Introduction to Marketing: Value Exchange Process
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Transcript of Introduction to Marketing: Value Exchange Process
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Hugo Boss
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What is Marketing?
Marketing is the process of planning and executing
the conception, pricing, promotion
and distribution of ideas, goods and services
to create exchanges (maintain relationship)
that satisfy individual
and organizational objectives
(AMA 2004)
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Nike
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The SellingConcept
The Marketing Concept
Startingpoint
Existingproducts
Profits throughsales volume
Selling andpromoting
Factory
Customerneeds
Profits throughcustomer value
Integratedmarketing
Market
Focus Means Ends
What is Marketing?
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Indo Mie
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MODERN MARKETING SYSTEM
Suppliers MarketingIntermediaries
Company(marketer)
Competitors
FinalUsers
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Understand themarketplace andcustomer needs
wants
Design acustomer-driven
marketingstrategy
Construct anintegratedmarketing
programs thatdelivers
superior value
Build profitablerelationshipsand createcustomer
delight
Capture valuefrom customersto create profit and customer
equity
Create value for customers andbuild customer relationships
Capture value from customers
in return
MARKETING PROCESS
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The Marketing Process
• A simple model of the marketing process:– Understand the marketplace and customer needs
and wants.• Design a customer-driven marketing strategy.– Construct a marketing program that delivers
superior value.– Build profitable relationships and create customer
delight.– Capture value from customers to create profits
and customer quality.
Gabbot (2004)
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Holcim
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Needs, Wants, & Demands
• Need: State of felt deprivation including physical, social, and individual needs.– Physical needs:• Food, clothing, shelter, safety
– Social needs:• Belonging, affection
– Individual needs:• Learning, knowledge, self-expression
Gabbot (2004)
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Needs, Wants, & Demands
• Wants: Form that a human need takes, as shaped by culture and individual personality.
• Wants + Buying Power = Demand
Gabbot (2004)
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Need / Want Fulfillment
• Needs and wants are fulfilled through a Marketing Offer:– Some combination of products, services,
information, or experiences offered to a market to satisfy a need or want.
Gabbot (2004)
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Need / Want Satisfiers
• Products:– Persons– Places– Organizations– Information– Ideas
• Services– Activity or benefit
offered for sale that is essentially intangible and does not result in ownership.
Brand Experiences: “. . . dazzle their senses, touch their hearts, stimulate their minds.”
Gabbot (2004)
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Mercedes-Benz
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Needs,wants,and
demands
Products
THE CONCEPT OF EXCHANGE(Why people buy?)
Kotler (2006)
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Marketing as an exchange
WHAT IS EXCHANGED• There are many definitions and models of
how exchange takes place but importantly we must ask ‘what is being exchanged.– Meanings associated with exchange:
- Utilitarian exchange- Symbolic exchange- Hedonic exchange- Composite exchange
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Marketing as an exchange
Utilitarian exchange• This type of exchange is referred to as
economic exchange. Goods are given in return for money or other goods.
Symbolic exchange• Symbolic exchange is an exchange where the
transaction involves psychological or social characteristics.
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Marketing as an exchange
Hedonic exchange• Hedonic exchange refers to an exchange
where the transaction involves satisfying five senses
Composite exchange• Composite exchange refers to an
exchange that has both utilitarian and symbolic meaning.
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Starbucks Coffee
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Exchanging value
• Holbrook extracts three key sources of customer value:– 1. Interaction– 2. Comparison– 3. Experience
• Interaction, comparison and experience form a value system.
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Exchanging value
Customer value is:• 1. A trade off between product quality and the price• 2. A trade off between a set of benefits and specific
categories of costs• 3. The hierarchy of derived benefits obtained from
particular product attributes when using the product• 4. The resulting emotional, practical and logical worth
associated with the product• 5. A trade off between received value and desired
value
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Conclusion
Suppliers
Company(marketer)
Competitors
FinalUsers
MarketingIntermediaries
Value Exchange