Marketplace

Market

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-2

What is Marketing?

Marketing is an organizational function and a set of processes for creating, communicating, and delivering value

to customers and for managing customer relationships in ways that benefit the

organization and its stakeholders.

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-3

What is Marketing Management?

Marketing management is theart and science

of choosing target markets and getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value.

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-4

Core Marketing Concepts

• Needs, wants, and demands

• Target markets, positioning, segmentation

• Offerings and brands

• Value and satisfaction

• Marketing channels• Supply chain• Competition• Marketing

environment

MarketMarket:

Group of people who

have the needs or wants for certain

products or services and

willing to pay for it.

Marketplace

Market

Target Market

MarketMarket:

Group of people who

have the needs or wants for certain

products or services and

willing to pay for it.

Needs

Wants

Demand

CORE CONCEPTS OFCORE CONCEPTS OFMARKETINGMARKETING

NeedsA state of felt deprivation

Wants: Specific objective to satisfy

the need – “brand specifics”. Often

influence by culture, and personality/lifestyle

Demand:Wants supported by

purchasing power

Sellingversus

Marketing

Selling is only the tip Selling is only the tip of the iceberg !of the iceberg !

“There will always, one can assume, 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 well that the product or service fits him and sells

itself. Ideally, marketing should result in a customer who is ready to

buy.”

Peter Peter DruckerDrucker

Peter Peter DruckerDrucker(1909~2005)

On the 11th November 2005, the man who was revered as the father of modern corporate management died. Although he reputedly hated the label of ‘guru’, Peter Drucker was, by any standards, the greatest management guru the world has yet seen. In 1996, the McKinsey Quarterly journal described him as the ‘the one guru to whom other gurus kowtow’ and Robert Heller described him as ‘the greatest man in the history of management’, praise indeed for a man who described himself as ‘just an old journalist’.

Selling is only the tip Selling is only the tip of the iceberg !of the iceberg !

Peter Peter DruckerDrucker

Market:

Group of people who have the

needs or wants for certain products or services and

willing to pay for it.

What makes them willing to

pay?

Value

CUSTOMER PERCEIVED VALUE

Customers tend to be value-maximizers, within the bounds of search costs, limited knowledge, mobility and income.

Customer perceived value (CPV) – nilai tertanggap pelanggan:The difference between benefits and costs of an offering as perceived by the customers.

Benefits:Monetary value of the bundle economic, functional and psychological benefits of a product

Costs:Bundle of costs customer expect to incur in evaluating, obtaining, using and disposing a product-Including monetary, time, energy, and physic costs

Why customer value is so important?- It would help create customer satisfaction and ultimately customer loyalty

So, the key to generating high customer loyalty is to deliver

high customer value.

A company must design a competitively superior value

proposition aimed at a specific market segment.

Value Proposition:

- Consist of the whole cluster of benefits the company

promises to deliver.

- It is more than the core positioning of a product.

Ex;

Volvo’s core positioning has been “safest” but the

buyer is promised more than a safe car.

– “The safest and most durable wagon in which your

family can ride in.”

Total Customer Satisfaction

Performance < Expectation = Dissatisfied

Performance = Expectation = Satisfied

Performance > Expectation = WOW (Delighted)

Satisfaction:

A person’s feelings of pleasure or disappointment resulting

from comparing a product’s perceived performance in

relation to his/her expectations.

If expectation is raised too high, the buyer is likely to be

disappointed.

However, if the expectation is set too low, it wont attract

enough buyers

A highly satisfied customer generally:

a. Stays loyal longer

b. Buys more as the company introduces new products

and upgrades existing products

c. Talks favorably about the company and its products

d. Pay less attention to competing brands

e. Less sensitive to price

f. Offers product or service ideas to company

g. Costs less to serve than new customers because

transactions are routine.

Methods to measure customer satisfaction:

a. Customer complaint and recommendation system

b. Periodic surveys using standard questionnaires

c. Lost customer analysis (exit interview)

d. Mystery shoppers (ghost shopping)

RELATIONSHIP MARKETING

Proses membina suatu bentuk perhubungan perniagaan jangkapanjang dengan pelanggan, pembekal, pengedar

dan rakan pemasaran lain yang menguntungkan kedua-dua pihak.

Melibatkan ikatan ekonomi, teknikal mahupun sosial

HSBC Bank, The Relationship BankTM – Bukan Sekadar Nombor

INTEGRATED MARKETING

Kesemua elemen campuran pemasaran

perlu disepadukan perancangan dan

perlaksanaannya agar ia dapat

mengkomunikasikan dan seterusnya

memberikan nilai yang superior kpd pelanggan

The Four P’s

Marketing Management Tasks

• Developing marketing strategies

• Capturing marketing insights

• Connecting with customers

• Building strong brands

• Shaping market offerings

• Delivering value• Communicating

value• Creating long-term

growth

Satisfaction

Loyalty

The process of selecting target market (s) and

expanding the market by creating, delivering and communicating superior

customer values

MARKETING MARKETING MANAGEMENTMANAGEMENT

Segmentation

Targeting

Positioning

Product Positioning

How we want our target market to think about our product compared

to the competing products

What is Marketed?

GoodsGoods

ServicesServices

Events & ExperiencesEvents & Experiences

PersonsPersons

Places & PropertiesPlaces & Properties

OrganizationsOrganizations

Information & IdeaInformation & Idea

OthersOthers

watch

hotel

Le’ Tour De Langkawi

politicians,

KL Tower

consulting

charity orgs

Key Customer MarketsConsumer Markets

Business Markets

Global Markets

Nonprofit/ Government Markets

Marketing PhilosophyMarketing Philosophy

Production

Selling Marketing

Product

RELATIONSHIP MARKETING

The process of building long term business

relationship with customers for mutual benefits

The Four P’s

Holistic Marketing Dimensions

Factors Influencing Marketing Strategy

MARKETING

Marketers job is to find:

A. The right products for their customers

ORB. The right customers

for their products.

Answer: A or B ???

MARKETING

Marketers job is to find:

A. The right products for their customers

ORB. The right customers

for their products.

Answer: A