1-1 761 207. John Name: Surej P John University: Assumption University (ABAC) Email:...

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761 207

Name: Surej P JohnJohn

University: Assumption University (ABAC)

Email: [email protected]: www.surejpjohn.comPhone: 0809091393

mailto:[email protected]

Evaluation & GradingEvaluation & Grading

Quizzes (2x10%)Quizzes (2x10%) 20%20%

In-Class AssignmentIn-Class Assignment 10%10%

Midterm ExaminationMidterm Examination 30%30%

Final ExaminationFinal Examination 40%40%

TotalTotal 100%100%

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Marketing : An IntroductionMarketing : An IntroductionAn Asian PerspectiveAn Asian Perspective© Armstrong, Kotler & da Silva© Armstrong, Kotler & da Silva 1-4

Marketing:

Managing Profitable Customer Relationships

1

Marketing : An IntroductionMarketing : An IntroductionAn Asian PerspectiveAn Asian Perspective

Armstrong, Kotler Armstrong, Kotler & da Silva& da Silva


What Is Marketing?

• Simple Definition: Marketing is managing profitable customer relationships.

Goals: 1. Attract new customers by promising

superior value. 2. Keep and grow current customers

by delivering satisfaction.


Marketing Old vs. New

Old view of marketing:

Making a sale -- “Telling and Selling”

New view of marketing:

Satisfying customer needs


Marketing Defined

A social and managerial process by which individuals and groups obtain what they

need and want through creating and exchanging products and value with

others.


Core Marketing Concepts

Figure 1.3


Needs, Wants, & Demands

• Need: State of felt deprivation including physical, social, and individual needs.

• Physical:– Food, clothing, shelter, safety

• Social:– Belonging, affection

• Individual:– Learning, knowledge, self-expression

Marketing : An IntroductionMarketing : An IntroductionAn Asian PerspectiveAn Asian Perspective© Armstrong, Kotler & da Silva© Armstrong, Kotler & da Silva

Physical needs

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I am hungry!!!


Social needs

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• Wants: Form that a human need takes, as shaped by culture and individual personality.

• Wants + Buying Power = Demand

Needs, Wants, & Demands


Demand

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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.


ProductsAnything that can be Offered to a Market to Satisfy a Need or Want

ProductsAnything that can be Offered to a Market to Satisfy a Need or Want

PersonsPersons PlacesPlaces OrganizationsOrganizations

IdeasIdeasInformationInformation

What Satisfies Consumers’ Needs and Wants?

ServicesActivity or Benefit Offered for Sale That is Essentially

Intangible and Does Not Result in the Ownership of Anything

ServicesActivity or Benefit Offered for Sale That is Essentially

Intangible and Does Not Result in the Ownership of Anything


PersonsPersons

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Places

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Organizations

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Marketing Myopia• Sellers pay more

attention to the specific products they offer than to the benefits and experiences produced by the products.

• They focus on the “wants” and lose sight of the “needs”


Value and Satisfaction

Expectation

Performance810

If performance is lower than expectations, satisfaction is low.

If performance is higher than expectations, satisfaction is high.

Expectation

Performance

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Customer Value• Customer value is the difference between

the values the customer gains from owning and using a product and the costs of obtaining the product.

• Customer Value = Benefits / Price

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Price = 15000 Baht

Price = 2000 baht


Customer satisfaction

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


Exchange vs. Transaction

• Exchange:– Act of obtaining

a desired object from someone by offering something in

return.

• Transaction:– A trade of values

between two parties.

– One party gives X to another party and gets Y in return. Can include cash, credit, or check.


What is a Market?

• The set of actual and potential buyers of a product.

• These people share a need or want that can be satisfied through exchange relationships.


Elements of a Modern Marketing System

Figure 1.4


Suppliers• Supplies the raw material to manufacturers.

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Competitors• Selling identical products to the

market.

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Marketing Intermediaries

• Those who are in between Manufacturer and customer in the supply chain management.

• Eg. Retailors, Wholesalers, Brokers, banks etc

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Marketing Management

• The art and science of choosing target markets and building profitable relationships with them.

Questions to ask:1. What customers will we serve?

What is our target market?

2. How can we best serve these customers?


Segmentation and Target Marketing

Market Segmentation:

Divide the market into segments of customers

Target Marketing:

Select the segment to cultivate

#1 #2


Marketing Management

Finding and increasing demand, also changing or reducing demand, such as in demarketing.

DemandManagement

Temporarily or permanently reducing the number of customers or shifting their demand.

Demarketing


Demarketing

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Marketing Management Philosophies

Production ConceptProduction Concept

Product ConceptProduct Concept

Selling ConceptSelling Concept

Marketing ConceptMarketing Concept

Societal Marketing ConceptSocietal Marketing Concept


The idea that consumers will favor products

that is available and highly affordable.

The production concept is useful under two

situations:

When the demand for a product

exceeds the supply

When the product cost is too high

and improved productivity is needed to

bring it down.

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The production concept


The Product ConceptThe Product Concept

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The idea that consumers will favor products that

offer the most quality, performance, and features

and that the organization should therefore devote its

energy to making continues product improvements.

Thus an organization should devote energy to

making continuous product improvements.


Marketing and Sales Concepts Contrasted

Figure 1.6


Societal Marketing Concept

The societal marketing concept is an idea that holds that a company should make good marketing decisions by considering consumers' wants, the company's requirements, and society's long-term interests

The societal marketing concept is an idea that holds that a company should make good marketing decisions by considering consumers' wants, the company's requirements, and society's long-term interests


The Marketing Philosophies Compared

Figure 1.8


Customer Relationship Management

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


Customer Perceived Value

• Customers evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.


Customer Perceived Value

Is FedEx’s service worth the higher price? FedEx thinks so. It promises reliability, speed, and peace of mind. FedEx ads say “Need to get it there or else? Don’t worry. There’s a FedEx for that.”


Customer Satisfaction

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


• 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 customers purchasing in their product categories.

Customer Loyalty & Retention


Customer Lifetime Value

To keep customers coming back, Stew Leonard’s has created the “Disneyland of dairy stores.” Rule #1— the customer is always right. Rule #2 —if the customer is ever wrong, reread Rule #1.


Customer Equity

• Customer equity is the total combined customer lifetime values of all the company’s customers.

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