050121 Principles of Marketing SuwattanaSawatasuk
What is Marketing? • The process by which companies create value for customers and build strong customer relationships in order to capture value from customer in return.
Marketing Process Capture value from customersin return Create value for customers and build customer relationships Understand the marketplace & customer needs & want Design a customer-driven marketing strategy Construct an integrated marketing program that deliver superior value Build profitable relationships and create customer delight Capture value from customers to create profits and customer equity 1 2 3 4 5
Customer Needs, Wants, and Demands • Needs = States of felt deprivation • Basic physical needs for food, clothing, warmth, and safety • Social needs for belonging and affection • Individual needs for knowledge and self-expression
Customer Needs, Wants, and Demands • Wants = The form human needs take as shaped by culture and individual personality • Dandy needs food but wants to eat sushi at Fuji Restaurant. • When human wantsare backed by buying power, wants become demands of products with benefits that add up to the most value & satisfaction.
Market Offerings–Products, Services, and Experiences • Market offering = some combination of products, services, information, or experiences offered to a market to satisfy a need or want
Marketing Management • The art and science of choosing target markets and building profitable relationships with them • There are 5 alternative concepts under which organizations design and carry out their marketing strategies: • the production, product, selling, marketing, and societal marketing concepts.
I. Production Concept • The idea that consumers will favor products that are available and that the organization should therefore focus on improving production and distribution efficiency.
II. Product Concept • 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 continuous product improvements.
III. Selling Concept • The idea that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.
IV. Marketing Concept • The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
The Selling and Marketing Concepts Contrasted Make & sell (inside-out) Starting point Focus Means Ends The selling concept Existing products Selling & promoting Profits through sales volume Factory Sense & respond (outside-in) The marketing concept Profits through customer satisfaction Customer needs Integrated marketing Market The set of actual & potential buyers of product or service
V. Societal Marketing Concept • The idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests. Society (Human welfare) Societal marketing concept Consumers (Want satisfaction) Company (Profits)
Marketing Environment • The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers • 2 Levels of marketing environment: • Microenvironment • Macroenvironment
Microenvironment • The actors close to the company that affect its ability positively or negatively to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
Microenvironment • The company – top management (mission, objectives, strategies, policies), R&D, purchasing, operations, and accounting • Suppliers • Marketing intermediaries • Competitors • Publics • Customers
Microenvironment • The company • Suppliers– supply shortages or delays, labor strikes, rising supply costs • Marketing intermediaries • Competitors • Publics • Customers
Microenvironment • The company • Suppliers • Marketing intermediaries – firms that help company to promote, sell, and distribute its goods to final buyers includes resellers, distribution firms, marketing services agencies, and financial intermediaries • Competitors • Publics • Customers
Microenvironment • The company • Suppliers • Marketing intermediaries • Competitors • Publics • Customers
Microenvironment • The company • Suppliers • Marketing intermediaries • Competitors • Publics – any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives such as financial, media, government, citizen action, local, general, and internal publics • Customers
Microenvironment • The company • Suppliers • Marketing intermediaries • Competitors • Publics • Customers– consumer markets, business markets, reseller markets, government markets, and international markets
Macroenvironment • The larger societal forces that affect the micro environment—demographic, economic, natural, technological, political, and cultural forces.
Macroenvironment • Demography – human populations in terms of size, density, location, age, gender, race, occupation and other statistics • Economic • Natural • Technological • Political • Cultural
Macroenvironment • Demography • Economic – factors that affect consumer buying power and spending patternssuch as income, cost of living, interest rates, and saving and borrowing patterns • Natural • Technological • Political • Cultural
Macroenvironment • Demography • Economic • Natural – shortages of raw materials, natural disaster, increased pollution, increased government intervention • Technological • Political • Cultural
Macroenvironment • Demography • Economic • Natural • Technological – forces that create new technologies, creating new product and market opportunities • Political • Cultural QR Code (2D Bar Code)
Macroenvironment • Demography • Economic • Natural • Technological • Political – laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society • Cultural
Macroenvironment • Demography • Economic • Natural • Technological • Political • Cultural– forces that affect society’s basic values, perceptions, preferences, and behaviors