Principle of Marketing

By:

Misbah Uddin
Principles of Marketing

Lecture-3
Summary of Lecture No 2

Core Marketing Concepts

 Needs
Markets Wants

Transactions Demands

Exchange Products
 Today’s Topics

 Marketing Functions

 Customer Relationship Management

Marketing Functions
 Information Buying

Risk Taking Selling

Universal
Marketing
Marketing
Functions
Functions
Financing Transporting

Standardizing
and Grading
Storing
Eight Universal Marketing Functions

1. Buying
2. Selling
3. Transporting
4. Storing
5. Standardizing and grading
6. Financing
7. Risk Taking
8. Securing Marketing Information
Eight Universal Marketing Functions

Buying:
 Raw material to produce goods and services
and to purchase finished goods or services as
retailer or whole seller to sell them again for
final customers and consumers).

 It is a function that ensures that product

offerings are available in sufficient quantities
to meet customer demands
Eight Universal Marketing Functions

Selling:

 The function to be performed to sell the

products/services/idea to satisfy customer
needs or wants.
Eight Universal Marketing Functions

Transporting:

 Function related to create the availability of

product or services.
 It is used for moving products from their
points of production to location convenient
for purchases
Eight Universal Marketing Functions

Storing:

Warehouses are used to store the products for

further distribution.
Eight Universal Marketing Functions

Standardizing and grading:

To provide more quality products and

services without variation in the quality.
Eight Universal Marketing Functions

Financing:

Providing the financial resources to carry out

different function

e.g. promotion of product and providing credit

for channel members (wholesalers retailers)
or consumers
Eight Universal Marketing Functions

Risk taking:

Marketer takes a risk specifically when any new

product is introduced in a market because
there are equal chances of success and
failure.
Eight Universal Marketing Functions

 Securing Marketing Information:

Collecting information about consumers,

competitors, information and channel
members (wholesalers, and retailers) for use
in making marketing decisions
 Marketing Management

 Marketing management is “the art of choosing target markets

and building profitable relationships with them.”

 Creating, delivering and communicating superior customer

value is key.
 De marketing

 …Marketing to reduce demand temporarily or permanently;

the aim is not to destroy demand but only to reduce or shift it.

E.g.
In Afganistan, the electricity problem.
 Relationship Marketing

 The process of establishing and maintaining mutually beneficial

exchange relationships with customer and other stakeholders

 Two components:

 Customer Focus
 Competitive Advantage
 Change In Perspective

 Yesterday: Here is this great product. Don’t you want to buy it?

 Today: Here is what I need. Can you make it?

 Direct Marketing Channels

Ways to market to your customers on a one-to-one basis

 Face-to-face channels
 Direct Mail
 Telemarketing
 On-line marketing
 Customer Focused Marketing

Basic Philosophy:

 It is more profitable to keep loyal customers than to

constantly be attracting new ones
 Customer Focused Marketing

How do I go about increasing the average lifetime value of my

customers?

1. Identify your most valuable customers

2. Build a learning relationships with them so you can…
3. Provide a sustainable advantage over your competition
(Create Value)
Customer Relationship
Management
 CRM
CRM – Customer relationship management . . .

“is the overall process of building and maintaining profitable

customer relationships by delivering superior customer
value and satisfaction.”
 CRM

 It costs 5 to 10 times MORE to attract a new customer than it does to

keep a current customer satisfied.

 Marketers must be concerned with the lifetime value of the customer.

What are the goals of CRM?
 GOALS OF CRM

 Provide better customer service

 Make call centers more efficient

 Help sales staff close deals faster

 Simplify marketing and sales processes

 Discover new customers

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