Faculty Name: Muhammad Ahad Hayat Khan

Course Title: Principle of Marketing Course Code: MKT- 201

Department: Business Administration

Script 1
Welcoming Students

Welcome, hope you are doing well.

Introduction to subject:

As you are well aware that the name of our subject is “Principle of Marketing”, today we will go
through the introduction and basic terms related to Marketing. First of all I will define what
Marketing is and why it is important for you to study marketing:

Question

What is the first thing that comes in your mind when I ask you what is marketing?

Expected Answers

you might have thought of some examples like

Marketing on face book

Marketing on billboards

Television commercials

Etc.
Guess what, if you whispered the same then you are almost right. Now you might be thinking
that what the meaning of almost right is, actually the above all are different forms to market your
product or service.

Scenario

Here is the scenario explaining what actually marketing is :

Marketing
I was recently faced a problem with my generator, so I decided to buy new generator for my
home.
Now I will have to search for the generator on different platforms, because of COVID 19 I find it
feasible to sit back home and search online. Now here is the point where marketing comes,
according to one definition, “The activities that are involved in making people aware of a
company’s products, making sure that the products are available to be bought, etc.” another
definition is “Marketing is a process by which companies create value for customers and build
strong customer relationships to capture value from customers in return.”

Just to make it possible I went through the social platform where search for different brands of
generators, I have also searched on the websites of different brands o have a comparing of the
prices and specifications of different brands.

Elaboration:

Now you might have a clear view of what marketing really is, It is actually a medium or source
of making the people aware of the products and services.

Making Process:

Now coming to the marketing process, It is actually a chain process that starts with
understanding the market place (customers) and end at delivering them value and create
profitable relationship.

Above figure shows the step by step marketing process

Question

You may have a question that what is the meaning of value?

Customer Value

Customer Value is the perception of what a product or service is worth to a Customer versus the
possible alternatives.

Course Content

Now Let’s have a look at the 1st step of marketing process i.e. Understanding the Marketplace
and Customer Needs

Since the word market refers o a place where buyers and sellers meet, therefore understanding he
market place simply means understanding he customers, their needs, wants and demands.

Question

Now can you determine the difference between he needs wants and demands?

Course Content

Answer: Needs are actually

• States of deprivation
• Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression

Wants means Form that needs take as they are shaped by culture and individual
personality

And demands are Wants backed by buying power

Example

For e.g., after your class in the university you felt very hungry, and you wanted to eat
something (Need Food), suddenly you decided to eat burger from McDonalds (Want),
before ordered when you checked our pocket you find yourself out of cash and then you
went to a cart and instead of McDonalds burger you filled your hunger with the Rs Bun
kabab.

Course Content

• Marketing myopia is focusing only on existing wants and losing sight of underlying
consumer needs
• Exchange is the act of obtaining a desired object from someone by offering something in
return
another thing to be kept in mind is that in the market we have different players including supplier
from whom companies and their competitors get raw material, the marketing intermediaries who
serves as the bridge between the companies and the consumers.

Now coming on the 2nd step i.e. Designing a Customer-Driven Marketing Strategy

In this section we will answer the following 2 questions

What customers will we serve?

How can we best serve these customers?

For the first question we have two concepts

Market segmentation refers to dividing the markets into segments or groups of customers

Target marketing refers to which segments or group to go after

One more thing o be kept in mind is

A brand’s Value Proposition is the set of benefits or values a company promises to deliver to
customers to satisfy their needs.

Now we will discuss he different concepts of marketing

Production concept

Product concept

Selling concept

Marketing concept

Societal marketing

Course Content
Production concept:

Consumers will favor products that are available and highly affordable

Elaboration

 In production concept it is perceived that a customer favors such product which is readily
available in the market at relatively lower cost. It is one of the oldest concepts.
So the producers who follow this concept, tries to increase their production capacity and
productivity as well to lower the cost. For this purpose they need efficient production processes
and effective distribution channel for the placement of product.

This concept is applicable in 2 situations, one; when demand is exceeding supply in the market,
to outfit that demand excessive production is required to make the product available all
over. Second; when products’ price is high because of too high cost, and improved productivity
is required to cut the cost.

Course Content
Product concept

Consumers favor products that offer the most quality, performance, and features Focus is on
continuous product improvements

Elaboration
Product concept emphasizes on the view that customer favors the product that offer most quality,
improvement, features and enhancements. For this purpose organization tries to put all its efforts
in upgrading the product. This concept focuses on making continuous improvements.
This idea can work to some extent, but in current era of latest technology and innovative
inventions, it may not work that much successfully.

Example:
Companies in the cellular industry follow this concept as there is very high competition in the
market therefore they have to continuously work on the advancement of the specifications of the
product.

Course Content

Selling concept:
Consumers will not buy enough of the firm’s products unless it undertakes a large scale selling
and promotion effort

Elaboration
 In selling concept, it is being perceived that customer will not buy a certain product
unless it’s being promoted and advertised massively. Such organizations that have the strategies
according to this particular concept need a large sales force and promotional activities to make
everyone well-informed regarding its product or service.

Example:
Almost ever company either big or small is following this concept, they are advertising heir
products on all he possible medium to increase their presences and availability to each and every
person.
Course Content
Marketing concept

Knowing the needs and wants of the target markets and delivering the desired satisfactions better
than competitors do

Elaboration
It is the modern concept, in which the focus is customers’ satisfaction. Company first analyze the
consumers’ need and then produce such good and service to satisfy that need. In this way it can
build a strong relationship with customer which can earn monetary benefits for the company.
This is the concept which is popular nowadays. Because now customers are more concerned and
well aware. They want their needs to be satisfied with rather compromise with available
products.

Course Content
Societal marketing:
Make good marketing decisions by considering: consumers’ wants and long-term interests,
company’s requirements, society’s long-run interests

Elaboration
 It is enlightened concept which emphasizes that company should make products which are not
only satisfying the interests of customers and company’s but society’s long run interest are saved
as well.

Example:

Not many companies are following this concept but a significant number of companies are,
keeping in mind the societal interest, like the air conditioning industry is launching new ac ha
have inverter technology which result in both low emission of harmful gases and also serve as ac
consuming less amount of electricity.

Now let’s discuss the third step of marketing process

Preparing an Integrated Marketing Plan and Program

Question

What do you think if I will ask you what is integrated marketing program?

Don’t know, no worries,

Let us discuss the definition from course content

Integrated marketing program: comprehensive plan that communicates and delivers the
intended value to chosen customers.
Can you tell me what is meant by intended value?

Expected answer:

Value that customers expect,

Answer:

Intended value is actually that value which the consumer has in his mind before purchasing the
product.

Example:

When you go to some restaurant then you have certain value in your mind like if you order a
chicken tikka and it will cost you RS. 200/- then you find in reasonable but if the same restaurant
after some time charge you RS. 500 for the same chicken tikka you find it very costly.

It means that you have certain value for the chicken tikka for the restaurant.

Now we will discuss the forth step and one of the important factor of marketing i.e. building
relationship with customers

Customer Relationship Management (CRM)

The overall process of building and maintaining profitable customer relationships by delivering
superior customer value and satisfaction

Question

Now tell me how the customer can be satisfied?

Let us explain with the help of a Example

If we take the previous example of chicken tikka, when the customer was paying Rs. 200/- for
the chicken tikka, he was satisfied with what he gets in return, whereas when the price increased
then the customer find the price very high which show his dissatisfaction for the product
(chicken tikka)

Course content:

Customer Value and Satisfaction

• Customer- perceived value

• The difference between total customer value and total customer cost

• Customer satisfaction
 • The extent to which a product’s perceived performance matches a buyer’s expectations

Here are some ways through which we study the Changing Nature of Customer
Relationships

• Relating with more carefully selected customers uses selective relationship management
to target fewer, more profitable customers

• Relating more deeply and interactively by incorporating more interactive two way
relationships through blogs, Websites, online communities and social networks

In today’s world it is very important for the companies to stay in touch with the customers
for that a lot of companies have social media pages where they keep updating their products
and make interaction with the customers also,

Tell me have you ever seen any company taking feedback on social media ?

I knew the answer would be yes,

Let’s now have a look at Customer-managed relationships from course content

Customer-managed relationships

• Customers, empowered by today’s new digital technologies, interact with companies and
each other to shape their relationships with brands.

Now what is Partner relationship management?

Partner relationship management involves working closely with partners in other company
departments and outside the company to jointly bring greater value to customers

• Partners inside the company is every functional area interacting with customers

• Electronically

• Cross-functional teams

• 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

The above description tells that the relationship between different partners in the company is
very important and to function in a profitable manner each partner must play its role
effectively and efficiently.
 Now the last step in the marketing process is Capturing Value from Customers

Question:

Now can you tell me what is meant by Capturing Value from Customers?

Answer

Successful companies try to delight their customers and capture value from customers. By capturing

customer value, firms build a long life relationship with their customers. Satisfied customers tend to buy
more and to be loyal to the company which leads greater long-run profits.

Course Content

Creating Customer Loyalty and Retention

• Customer lifetime value is the value of the entire stream of purchases that the customer
would
make over a
lifetime of
patronage

Example:

Now a term is discussed that is customer delight, actually customer gets delighted when he gets
something more in the same price.

Example lets repeat the same example, if the person that bought chicken tikka, gets a beef roll as extra in
the same price i.e. Rs. 200/- then he gets more than satisfied. That feeling of customer of getting
something extra is called customer delight.

Now here are some terms that you have to remember

Growing Share of Customer

• Share of customer is the portion of the customer’s purchasing that a company gets in its
product categories

• Customer equity is

• the total combined customer lifetime values of all of the company’s customers

• Building Customer Equity

• Right relationships with the right customers involves treating customers as assets that
need to be managed and maximized
 • Different types of customers require different relationship management strategies

Digital Age

• Online marketing is the fastest-growing

It means that the ecommerce is evolving very fast, now we have different giants of e commerce
like Alibaba Amazon etc

• Click- and- mortar companies evolved

It tells that the old companies working on the past criterion will no longer remain in the market.

• Rapid Globalization

It means that the companies are moving towards Globalization, because this is the only thing that
can be done to maximize their profit.

• Sustainable marketing

Sustainable marketing is the promotion of environmental and socially responsible products,

practices, and brand values.