CHAPTER #1

The all-embracing function that links the

business with customer needs and wants in order to get the right product to the right place at the right time The achievement of corporate goals through meeting and exceeding customer needs better than the competition The management process that identifies, anticipates and supplies customer requirements efficiently and profitably Marketing may be defined as a set of human activities directed at facilitating and consummating exchanges

 All businesses operate in markets. But

what is a market? And how can it be defined? It is important to be careful about how a market is defined. The following key marketing processes rely on a relevant market definition: -Measuring market share -Measuring market size and growth -Specifying target customers -Identifying relevant competitors - Formulating a marketing strategy A market can be defined as follows: A market is the set of all actual and potential buyers of a product or service

MICRO- MARKETING

MACRO- MARKETING

The performance of activities that seek to accomplish an organizations objectives by anticipating customer needs and directing the flow of need-satisfying goods and services.

A social process that directs an economys flow of goods and services to effectively match supply and demand and to meet societys objectives.

Applies to profit and nonprofit organizations. NOT just persuading customers to buy. Begins with customer needs and focuses on

customer satisfaction. Marketing activities --but it is a philosophy that guides the whole business. Seeks to builds a relationship with the customer.

Product Era (1869- 1930) Sales Era (1930- 1950) Marketing Era (1950- 1960) Control Era (1960- till now)

A customer purchases and pays for a

product or service A consumer is the ultimate user of the product or service; the consumer may not have paid for the product or service

Marketing impacts all of us in our lives as

consumers as well as customers Gives us choices Stimulates innovation and economic growth There are many good job opportunities in marketing Regardless of what career path you take, no firm (or non-profit organization) survives for long if it cant satisfy some group of customers.

It is a fundamental idea of marketing that

organizations survive and prosper throughmeeting the needs and wants of customers.This important perspective is commonly known as themarketing concept. The marketing concept is aboutmatching a company's capabilities with customer wants. This matching process takes place in what is called themarketing environment

Company (market) Supplier Marketing intermediari es Competitor End users

Understan d the market place and customer needs and wants

Design a customer driven marketin g strategy

Construct a marketing program that delivers superior value

Build profitable relationshi ps and create customer delight

Capture value from customers to create profits and customer quality

 NEEDS

requirements; WANTS These needs become wants when they are directed to specific objects that might satisfy the need, though these wants in themselves are not essential for living. DEMANDS are wants for specific products backed by an ability to pay.

are the basic human

businesses do try to influence demand by

designing products and services that are Attractive Work well

Are affordable

Are

available

Selecting customer to serve Choosing a value proposition Marketing management orientations The production concept The product concept The selling concept The marketing concept

 Customer relationship management (CRM) The overall process of building and maintaining the

profitable customer relationships by delivering superior customer value and satisfaction Customer Value

The difference between what acustomergets from a

product, and what he or she has to give inorderto get it. Customer Satisfaction

Measuring customer satisfaction provides an

indication of how successful the organization is at providing products and/or services to the marketplace.

 Loyaltyis faithfulness or a devotion to a person, country,

group, or cause.

Royalty
Apaymentmade for the use ofproperty, especially a

patent, copyrighted work,franchise, ornatural resource. Theamountis usually apercentageofrevenues obtained through its use.

 Customers evaluation of the difference

between all of the benefits and all of the costs of a marketing offer relative to those of competing offers. (Armstrong & Kotler) Perceptions may be subjective Consumers often do not objectively judge values and costs. Customer value = perceived benefits perceived sacrifice.

Marketing managers must consider the following, to ensure a successful marketing strategy: 1. What customers will we serve?

What is our target market?

1.

How can we best serve these customers?

What is our value proposition?

The set of benefits or values a company promises to deliver to consumers to satisfy their needs. Value propositions dictate how firms will differentiate and position their brands in the marketplace.