Welcome to You All

in
the World
of
Marketing
What is Marketing?
Societal process
Demand management to bring
about profit
Stimulates demands
Retains customers by winning
loyalty
Delighting customers
American Marketing Association

Marketing is the process of planning

and executing the conception,
pricing, promotion and distribution
of ideas, goods, and services to
create exchanges that satisfy
individual and organizational goals.

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Philip Kotler

The societal process by which

companies create value for
customers and building strong
customer relationship in order to
capture value from customers in
return

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Marketing

Satisfying customers needs and

wants in a profitable way

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Marketing Management

The art and science of choosing

target markets and building
relationship with them.

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Elements of Marketing Definition
a. Is a process
b. It consists of activities
Product related Price related
Promotion related Place related
Customers analysis, segmentation,
and activities related to MIS
c. Satisfies customers needs and wants

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d. Facilitates exchange relationship

Money

Buyer Something Seller

of Value

Product

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e. Marketing helps in achieving
organizational objectives

 Profit
 Services
 Growth
 Survival
 Leadership

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f. Marketing occurs in
dynamic environment

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 Core concept of Marketing

Needs, Value
Segmentation Products
Wants, &
Target Market Offerings
Demands Satisfaction

Relationship Exchange
Markets, Supply
Networks Transaction
Marketers Chain

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 Market
The set of all actual
and potential buyers
of a product or
service
Conditions
❖ People or organization with needs or wants to
satisfy
❖ Money to spend
❖ Willingness to spend through exchange

Marketplace Market-space
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 Marketers

Someone seeking a response from the

Prospect (Customers)

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 A Simple Model of Marketing Process
Create value for customer and build
customer relationship

Construct an
Understand the Design a integrated Build profitable
marketplace and customer-driven marketing relationship and
customers need marketing program that create customer
& wants strategies delivers delight
superior value

Capture value from customers

in return

Capture value from

customers to create
profit and customer
equity
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This Is a Need

Needs - state of felt

deprivation
including physical,
social, and individual
needs.

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Maslow’s
Hierarchy of
Needs

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This Is a Want

Wants - form that

a human need
takes, as shaped
by culture and
individual
personality.

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 Need / Want Fulfillment
 Needs and Wants
Fulfilled through a
Marketing Offer :
◦ Some combination of
products, services,
information, or experiences
offered to a market to
satisfy a need or want.

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 What Satisfies Consumers’
Needs and Wants?
Products
Anything that can be Offered to a Market to Satisfy a Need or Want

Goods Persons Places Organizations Experiences

Information Ideas Services Events

Services
Activity or Benefit Offered for Sale That is Essentially
Intangible and Does Not Result in the Ownership of Anything
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This Is Demand

Wants Buying Power

“Demand”
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 Segmentation

Dividing into homogeneous group of

customers who share similar needs,
wants and characteristics

Target Market

The chosen market after

segmentation
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Segmentation and Target Marketing
#1 #2
Market Segmentation:
Divide the market into segments
of customers

Target Marketing:
Select the segment to cultivate

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 Value & Satisfaction

Benefits
Value =
Cost

Functional Benefits + Emotional Benefits

=
Money + Time +Energy + Psychic

Value should be always greater than 1

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Customer Satisfaction

 Dependent on the
product’s perceived
performance relative
to a buyer’s
expectations.

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 Value and Satisfaction

Expectation Performance Expectation Performance

8 10 10 8

If performance is lower than expectations, satisfaction is low.

If performance is higher than expectations, satisfaction is high.

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 Customer Perceived Value

 Customer’s evaluation of
the difference between
all the benefits and all
the costs of a marketing
offer relative to those of
competing offers.

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Exchange & Transaction
Exchange
 The act of obtaining desired object from
someone by offering something of value in return

Transaction
 Trade of values between two or more parties

When exchange is made it results into transaction

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Relationship & Network
Relationship
Long term mutually satisfying relation with
key parties, customers, suppliers, channels.

Network

It consists of the organization and its stakeholders,

Networks are the result of relationship

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Customer Relationship Management

 The process of
building and
maintaining profitable
customer
relationships by
delivering superior
customer value and
satisfaction.

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 Customer Loyalty & Retention

 Customer Lifetime Value

◦ The entire stream of purchases
that the customer would make
over a lifetime of patronage.

 Share of Customer
◦ The share a company gets
of the customer’s
purchasing in their product
categories.

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Customer Equity

 The total combined customer lifetime values of

all of the company’s customers

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 Supply-chain
 Is a value delivery network. Each party in the
chain creates a higher value for the others
involved in the chain, in return part of the value
created is retained as PROFIT by each party.

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Thank you !

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