Chapter 1: Introduction to

Marketing

Ms. DANG THI MAI HUONG (SARAH)

Faculty of Economics and Management
International School of Thai Nguyen University
Email: sarahhuong11@gmail.com
 Topic Outline

• Define marketing and outline the steps in

the marketing process
• Understanding the Marketplace and
Customer Needs
• Designing a Customer-Driven Marketing Strategy
• Preparing an Integrated Marketing Plan
and Program
• Building Customer Relationships
• Capturing Value from Customers
• The Changing Marketing Landscape
• The Importance of Marketing in Our
Global Economy
 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
• Marketing is the activity, set of institutions, and
processes for creating, communicating,
delivering, and exchanging offerings that have
value for customers, clients, partners, and
society at large (According to American
Marketing Association)
 Marketing are activities of a company
associated with buying and selling a product or
service. It includes advertising, selling and
delivering products to people
Investopedia http://www.investopedia.com/terms/m/marketing.asp#ixzz43K4U8p3a
The Marketing Process
 Understanding the Marketplace
and Customer Needs

Core Concepts
• Customer needs, wants, and demands
• Market
• Market offerings
• Customer Value and satisfaction
• Exchanges and relationships
 Needs

• Human needs are the basic requirements.

Maslow’s Hierarchy of Needs
 Maslow’s Hierarchy of Needs

• Physioligical needs:
• Physiological needs deal with the maintenance
of the human body. This lowest category
includes the most basic needs that are vital to
survival such as the need for food, air, water……
 Maslow’s Hierarchy of Needs

• Safety needs:
• Safety needs are about keeping us safe from
harm. These needs include shelter, job
security……
 Maslow’s Hierarchy of Needs

• Social needs or Belongingness:

• These are the needs for belonging, love as well
as for relationships with family and
friends. These needs are met pleasingthrough and
fulfilling relationship with others.
 Maslow’s Hierarchy of Needs

• Esteem needs:
• After the more basic needs have been satisfied ,
esteem needs becomes important to an
individual.
• Esteem needs are for a higher position within a
group act to foster pride in their work and in
themselves as individuals.
• These needs include self-esteem, respect…..
 Maslow’s Hierarchy of Needs

• Self-actualization:
• This is the highest level of Maslow’s hierarchy.
This level of needs pertains to what a person’s
full potential is and realizing that potential. “What
a man can be, he must be”. It’s the desire to
become everything.
 Want
s
 Wants are the desired which are not
necessary for survival of human beings.
 For example:
+) Many people want to have BMW car but most of
them do not have enough money to purchase it.
+) An American eat food but want to eat burger and
French fries.
 Demands

 Demand is the willingness and ability of

consumer to purchase a product.

Example: Many people wants to have expensive car,

house and cloths but only few are able to buy
it.
Look at the following pictures and distinguish
which pictures belong to needs and wants
 Market

Markets are the set of actual and potential buyers

of a product or service
Market is an open place or a covered building
where buyers and sellers convene for the sale of
goods.
Example: famers’ market, meat market
• 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
 Customer Value and Satisfaction
Expectations

Customers
• Value and
satisfaction

Marketers
• Set the right level of
expectations
• Not too high or low
Exchange is the act of obtaining a desired
object from someone by offering something in
return
 Designing a Customer-Driven
Marketing Strategy

Marketing management is the art and science of

choosing target markets and building profitable
relationships with them
– What customers will we serve?
– How can we best serve these customers?
 Selecting Customers to Serve
Marketsegmentation refersto dividing the
markets into segments of customers
Target marketing refers to which segments to go
after
 Selecting Customers to Serve
Demarketing is marketing to reduce demand
temporarily or
permanently; theaim is not to
destroy demand but to reduce or shift it
 Choosing a Value Proposition
• The value proposition is the set of benefits or
values a company promises to deliver to
customers to satisfy their needs
 Marketing Management Orientations

Production Product Selling Marketing Societal

concept concept concept
concept concept
Marketing Management Orientations

Production concept is the idea that consumers

will favor products that are available or highly
affordable
Marketing Management Orientations

Product concept is the idea that consumers will

favor products that offer the most quality,
performance, and features. Organizations
should therefore devote its energy to making
continuous product improvements.
Marketing Management Orientations

Selling concept is the idea that consumers will

not buy enough of the firm’s products unless it
undertakes a large scale selling and promotion
effort
Marketing Management Orientations

Marketing concept is the idea that achieving

organizational goals depends on knowing the
needs and wants of the target markets and
delivering the desired satisfactions better than
competitors do
Marketing Management Orientations

Societal marketing concept is the idea that a

company should make good marketing
decisions by considering consumers’ wants, the
company’s requirements, consumers’ long-term
interests, and society’s long-run interests
 Preparing an Integrated Marketing
Plan and Program

• The marketing mix is the set of tools (four Ps)

the firm uses to implement its marketing strategy.
It includes product, price, promotion, and place.
• Integrated marketing program is a
comprehensive plan that communicates and
delivers the intended value to chosen customers.
 Building Customer Relationships

Customer Relationship Management (CRM)

• The overall process of building and maintaining
profitable customer relationships by delivering
superior customer value and satisfaction
 Building Customer Relationships

Relationship Building Blocks: Customer Value

and Satisfaction
Customer Customer
perceived value satisfaction
• The difference • The extent to
between total which a
customer value product’s
and total perceived
customer cost performance
matches a
buyer’s
expectations
Building Customer Relationships

Customer Relationship Levels and Tools

Basic
Relationships

Full
Partnerships
 Building Customer Relationships

Changing Nature of Customer Relationships

• Relating with more carefully selected customers
uses selective relationship management to target
fewer, more profitable customers
• Relating more deeply and interactively by
incorporating more interactive two way
relationships through blogs, Websites, online
communities and social networks
Partner relationship management involves
working closely with partners in other company
departments and outside the company to jointly
bring greater value to customers
 Partner Relationship Management
• Partners inside the company is every function
area interacting with customers
– Electronically
– Cross-functional teams
• Partners outside the company is how marketers
connect with their suppliers, channel partners,
and competitors by developing partnerships
• Supply chain is a channel that stretches from
raw materials to components to final products to
final buyers
• Supply management
• Strategic partners
• Strategic alliances
 Capturing Value from Customers

Creating Customer Loyalty and Retention

• Customer lifetime value is the value of the entire
stream of purchases that the customer would
make over a lifetime of patronage
 Growing Share of Customer
Share of customer is the portion of the
customer’s purchasing that a company gets in
its product categories
Customer equity is the total combined customer
lifetime values of all of the company’s customers
 Building Customer Equity

• Building the right relationships with the right

customers involves treating customers as assets
that need to be managed and maximized
• Different types of customers require different
relationship management strategies
– Build the right relationship with the right
customers
The New Marketing Landscape

Major Developments

Rapid
Digital age globalization

Ethics and
Not-for-profit
social
marketing
responsibility
The importance of Marketing in Our
Global Economy

 Marketing Is Used in Nonprofit Organizations

In the private sector, nonprofit organizations also
employ marketing activities to price,
create, distribute, and promote
programsthat particular segments of benefit
society
 Marketing Is Important to Businesses:
Businesses must sell products to survive and
grow, and marketing activities help to sell their
products.
Marketing activities help to produce the profits
that are essential to the survival of individual
businesses
 Knowledge Enhances Consumer
Awareness:
Marketing
Besides contributing to the well-being of our
economy, marketing activities help to improve the
quality of our lives.
Understanding marketing enables us to evaluate
corrective measures (such as laws, regulations,
and industry guidelines) that could stop unfair,
damaging, or unethical marketing practices. Thus,
understanding how marketing activities work can
help you to be a better consumer.
 Marketing Connects People Through Technology
New technology, particularly technology related to
computers and telecommunications, helps marketers to
understand and satisfy more customers than ever
before.

The Internet allows companies to provide tremendous

amounts of information about their products to
consumers and to interact with them through e-mail and
blogs.