Professional Documents
Culture Documents
Topic 1
5- 0
Topic Outline
Definition of marketing Basic concepts of Marketing Evolution of marketing Holistic marketing concept Marketing process
5- 1
What is Marketing?
Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return.
5- 2
What is Marketing?
A simple definition of marketing is about managing profitable customer relationship. 2 important things to look at: - Managing existing customers and - Acquiring new customers
5- 3
Needs, wants & demands Market offerings: Product & Services Value & satisfaction Exchange, transactions & relationships Markets
5- 4
Needs
Wants Demands
States of felt deprivation Physical food, clothing, warmth, safety Social belonging and affection Individual knowledge and self-expression Eg: I am thirsty
Form of human needs that are shaped by culture and individual personality. Eg: A hungry person needs food, but what do you want for food? Capati, Spaghetti, Rice or vegetarian food?
Wants that is backed by buying power. Eg: Im hungry, I have money to but Pizza today. Yesterday, during lunch time, I can only buy a RM1 nasi lemak.
5- 5
Market offerings
Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs. The co.s forget that a product is only a tool to solve a consumer problem.
5- 6
Market offerings
Products - anything that can be offered to a market for
attention, acquisition, use or consumption and that might satisfy a need or want.
5- 7
5- 8
= RM24,000 of Loss
5- 10
The scenario: Sellers must search for buyers, identify their needs, design good market offerings, set prices for them, promote them, and store and deliver them.
5- 11
Evolution of Marketing
Production concept (1869 1920s) Product concept (1869 1920s) Selling concept (1920s -1950s) Marketing concept (1950s 1980s) Societal marketing concept (1980s)
5- 12
Evolution of Marketing
Production Concept
Consumers favor products that are available and highly affordable. The co.s should focus on improving production and distribution. Consumers favor products that offer the most quality, performance, and innovative features. The co.s should focus on making continuous product improvements. Consumers will not buy enough unless the firm undertakes large-scale selling and promotion efforts. Focuses on knowing the needs and wants of target markets and delivering satisfactions better than competitors.
Focuses on the needs and wants of target markets and on maintaining or improving customer and societal well-being
5- 13
Focus
Factory
Existing products
Market
Customer needs
Integrated marketing
Societal Marketing Concept Late 20th Century Still emerging Recognizes potential conflict
Society
Consumers
Company
5- 15
Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers wants, the companys requirements, consumers longterm interests, and societys long-run interests
5- 16
Marketing Process
Offer value to market
Understanding Environment
Analysis of market, their needs and wants Analysis of other environment factors affecting marketing Develop and maintain marketing information
Develop Marketoriented Marketing Strategy Choose market to serve Develop positioning strategy for the chosen market
Develop Marketing Mix (4 Ps) Strategy Product strategy Price strategy Distribution (Place) strategy Promotion strategy
Develop relationship with customers and partners Continuously delight chosen customers Build good relationship with marketing partners
Create satisfied customers Capture customer lifetime value Increase share of market and share of customer
5- 18
The End
5- 19