Customer Service Entrepreneurship
Service Quality Outperforming competition
Innovation Internal Competition
Short-term profitability Respect for other Employee
Technological leadership Striving for excellence
Latihan Customers Value
Lion Air
Internal Marketing
Consumers Organization