Professional Documents
Culture Documents
Obtain
need & want
individuals Organizations
Creating &
exchanging
value
Implications of marketing
• Who are our existing / potential customers?
• What are their current / future needs?
• How can we satisfy these needs?
• Can we offer a product/ service that the customer
would value?
• Can we communicate with our customers?
• Can we deliver a competitive product of service?
• Why should customers buy from us?
Nature of Marketing
• It is a process
• Marketing is about discover needs.
• It helps companies to satisfy customers’
needs.
• And it helps companies to maximize profits.
Needs
the basic human requirement,
it is not created by marketers
Maslow’s Hierarchy of Needs
Wants
specific objects that might
satisfy the need
Demands
wants for specific products backed
by ability to pay
Values
reflect the sum of the perceived tangible and
intangible benefits and cost to customers.
It’s a combination of quality, service and
price (QSP)
• Customers buy benefits not
products
Attention
• Different Customers have
different needs, wants &
tastes. So products values are
different.
Satisfaction
All Those
More than Selling and Advertising
Bicycles!
Things a Firm Should Do in Producing a Bike
Analyze Needs
Predict Wants
Estimate Demand
Predict When
Determine Where
Estimate Price
Decide Promotion
Estimate Competition
Provide Service
Production vs. Marketing
Marketing
Makes sure right goods &
services are produced
Production
• Making Goods
• Performing Services
Utility
Value that comes Place
from satisfying
human needs
Task
Possession
What Is Marketing?
Micro Macro
Builds Doesn’t Go
Relationships It Alone
Involves
Exchanges
Macro-Marketing
Key
Characteristics
Matches
Producers and
Consumers
Can Mass Production Satisfy a Society’s
Consumption Needs?
Cost
$
Output
Marketing Bridges the Gap!
Buying Selling
Market
Information Transporting
Marketing
Functions
Risk Taking Storing
Standardization
Financing
& Grading
Who Performs Marketing Functions?
Transport
Firms Retailers
Ad Agencies
ISP's
Product
Testing Research
Firms Firms Consumers
How Decisions Are Made in an Economic System
Focus:
Simple Trade Era
Sell Surplus
Focus:
Production Era
Increase Supply
Focus:
Sales Era
Beat Competition
Focus: Long-Run
Marketing Company Era
Customer Satisfaction
The Marketing Concept
The
Marketing
Concept
Profit
An organization aims all of its
efforts at satisfying its
Marketing customers—at a profit.
Concept
production orientation
marketing orientation
The Marketing Concept and Customer Value
Take Customer’s
Point of View
Customer May
Not Dwell On
Value
Customer Value
Builds
Relationships
Customer value
Superior
Customer Value
Total Company
Customer
Effort to Satisfy
Acquisition
Customers
Profitable
Customer
Relationships with
Satisfaction
Customers
Customer
Retention
The Marketing Concept Applies in
Nonprofit Organizations
Support and
Newcomers to
“Satisfied
Marketing
Customers”
Characteristics
of Nonprofit
Marketing Organizations The Bottom
Concept
Line
Provides Focus
May Not Be
Organized for
Marketing
Marketing Strategy
Planning
The Management Job in Marketing
Whole-Company
Marketing Strategic
Management
Planning Planning
Product Place
Price Promotion
Strategy Decision Areas Organized by 4Ps
The Product Element of the Marketing Mix
+
The Place Element of the Marketing Mix
Wholesaler Wholesaler
Wholesaler
Consumer
The Promotion Element of the Marketing Mix
Personal
Advertising
Selling
Telling and
Selling
the Customer
Sales
Publicity
Promotion
The Price Element of the Marketing Mix
Product
Place Selection
of Target
Promotion Market
Price
Target
Market
+ Marketing
= Strategy
Marketing Marketing
Mix + =
Time- Plan
A Firm’s
Related + Marketing
=
Details Other Program
Marketing
Plans
CUSTOMER EQUITY
Death-wish Best-practices
marketing marketing
(Below (Above
average) average)
68%
(Well below (Average (Well above
average) Marketing average)
Program)
2% 14% 14% 2%
Failure Poor Fair Good Exceptional
What Are Attractive Opportunities?
Breakthrough
Opportunities
Smaller
World
Competitive
Early Start
Advantage
Better
Trends?