Prinmar Module 1

Moodle 101:

PRINMAR Principles of Marketing

InstructionResearchTechnologyWellness

Module 1: Introduction to MarketingModule 2: Understanding the Market and the MarketplaceModule 3: Company and Marketing: Partnering to Build Customer Relationship Basic Concepts of Marketing and its process.

TOPICS

Consumer and Business Buying BehaviorThe Marketing EnvironmentManaging Marketing InformationMarket Segmentation, Target Marketing and Market Positioning Strategic Marketing PlanningProduct Concept and StrategyPricing Concept and StrategyPlacing Products: Marketing Channels and Supply Chain ManagementPromoting Products: Integrated Marketing Communication


Module 1: Introduction to MarketingBasic concepts of Marketing and its process.


Module 1: Introduction to MarketingLearning Objectives Define marketing and understand the marketing process.Explain the core customer and marketplace concepts.Define marketing management and compare the five marketing management orientations.Understand customer relationship management and strategies.Describe the trends that are changing the marketing landscape.


Topic OutlineDefinition of Marketing The marketing processCore customer and marketplace conceptsMarketing management orientations Customer Relationship ManagementThe New Marketing Landscape

Module 1: Introduction to Marketing


Marketing?


MarketingThe process by which companies create value for customers and build strong relationships in order to capture value from customers in return. (Kotler & Armstrong,2008, p.5)


Interacting Components of Marketing 3 cs of Marketing (Josiah Go)CUSTOMERCOMPANYCOMPETITION


The Marketing ProcessUnderstand the marketplace and customer needs and wantsDesign a customer-driven marketing strategyConstruct an integrated marketing program that delivers superior valueBuild profitable relationships and create customer delightCapture value from customers to create profits and customer equityCreate value for customers and build customer relationships

Capture value from customers in return


Marketing process begins, continues and ends with customers.


Step 1: Understanding the Marketplace and Customer Needs Core customer and marketplace conceptsMarketing Process


Market OfferingsValue and satisfactionNeeds, Wants,and demandsExchanges and relationshipsMarketsCore Customer and Marketplace Concepts


12Core Concepts

This CTR corresponds to Figure 1-1 on p. 4 and relates to the discussion on pp. 3-10. Also to the CTRs numbers 4 - 8 which follow.Core ConceptsNeeds. These emerge from a state of felt deprivation. Ask students to distinguish among physical, social, and individual needs. Wants. These are the form taken by human needs as they are shaped by culture and individual experience. Have students provide examples for different wants based upon geographical differences, gender, age, wealth. Link culture to socio-economic standing, education.Demands. These are wants backed by buying power. Discuss such popular items as dream vacations or favorite cars to illustrate the difference between wants and demands. You may want an Acura Legend but drive a Subaru Justy. Introduce the idea that demands are often for a bundle or group of benefits and may address a number of related needs and wants.Products. These are anything offered for sale to satisfy a need or want. Have students discuss an extended view of products to include services and ideas. Discuss the role of value in distinguishing products. Discussion Note: Ask students to identify their product choice set for cars, vacations, dating partners, or college professors.Exchanges. These are the act of obtaining desired objects by offering something in return. Link to barter economies and promises to pay (i.e., credit, checks).Transactions. These are an actual trade of value between at least two parties. Transaction marketing is part of the larger concept of relationship marketing in which parties build long-term, economic ties to enhance quality and customer-delivered value.Markets. These are the set of actual and potential buyers of a product. Markets may be decentralized or centralized. Markets exist wherever something of value is desired, such as in the labor market, the money market, even the donor market - for human products such as blood or organs.

Human NeedsStates of felt deprivationNot created by marketers; part of the human make upPhysical needs (food, clothing, warmth and safety)Social needs (belonging and affection)Individual needs ( knowledge and self expression)


Wantsform taken from human needs that are shaped by culture and individual personality.Describe in terms of objects that will satisfy needs.


Demandswants backed by buying power.

I want to buy...


Market OfferingsCombination of goods, services, information, or experiences offered to a market to satisfy a need or want. Tool to solve a consumer problem


Customer Perceived ValueThe customers evaluation of the difference between all the benefits all the costs of a market offering relative to those of competing offers.


Customer SatisfactionThe extent to which a products perceived performance matches a buyers expectations.


ExchangesThe act of obtaining a desired object from someone by offering something in return.


The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.Deals with all aspects of acquiring, keeping and growing customers.

Customer Relationship Management


Markets

are buyers who share particular need or want.

Actual BuyersPotential Buyers


Step 2: Design customer-driven marketing strategyMarketing Process


Marketing ManagementThe art and science of choosing target markets and building profitable relationships with them. (Kotler & Armstrong,2008, p.5)


Marketing managers aim is to find, attract, keep, and grow target customers by creating, delivering and communicating superior customer value.


FunctionsCustomer ManagementDemand Management


Customer ManagementSelect customers that can be served well and profitably.Choosing a Value Proposition set of benefits or values it promises to deliver to customers to satisfy their needs.


Marketers must deal with different demand states ranging from no demand to too much demand.Demarketing: to reduce the number of customers or to shift their demand temporarily or permanently.Demand Management


Marketing Management OrientationsProduction, Product, Selling, Marketing and Societal Marketing Concepts


Production ConceptProduct ConceptSelling ConceptMarketing ConceptSocietal Marketing Concept Customers will favor products that are available and highly affordableImprove production & distribution efficiency

Customers will favor products that offer the most quality, performance, and innovative featuresMake continuous product improvements

Customers will buy products only if the company promotes/ sells these productsCreate sales transactions

Focuses on needs/ wants of target markets & delivering satisfaction better than competitors

Focuses on needs/ wants of target markets & delivering superior value and societys well-being


29Five Marketing PhilosophiesThis CTR relates to the material on pp. 12-17. Teaching Tip: You may find it useful to ask students to give their definitions of philosophy. How do they use philosophies for studying? dating? planning their time? Work from their examples to the idea that businesses too have philosophies about how to get things done.The Production Concept. One of the oldest concepts, it holds that consumers favor products that are available and affordable. Management emphasizes production and distribution efficiency. Examples from the text include Ford's Model T and Texas Instruments. The Product Concept . This concept focuses on the actual product in an effort to continuously improve quality, performance, and features. May lead to marketing myopia or the tendency to too narrowly define the scope of one's business. Consumers buy products for their benefits, not their features.The Selling Concept. This concept views consumers as unwillingly customers whose inherent opposition must be overcome to make a sale. It is most often used today for unsought goods. The selling concept tends to encourage sellers to misrepresent the true nature of their products or services and can lead to problems in maintaining high customer satisfaction.The Marketing Concept. This concept links the company's success with the consumer's continuing satisfaction. Its "outside-in" approach starts with a well defined target market, an analysis of their needs and wants, and then builds the company's offering around meeting those needs better than the competition (Note: the selling and marketing concepts are contrasted on the following CTR of Figure 1-4).The Societal Marketing Concept. This concept adds to the marketing concept the idea that the company should contribute to the betterment of society as a whole (Note: The societal marketing concept is developed in more detail on a following CTR of Figure 1-5 and the accompanying notes).

Marketing Mix (4Ps of Marketing)Marketing ProcessStep 3: Preparing an Integrated Marketing Plan and Program


4Ps of Marketing (Companys View Point)Product: a need-satisfying market offerPrice: charge for the offerPlace: make the offer available to target marketPromotion: communicate with target customers about the offer and persuade them of its merits.4Cs of Marketing(Customers Viewpoint)Customers Solution

Cost

Convenience

Communication


Step 4: Building Customer Relationships Customer Relationship Management Partner Relationship ManagementMarketing Process


Trends in CRMRelating with more carefully selected customersRelating for long termRelating Directly


Partner Relationship ManagementWorking closely with partners in other company departments and outside the company to jointly bring greater value to the customers. (Kotler et. al,2008, p.18)


Step 5: Capturing value from customersMarketing Process


Outcomes of creating customer valueCustomer loyalty and retentionCustomer lifetime value: the value of the entire stream of purchases that a customer would make over lifetime of patronage.Growing share of customerShare of customer: the portion of the customers purchasing that a company gets in its product categoriesBuilding Customer Equity: Customer equity: the total combined customer lifetime values of all the companys customers.


New Marketing LandscapeNew digital age: growth in computer, telecommunications, information, and transportation.Rapid globalizationCall for more ethics and social responsibility Growth of not-for-profit marketing.


Summary:Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.Understanding customers needs, wants and demands will help the company to design want-satisfying market offerings and build value-laden customer relationships by which they capture customer lifetime value and greater share of customer.To design a winning marketing strategy, the company must decide who will it serve and how it will serve targeted customers.Marketers should take advantage of new opportunities for building relationships with their customer, their marketing partners and the world around them.


End of presentation


Prinmar Module 1

Documents

target marketing

marketing channels

marketing processunderstand

components of marketing

marketing processcore

integrated marketing

customer needs core

customer relationships