2. Explain the nature of customer value and satisfaction. 3. Define marketing mix and discuss its elements. 4. Case study: creating value through the marketing mix What marketing is and how it has evolved? • The marketing concept can be expressed as the achievement of corporate goals through meeting and exceeding customer needs better than the competition.
• Three conditions must be met before the marketing
concept can be applied. What marketing is and how it has evolved? – cont. • First, the company should be focused on providing customer satisfaction rather than simply producing products.
• Second, the achievement of customer satisfaction relies
on an integrated effort.
• Third, for integrated effort to come, management must
believe that corporate goals can be achieved through satisfied customers. What marketing is and how it has evolved? – cont. Marketing-oriented vs. internally-oriented business
Market-oriented business Internally-oriented business
• Customer concern • Convenience come first • Know customer choice criteria • Assume price and product and match with 4Ps performance key to most sales • Segment by customer • Segment by product differences • Ignore competition • Invest in marketing research • Marketing is regarded as a luxury • Try to understand competition • Innovation punished • Marketing is an investment • Stick with the same • Innovation rewarded • Why rush? • Search for latent markets • Be fast Explain the nature of customer value and satisfaction • Customervalue is dependent on how the customer perceives the benefits of an offering and the sacrifice that is associated with its purchase.
performance matches or exceeds expectations. Define marketing mix and discuss its elements • The marketing mix (or the 4Ps) consists primarily of four major elements: product, price, promotion, and place.
Product
• Product decisions is the choice of what products/services
and benefits should be offered to a group of customers.
• Product decisions also involve choices regarding brand
names, guarantees, packaging, and the services that should accompany the product offering. Define marketing mix and discuss its elements – cont. Price
• Because price represents what the company receives for
the product or service that is being marketed, it is a key element of the marketing mix.
• All other elements represent costs.
Define marketing mix and discuss its elements – cont. Promotion
• Decisions have to be taken with due attention to the
promotional mix: advertising, personal selling, sales promotions, public relations, direct marketing, and internet marketing.
• By these means, the target audience is made aware of
the existence of a product or service and the benefits it confers to customers. Define marketing mix and discuss its elements – cont. Place
• Place decisions concern the distribution channels that
are to be used and their management, the location of outlets, methods of transportation, and the inventory levels to be held.
• The objective is to ensure that products and services are
available in the proper quantities at the right time and in the right place. CASE STUDY: CREATING VALUE THROUGH THE MARKETING MIX • Describe what is meant by the term marketing?
• Explain Aldi’s challenge?
• Describe the four components of Aldi’s marketing mix.
• Evaluate how Aldi has identified a unique position within