Ch 1 -0 Copyright © 2011 Pearson Education

Course Plan

Chapter 1: Marketing Creating and capturing Customer Value

Chapter 2: Analyzing the Marketing Environment
Chapter 3: Segmentation, Targeting, Differentiation, and Positioning
Chapter 4: Products, Services and Brands
Chapter 5: Pricing
Chapter 6: Integrated Marketing Communicating
Chapter 7: Managing Marketing Channels
Chapter 8: Company and Marketing Strategy
 Principles of Marketing,
Arab World Edition
Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed
Tolba
Presentation prepared by Annelie Moukaddem Baalbaki

CHAPTER ONE
Marketing: Creating and
Capturing Customer Value

Lecturer: Hany Labib

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 Creating and Capturing Customer Value
Topic Outline

1.1 What Is Marketing?

1.2 Understand the Marketplace and Customer Needs
1.3 Designing a Customer-Driven Marketing Strategy
1.4 Preparing an Integrated Marketing Plan and Program
1.5 Building Customer Relationships
1.6 Capturing Value from Customers
1.7 The Changing Marketing Landscape
1.8 So, What is Marketing? Pulling It All Together

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 What Is Marketing?
Marketing Defined

Marketing is a process by which companies create value

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

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 What Is Marketing?
The Marketing Process

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 Understanding the Marketplace and Customer
Needs
Customer Needs, Wants, and Demands

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

• Form that needs take as they are shaped by

Wants culture and individual personality

Demands • Wants backed by buying power

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Maslow Law of Needs

There are products and services satisfying human needs! (Maslow)

© Ahmed El-Tagy, RITI-Cairo 2011

Basic Needs in B2B

• Increase profits.
• Decrease cost (save money).
• Increase efficiency.
• Decrease time waste.
• Solution to a problem.
• Success.
• Better end customer
experience and satisfaction.

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 Understanding the Marketplace and
Customer Needs
Market Offerings: Products, Services and Experiences

Market offerings are some combination of products,

services, information, or experiences offered to a market to
satisfy its needs or wants.

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 Understanding the Marketplace and Customer
Needs
Market Offerings: Products, Services and Experiences

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 Understanding the Marketplace and
Customer Needs
Market Offerings: Products, Services and Experiences

Marketing myopia is focusing only on

existing wants and losing sight of underlying
consumer needs.

Marketing myopia is a situation when a

company has a narrow-minded marketing
approach and it focuses mainly on only one
aspect out of many possible marketing
attributes.

A brand focusing on the development of high-

quality products for customers who disregard
quality and only focus on the price is a classic
example of marketing myopia.

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 Understanding the Marketplace and
Customer Needs
Market Offerings: Products, Services and Experiences

Marketing myopia
When Does Marketing Myopia Strike In?
•Marketing myopia strikes in when the short term marketing
goals are given more importance than the long term goals.
Some examples are:
1.More focus on selling rather than building relationships
with the customers.
2.Predicting growth without conducting proper research.
3.Mass production without knowing the demand.
4.Giving importance to just one aspect of the marketing
attributes without focusing on what the customer actually
wants.
5.Not changing with the dynamic consumer environment.

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 Understanding the Marketplace and Customer
Needs
Market Offerings: Products, Services and Experiences
Marketing myopia
Yahoo! (worth $100 billion dollars in 2000) lost to Google and
was bought by Verizon at approx. $5 billion (2016).

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 Understanding the Marketplace and
Customer Needs
Customer Value and Satisfaction

Customers
• Value and
satisfaction

Marketers
• Set the right level of
expectations
• Not too high or low

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