Principles of Marketing

Chapter#1
Marketing: Creating and Capturing Customer Value
 What is marketing ?

⚫ More than selling and advertising

⚫ Identifying and satisfying customers
needs
⚫ Range of activities (marketing mix - 4P’s)
 What is Marketing?
• Marketing is a process by which companies create value for
customers and build strong customer relationships to
capture value from customers in return
• Marketing is the creation & satisfaction of demand for your
product or service. If all goes well, this demand should
translate into sales and, ultimately, revenue.
• More simply: Marketing is the delivery of customer
satisfaction at a profit.
 What is Marketing?
⚫ “Marketing is the process of planning and
executing the conception, pricing, promotion,
and distribution of ideas, goods, and services to
create exchanges that satisfy individual and
organizational objectives.”
⚫ Marketing Involves having the Right Product
available in the Right Place at the Right Time and
making sure that the customer is Aware of the
Product.
 Mantra of Marketing

CCDVTP
C- Create
C- Communicate
D- Deliver
V- Value
T- Target market
P- Profit
Create communicate and deliver value to a target market at
a profit.
 CCDVTP Continued...

• Creating Value is PRODUCT

MANAGEMENT
• Communicating Value is BRAND
MANAGEMENT
• Delivering value is CUSTOMER
MANAGEMENT
 Evolution of Marketing
SEVEN ERAS in the evolution of
Marketing
• Trade Era ( Exploration Era)
– Barter Trading
• Production Era (1860-1910s)
– Factories/machines etc
– Focus on production efficiency
• Sales Era (selling Era 1920-1930s)
– Focus on hiring/developing competent
sales personnel and giving them product
knowledge so they can sell the products in
the markets.
– Marketing was all about selling.
Evolution of Marketing Cont..
• Brand Development Era ( 1940-1950s)
– Branding, ads, brochures, pamphlets
• Marketing Company Era (1960-1990s)
– People of production, sales and brand development sat together and
decided to work together for best profitability
• Relationship Era (1990-2000)
– Marketers found out that customers have many options so only
selling and branding is not enough
– Focus on Customer Relationship Development
• Social Media Marketing Era
– Digital media’s importance
– Relationship development using Digitization
Marketing
Product Price

Customers

Place Promotion
Marketing’s 4 P’s
Marketing Mix

⚫ Product
⚫ Price
⚫ Place
⚫ Promotion
 What Can Be Marketed?

⚫ Goods ⚫ Places
⚫ Services ⚫ Properties
⚫ Experiences
⚫ Organizations
⚫ Events
⚫ Information
⚫ Persons
⚫ Ideas
 Actors and Forces in a
Modern Marketing System

Environment

Company
(marketer)
Marketing End-user
Suppliers inter- market
mediaries

Competitors
Core Marketing Concepts
 Core

satisfaction,
and quality
Marketing

Value,
Concepts

Exchange,
transactions,
and relationships
 Core Marketing Concepts

• States of deprivation
• Physical—food, clothing, warmth, safety
Needs • Social—belonging and affection
• Individual—knowledge and self-expression

• Form that needs take as they are shaped by culture

Wants and individual personality

Demands • Wants backed by buying power

 Core Marketing Concepts

A product is
• ‘anything that can be offered to a market
for attention, acquisition, use or
consumption and that may satisfy a need
or want’
Includes:
physical goods, services, people, places, organizations,
activities, ideas etc
 Core Marketing Concepts

Customer Value:
• Is the value the individual customer places
on a product or service.
 Core Marketing Concepts
Exchange is ...
• ‘...the act of obtaining a desired object from
someone by offering something in return’
Five conditions
1. Two parties
2. Something of value to offer each other
3. Willing to deal
4. Free to accept or reject offer
5. Able to communicate and deliver
 Core Marketing Concepts

A Market is…
⚫ ‘...a set of actual and potential buyers of a
product’
⚫ A place
⚫ Marketing satisfies the needs of markets by
facilitating the exchange process
 Marketing Management

⚫ Marketing management is “the art and science of choosing

target markets and building profitable relationships with
them.”
⚫ Creating, delivering and communicating superior

customer value is key.

 Relationship Marketing

Relationship Marketing:
❑ The process of establishing and maintaining
mutually beneficial exchange relationships
with customer and other stakeholders.
• Two components:
– Customer Focus
– Competitive Advantage
 CRM

CRM – Customer relationship management . .

.
“is the overall process of building and maintaining
profitable customer relationships by delivering superior
customer value and satisfaction.”
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