Definiton of marketing
Marketing is the process by which companies create value for customers and build strong customer relationships to capture value from customers in return.
The marketing process
Understand the marketplace and customer needs --> Design a customer driver marketing strategy --> Construct an integrated market program that delivers superior value --> Build profitable relationships and create customer delight --> Capture value from customers to create profits and customer equity.
Five core marketplace and customer concepts(1:st step in the marketing process).
- • Needs, wants, and demands.
- • Marketing offerings (products, services, and experiences)
- • Value and satisfaction.
- • Exchanges and relationships.
- • Markets.
- Needs are states of deprivation:
- •Physical—food, clothing, warmth, safety
- •Social—belonging and affectionIndividual—knowledge and self-expression
Wants are the form that needs take as they are shaped by culture and individual personality.
Demands are wants backed by buying power.
Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
How to avoid marketing myopia.
Look beyond product attributes and existing customer wants to product benefits, experiences and customer needs and offer superior customer value.
- Marketing myopia is focusing only on existing wants and losing sight of underlying
- consumer needs.
Two important questions to answer in a customer-driven marketing strategy.
- •What customers will we serve (what’s our
- target market)?
- •How can we serve these customers best
- (what’s our value proposition)?
How to select what customers to serve
- •Market segmentation: Dividing the markets
- into segments of customers
- •Target marketing: Which segments to go
- •Marketing to reduce demand temporarily or
- •The aim 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
•Differentiation & positioning
- •“Why should the customers buy your
- brand rather than a competitor’s?”
Marketing management orientations.
The production concept in marketing management orientations.
The production concept is the idea that consumers will favor products that are available or highly affordable.
- The organization should therefore focus on improving production and distribution
The product concept in marketing management orientations.
The product concept is the idea that consumers will favor products that offer the most quality, performance, and features.
The organization should therefore devote its energy to making continuous product improvements
The selling concept in marketing management orientations.
The 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.
The marketing concept in marketing management orientations.
- The 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.
The selling concept vs The marketing concept.
Customer driver vs Customer driven.