CHAPTER- 1
Defining Marketing for the 21st
Century
What Is Marketing?
Marketing is the process by which companies create value for
customers & build strong customer relationships in order to capture
value from customers in return.
Broadly defined, marketing is a social & managerial process by which
individuals & groups obtain what they need & want through creating
& exchanging value with others.
Finally, marketing is the activity, set of institutions & processes for
creating, communicating, delivering & exchanging offering that have
value for customers, clients, partners & society at large.
The Marketing Process
Understanding the Marketplace and
Customer Needs
Core Concepts
Customer needs, wants, and demands
Market offerings
Value and satisfaction
Exchanges and relationships
Markets
Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands
• States of deprivation
Needs • Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression
Wants • Form that needs take as they are shaped by culture
and individual personality
Demands • Wants backed by buying power
Understanding the Marketplace
and Customer Needs
Market offerings are some
combination of products,
services, information, or
experiences offered to a
market to satisfy a need or
want
Marketing myopia is
losing sight of underlying
consumer needs
Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction
Expectations
Customers
• Value and
satisfaction
Marketers
• Set the right level of
expectations
• Not too high or low
Understanding the Marketplace
and Customer Needs
Exchange is the act of obtaining a
desired object from someone by offering
something in return.
Understanding the Marketplace
and Customer Needs
Markets are the set of actual and potential buyers
of a product
Market Definition
Conceptual Diagram
Designing a Customer-Driven
Marketing Strategy
Marketing management is the art and science
of choosing target markets and building
profitable relationships with them
What customers will we serve?
How can we best serve these customers?
Designing a Customer-Driven
Marketing Strategy
Selecting Customers to Serve
Market segmentation refers to dividing the
markets into segments of customers
Target marketing refers to which segments
to go after
Designing a Customer-Driven
Marketing Strategy
Selecting Customers to Serve
Demarketing 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
The value proposition is the set of
benefits or values a company promises to
deliver to customers to satisfy their needs
Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
Producti
Product Selling Marketin Societal Holistic
on
concept concept g concept concept Concept
concept
Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
Production concept is the idea that consumers will
favor products that are available or highly
affordable
Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
Product concept is the idea that consumers will
favor products that offer the most quality,
performance, and features. Organization should
therefore devote its energy to making continuous
product improvements.
Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
Selling concept is the idea that consumers will not
buy enough of the firm’s products unless it
undertakes a large scale selling and promotion
effort
Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
Marketing concept is the idea
that achieving organizational
goals depends on knowing
the needs and wants of the
target markets and delivering
the desired satisfactions
better than competitors do
Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
Societal marketing concept
is the idea that a company
should make good marketing
decisions by considering
consumers’ wants, the
company’s requirements,
consumers’ long-term
interests, and society’s long-
run interests
Designing a Customer-Driven
Marketing Strategy
Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations
The holistic marketing concept looks at marketing as
a complex activity and acknowledges that everything
matters in marketing - and that a broad and integrated
perspective is necessary in developing, designing and
implementing marketing programs and activities. The
four components that characterize holistic marketing are
relationship marketing, internal marketing, integrated
marketing, and socially responsive marketing.
Preparing an Integrated Marketing Plan
and Program
The marketing mix is the set of tools (four Ps) the
firm uses to implement its marketing [Link]
includes product, price, promotion, and place.
Integrated marketing program is a comprehensive
plan that communicates and delivers the intended
value to chosen customers.
Building Customer Relationships
Customer Relationship Management (CRM)
The overall process of
building and maintaining
profitable customer
relationships by delivering
superior customer value and
satisfaction
Building Customer Relationships
Relationship Building Blocks: Customer Value and
Satisfaction
Customer Customer
perceived value satisfaction
• The difference • The extent to
between total which a
customer product’s
benefit and perceived
total customer performance
cost matches a
buyer’s
expectations
Building Customer Relationships
Customer Relationship Levels and Tools
Basic
Relationship
s
Full
Partnerships
Capturing Value from Customers
Creating Customer Loyalty and Retention
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 Customer
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
values of all of the
company’s customers
Assignment
How the marketers apply the demarketing
strategies with the concept of 4P’s. Explain
with example.
Date of Submission: 26/07/16
K YOU
THAN
