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1、Introduction to Marketing,Discuss what is marketing and core concepts of marketing and review some possible definitions See the evolution of marketing thought and discuss various orientations toward marketplace Focus on modern marketing concept, identify four pillars of modern marketing Describe 4Ps
2、 of marketing, as elements of total marketing mix Discuss modern marketing concept comparing it with selling concept and extending it with relationship marketing concept,Preview,Introduction to Marketing,Marketing; “Satisfying customer needs” “Meeting needs profitably” “Generating customer value at
3、a profit” “Managing profitable customer relationships by delivering superior value to customers”,Introduction to Marketing,Marketing; “Satisfying customer needs” “Meeting needs profitably” “Generating customer value at a profit” “Managing profitable customer relationships by delivering superior valu
4、e to customers”,What is Marketing?,No single correct definition or approach Common subject matters: The ability to satisfy customers, The identification of favorable marketing opportunities, The need to create an edge over competitors, The capacity to make profits to enable a viable future for the o
5、rganization, The use of resources to maximize a business market position, The aim to increase market share mainly in target markets,Marketing Process,Build profitable relationships and create customer delight,Capture value from customers to create profits and customer quality,Create value for custom
6、ers and build customer relationships,Capture value from customers in return,Design a customer-driven marketing strategy,Construct a marketing program that delivers superior value,Understand the marketplace and customer needs some marketers describe marketing as the creation and delivery of a standar
7、t of living. From the managerial perspective; marketing (management) is the process of planning and executing the conception, pricing, promotion and distribution of goods and services to create exchanges that satisfy individual and organizational goals.,Marketing Management,Marketing management the
8、art and science of choosing target markets and building profitable relationships with them. This definition must include answers to 2 questions: What customers will we serve? How can we serve these customers best? Getting, keeping, and growing customers through creating, delivering, and communicatin
9、g superior customer value Marketing management involves managing demand involves managing customer relationships,Marketing Management,Marketing management can be defined in broader terms as “demand management”; Marketers aim to influence the level, timing and composition of demand to meet organizati
10、onal goals. Marketing management is concerned not only with finding and increasing demand, but also with changing or even reducing it : demarketing! Demarketings aim is to reduce the number of customers or to shift their demand temporarily or permanently (e.g. move traffic away from a popular touris
11、t attraction during peak demand times),Evolution of Marketing Thought,How marketing has become “marketing” as we understand it and apply its practices today?,Evolution of Marketing Thought,Production Era (1850s-1920s) Industrial revolution; mass production Few products and little competition Sales E
12、ra (1920s-1950s) The focus was on personal selling and advertising Sales seen as the major means for increasing profits Mktg Era (1950s-present) Customer orientation replaced the “hard sell” of the sales-led era Determination of the needs and wants of customers before introducing products or service
13、s,Evolution of Marketing Thought,Relationship Marketing Era: 1990s- Marketing era has recently shifted from being “transaction-based” to focusing on “relationships” The argument traditional marketing practices focused on attracting new customers rather than retaining existing ones. It is equally imp
14、ortant to hang on to existing customers so that they become repeat buyers and long term loyal customers “customer relationship management”!,Production Concept,Product Concept,Selling Concept,Marketing Concept,Consumers prefer products that are widely available and inexpensive,Consumers favor product
15、s that offer the most quality, performance, or innovative features,Consumers will buy products only if the company aggressively promotes/sells these products,Focuses on needs/ wants of target markets Consumers must be convinced of buying company products Company is powerful in generating effective s
16、elling and promotion to stimulate more buying This concept is mostly used by firms which have overcapacity. The aim is “to sell what they make” rather than “make what the market wants.” Short-term profits are more important (customer dissatisfaction may occur),Marketing Concept,Key to achieving orga
17、nizational goals consists of being more effective than competitors in creating, delivering and communicating customer value to target markets. 4 pillars of modern marketing : Target market Customer needs Integrated marketing Profitability through customer satisfaction,Marketing and Sales Concepts Co
18、ntrasted,Marketing Concept (cont.),Target market homogenous group of customers to whom the company wishes to appeal Customer needs Consumers may not be fully conscious of their needs It may not be easy to articulate these needs They may use words that require some interpretation Customer-oriented th
19、inking to define customer needs from the customers point of view Sales revenue New customers + Repeat customers “Customer Retention” vs. “Customer Attraction” Customer satisfaction is a function of the product perceived performance and buyers expectations,Marketing Concept (cont.),Integrated Marketi
20、ng Various marketing functions must work together for customer satisfaction (coordination of 4Ps; marketing mix elements) Marketing Mix controllable variables the company puts together to satisfy its target market(s). Product: Product variety, quality, design, features, brand name, packaging, sizes,
21、 services, warranties, returns Price: List price, discounts, allowances, payment period, credit terms Promotion: Sales promotion, advertising, sales force, public relations, direct marketing Place: Channels, coverage, assortments, locations, inventory, transport,Marketing Concept - The 4 Ps,Marketin
22、g Concept - The 4 Ps The 4 Cs,Marketing Mix,Customer Solution,Customer Cost,Communication,Convenience,Marketing Concept (cont.),Integrated Marketing (cont.) Marketing must be well coordinated with other departments in the company; all departments have to work together to satisfy customers needs and
23、wants Profitability through customer satisfaction To achieve profits as a result of creating superior customer value,Selling Marketing.,“There will always be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so
24、 well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy.” Peter Drucker,Customers,Front-line people,Middle Management,Top Management,Modern Marketing Concept Traditional Organization Chart,Modern Marketing Concept Customer-Orien
25、ted Organization Chart,Relationship Marketing Concept,Customer Relationship Management the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, keeping and growing customers Relat
26、ionship building blocks “customer value” and “customer satisfaction” “Customer retention” and “customer loyalty” The intention to gain a greater proportion of an existing customers purchases over a long period (increase “consumer lifetime value”!),Relationship Marketing Concept,“Our slogan 5+Million
27、 More Smiling Customers is not about reaching sales targets but about whether we are able to provide greater satisfaction to a greater number of customers. The goal is to improve customer satisfaction which translates to an increased number of smiling customers.” Tokuichi Uranishi Executive Vice Pre
28、sident, Toyota Motor Corporation,Connections With Customers Not All Customers are Equal,Most marketers are targeting fewer, potentially more profitable customers. Asking: What value does the customer bring to the organization? Are they worth pursuing? customer profitability analysis Focus has shifte
29、d to: keeping current customers, and building lasting relationships based on superior satisfaction and value. It costs 5 to 10 times as much to attract a new customer as it does to keep a current customer satisfied.,Customer Relationship Management Capturing Value from Customers,Customer Loyalty and
30、 Retention Share of Customer Customer Equity,Customer delight leads to emotional relationships and loyalty Customer Lifetime Value (CLV) shows true worth of a customer,Key Concepts,Customer Relationship Management Capturing Value from Customers,Customer Loyalty and Retention Share of Customer Custom
31、er Equity,Share of customers purchase in a product category. Achieved through offering greater variety, cross-sell and up-sell strategies.,Key Concepts,Customer Relationship Management Capturing Value from Customers,Customer Loyalty and Retention Share of Customer Customer Equity,The combined custom
32、er lifetime values of all current and potential customers. Measures a firms performance, but in a manner that looks to the future. Choosing the “best” customers is key,Key Concepts,Societal Marketing Concept,Companys negative effects on society Conflict between consumer wants and long-term social we
33、lfare Marketing managers should be concerned with social responsibility The societal marketing concept Companys task is to determine needs and wants of target markets & to satisfy them more effectively and efficiently than competitors -in a way that preserves or enhances the consumers and societys w
34、ell-being.,Societal Marketing Concept,Societal Marketing Concept,Company (Profits),Consumers (Want Satisfaction),Society (Human Welfare),Marketing Landscape,Growth of the Internet Advances in telecommunications, information, transportation Customer research and tracking Product development Distribution New advertising tools 24/7 marketing through the Internet,Challenges,Digital age Globalization Ethics
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