Principles Of Marketing

And Management:

Creating And Capturing

Customer Value

Prepared by Mohamad
To h a , P h . D .

MARKETING PRINCIPLES (KOTLER, AMSTONG, 2016)

LEARNING OBJECTIVES

1. WHAT IS MARKETING?
2. UNDERSTAND MARKET PLACE AND CUSTOMER NEED.
3. DESIGNING A CUSTOMER DRIVEN MARKETING STRATEGY AND
PREPARING AN INTEGRATED MARKETING PLAN AND PROGRAM.
4. BUILDING RELATIONSHIPS AND CAPTURING VALUE FROM
CUSTOMERS.
5. THE CHANGING MARKETING LANDSCAPE.
WHAT IS MARKETING?

MARKETING IS MANAGING PROFITABLE CUSTOMER

RELATIONSHIPS. MARKETING IS DEFINE AS THE PROCESS BY WHICH
•GOALS OF MARKETING IS TO ATTRACT NEW CUSTOMERS BY PROMISING COMPANIES CREATE VALUE FOR CUSTOMERS AND BUILD
SUPERIOR VALUE AND KEEP AND GROW CURRENT CUSTOMERS BY STRONG CUSTOMER RELATIONSHIPS IN ORDER TO
DELIVERING SATISFACTION.
•THE AIM OF MARKETING IS TO CREATE VALUE FOR CUSTOMERS AND
CAPTURE VALUE FROM CUSTOMERS IN RETURN.
CAPTURE VALUE FROM CUSTOMERS IN RETURN.
The Marketing Process

The process by which

The companies create value for
customers and build strong
Marketing customer relationships in
Process order to capture value from
customers in return.
 SIMPLE MODEL OF MARKETING PROCESS

CREATE VALUE FOR CUSTOMERS AND CAPTURE VALUE FROM

BUILD CUSTOMER RELATIONSHIP CUSTOMERS IN RETURN

3.
1. CONSTRUCT AN 4. 5.
2.
UNDERSTAND THE INTEGRATED BUILD PROFITABLE CAPTURE VALUE FROM
DESIGN A CUSTOMER-
MARKET PLACE AND MARKETING RELATIONSHIPS AND CUSTOMERS TO CREATE
DRIVEN MARKETING
CUSTOMER NEEDS PROGRAM THAT CREATE CUSTOMER PROFITS AND
STRATEGY
AND WANTS DELIVERS SUPERIOR DELIGHT CUSTOMER EQUITY
VALUE
Customer Need and Market Place Concept

Five Core Concepts:

1. Needs, Wants, and Demands;
2. Market Offerings (Products, Services,
Customer Need and and Experiences);
Wants and Market Place
3. Value and Satisfaction;
4. Exchanges and Relationships; and
5. Markets
NEEDS,WANTS AND DEMANDS

NEED WANT DEMAND NEEDS, STATES OF FELT DEPRIVATION

•I PHYSICALLY NEED •I WANT CLEAN, SAFE •I CREATE A DEMANG

WANTS, THE FORM HUMAN NEEDS TAKE AS THEY
WATER TO SURVIVE TO DRINK, GOOD FOR SMART WATER ARE SHAPED BY CULTURE AND INDIVIDUAL
TASTEING WATER SISNCE IT IS VAPOR
DISTILLED WITH ADED PERSONALITY
ELECTROLYTES FOR
TASTE
DEMANDS, HUMAN WANTS THAT ARE BACKED BY
BUYING POWER

CONSIDER ABOUT FOOD FOR BREKFAST WHAT ARE THE NEEDS, THE
WANTS AND THE DEMAND?
MARKET OFFERINGS – PRODUCTS,
SERVICES, AND EXPERIENCES

MARKET OFFERING: WHAT TO OFFER?

SOME COMBINATION OF PRODUCTS, SERVICES, INFORMATION,
OR EXPERIENCES OFFERED TO A MARKET TO SATISFY A
WHAT TO OFFER NEED OR WANT.
NOT MYOPIA
MARKETING MYOPIA. THE MISTAKE OF PAYING MORE
ATTENTION TO THE SPECIFIC PRODUCTS A COMPANY
OFFERS THAN TO THE BENEFITS AND EXPERIENCES
PRODUCED BY THESE PRODUCTS

CONSIDER ABOUT FOOD FOR BREKFAST, WHAT TO OFFER?

 VALUE AND SATISFACTION

PRODUCT AND SERVICES CUSTOMERS

VALUE, FULFILL SELECTION CRITERIA → QUALITY, DELIVERY TIME

(CRITERIA)
SATISFACTION, FULFILL CUSTOMER REQUIREMENT → FULFILL THE
COMMITTED QUALITY, FULFILL THE COMMITTED SCHEDULE

WHEN THE FOOD FOR BREKFAST IS VALUED HIGH BY AND SATISFY

YOUR CUSTOMERS?
EXCHANGES AND RELATIONSHIPS

RELATIONSHIP, RELATIONSHIP SHOULD BE

EXCHANGE, THE ACT OF OBTAINING A
BUILD BOTH DIRECTION, NOT ONLY HOW TO
DESIRED OBJECT FROM SOMEONE BY
REACH THE CUSTOMERS BUT ALSO HOW
OFFERING SOMETHING IN RETURN
CUSTOMERS CAN REACH THE COMPANY
MARKET

MARKET: THE SET OF ALL ACTUAL AND POTENTIAL BUYERS OF A

PRODUCT OR SERVICE.

Actual buyers
Potential
buyers

Market
MARKETING MANAGEMENT

MARKETING MANAGEMENT: THE ART AND SCIENCE OF CHOOSING TARGET

MARKETS AND BUILDING PROFITABLE RELATIONSHIPS WITH THEM.
A MODERN MARKETING SYSTEM
CUSTOMER DRIVEN MARKETING
STRATEGY

TWO MAIN QUESTION IN MARKETING MANAGEMENT:

WHAT? THE TARGET MARKET
HOW TO SERVE CUSTOMERS BEST?
WHAT? THE TARGET CUSTOMERS

DIVIDING THE MARKET INTO SEGMENTS OF CUSTOMERS

(MARKET SEGMENTATION) AND
SELECTING WHICH SEGMENTS IT WILL GO AFTER (TARGET
MARKETING).
MANAGERS KNOW THAT THEY CANNOT SERVE ALL
CUSTOMERS IN EVERY WAY
HOW TO SERVE:
DEFINING VALUE PROPOSITION

AS NEEDS AND WANTS OF THE SEGMENT.

ANSWER THEM “WHY SHOULD I BUY YOUR BRAND RATHER THAN A
COMPETITOR’S?”
IT DIFFERENTIATES AND POSITIONS THE COMPANY IN THE
MARKETPLACE, GIVE THEM THE GREATEST ADVANTAGE IN THEIR
• TASTE TARGET MARKETS.
• LOCATION
• AMBIENT ABRAND’S VALUE PROPOSITION IS THE SET OF BENEFITS OR
• CLEAN AND HEALTH VALUES IT PROMISES TO DELIVER TO CONSUMERS TO SATISFY
• SERVICE
• ETC THEIR NEEDS. .
FIVE COMPETING MARKET
ORIENTATIONS

1. THE PRODUCTION CONCEPT

2. THE SELLING CONCEPT
3. THE MARKETING CONCEPT
4. THE SOCIETAL MARKETING CONCEPT
SELLING AND MARKETING CONCEPT
SOCIETAL MARKETING CONCEPT

THE IDEA THAT A COMPANY’S MARKETING

DECISIONS SHOULD CONSIDER CONSUMERS’
WANTS, THE COMPANY’S REQUIREMENTS,
CONSUMERS’ LONG-RUN INTERESTS, AND
SOCIETY’S LONG-RUN INTERESTS.

UNDERLYING SOCIAL MARKETING CONCEPT

MARKETING PLANS AND PROGRAMS

MARKETING STRATEGY: MARKETING PROGRAMS:

• WHAT AND MARKETING MIX → PRODUCT, PLACE, PRICE,
• HOW PROMOTION

ACTION PLAN
BUILDING CUSTOMER RELATIONSHIP

CUSTOMER RELATIONSHIP •CUSTOMER VALUE AND SATISFACTION

MANAGEMENT •CUSTOMER LEVEL AND TOOLS

CHANGING NATURE OF •MORE INTERACTIVE

CUSTOMER RELATIONSHIP •DRIVEN BY DIGITALIZATION

PARTNER RELATIONSHIP •PARTNERS INSIDE THE COMPANY

MANAGEMENT •PARTNER OUTSIDE THE COMPANY
BUILDING CUSTOMER RELATIONSHIP
MANAGEMENT

CUSTOMER RELATIONSHIP MANAGEMENT, THE OVERALL PROCESS OF BUILDING

AND MAINTAINING PROFITABLE CUSTOMER RELATIONSHIPS BY DELIVERING
SUPERIOR CUSTOMER VALUE AND SATISFACTION.

RELATIONSHIP BUILDING BLOCKS: CUSTOMER VALUE AND SATISFACTION

CUSTOMER RELATIONSHIP LEVELS AND TOOLS

CUSTOMER PERCEIVED VALUE AND
CUSTOMER SATISFACTION

CUSTOMER VALUE, THE CUSTOMER’S EVALUATION OF THE

DIFFERENCE BETWEEN ALL THE BENEFITS AND ALL THE COSTS
OF A MARKETING OFFER RELATIVE TO THOSE OF COMPETING
OFFERS.

CUSTOMER SATISFACTION, THE EXTENT TO WHICH A PRODUCT’S

PERCEIVED PERFORMANCE MATCHES A BUYER’S EXPECTATIONS.
THE CHANGING NATURE OF CUSTOMER
RELATIONSHIPS

RELATING WITH MORE CAREFULLY SELECTED

CUSTOMERS

RELATING MORE DEEPLY AND INTERACTIVELY

◦ TWO-WAY CUSTOMER RELATIONSHIPS.

◦ CUSTOMER MANAGED RELATIONSHIP

CUSTOMER GENERATED MARKETING

CAPTURING VALUE FROM CUSTOMERS

CREATING CUSTOMER •RELATIONSHIP → DELGHTED →

LOYALTY AND RETENTION LOYALTY AND RETENTION

GROWING SHARE OF •EXPANDING CUSTOMER EXPENSE TO

CUSTOMERS GET MORE PRODUCTS OR SERVICES

BUILDING CUSTOMERS •THE TOTAL COMBINED CUSTOMER

EQUITY LIFETIME VALUES OF ALL OF THE
COMPANY’S CUSTOMERS

BUILDING RIGHT •KNOW AND SELECT THE

RELATIONSHIP WITH RIGHT CUSTOMERS:
CUSTOMERS BUTTERFLIES, TRUE
FRIENDS, BARNACLES
CHANGING MARKET LANDSCAPE
UNCERTAIN ECONOMIC •GREAT RECESSION
ENVIRONMENT •CUSTOMER FRUGALITY

•INDUSTRY GEN 4.0: HIGHER COMPUTATION POWER, OTOMATIZATION,

THE DIGITAL AGE HUMAN-MACHINE INTERACTION, DIGITAL-PHISICAL CONNECTION

•GLOBALIZATION OF EVERYTHING ARE DRIVEN BY MULTINATIONAL

RAPIT GLOBALIZATION CRPORATION

CALL FOR MORE ETHIC AND •ETHIC AND SOCIAL RESPONSIBILITY VERY IMPORTANT FOR LONG-TERM
SOCIAL RESPONSIBILITY
GROWTH OF NON-PROFIT •NON-PROFIT MARKETING BECOMING TREND IN THE FUTURE
MARKETING
EXPANDED MODEL OF MARKETING PROCESS