Customer –

CUSTOMER has needs, wants, demands

and  desires
Understanding these needs is starting point of
the  entire marketing
These needs, wants …… arise within a
framework  or an ecosystem
Understanding both the needs and the ecosystem
is  the starting point of a long term relationship

1
 How Do Consumers Choose Among
Products & Services?

Value - the value or benefits the customers gain from

using the product versus the cost of obtaining the
product.
Satisfaction - Based on a comparison of performance
and expectations.
Performance > Expectations => Satisfaction
Performance < Expectations => Dissatisfaction

2
Customers - Problem Solution

As a priority , we must bring to our customers

“WHAT THEY NEED”
We must be in a position to UNDERSTAND
their problems
Or in a new situation to give them a chance to
AVOID
the problems

3
 Customer looks for
Value
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional
Benefit
Cost = Monetary Cost + Time Cost +
Energy Cost

4
Strategic
Marketing
Strategic marketing management is concerned with
how we will create value for the customer
Asks two main questions
 What is the organization’s main activity at a
particular time? – Customer Value
 What are its primary goals and how will these be
achieved? – how will this value be delivered

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Strategic
Planning
Strategic Planning is the managerial process of
creating and maintaining a fit between the
organization’s objectives and resources and the
evolving market opportunities.

 Also called Strategic Management Process

 All organizations have this
 Can be Formal or Informal

20
The Marketing
Plan
A written document that acts as a guidebook of
marketing activities for the marketing manager

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CONTENTS of MARKETING
PLAN
Business Mission Statement
Objectives
Situation Analysis (SWOT)
Marketing Strategy
 Target Market
Strategy
 Marketing Mix
 Positioning
 Product
 Promotion
 Price
 Place – Distribution
 People
 Process
Implementation, Evaluation and Control

25
The Marketing Process

Business
Mission
Statem
en t

Objecti
ve s

Situation
or
SWOT
Analysis
Marketing Strategy
Target Market
Strategy

Marketing Mix
Product Place/Distribution

Promotion Price

Implementation
Evaluation,
Control 26
Marketing
Environment
Why a product like radio
declined and now once again
emerging as
an entertainment medium ?

28
What Were the Drivers of This Change
?

Technology ?

Government policy ?

Other media substitutes ?

29
Factors
Influencing

Company’s
Marketing
Strategy

31
 External Marketing
Environment
External Environment Social
is not controllable Ever-Changing
Change Marketplace
Demog
raph
ics
Economic
Product Physical / Natural Conditions
Distribution
Promotion
Price
Competition
Target Market
Political &
Legal Factors
Technology
Environmental
Scanning

32
The macro-environment

is the assessment of the external forces that act upon the

firm and its customers, that create threats &
opportunities

33
Product

34
 Product is . . . . .

Anything that is offered to the market for

attention, acquisition, use or consumption that
satisfies a want or a need

35
Types of Products

PRODUCTS

Consumer Services Industrial

Products
Products

36
Product Items, Lines, and
Mixes
A specific version of a product
that can be designated as a
Product Item
distinct offering among an
organization’s products.

A group of closely-related
Product Line
product items.

All products that an

Product Mix
organization
sells.
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Product
Mix
Width – how many product lines a company has

Length – how many products are there in a product line

Depth – how many variants of each product exist within a
product line
Consistency – how closely related the product lines are in
end use

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 Gillette’s Product Lines &
Mix
Width of the product mix
Depth of the product lines

Blades and Writing

razors Toiletries instruments Lighters
Fusion – 5 blade
Mach 3 Turbo
Mach 3 Series Paper Mate Cricket
Flair S.T. Dupont
Sensor Adorn S.T.
Trac II Toni Dupont
Atra Right Guard
Swivel Silkience
Doubl Soft and Dri
e- Foamy
Edge Dry Look
Lady Gillette Dry Idea
Super Speed Brush
Twin Plus
Injector
Techmatic 39
What is a Service?
Defining the
Essence
An act or performance offered by one party to another
(performances are intangible, but may involve use of
physical products)

An economic activity that does not result in ownership

A process that creates benefits by facilitating a

desired change in customers themselves, or
their physical possessions, or intangible assets

40
Some Industries - Service
Sector
Banking, stock broking Health care
Lodging Education
Restaurants, bars, Wholesalin
catering g and
retailing
Insurance
Laundries, dry-cleaning
News and entertainment
Repair and maintenance
Transportation (freight and
Professional (e.g., law,
passenger) architecture,
consulting)

41