Unit 1: Overview of

Marketing Pt. 1

Principles of Marketing
Lecturer: Sherwayne Cammock
 Learning Goals
1. Define what is Marketing
2. Outline the basic concepts behind
Marketing
3. Distinguish between the major
marketing philosophies
4. Outline the Marketing Process

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 What is Marketing?
Marketing Defined:
Marketing is a social and managerial
process by which individuals and
groups obtain what they need and
want through creating and
exchanging value with others
(Kotler)
Marketing is about managing
profitable customer relationships
Attracting new customers
Retaining and growing current
customers 1-2
 The Marketing Process
A Five-Step Process
1. Understand the marketplace and
customer needs and wants
2. Design a customer-driven marketing
strategy
3. Construct a marketing program that
delivers superior value
4. Build profitable relationships and
create customer delight
5. Capture value from customers to
create profits and customer quality

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 Understanding the
Marketplace
Core Concepts Need
State of felt deprivation
Needs, wants, and Example: Need for food
demands
Wants
Marketing offers: The form of needs as
including products, shaped by culture and
services and the individual
experiences personality.
Value and satisfaction Example: Want a Lexus
Exchange, transactions Demands
and relationships Wants which are backed
Markets by buying power.
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 Understanding the
Marketplace
Core Concepts Marketing offer
Combination of
Needs, wants, and products, services,
demands information or
Marketing offers: experiences offered
including products, to a market to satisfy
services and a need or want.
experiences Offer may include
Value and satisfaction services, activities,
people, places,
Exchange, transactions information or ideas
and relationships
Markets
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 Understanding the
Marketplace
Core Concepts Value
Customers form
Needs, wants, and expectations regarding
demands value
Marketing offers: Marketers must deliver
including products, value to consumers
services and Satisfaction
experiences A satisfied customer will
Value and satisfaction buy again and tell others
Exchange, transactions about their good
and relationships experience
Markets
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 Understanding the
Marketplace
Core Concepts Exchange
The act of obtaining a
Needs, wants, and desired object from
demands someone by offering
Marketing offers: something in return
including products, One exchange is not the
services and goal, relationships with
experiences several exchanges are
Value and satisfaction the goal
Relationships are built
Exchange, transactions
through delivering value
and relationships and satisfaction
Markets
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 Understanding the
Marketplace
Core Concepts Market
Set of all actual and
Needs, wants, and potential buyers of a
demands product or service.
Marketing offers: Marketers seek buyers
including products, that are profitable.
services and
experiences
Value and satisfaction
Exchange, transactions
and relationships
Markets
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 Marketing Management
Marketing management is the art
and science of choosing target
markets and building profitable
relationships with them.
This definition must include answers
to two questions:
What customers will we serve?
How can we serve these customers
best?

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Selecting Customers and
Creating Value
Customer Management
What customers will we serve?
Marketers select customers that can be
served profitably
Value Proposition
How can we serve these customers best?
Includes the set of benefits or values a
company promises to deliver to consumers
to satisfy their needs.

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 Marketing Orientations
Marketing Management

Production concept Selling concept

Product concept Marketing concept

Societal marketing concept

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 Marketing Management
Orientations
The Production Concept:
-Holds that consumers will
favor products that are
available and highly
affordable.
-Mgt. should focus on
improving production and
distribution efficiency.
-The oldest orientation that
guide sellers.
The Product Concept:
-Holds that consumers will
favor products that offer
the most in quality,
performance and
innovative features.
-Marketing Strategy
focuses on making
continuous improvements.
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 Marketing Management
Orientations
The Selling Concept The Marketing Concept

-Holds that consumers will -Holds that achieving

not buy enough of the organizational goals
firms products unless it depends on knowing the
undertakes a large scale needs and wants of target
selling and promotion markets and delivering the
effort. desired satisfactions better
than competitors do.
-Typically practiced with
unsought goods- those that -Customer focus and value
buyers do not normally are the paths to sales and
think of buying such as profits.
insurance and blood
donations.

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 Marketing Management
Orientations
The Societal Marketing Concept

- Holds that companies should make

good marketing decisions by considering
consumers wants, the companys
requirements, consumers long-run
interests and societys long run interests
e.g. the debate with fast food
restaurants over high calorie unhealthy
foods.
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 The Marketing Plan
Transforms the marketing strategy
into action
Includes the marketing mix and the
4Ps of marketing
Product
Price
Place
Promotion
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 Building Customer
Relationships
CRM Customer relationship
management
The overall process of building and
maintaining profitable customer
relationships by delivering superior
customer value and satisfaction. It
deals with all aspects of acquiring,
keeping and growing customers.

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 Value and Satisfaction
Perceived Value
The customers evaluation of the
difference between benefits and
costs.
Customers often do not judge values
and costs accurately or objectively.
Customer Satisfaction
Products perceived performance
relative to customers expectations.
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 Not All Customers
are Equal
Basic Relationships
Low-margin customers
Full Partnerships
Key customers (few customers with
high profitability levels)
Selective relationship management
Weeding out unprofitable customers

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 Capturing Value from
Customers
Key Concepts Customer delight
leads to emotional
Customer Loyalty relationships and
and Retention loyalty
Share of Customer Lifetime
Customer Value shows true
Customer Equity worth of a
customer
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 Capturing Value from
Customers
Key Concepts Share of
customers
Customer Loyalty purchase in a
and Retention product category.
Share of Achieved through
Customer offering greater
Customer Equity variety, cross-sell
and up-sell
strategies. 1 - 20
 Capturing Value from
Customers
Key Concepts The combined
customer lifetime
values of all current
Customer Loyalty and potential
and Retention customers.
Measures a firms
Share of performance, but in a
Customer manner that looks to
Customer Equity the future.
Choosing the best
customers is key
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 The New Marketing
Landscape
Challenges Growth of the
Internet
Digital age Advances in
Globalization telecommunications,
information,
Ethics and social transportation
responsibility Customer research and
tracking
Not-for-profit Product development
marketing Distribution
New advertising tools
Marketing 24/7 marketing through
the Internet
relationships 1 - 22
 Marketing Landscape
Challenges Geographical and
cultural distances
Digital age
have shrunk
Globalization Greater market
Ethics and social coverage
responsibility More options for
purchasing and
Not-for-profit manufacturing
marketing Increased competition
from foreign
Marketing competitors
relationships 1 - 23
 Marketing Landscape
Challenges Marketers need to
take great
Digital age
responsibility for the
Globalization
impact of their
Ethics and social actions
responsibility Caring capitalism
Not-for-profit (being civic minded
and responsible) is a
marketing way to differentiate
Marketing your company
relationships 1 - 24
 Marketing Landscape
Challenges Many organizations
are realizing the
Digital age
importance of
Globalization
strategic marketing
Ethics and social Performing arts
responsibility Government agencies
Colleges
Not-for-profit
Hospitals
marketing Churches
Marketing
relationships 1 - 25
 Marketing Landscape
Challenges Profits through
managing long-term
Digital age
customer equity
Globalization Improve customer
Ethics and social knowledge
responsibility Target profitable
customers
Not-for-profit Keep profitable
marketing customers

Marketing
relationships 1 - 26
 What is Marketing

The process of building profitable

customer relationships by creating
value for customers and capturing
value in return

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Questions, Queries, Concerns,
Feedback!!

The End.

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