Chapter.1 Overview Of Marketing

OVERVIEW OF
MARKETING
CHAPTER 1 (CLO 1)

Ainiezean Awang Jual - JP-PKK

OVERVIEW ..
Creating &
Capturing
Customer value

Marketing
Managing
profitable
customer
relationships


OVERVIEW
1.1 Understand Marketing
Marketing is one of the many business functions which deals with
CUSTOMERS.

The simplest definition of marketing:
“Marketing is managing profitable customer relationships”
The twofold goal of marketing is to attract new customers by
promising superior value and to keep and grow current customers
by delivering satisfaction.
Marketing is not merely about selling and advertising, but more to
creating a positive & profitable relationships!
In order to have that profitable relationships, we as marketers will
first have to know what is demanded & needed by consumers
before creating an offering which match their requirements and
earn our returns! $$$

1.1.1 Define Marketing
Today marketing must be understood not in the old
sense of making sale – “telling & selling” – but in the
new sense of satisfying customer needs. If the marketer
understands consumer needs, develops product that
provide superior customer value and good prices,
distributes & promotes them effectively, these products
will sell easily without needing massive promotional
activities!
Marketing define:
The process by which companies create value for
customers and build strong customers relationships in
order to capture value from customers in return.

Mr. Marketer

Mr. Buyer


1.1.2 The FIVE (5) steps in Marketing Process
Capture value from
customers in return

Create value for customers & build
customer relationships
Understand
the
marketplace
& customer
needs &
wants

Design
customerdriven
marketing
strategy

Construct an
integrated
marketing
program that
delivers
superior
value

Build
profitable
relationships
& create
customer
delight

Capture
value from
customers to
create profits
& customer
equity

Figure 1.1

Figure 1.1 presents a simple five-step model of the marketing process.
In the first four steps, companies work to understand consumers, create
customer value and build strong customer relationships. In the final
step, companies reap the rewards of creating superior customer value.
By creating value for consumers, they in turn capture value from
consumers in the form of sales, profits and long-term customer equity.

1.1.2 The FIVE (5) steps in Marketing Process
(cont.)
Marketing starts with finding out what prospective customers
think and what they need.
These needs are then fulfilled by the products and services that
you sell.
The pricing, promotion, and distribution of these products and
services will then determine who will be willing and able to buy
them.
Customer purchase and marketers grab revenue.
This process ends with an evaluation of all marketing activities
and a new outlook for the future of the business.


1.2 Understanding the Marketplace & Customer
Needs
 Marketers need to understand customer needs &
wants and the marketplace within which they
operate.
 The FIVE (5) core customer and marketplace concepts
are:

i.
ii.
iii.
iv.
v.

Needs, wants & demands
Market offerings ( products, services & experiences)
Value & satisfaction
Exchanges & relationships
Markets

1.2.1 The FIVE (5) core customer and marketplace
concepts
i.

Needs, wants & demands

Needs
Human needs are states of felt deprivation. They include;
a) Basic physical needs e.g. foods, shelters, clothing, etc.
b) Social needs e.g. sense of belongingness and love, etc.
c) Individual needs e.g. knowledge, self – confidence, etc.
These needs were not created by marketers, they are a basic
part of human makeup.


concepts (cont.)
Wants
Wants are people’s needs that are moulded by culture and
individual personality.
Example:
- I’m hungry, I need food, but I want rice not bread.
-I need shelter, but I want an air-conditioned room.

Demands
A demand is created when buying power backs a person’s want
(exist when a person is able and willing to buy). Demands are
constantly changing.
Many young adults would love to own a car but it remains a want
if the person could not afford to have one. Only those who have
the money to purchase the product would be considered as part of
the demand.

concepts (cont.)
ii. Market offerings – products, services &
experiences.
- Consumer’s needs & wants are fulfilled through
market offerings.
- Market offerings are some combination of
products, services, information, or experiences
offered to a market to satisfy a need or want.
- Market offerings are not limited to physical
products, they also include services and other
entities.

concepts (cont.)
Products
Any tangible product that can be offered to a market for
attention, acquisition, use or consumption in which might
satisfy a want or a need.
E.g.?
Services
Any activity or benefit offered for sale that are essentially
intangible and do not result in the ownership of anything.
E.g. ?

Other entities
Include persons, places, organizations, information and
ideas.

concepts (cont.)
iii. Customer Value & Satisfaction

- Customers form expectations about the value & satisfaction that
various market offerings will deliver & buy accordingly.
- Satisfied customers will buy again & tell other about their good
experiences.
- Dissatisfied customers switch to other competitors & disparage
the product to others.
- Marketers must set the right level of expectations.
- If they set expectations too low, they may satisfy those who buy
but fail to attract enough buyer.
- If they raise expectations too high, buyer will be disappointed.
- Customer value & customer satisfaction are key building blocks
for developing & managing customer relationships.

1.2.1 The FIVE (5) core customer and marketplace concepts
(cont.)
iv. Exchanges & Relationships
Exchange

- Marketing occurs when people decide to satisfy needs & wants
through exchange relationships.
- Exchange is the act of obtaining a desired object from someone by
offering something in return.
- In terms of marketing, exchange occurs when a marketer seek
consumer’s feedback to a market offering he introduced.
- Five conditions must exist for an exchange to occur are:
a.
b.
c.
d.
e.

There are at least two parties
Each party has something that may be of value to the other party
Each party is capable of communication and delivery
Each party is free to accept or reject the other party’s offer
Each party believes it is appropriate or desirable to deal with the other
party.

concepts (cont.)
Relationship
- A transaction is a one-time exchange between two
parties.
- However, if the parties are involved in repeated
transactions, relationship may be built up as a
result of frequent transactions.
- Relationship is the tie between a customer and its
product or the producer of the product.
- Marketers want to build strong relationships by
consistently delivering superior customer value

1.2.1 The FIVE (5) core customer and marketplace concepts
(cont.)
v. Market
Market is a set of all actual and potential buyers of a product or
service.
A market contains the following customers:
a.
b.
c.

d.
e.

Consumer market: Customers who buy products for their own consumption.
They are the end users of the product.
Business market: Customer who buy products for further processing,
reselling, renting and not for own personal consumption.
Government market: Government bodies and related agencies who buy
products in order to provide services to the public.
Reseller market: Customers who buy goods to resell the goods to get profits.
International market: Customers in other countries, including consumers,
producers, resellers and governments.

1.3 Understand a customer driven strategy
The Marketing Concept:
i. Production Concept
o
o

ii.

The idea that consumers will favor products that are
available & highly affordable.
Therefore, the organization should therefore focus on
improving production & distribution efficiency.

Product Concept
o
o

o

Make & sell concept.
The idea that consumers will favor products that offer the
most quality, performance & the features.
Therefore, organization needs to continuously put their
extra effort in improving products.

The Marketing Concept (cont.)
iii. Selling Concept
o
o

The idea that consumers will not buy enough of the firm’s
products unless it undertakes a large-scale selling &
promotion effort.
Typically practiced with unsought goods – those that
buyers do not normally think of buying, e.g. insurance.

iv. Marketing Concept
o
o

Customer-centered concept – finding the right product
for customers instead of finding customers for our
products.
This concept holds that achieving organizational goals
depends on knowing the needs 7 wants of target markets
& delivering the desired satisfactions better than
competitors do.

The Marketing Concept (cont.)
v. Societal Marketing Concept
o

o

The idea that a company’s marketing decisions
should consider consumers’ wants, the company’s
requirements, consumers’ long-run interest, and
society’s long-run interests.
E.g. Online billing;
Society (Human
Welfare)

Societal
Marketing
Concept
Consumers
Company
(want satisfaction) Ainiezean Awang Jual - JP-PKK (Profits)

http://www.greenhome.com/products/pest_control/garden_
pests/114985/


Marketing
Concept

Product
Concept


1.4 The Changing Marketing Landscape
1.

Digital Age

-

Induced by recent technology boom (e.g. Internet)
The explosive growth in computer, communications, information
and other digital technologies has had a major impact on the ways
companies bring value to their customers.
The digital age has provided marketers with exciting new ways to
learn about and track customers and to create products and services
tailored to individual customer needs.
Help marketers to communicate with customers in large groups or
one-to-one
Introduce new ways of marketing - online advertising, video sharing
tools, cell phones and video games to Web widgets and online social
networks.
Internet is a vast public web of computer networks that connect
users of all types all around the world to each other and to an
amazingly large information repository.

-

-

-

2. Rapid Globalization

- Globalization refers to the current economic and
business situation in the world where these
activities are carried out across the national
boundaries in large volumes.
- Many marketers are now connected globally with
their customers & marketing partners.
- The Malaysian marketers have been aggressively
challenge by many of the foreign multinationals.
- E.g. Local rice Vs. Thai’s, Myanmar’s rice.

3. The Call for more Ethics & Social Responsibility

- Our CSR.
- Marketers are reexamining their relationship
with social values and responsibilities and with
the very Earth that sustains us.
- Today’s marketers are being called upon to take
greater responsibility for the social and
environmental impact of their actions.


4. The Growth of Non – Profit Marketing

-

-

-

Marketing also has become a major part of the
strategies of many not-for-profit organizations such
as colleges, hospitals, museums, zoos, symphony
orchestras and even churches.
Not-for-profits face stiff competition for support and
membership.
Sound marketing can help them to attract
membership & support.
http://themarketingspot.com/2011/07/how-topromote-a-non-profit-event-2.html

Ads by UNICEF


The end of Ch. 1


Chapter.1 Overview Of Marketing

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (6)

Recently uploaded

Recently uploaded (20)

Chapter.1 Overview Of Marketing