Principles of marketing

Lesson 1copyrights2009@patricksim*Understanding Marketing for the 21st CenturyPrinciples of Marketing

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Lesson 1copyrights2009@patricksim*Learning Objectives: - To understand and appreciate the importance and scope of marketing - To describe the philosophies and orientations of marketing - To explain the core concepts and meanings of marketing terms - To elaborate the changes in modern marketing

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Lesson 1copyrights2009@patricksim*

Marketing in the 21st Century Marketing Principles

Marketing is defined as the set of activities that identify, anticipate and satisfy customers requirements profitably. (CIMUK)

Process of creating, communicating, and delivering value to customers and for managing customer relations that benefit the organization. (Kotler, Armstrong)

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Lesson 1copyrights2009@patricksim* Marketing in the 21st CenturyScope of Marketing

Marketers are involved in Goods Services Events Experiences Persons Places Properties Organizations Information Ideas

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Lesson 1copyrights2009@patricksim*

Some other core conceptsPhysical Social Intellectual Food, air, emotions,study, educationclothing friends Customer Needs, Wants, and Demands

Needs are states of deprivation. Some needs are:-

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Lesson 1copyrights2009@patricksim*Wants are a form of strong desire for something. ( I need water but I want Spring water)

Demands are purchases backed by buying power in a social market. (money talks) (e.g. no demand for TV in Nepal.)

Some other core concepts

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Lesson 1copyrights2009@patricksim*

Product offeringIt is the value proposition:- a of values or benefits why a customer should purchase from the company.e.g. Offer you BMWs reliable performance; A380 Boeing excellent experience Customer satisfaction Value and performance over competitors Adding even more value and benefits

Some other core concepts

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Lesson 1copyrights2009@patricksim*

Some other core conceptsMarket Exchange/Transaction process of obtaining a product by offering money or something else! Transactions are data/numbers

Segmentation Targeting PositioningDivide into groups Choose groups How to attract?

copyrights2009@patricksim

Spring Term 2007/2008Marketing PrinciplesUnderstanding the Marketplaceand Customer NeedsMarket OfferingsProducts, Services, and Experiences

Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs

Exchange is the act of obtaining a desired object from someone by offering something in return1-9

Marketing Principles

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Some other core concepts

Channel Types

Distribution channel wholesalers / retailers Communication channel media, CCTV Service channel Advertising, banking etc

copyrights2009@patricksim

Spring Term 2007/2008Marketing PrinciplesUnderstanding the Marketplaceand Customer NeedsMarketing system consists of all of the actors in the system who are affected by major environmental forces

Marketing Principles

Lesson 1copyrights2009@patricksim*

Some other core concepts4. Market Exchange/Transaction2. Product offering3. Value/Quality/Customer satisfaction 1. Needs, Wants, and Demands5. Channel / markets

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Lesson 1copyrights2009@patricksim*

Market OrientationsOrientations/Concepts/Philosophies

Production conceptProduct conceptSelling conceptMarketing conceptSocietal Marketing concept

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Lesson 1copyrights2009@patricksim*

Market Orientations

Production concept is the idea that consumers will favor products that are available or highly affordable.

Mass production/distribution of products Low costs, efficient (fast)

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Lesson 1copyrights2009@patricksim*Market Orientations

Product concept is the idea that consumers will favor products that offer the most quality, performance.

Focus is on design and improvements (healthier food / cosmetics that make you look 20 years younger)

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Lesson 1copyrights2009@patricksim*Market Orientations

Selling concept is the idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort.

Inside-out approach Company-centriccustomers

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Spring Term 2007/2008Marketing Principles

Marketing Principles

Lesson 1copyrights2009@patricksim*

Market Orientations Marketing concept is a modern idea that achieving organizational goals depends on knowing the needs and wants of the target markets.

Outside-in approach Satisfaction and relationships are customer-centriccustomers

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Spring Term 2007/2008Marketing Principles

Designing a Customer-Driven Marketing StrategyMarketing Management Orientations

Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers wants, the companys requirements, consumers long-term interests, and societys long-run interests1-23

Marketing Principles

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Market Orientations Holistic Marketing concept is a new practice in marketing.

Relationship marketing -- networks Integrated marketing -- (4Ps / 4Cs / SIVA) Internal marketing staff coordination Performance marketing - accountability / social responsibility (cause related programs)

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Lesson 1copyrights2009@patricksim*

Building customer relationship

customer relationship management- The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. customer perceived value- The customers evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.Retaining customers:Customer lifetime value- The value of the entire stream of purchases that the customer would make over a lifetime of patronage.

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Lesson 1copyrights2009@patricksim*Dynamic 21st Century Marketing

Customer equity- The total combined customer lifetime values of all of the companys customers.Consumer capabilities- Affluence (rich) - More choices - Information exchange- Compare information - Give opinions / feedback

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Lesson 1copyrights2009@patricksim*Customer relationship groups

High ProfitabilityButterflies Good fit between companys offerings and customers needs; high profit potentialTrue friendsGood fit between companys offerings and customers needs; highest profit potential

Low profitabliltyStrangersLittle fit between companys offerings and customers needs; lowest profit potentialBarnaclesLimited fit between companys offerings and customers needs; low profit potential. Short-term customers Long-Term customers

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Spring Term 2007/2008Marketing Principles

Marketing Principles

Spring Term 2007/2008Marketing Principles

Marketing Principles

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