marketing ch#1[04-02-2011]
TRANSCRIPT
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Principle of marketingPrinciple of marketing
Presenting by:Presenting by:
Muhammad Irfan Waheed (55206)Muhammad Irfan Waheed (55206)Muniba Islam (55093)Muniba Islam (55093)
Muhammad Sajid (54669)Muhammad Sajid (54669)
Waqar Hussain (55026)Waqar Hussain (55026)
Rehmatullah Abdul Aziz (54210)Rehmatullah Abdul Aziz (54210)
Supervised by:Supervised by:
Mr. Imran AzamMr. Imran Azam
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Chapter One
Marketing: Creating andCapturing Customer Value
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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.
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Understanding the
marketplace &
customer needs &wants
Design a
customer-drivenmarketing
strategy
Construct an
integrated
marketing
program thatdeliver superior
value
Build
profitable
relationship &
create
customerdelight
Capture value
from customers
to create profits& customer
equity
Model of Marketing Process
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Understanding the Marketplace
and Customer Needs
Customer needs, wants, and demands
Market offerings
Value and satisfaction
Exchanges and relationships
Markets
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Understanding the Marketplace
andC
ustomer Needs States of deprivation
Physical²food, clothing,warmth, safety
Social²belonging and affection
Individual²knowledge andself-expression
Needs
Form that needs take as theyare shaped by culture andindividual personality
Wants
Wants backed by buyingpowerDemands
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Understanding the Marketplace
and Customer Needs
Market offerings are some combination of products, services, information, or experiencesoffered to a market to satisfy a need or want.
Marketing myopia is focusing only on existingwants and losing sight of underlying consumer
needs.
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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 orlow
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Exchange is the act of obtaining a desired
object from someone by offering something in
return
Markets are the set of actual and potential
buyers of a product
Understanding the Marketplace
and Customer Needs
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The Modern Marketing System
MajorEnvironmental
Forces
MajorEnvironmental
Forces
MajorEnvironmental
Forces
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Designing a Customer-Driven
Marketing Strategy
Marketing management is the art and science of
choosing target markets and building profitable
relationships with them
oWhat customers will we serve?
o How can we best serve these customers?
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Designing a Customer-Driven
Marketing Strategy
Market segmentation refers to dividing the
markets into segments of customers
Target marketing refers to which segments to go
after
Demarketing is marketing to reduce demand
temporarily or permanently; the aim is not to
destroy demand but to reduce or shift it.
Selecting Customers to Serve
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Designing a Customer-Driven
Marketing StrategyChoosing a Value Proposition
The value proposition is the set of benefits or
values a company promises to deliver to
customers to satisfy their needs.
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Designing a Customer-Driven
Marketing Strategy
Production
concept
Product
concept
elling
concept
rketing
concept
ociet l
concept
Marketing Management Orientations
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Production concept is the idea that consumers will
favor products that are available or highly
affordable.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 makingcontinuous product improvements.
Designing a Customer-Driven
Marketing Strategy
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Selling concept is the idea that consumers will
not buy enough of the firms products unless
it undertakes a large scale selling andpromotion effort.
Designing a Customer-Driven
Marketing Strategy
Profitthrough
salesvolume
Selling & Promotion
ExistingProduct
Factory
StaringPoint
Focus Means Ends
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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
ProfitthroughCustomer
Satisfaction
IntegratedMarketing
CustomerNeeds
Market
Staring
Point Focus Means Ends
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Societal marketing concept is the idea that a
company should make good marketing
decisions by considering consumers wants,
the companys requirements, consumers long-
term interests, and societys long-run interests
Designing a Customer-Driven
Marketing Strategy
Societalmarketing
concept
Society
(Human Welfare)
Company
(Profit)
Consumers
(Want Satisfactions)
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The marketing mix is the set of tools (four Ps) the
firm uses to implement its marketing strategy. It
includes product, price, promotion, and place.
Integrated marketing program is a comprehensive
plan that communicates and delivers the intended
value to chosen customers.
Preparing an Integrated Marketing
Plan and Program
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Building Customer Relationships
The overall process of building and maintaining
profitable customer relationships by delivering
superior customer value and satisfaction.
Customer Relationship Management
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Building Customer Relationships
Relationship Building Blocks: Customer Value and
Satisfaction
Customer-perceived value
The differencebetween totalcustomer valueand totalcustomer cost
Customersatisfaction
The extent towhich a product¶sperceivedperformancematches abuyer¶sexpectations
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Building Customer Relationships
BasicRelationships
FullPartnerships
Customer Relationship Levels and Tools
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Building Customer Relationships
Relating with more carefully selected
customers uses selective relationshipmanagement to target fewer, more profitablecustomers
Relating more deeply and interactively by
incorporating more interactive two wayrelationships through blogs, Websites, onlinecommunities and social networks
The Changing Nature of Customer Relationships
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Partner relationship management involvesworking closely with partners in other company
departments and outside the company to
jointly bring greater value to customers.
Building Customer Relationships
Partners inside the company is every function
area interacting with customers
Electronically
Cross-functional teams
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Partners outside the company is how marketers
connect with their suppliers, channel partners,
and competitors by developing partnerships
Supply chain is a channel that stretches from raw
materials to components to final products to
final buyers
Supply managementStrategic partners
Strategic alliances
Building Customer Relationships
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Capturing Value from Customers
Creating Customer Loyalty and Retention
Share of Market and Share of Customers
Customer Equity
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Capturing Value from Customers
Customer lifetime value is the value of the
entire stream of purchases that the
customer would make over a lifetime of
patronage.
Creating Customer Loyalty and Retention
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Share of customer is the portion of the
customers purchasing that a company
gets in its product categories.
Growing Share of Customer
Capturing Value from Customers
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Customer equity is the total combinedcustomer lifetime values of all of the
companys customers
Building the right relationships with the right
customers involves treating customers as
assets that need to be managed and
maximized
Capturing Value from Customers
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Capturing Value from Customers
Different types of customers require differentrelationship management strategies. Build the
right relationship with the right customers
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The Changing Marketing
Landscape
Digital ageRapid
globalization
Ethics andsocial
responsibility
Not-for-profitmarketing
Major Developments
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Digital Age
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Rapid Globalization
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Ethics and Social Responsibility
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Not-for-profit
marketing
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The Expanded Model of the Marketing Process
Harnessmarketingtechnology
Manage globalmarkets
Ensure ethical& social
responsibility
Capture valuefrom customers tocreate profits & customer equity
Create satisfied,loyal customers
Capture customerlifetime value
Increase share of
market & share of customer
Understand themarketplace &
customer needs & wants
Research customers & the marketplaces
Manage marketinginformation & customer data
Design a customer-
driven marketingstrategy
Select customers toserve: market
segmentation & targeting
Decide on a valueproposition
differentiation & positioning
Construct anintegrated
marketing programthat deliversuperior value
Product & Servicedesign: build strong
brand
Pricing: create realvalue
Distribution: managedemand & supply
chains
Promotion:communicate the
value proposition
Build profitablerelationship &
create customerdelight
Customer relationshipmanagement: buildstrong relationships
with chosen customer
Partner relationshipmanagement: buildstrong relation withmarketing partners
Create value for customer & build customer relationships Capture value from
customers in return
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