11/23/2016

MARK1012
Marketing Fundamentals
Lecture 1
Introduction to Marketing Chapter 1
Written by:

Nicole Lasky
Dr Mohammed Razzaque
Dr Jiraporn Surachartkumtonkun

Spoken by:

Nicole Lasky

Welcome to MARK1012

Definition of Marketing

Core Marketing Concepts

Elements of a Marketing
System

Evolution of Marketing

Societal Marketing
Concept

Integrated Marketing

The Marketing Mix

Challenges

11/23/2016

What is marketing?
Marketing is the management
function responsible for assuring
that every aspect of the
organization focuses on customer
relationships by delivering superior
value.
Marketing is a social and managerial process by
which individuals and groups obtain what they need
and want through creating, offering, and exchanging
products of value with others. (Kotler)

The process by which companies

create value for customers and build
strong customer relationships in
order to capture value from
customers in return.
3

Core Marketing Concepts

Needs, wants
& demands
Market offerings
Market

Value

Exchange

11/23/2016

Marketing Process

Needs, Wants, &

Demands

Create value

Build relationships

Societal Marketing

11/23/2016

Needs, Wants and Demand

Needs: A state of felt deprivation of some basic
satisfaction. Not created by society or by marketers,
they are natural and exist in the very texture of human
biology.
Human needs for food, clothing, shelter

Wants: Desires for specific satisfiers of the deeper needs.

Continually shaped and reshaped by social forces such
as families, religion, schools, business organizations
Muslims want halal meat

Demands: Wants for specific products that are backed by

an ability and willingness to buy them.
Wants become demand when backed by purchasing
power.
Many people want a Lexus, only a few are able to buy
7

Building Relationships

11/23/2016

What is the marketing function and what do marketers do?

Marketing

converts societal needs into profitable opportunities.

create customers through the creation of utilities

Marketers

identify customer need;

design goods and services (& ideas) to meet those needs;
communicate information about those to prospective buyers;
make them available to prospective buyers;
price them to reflect costs, competition and customers ability to
buy;
provide necessary after-sale service and follow-up to ensure
customer satisfaction

Market offerings: Goods, Services, and Experiences

Market offerings

A product that is some combination of goods, services and

experiences that can be offered to a market to satisfy a
need or want.
Products

Not limited to physical objects

Goods => tangible products

Services/experiences => intangible products

Products = bundle of benefits

Can you give some examples of intangible products and

their benefits?

10

11/23/2016

Customer Perceived Value

Customer value = Perceived Benefits Perceived Costs

11

Economic

Emotion

Customer Perceived Value and Satisfaction

Customer Satisfaction

Post-purchase

Products perceived performance matches a

buyers expectations.

Your
experience of
customer
satisfaction
?
12

11/23/2016

Exchange, Transactions and Relationships

Exchange

The act of obtaining a desired object from

someone by offering something in return.

For an exchange to take place, several

conditions must be satisfied:

At least two parties must participate and each

must have something of value to the other.
Each party must want to deal with the other
and be free to accept or reject an offer.
Each party must be able to communicate and
deliver.

13

Exchange, Transactions and Relationships (2)

Transaction

Unit of measurement.

Monetary and barter transactions

Relationship marketing
the process of creating, maintaining
and enhancing strong, value-laden
relationships with customers and
other stakeholders.

14

11/23/2016

Markets

15

Market
A set of all actual and potential buyers of a
product

Marketing means managing markets to bring about

exchanges

Marketing is carried out by both sellers and buyers

Elements of a Modern Marketing System

16

11/23/2016

Designing a Customer-Driven Marketing

Strategy
Marketing management is:

The analysis, planning, implementation and

control of programs designed to create,
communicate and deliver value to customers
and facilitate managing customer relationships
in ways that enable the organization to meet its
objectives and those of its stakeholders.

A winning marketing strategy asks Who

is our target market? and What is our
value proposition?

17

Selecting Customers to Serve

Marketers cannot serve all customers in every way

with a single market offering.

It is necessary to select customers that can be

served well and profitably.

Demarketing is sometimes appropriate.

to temporarily or permanently reduce demand

Keeping existing customers is important as the
cost to attract new customers. Attracting new
customers costs five times as much as keeping
existing customers.

11/23/2016

Evolution of Marketing
19001930s

Production Producing the product as efficiently as

era
possible. Goal to be most efficient producer
in a mass market.

1930s1960s

Selling era Where marketing is primarily viewed as a

sales function.

1960s

Consumer A philosophy focused on satisfying

era
customers wants and needs.

1970s1990s

New era

Mid
1990s
onwards
19

Improving products so that they meet needs

better than competitors. Also sought to
benefit employees, shareholders and
communities.

New
Building long-term bonds with customers.
millennium Customers exchange two things of value:
money and information.

The Selling Concept vs The Marketing

Concept

20

10

11/23/2016

Choosing a Value Proposition (what is our value

proposition?)

The organisation must decide how it will serve targeted

customers - how it will differentiate and position itself in
the marketplace.

A value proposition

A set of benefits or values it promises to deliver to

consumers to satisfy their needs

Differentiate one brand from another

Why should I buy your brand rather than a

competitors?

21

The Societal Marketing Concept

22

11

11/23/2016

Preparing an Integrated Marketing

Program

The companys marketing strategy outlines which

customers the company will serve and how it will create
value.

The integrated marketing program is developed to

actually deliver the value to target customers.

The program builds relationships by transforming the

strategy into action, it consists of the marketing mix.

23

The marketing mix

A unique blend of

product

Distribution (place)

pricing

promotion

Target market

designed to produce mutually satisfying exchanges with

a target market.

24

12

11/23/2016

The Extended Marketing Mix

25

The Variables - Product

The product the item being

offered for exchange.
It includes:
The design and
packaging
Physical features
Any associated services

Augmented

Actual

Core

26

13

11/23/2016

The Variables - Price

The price the value the customer
gives up or exchanges in order to
obtain the desired product.

Can be used to:

Increase interest in a product
Indicate quality
Non-monetary elements:
Time cost
Social cost
Lifestyle cost
27

The Variables Place (distribution)

Place the availability of the product
to the customer at the desired time and
location.

Related to the channel of

distribution the set of companies
of working together to get a
product from a producer to a
consumer.
28

14

11/23/2016

The Variables Promotion

Promotion all the activities
marketers undertake to inform
customers about their products and
to encourage potential consumers
to but those products.

Promotion includes:
Personal

selling

Advertising
Sales

promotion
relations
Direct marketing
Online marketing
Sponsorship
Word-of-mouth
Public

29

Challenges and changes

New Marketing Challenges

Changing Marketing
landscape

Rapid Globalization

Uncertain world
economy

New Marketing System Goals

Maximise Quality of Life

Maximise Choice

Technology dependence

Maximise Consumption

Nonprofit marketing

Maximise Satisfaction

30

15