Name: Surej P John University: Assumption University Email: email@example.com Phone: 0809091393
Armstrong, Kotler & da Silva Marketing : An Introduction An Asian Perspective 1 Marketing: Managing Profitable Customer Relationships
What Is Marketing? • Simple Definition: Marketing is managing profitable customer relationships. Goals: • Attract new customers by promising superior value. • 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
Physical needs I am hungry!!!
Needs, Wants, & 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 Fulfilled through a Marketing Offer: • Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
What Satisfies Consumers’Needs and Wants? Products Anything that can be Offered to a Market to Satisfy a Need or Want Persons Places Organizations Information Ideas Services Activity or Benefit Offered for Sale That is Essentially Intangible and Does Not Result in the Ownership of Anything
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”
Performance Expectation Performance Expectation 8 10 10 8 Value and Satisfaction If performance is lower than expectations, satisfaction is low. If performance is higher than expectations, satisfaction is high.
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 Price = 15000 Baht Price = 2000 baht
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. Exchange vs. Transaction
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.
Competitors • Selling identical products to the market.
Marketing Intermediaries • Those who are in between Manufacturer and customer in the supply chain management. • Eg. Retailors, Wholesalers, Brokers, banks etc
Marketing Management • The art and science of choosing target markets and building profitable relationships with them. Questions to ask: • What customers will we serve? What is our target market? • How can we best serve these customers?
Market Segmentation: Divide the market into segments of customers Target Marketing: Select the segment to cultivate Segmentation and Target Marketing #1 #2
Demarketing Temporarily or permanently reducing the number of customers or shifting their demand. Marketing Management Demand Management Finding and increasing demand, also changing or reducing demand, such as in demarketing.
Marketing Management Philosophies Customer-Driven Societal Marketing Concept Marketing Concept Selling Concept Product Concept Production 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. The production concept
The Product Quality 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
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 • Customer’s 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.