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³It¶s a process by which companies create
value for customers and build a strong
customers relationship in order to capture
value from customers in return´
i
eeds
i Wants
i Demand
i Products
i Exchanges
i Transactions
i Markets

eed is a state of felt deprivation.
a)Primary needs««.food, shelter etc..
b)Acquired needs««.car, TV, bike etc«.

i ! 
The form taken by human needs as they are
shaped by culture and individual personality are called
wants
Wants which backed by buying power are called
demands
i
egative demand: e.g. wearing of helmets, fastening of
seat belts

i
o demand: It means totally
uninterested in product e.g. using MRF tiers to cars «..
i xatent demand: e.g. non harmful cigarettes, fuel
efficiency cars

i Falling demand: e.g. b/w TV, razors, transistors


i Irregular demand: it is seasonal ,e.g.: gold, health
resorts«.

i Full demand: It means the company has just the


amount of demand that can handle
i Ôver full demand: e.g. Disney land, water parks««etc
A product is anything that can be offered to
market for attention, acquisition use or consumption and
that might satisfy a need or want.
It is act of obtaining a desired object from someone
by offering something in return.
conditions must in this process««..
a) 2 parties must participate
b) Each must have something of value to others

c) Each party must want to deal with other


d) Each should be free to accept or reject the others
offer
e) Each party should
communicate and deliver
It is trade of values between the parties«.
It involves at least 2
things of values i.e. conditions that are agreed
upon place and time of agreement

i „ 
It is set of actual and potential buyers of a
product
ë   
   
i Maximizing consumption
i Maximize customer satisfaction
i Maximize choice
i Maximize life quality
i Production concept
i Product concept
i Selling concept
i Marketing concept
i Societal concept
nderstanding the Design a Construct an
market place & customer driven integrated marketing
customers needs marketing program that delivers
wants strategy superior value

Capture value from


Build profitable
customers to create
relationship & create
profits & customers
customer delight
equity
This is the first step of the process where marketers try to
understand their customers needs and wants ,the markets they
are going to operate, the competitors in the market, their
strengths, weaknesses , opportunities and threats.

Many marketers make the mistake of paying more


attention to the specific products than to the benefits and
experiences produced by these products .This is known as
„ 
 „ 
.
The second step after analyzing the market and the customer¶s
needs & wants is to design a customer driven marketing strategy. The
company needs to ask 2 basic questions to itself:
1. What customers do we serve?
2. How can we serve these customers best?
3. Market Segmentation
4. Target Market
5. Product positioning

Successful positioning revolve around two principles:


i ^
: The benefits that a product provides rather than the features.
i 

  

 A distinct benefit of difference.
Marketing mix ³it is a set of tools that the
firm uses to implement the strategy. It consists of every
thing that a firm can do to influence the demand for its
product´,

The marketing mix consists of the 4 p¶s i.e.:


1. Product
2. Price
3. Place
4. Promotion
i Superior customer value: Companies need to create customer
value and customer satisfaction to ensure loyalty of customers and to
gain a large market share
a) Providing customer value
b) Customer satisfaction

A wide study was conducted to link level of customer


satisfaction with customer behavior and the results were as under:
1. xoyalists
2. Apostles
3. Defectors
4. Terrorists
5. Hostages
6. mercenaries
i Creating customer loyalty
i Share of customers
i Customer equity
i Building the right relationship with right customers
Studies have shown that small
defections produce significant increase in profits
because,

i xoyal customers buy more products


i xoyal customers are less price sensitive
i They pay less attention to competitors advertisements
i Servicing existing customers who are familiar with the
firms offering and processes is cheaper
i xoyal customers spread positive word of mouth and refer
other customers.
i G  
 

 
  
 
: heavy users who are not price
sensitive and are willing to try new offerings.
° ë 
: heavy users but not as profitable because
they are price sensitive than the higher tier. They
ask for more discount
  
: their spending value and volume do not
merit mention or special treatment.
  
: customers who actually cost the company
money because they claim more attention than is
merited by spending. They tie up company
resources and spread negative word of mouth