PRINMAR

Principles of Marketing

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TOPICS Module 3: Company
and Marketing:
Module 2: Partnering to Build
Understanding the Customer Relationship
Market and the
Marketplace Strategic Marketing
Planning
Consumer and
Module 1: Product Concept and
Business Buying
Introduction to Strategy
Behavior
Marketing Pricing Concept and
The Marketing
Strategy
Environment
Basic Concepts Placing Products:
Managing Marketing
of Marketing and Marketing Channels
Information
its process. and Supply Chain
Market Segmentation, Management
Target Marketing and
Promoting Products:
Market Positioning
Integrated Marketing
Communication

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Module 1:
Introduction
to Marketing
Basic concepts of
Marketing and its
process.

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Module 1: Introduction to Marketing

Learning Objectives
Define marketing and understand the marketing
process.
Explain the core customer and marketplace
concepts.
Define marketing management and compare the
five marketing management orientations.
Understand customer relationship management
and strategies.
Describe the trends that are changing the
marketing landscape.

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Module 1: Introduction to Marketing

Topic Outline
Definition of Marketing
The marketing process
Core customer and marketplace
concepts
Marketing management orientations
Customer Relationship Management
The New Marketing Landscape

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Marketing
“The process by which
companies create
value for customers
and build strong
relationships in
order to capture
value from
customers in return.”
(Kotler & Armstrong,2008, p.5)

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 Interacting Components of Marketing
3 c’s of Marketing (Josiah Go)

CUSTOMER

COMPANY COMPETITION

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 The Marketing Process
Create value for customers Capture value
and build customer from customers
relationships in return

Understand Design a Construct Build Capture

the customer- an profitable value from
marketplace driven integrated relationships customers
and marketing marketing and create to create
customer strategy program customer profits and
needs and that delight customer
wants delivers equity
superior
value

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 “Marketing
process begins,
continues and
ends with
customers.”

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Marketing Process…

Step 1:
Understanding the
Marketplace and
Customer Needs
Core customer and marketplace concepts

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 Needs, Wants,
and demands

Markets Market
Core Customer Offerings
and
Marketplace Concepts

Exchanges and
relationships
Value and
satisfaction
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Human • States of felt deprivation
Needs • Not created by
marketers; part of the
human make up
– Physical needs (food, clothing,
warmth and safety)
– Social needs (belonging and
affection)
– Individual needs ( knowledge
and self expression)

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Wants
• form taken from human
needs that are shaped by
culture and individual
personality.
• Describe in terms of
objects that will satisfy
needs.

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 Demands
“wants backed
by buying
power.”

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Market Offerings
• Combination of goods, services,
information, or experiences offered to a
market to satisfy a need or want.

• Tool to solve a consumer

problem

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Customer Perceived Value
• The customer’s
evaluation of the
difference between all
the benefits all the
costs of a market
offering relative to those
of competing offers.
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Customer Satisfaction
• The extent to
which a product’s
perceived
performance
matches a
buyer’s
expectations.
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 Exchanges

• The act of obtaining a desired object

from someone by offering something in
return.

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Customer Relationship
Management
• The overall process of
building and maintaining
profitable customer
relationships by delivering
superior customer value and
satisfaction.
• Deals with all aspects of
acquiring, keeping and
growing customers.

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 Actual Buyers
Markets
are buyers who
share particular
need or want.
Potential Buyers

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Marketing Process…

Step 2:
Design customer-driven
marketing strategy

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 Marketing Management
“The art and science of
choosing target markets
and building profitable
relationships with them.”
(Kotler & Armstrong,2008, p.5)

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 “Marketing manager’s aim is to find,
attract, keep, and grow target
customers by creating, delivering and
communicating superior customer
value.”

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Functions
• Customer
Management
• Demand
Management

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Customer Management
• Select customers that can
be served well and
profitably.
• Choosing a Value
Proposition
– set of benefits or values it
promises to deliver to customers
to satisfy their needs.

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 Demand Management
• Marketers must deal with
different demand states
ranging from no demand to
too much demand.
– Demarketing: to reduce the
number of customers or to
shift their demand
temporarily or permanently.

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Marketing Management
Orientations
Production, Product, Selling,
Marketing and Societal
Marketing Concepts

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 • Customers will favor products that are
Production Concept available and highly affordable
•Improve production & distribution efficiency

•Customers will favor products that offer

the most quality, performance, and
Product Concept innovative features
•Make continuous product improvements
•Customers will buy products only if
the company promotes/ sells these
Selling Concept products
•Create sales transactions

•Focuses on needs/ wants of target

Marketing Concept markets & delivering satisfaction
better than competitors

•Focuses on needs/ wants of target

Societal Marketing markets & delivering superior value
Concept Instruction Research
and society’s Technology
well-being Wellness
Marketing Process…

Step 3:
Preparing an Integrated
Marketing Plan and
Program
Marketing Mix (4Ps of Marketing)

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4Ps of Marketing 4Cs of Marketing
(Company’s View (Customer’s
Point) Viewpoint)
• Product: a need- • Customer’s Solution
satisfying market offer
• Price: charge for the • Cost
offer
• Place: make the offer • Convenience
available to target
market
• Promotion: • Communication
communicate with
target customers
about the offer and
persuade them of its
merits.

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Marketing Process…

Step 4:
Building Customer Relationships

Customer Relationship Management

Partner Relationship Management

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Trends in CRM
• Relating with more
carefully selected
customers
• Relating for long
term
• Relating Directly

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Partner Relationship Management

“Working closely with partners in

other company departments
and outside the company to
jointly bring greater value to the
customers.” (Kotler et. al,2008, p.18)

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Marketing Process…

Step 5:
Capturing
value from
customers

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 Outcomes of creating customer value
• Customer loyalty and
retention
– Customer lifetime value: the
value of the entire stream of
purchases that a customer would
make over lifetime of patronage.
• Growing share of customer
– Share of customer: the portion of
the customer’s purchasing that a
company gets in its product
categories
• Building Customer Equity:
– Customer equity: the total
combined customer lifetime
values of all the company’s
customers.

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New Marketing Landscape
• New digital age: growth in
computer,
telecommunications,
information, and
transportation.
• Rapid globalization
• Call for more ethics and
social responsibility
• Growth of not-for-profit
marketing.

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Summary:
• Marketing is the process by which companies create value
for customers and build strong customer relationships in
order to capture value from customers in return.
• Understanding customers’ needs, wants and demands will
help the company to design want-satisfying market
offerings and build value-laden customer relationships by
which they capture customer lifetime value and greater
share of customer.
• To design a winning marketing strategy, the company
must decide who will it serve and how it will serve targeted
customers.
• Marketers should take advantage of new opportunities for
building relationships with their customer, their marketing
partners and the world around them.
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