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Introduction to Marketing Lec 1b Week 1b BBA 2K10 (A)

What is marketing?
The Marketing Process

Needs, Wants, and 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

Needs, Wants, and Demands


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

Wants

+ Buying Power = Demand

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.

Market Offerings
Products: Persons, places, organizations,

information, ideas.
Services: Activity or benefit offered for sale that is

essentially intangible and does not result in ownership.

Understanding the Marketplace and Customer Needs


Elements of a Marketing System

Designing a Customer-Driven Marketing Strategy


Marketing management is the art and science of choosing target markets and building profitable relationships with them
What customers will we serve? How can we best serve these customers?

Designing a Customer-Driven Marketing Strategy


Selecting Customers to Serve
Market segmentation refers to dividing the markets into segments of customers Target marketing refers to which segments to go after

Designing a Customer-Driven Marketing Strategy


Selecting Customers to Serve Demarketing is marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it.

Designing a Customer-Driven Marketing Strategy


Selecting Customers to Serve
Marketing management is:
Customer management Demand management

Designing a Customer-Driven Marketing Strategy


Choosing a Value Proposition The value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs

Preparing an Integrated Marketing Plan and Program


Marketing Mix
The marketing mix is the set of tools (four Ps) the firm uses to implement its marketing strategy Product Price Promotion Place

Building Customer Relationships


Customer Relationship Management (CRM)
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Building Customer Relationships


Customer Relationship Management (CRM)
Relationship Building Blocks: Customer Value and Satisfaction Customer perceived value is the difference between total customer value and total customer cost Customer satisfaction is the extent to which a products perceived performance matches a buyers expectations

Customer Value and Satisfaction

Care must be taken when setting expectations:


If performance is lower than expectations,

satisfaction is low. If performance is higher than expectations, satisfaction is high.

Exchanges and Relationships

Exchange:
Act of obtaining a

Relationships:
Marketing actions

desired object from someone by offering something in return.

build and maintain relationships with target audiences involving an idea, product, service, or other object.

Capturing Value from Customers


Creating Customer Loyalty and Retention
Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage