Fundamentals of Marketing

Session 1
 Learning Objectives

What is Marketing and Marketing Process

01

02 Understanding the marketplace and customer need

Designing a customer-driven marketing strategy

03

Building customer relationship & Creating and capturing

04
customer value
 What is Marketing?
The process by which companies engage customers,
build strong customer relationships, and create
customer value in order to capture value from
customers in return.
 Marketing
 Attracting new customers by promising and delivering
superior value
 Build long term relationship with customers by delivering
continued customer satisfaction
 Creating, building and managing these relationships over
time.
Marketing Process
 Understand the Marketplace and
consumer needs
 Customer needs, wants and demands
 Customer Value and Satisfaction
 Exchanges and Relationship
 Markets
 Understand the Marketplace and
consumer needs
 Market Offerings:
Some combination of products, services, information, or experiences
offered to a market to satisfy a need or want.
 Marketing myopia
The mistake of paying more attention to the specific products a
company offers than to the benefits and experiences produced by
these products.
 Understand the Marketplace and
consumer needs
 Customer Value:
Difference between the values customer gains from owning the
product versus the cost of obtaining it. Customer buy from the firm
that offers the highest customer perceived value
 Customer Satisfaction:
Perceived performance in providing value, relative to expectations,
how well the product lives up to the expectation.
 Exchanges & Relationships
 Exchange
The act of obtaining a desired object from someone by offering
something in return.
 Market
The set of all actual and potential buyers of a product or service.
These people share a want or need that can be satisfied through
exchange relationship
Designing a customer-driven Marketing
Strategy
 Marketing Management is the art and science of choosing
target markets and building profitable relationships with them.

1. What customer will we serve?

2. How can we best serve these customers?
Designing a customer-driven Marketing
Strategy
Selecting Customers to Serve

Market Segmentation refers to dividing the market into segments

of customers
Target Marketing refers to which segment to go after
Designing a customer-driven Marketing
Strategy
Selecting Customers to Serve

De-marketing is marketing to reduce demand temporarily or

permanently, the aim is not to destroy demand but to reduce or shift
it.
 Designing a customer-driven Marketing
Strategy
Choosing a Value Proposition

Value Proposition is the set of benefits or values a company

promises to deliver to customers to satisfy their needs.

Quality and Efficiency

Progressive Performance
Low prices, fast delivery
Quality Entertainment 24/7
Preparing an Integrated Marketing Plan
 The marketing mix is the set of tools (four P’s) the firm uses to
implement its marketing strategy. It includes price, product,
promotion & place.

 Integrated Marketing Program is a comprehensive plan that

communicates and deliver the intended value to chosen customers
 Building Customer Relationship
Customer Relationship Management

The overall process of building and maintaining profitable

relationships by delivering superior customer value and
satisfaction.
Building Customer Relationship
Relationship Building Blocks: Customer Value & Satisfaction
 Building Customer Relationship
The changing nature of customer relationship

 Relating with more carefully selected customers uses selective

relationship management to target fewer, more profitable customers.

 Relating more deeply and interactively by incorporating more

interactive two way relationship through blogs, website, online
communities and social network.
 Building Customer Relationship

 Partnership Relationship Management involves working

closely with partners in other company departments and outside
the company to jointly bring greater value to customers.
 Building Customer Relationship
Partnership Relationship Management

 Partners inside the company is every function area interacting with

customers
- Electronically
- Cross functional teams
 Partners outside the company is how market connect with their
suppliers, channel partners, and competitors by developing partnership
 Building Customer Relationship
Partnership Relationship Management

 Supply Chain is a channel that stretches from raw materials to

components to final products to final buyers.
 Supply Management
 Strategic Partners
 Strategic Alliances
 Capturing Value from Customers
Creating customer Loyalty and Retentions

 Customer lifetime value is the value of the entire stream of purchases

that the customer would make over a lifetime of patronage.
 Capturing Value from Customers
Growing Share of Customers

 Share of Customer is the portion of the customer’s purchasing that a

company gets in its product categories.
 Capturing Value from Customers
 Customer equity is the total combined customer lifetime value of all
the company’s customers.
 Capturing Value from Customers
Building Customer Equity

 Building the right relationship with the right customers includes treating
customers as assets which required to be managed and maximized.
 Different types of customers need different relationship management
strategies
 Build the right relationship with the right customers
The New Marketing Landscape
Thank You
Any questions?