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Introduction To Marketing Management

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27 views20 pages

Introduction To Marketing Management

Uploaded by

Anmol
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Principles of Marketing

Jatin Vaid
Chapter 1

Marketing: Managing Profitable


Customer Relationship
What is Marketing?

 Marketing is the process by which companies


create value for customers & build strong
customer relationships in order to capture value
from customers in return.

 Marketing is all about” satisfying customer


needs”
Definition of Marketing:
According to American Marketing Association
(AMA):
Marketing is the activity, set of institutions,
and processes for creating, communicating,
delivering, and exchanging offerings that
have value for customers, clients, partners,
and society at large.
Goal of Marketing:
 To attract new customers by promising
superior value.

 To keep & grow current customers by


delivering satisfaction
A simple model of the marketing
process

Create value for customers & Capture value


build customer relationships from customers
in return

Construct an Capture value


integrated Build profitable from
Understand the Design a customer
marketing relationships & customers to
marketplace & driven marketing
program that create customer create profits
customer needs & strategy
delivers delight & customer
wants
superior value equity.
Core definitions
 Needs: Needs are the basic human requirements
e.g food, water, air, shelter.

 Wants: Are the form human needs take as shaped


by culture and individual responsibility and directed towards
specific objects.

 Demands: Human wants that are backed by willingness and


ability to pay.

 Market offering: Some combination of products, services,


information, or experiences offered to a market to satisfy a
need or want. Eg, banks, airlines.
 Marketing Myopia: The mistake of paying more
attention to the specific products a company offers
than to the benefits & experiences produced by these
products.

 Exchange: Process of obtaining a desired product


from someone by offering something in return.

 Market: The set of all actual & potential buyers of a


product or service.
 Marketing Management: The art & science
of choosing target markets & building
profitable relationships with them.

 Value Proposition: A company’s value


proposition is the set of benefits or values it
promises to deliver to consumers to satisfy
their needs.
Winning Marketing Strategy
 What customers will we serve?
(what’s our target market)
- Divide the market into customer segments.
- Select which segments will it go after.

 How can we serve these customers best?


(what’s our value proposition)
- Differentiating & positioning the product in minds
of consumers.
Five Organizational Concepts

1. Production Concept
2. Product Concept
3. Selling Concept
4. Marketing Concept
5. Societal Marketing Concept
Production Concept

 The idea that consumers will favor products that


are available & highly affordable & that the
organization should therefore focus on improving
production & distribution efficiency.
Product Concept
 The idea that consumers will favor products that
offer the most quality, performance, & features
thereby devoting a company’s energy to making
continuous product improvements.
 Make & sell concept
 Focus on making superior products
 No customer input
 Less competitor product examination.
 “ Marketing Myopia”
Selling Concept

 The idea that consumers will not buy enough of


the firms products unless it undertakes a large
scale selling & promotion effort.
 Practiced most aggressively with unsought
goods eg, insurance, encyclopedias.
 Focuses on creating sales-transactions rather
than long term profitable relationships.
 “Political Relationships”
Marketing Concept
 The marketing management philosophy that
achieving organizational goals depends on
knowing the needs & wants of target markets
& delivering the desired satisfactions better
than competitors.
 Sense & respond philosophy.
 Finding right products for customers
 Customer-driving marketing – understanding
customer needs even better than the customers
themselves.
Contrast between Sales Concept & Marketing
Concept
Starting Point Focus Means Ends

Factory Products Selling &Promoting Profits through


sales volume

a. THE SELLING CONCEPT

Target Customer Integrated Profits through


Market Needs Marketing customer satisfaction

b. THE MARKETING CONCEPT


Societal Marketing Concept
 Holds that marketing strategy should deliver
value to customers in a way that maintains or
improves both consumers & the societies well-
being.
Society
(Human Welfare)

Societal
marketing
concept
Consumers Company
(Want Satisfaction) (Profits)
Customer Relationship
Management
 CRM is the process of building & maintaining
profitable customer relationships by delivering
superior customer value & satisfaction.
 Customer Perceived Value: The customers
evaluation of the difference between all the
benefits & all the costs of a market offering
relative to those of competing products.
 Customer Satisfaction depends on a product’s
perceived performance relative to a buyer’s
expectations.
Performance = Expectation
Customer Satisfaction= Customer Loyalty= Better
Performance
 Customer delight- promising only what a
company can deliver, & then delivering more
than promised.
Thank You!!

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