Chapter 1 What Is Marketing

PRINCIPLES OF
MARKETING CHAPTER
1
AMBREEN BASHIR HARIS
INSTITUTE OF BUSINESS MANAGEMENT
CHAPTER 1: CUSTOMER VALUE AND
ENGAGEMENT
MARKETING
• The modern marketing concept can be expressed as ‘the achievement of corporate goals through
meeting and exceeding customer needs better than the competition’.
For example, Netflix added to its successful movie rental and streaming services by providing original
TV show content.
In addition, all of its content is available on mobile devices, allowing customers to watch their
favourite movies and shows while on the move – a significant advantage over cable operators.
WHAT IS MARKETING?
Broadly defined, Marketing is a process to identify the needs and wants of customers and
satisfying them by giving them a value proposition better than competition in exchange for a
profit.
• Marketing is a social and managerial process by which individuals and organizations

obtain what they need and want through creating and exchanging value with others.
• In a narrower business context, marketing involves engaging customers and building
profitable, value-laden exchange relationships with customers.
KEY MARKETING TERMS
• Process: Social and managerial; a process is step-wise, dynamic, on-going

• Identify: research, understand the marketplace
• Need, want and demand: Need is state of self-deprivation, need according to one’s culture and individual personality is want; Wants
backed by Intention to buy and purchasing power is Demand. Marketing management is demand management
• Customers: existing and potential. It can be business customers or consumers; consumers are end-users.
• Satisfaction, value: If expected outcome as according to the customer expectations, they are satisfied. They can be dissatisfied or delighted
as well
• Value: is always perceived. It’s the difference between benefit and cost. Needs to have exceptional utility for the customer
You choose, create and deliver a value proposition for the customers better than the competition in order to engage them and retain them
• Competition: Multiple frames of reference: direct, indirect, substitute, alternatives.
• Exchange: Marketing is exchange of value. The company also get value in return in form of profit, market value, brand equity etc.
SOME MORE KEY TERMS
• Engaging Customers: capturing more customers, attracting them, interacting with them.
• Building long-term customer relationships: Retaining existing customers
• Markets: A set of existing and potential buyers
THE MARKETING PROCESS: VALUE PROPOSITION
CHOOSE/DEFINE VALUE, CREATE VALUE, DELIVER VALUE
DESIGNING A CUSTOMER VALUE-DRIVEN
MARKETING STRATEGY
• What customers will we serve (what’s our target market)? and
• Segmentation
• Targeting
• How can we serve these customers best (what’s our value proposition)?
• Differentiate
• Position
• Value Proposition answers the customer’s question: “Why should I buy your brand rather than
a competitor’s?”
MARKETING MANAGEMENT ORIENTATION
• Production Concept
• Product Concept
• Selling Concept
• Marketing Concept
• Societal Marketing Concept
PREPARING AN INTEGRATED MARKETING
PROGRAM
• Marketing Mix – 4P’s
• Product
• Price
• Place
• Promotion
MANAGING CUSTOMER RELATIONSHIPS AND
CAPTURING CUSTOMER VALUE
• Customer Relationship Management
• Perceived- Value and Satisfaction
• Customer Engagement and Today’s Digital and Social Media

• Consumer-generated Marketing
• Partner Relationship Management
CAPTURING VALUE FROM CUSTOMERS
• Creating customer loyalty and retention

• Customer Lifetime Value
• Growing Share of Customer
• What is Customer Equity?
Customer equity is the total combined
customer lifetime values of all of the
company’s current and potential customers.
THE CHANGING MARKETPLACE
• The Digital Age: Online, Mobile, and Social Media Marketing

• The Changing Economic Environment
• The Growth of Not-For-Profit Marketing
• Rapid Globalization
• Sustainable Marketing—The Call for More Environmental and Social Responsibility
BEN & JERRY’S
• Page 53
AN EXPANDED VIEW OF THE MARKETING
PROCESS
AMAZING PAKISTANI ENTREPRENEURS
(WWW.AMAZINGPAKISTANIS.COM)
WHAT IS AN ENTREPRENEURSHIP?
• Entrepreneurs are everywhere.

• Anyone who works within a startup: a human institution designed to create new products
and services under conditions of extreme uncertainty.
WHAT IS ENTREPRENEURSHIP?
• Case of McDonald’s
WHAT IS ENTREPRENEURSHIP?
• The future belongs to those who believe in their dreams. —Eleanor Roosevelt
• Entrepreneurship is the act of creating a business or businesses to generate a profit.
• The more modern entrepreneurship definition is also about transforming the world by solving big problems.
Like initiating social change, creating an innovative product or presenting a new life-changing solution.
• Entrepreneurship is what people do to take their career and dreams into their hands and lead it in the
direction of their own choice. It’s about building a life on your own terms. No bosses. No restricting
schedules. And no one holding you back. Entrepreneurs are able to take the first step into making the world
a better place, for everyone in it.
(Reference: Ferriera, 2018; www.oberlo.com)
ROCK STARS OF THE BUSINESS WORLD
• Entrepreneurs, once shunned as people who could not handle a “real” job in the corporate world,
now are the heroes of the economy.
• They create companies, jobs, wealth, and innovative solutions to some of the world’s most vexing
problems, from relief for sore feet to renewable energy sources.
• “The story of entrepreneurship entails a never ending search for new and imaginative ways to
combine the factors of production into new methods, processes, technologies, products, or
services,” says one government economist who has conducted extensive research on
entrepreneurship’s impact.
• In short, small business is “cool,” and entrepreneurs are the rock stars of the business world.
ENTREPRENEURIAL ACTIVITY ACROSS THE
GLOBE
JACK MA: ALIBABA 1999-2018
FROM RAGS TO RICHES: MEHMOOD BHATTI
WHO IS AN ENTREPRENEUR?
• An entrepreneur is one who creates a new business in the face of risk and uncertainty for the purpose of
achieving profit and growth by identifying opportunities and assembling the necessary resources to
capitalize on those opportunities.
• Entrepreneurs usually start with nothing more than an idea—often a simple one—and then organize the
resources necessary to transform that idea into a sustainable business.
• Entrepreneurs are disrupters, upsetting the traditional way of doing things by creating new ways to do them.
• One business writer says that an entrepreneur is “someone who takes nothing for granted, assumes change
is possible, and follows through; someone incapable of confronting reality without thinking about ways to
improve it; and for whom action is a natural consequence of thought.”

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PRINCIPLES OF

• Marketing is a social and managerial process by which individuals and organizations

• Process: Social and managerial; a process is step-wise, dynamic, on-going

• Customer Engagement and Today’s Digital and Social Media

• Creating customer loyalty and retention

• The Digital Age: Online, Mobile, and Social Media Marketing

• Entrepreneurs are everywhere.

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