Principles Of Marketing PHILIP KOTLER, GARY ARMSTRONG Chapter One Marketing: Managing Profitable Customer Relationships Looking Ahead Define marketing and the marketing processes. Explain the importance of understanding customers and the marketplace. Identify the five core marketplace concepts. Identify the key elements of a customer-driven marketing strategy.
Chapter 1 Marketing in a Changing World: Creating Customer Value and Satisfaction PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong.
Discuss customer relationship management and ways of creating and obtaining value. Describe the major trends and forces changing today’s marketing landscape. What is Marketing?
Attracting new customers by promising and delivering superior value. Building long-term relationships with customers by delivering continued customer satisfaction. Creating, building and managing these relationships profitably over time. Chapter 1 pages 6 and 7 Broad Definition:- Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others.
Narrower Definition:- The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. The Marketing Process Model 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 equity.
Chapter 1 page 7 1.Understanding The Marketplace And The Consumer Needs Needs, Wants and Demands Needs are states of felt deprivation. Physical: Food, clothing, shelter, safety. Social: Belonging, affection.
Individual: Learning, knowledge, self-expression. Chapter 1 page 8 Needs, Wants and Demands Wants are needs shaped by culture and individual personality. Jeans vs a sari. Individual expression vs. Collective good. Demands are wants combined with buying power. Chapter 1 page 8 Products, Services, Experiences Anything that can be offered for.
Acquisition, attention, use or consumption. That might satisfy a need or want. Activities or benefits offered. Essentially intangible.
Do not result in ownership of anything. Create, stage and market brand experiences. Attending live theatre, music concert.
Chapter 1, pages 8-10 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.” The great railroads lost out to the exploding trucking industry. They forgot that their business was solving transportation problems, not running railroads. Chapter 1, page 9 How Do Consumers Choose Among Offers? Customer Value – Difference between the values the customer gains from owning the product versus the costs of obtaining it. Customers buy from the firm that offers the highest customer perceived value Customer Satisfaction – Perceived performance in providing value, relative to expectations – how well the product lives up to expectations Important: Perceptions are key Set the right level of expectation Value and Satisfaction If the performance and the customer’s experience is lower than expectations, than customer satisfaction is low.
If the performance and the customer’s experience meets expectations, than the customer is satisfied. If the performance and the customer’s experience exceeds expectations, than the customer is delighted. Exchange and Transactions The act of obtaining a desired object from someone by offering something in return.
A trade between two parties that involves: two things of value. Agreed upon conditions. Time of agreement. Place of agreement. Chapter 1, Page 10 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. Chapter 1, Page 10 Chapter 1, page Core Marketplace Concepts Customers have needs, wants and demands. Marketers offer products or services. Customers seek value and satisfaction from offers.
Demands and offers result in transactions and relationships. Markets are all potential customers with a similar demand. Chapter 1, page 12 Customer-Driven Marketing Divide markets into segments. Choose the right segment to target. Offer a unique value proposition. Differentiate your offer from competitor offers.