Principles of Marketing _al_cronico_

INTRODUCTION TO MARKETING

Marketing
- process by which companies create value for customers and build strong customer relationships in
order to capture value from customers in return.
GOAL: Attract new customers by promising superior value and keep and grow current customers by
delivering satisfaction.
Philip Kotler – father of modern Marketing.

MARKETING PROCESS

1. Understand the marketplace and customer needs and wants.

Needs - states of deprivation.
- most basic concept underlying marketing.
Wants - form of human needs take as they are shaped by culture and individual personality.
Demands – human wants that are backed by buying power.
Product – anything that can be offered to a market to satisfy the customer needs or wants.
Market Offerings – some combination of products, services, information, or experiences offered to a
market to satisfy a need or want.
Exchange – act of obtaining a desired object from someone by offering something in return.
Target Market – set of actual and potential buyers of a product or service.
- Buyers share a particular need or want that can be satisfied through exchange
relationships.
Target Locale – proposed location to put up a business.
2. Designing a customer-driven marketing strategy
Marketing Management – the art and science of choosing target markets and building profitable
relationships with them.

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MARKETING CONCEPT PHILOSOPHIES

I. TRADITIONAL CONCEPTS
a. Production Concept
- holds idea that consumers will favor products that are available and highly affordable.
- management should focus on improving production distribution efficiency.
b. Product Concept
- holds the idea that consumers will favor products that offer the most in quality, performance, and
innovative features.
- marketing strategy focuses on making continuous product improvements.
c. Selling Concept
- holds the idea that consumers will not buy enough of the firm’s products unless it undertakes a large-
scale selling and promotion effort.
- practiced with unsought goods.
II. CONTEMPORARY CONCEPT
a. Marketing Concept
- holds the idea that achieving organizational goals depends on knowing the needs and wants of target
markets and delivering the desired satisfactions better than competitors do.
- follows customer-center “sense and respond” philosophy.
b. Societal Marketing Concept
- holds the idea that a company’s marketing decisions should consider consumers’ wants, the
company’s requirements, consumer long-run interests, and society’s long-run interests.
- calls for sustainable marketing, socially, and environmentally responsible marketing that meets the
present needs of consumers and businesses while also preserving or enhancing the ability of future
generations to meet their needs.
3. Construct an integrated marketing program that delivers superior value.
Customer Value
– customer’s evaluation of the difference between all the benefits and all the costs of marketing offer
relative those of competing offers.
– the difference between the values that the customer gains from owning and using a product and the
costs of obtaining the product.
Customer Satisfaction – the extent to which a product’s perceived performance matches a buyer’s
expectations.

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4. Build a profitable relationships and create customer delight.

- good customer relationship management creates customer delight. In return, delighted customers
remain loyal and talk favorably to others about the company and its products.
Customer lifetime value – value of the entire stream of purchases that the customer would make over
a lifetime of patronage.
5. Capture value from customers to create profits and customer equity
Customer Equity – total combined customer lifetime values of all of the company customers.