Marketing prgogram session(1)
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This document summarizes the first session of a marketing program. It introduces key concepts like the marketing concept, customer value, needs, wants and demands. It discusses the evolution from production and product concepts to the modern marketing concept. The session outlines the course structure and introduces basic marketing definitions and frameworks. It emphasizes that marketing is about customer satisfaction and creating value. The document compares different philosophies like production, product and selling concepts with the modern marketing concept.
Marketing prgogram session(1)
- 1. Marketing Program-Session 1 Principles of Marketing Instructor: Khaled Bekhet Maastricht School of Management
- 2. Today’s Agenda Review Syllabus Overview of the Marketing Concepts and creating customer value.
- 3. 1st Session Course Description “An introduction to the basic concepts underlying marketing, marketing definition, needs, wants, demands, product, Exchange, Market, creating customer value, customer satisfaction, Production Concept Vs Product Concept Vs Selling concept Vs Marketing concept.. And Societal Marketing Concept Next Session we’ll discuss: Marketing Mix, Market segmentation, target market selection Consumer and industrial buyer behavior …” Review Syllabus
- 4. Course Objectives Understand basic concepts in Marketing Your ability to analyze Marketing problems. Learn how to develop a marketing plan. Review Syllabus
- 5. COURSE STRUCTURE Readings Lectures Assignments Project Exam
- 6. Recommended Text Books Principles of Marketing by Philip Kotler and Gary Armstrong, 2005, (11th Edition) Prentice –Hall Inc. Fundamentals of Marketing by Stanton, Etzel and Walker, 2005 , (8th Edition) McGraw Hill Inc. Marketing by Joel R. Evans and Barry Berman, 2004, (9th Edition) Atomic Dog Publishing
- 7. Question ： Is marketing good or evil?
- 8. If you think marketers have an image problem
- 9. What People Think of Marketers
- 10. Marketers are faddish, irresponsable, … don’t think like business people … McKinsey & Company, CEO/CMO Survey, 2005
- 11. Too many marketers have become so specialized that they don’t think in terms of the company’s big picture. Philip Kotler
- 12. Marketers are frivolous and difficult to approach Australian Society of Certified Public Accountants
- 13. Cata s otion t ising logue Prom A dver s Co Sal up es on Public e s c Servi relation s What is Marketing, anyway? E- livery me rce De oppin g e t ml i R c oa Spon Sh i ng sorsh ips cha nnels g Pricin mail R Pack D irect es ea aging Billbo rch ards
- 14. Marketing Everywhere! Understanding marketing helps you when: You buy a new pair of shoes, or go to the grocery store. You open a new bank account. You apply for a job. You watch television. In Fact People Buy 3 Things ….. Essential needs (Food, Shelter, ..), Solutions, Things to feel good. What is Marketing?
- 15. What is Marketing? Marketing is the total system of business activities designed to plan, price, promote, and distribute want-satisfying products, services, and ideas to target markets in order to achieve organizational objectives- AMA Simple: The delivery of CS at profit.
- 16. In your own words… What’s marketing ? This is your 1st homework :)
- 17. Key Words in the Definition total system: not an ad hoc approach business activities: but not just for businesses plan, price, promote, distribute: the application of the marketing mix need-satisfying: meeting customers’ needs products, services, ideas: not just products target markets: not a broad-brush approach objectives: the customer’s as well as the firm’s
- 18. Costs Careers About 50% of total About 25 to 33% of the Product/service costs work force hold are marketing costs. marketing positions. Why Study Marketing? Contributions to Contributions to Society Individual Organizations Marketing decisions Critical to the success affect the lives of of the firm. individual consumers and society as a whole.
- 19. Basic Concepts Underlying Marketing Needs Wants Demands Products Exchange Markets
- 20. Needs The most basic concept underlying marketing is that of human needs. The needs are built in human nature itself. It is not invented by marketers. When the needs are not satisfied, a person will try to reduce it or look for an alternative that will satisfy it.
- 21. Wants Human wants are desires for specific satisfaction of deeper needs. Human needs may be few, but their wants are numerous. Wants are continually shaped and re- shaped by social forces and institutions such as families, Mosque, church, schools and business corporations.
- 22. Wants Marketers do not create needs, but influence wants. They suggest and inform consumers about certain products. Marketers persuade them to purchase, stressing the benefits of such products.
- 23. Demands People have almost unlimited wants but limited resources. They want to choose products that provide the most value and satisfaction for their money. When backed by purchasing power, wants become demand. That is, demand is “want for specific products that backed up by an ability”.
- 24. Demands Many desire a car such as Mercedes Benz, Toyota, BMW, Honda etc. but only a few are really willing and able to buy one. It is therefore important for marketing executives to measure not only how many people want their company’s products, but also measure how many of them would actually be willing and able to buy them.
- 25. Products People normally satisfy their wants and needs with products offered in the market. A product can be defined as anything that can be offered to someone to satisfy a need or want. A product can be an object, service, activity, person, place, organization or idea. People do not buy physical objects for their own sake. For example why women buy lip stick and why would you buy a toothpaste?????????.
- 26. But, It is not Just Products There could be a good, a service, or an idea.
- 27. Exchange Marketing takes place when people decide to satisfy needs and wants through exchange. Exchange is therefore the act of getting a desired object from someone by giving something in return.
- 28. Figure 1-1: The Give and Get of Marketing
- 29. Markets A market is defined as a set of all actual and potential buyers of a product and service. These buyers share particular needs or wants that can be satisfied through exchange.
- 30. Simple Marketing System Communication Product/Service Producer/Seller Consumer Money Feedback
- 31. Who is the Focus? Customers The purchasers of organizations’ products; the focal point of all marketing activities. The Target Market Starbucks focuses on its target market to meet their needs
- 32. Discussion Questions Is customer satisfaction enough? Is customer delight necessary? Do not feel scary, It is not Homework, We will discuss about that in class ..NOW !!!!
- 33. It’s All About Satisfaction customer satisfaction, leads to long-term profitability and success. Whenever things of value are being exchanged, marketing principles apply: consider exactly what is being exchanged (it’s “give” and “get”) Marketing today is the role of all company’s operations and departments which influence satisfaction Marketing principles apply in all organizations
- 34. …and Creating Value Successful marketing involves meeting or exceeding customer expectations When expectations are exceeded, customer satisfaction or delight results Marketing is very much about adding value through a broadly-defined value proposition The value proposition comprises everything the company offers its customers – must be defined very broadly Value may is not only about price
- 35. Creating Customer Value Positive Customer Negative value Perceived Perceived benefits sacrifice Monetary costs Product benefits Time costs Service benefits Energy costs Relational benefits Psychological Image benefits costs 8
- 36. A value proposition Value = benefits – costs – risk As perceived ‘Solution to Financial & Unfulfilled by consumers my problem’ Opportunity Promises Costs
- 37. Creating Value Proposition Value proposition contains aspects of CS. Many aspects contribute to customer satisfaction: The emotional connection with customers Interaction with the firm and it employees The technical performance of the firm Support services and systems The core product or service offered Ability to add value and to differentiate as a firm focuses more on the top levels
- 38. The Production Concept Consumers will favor those products that are widely available and low in cost. Therefore increase production and cut down costs. And build profit through volume.
- 39. The Product Concept Consumers will favor those products that offer the most quality, performance, or innovative features. Therefore, improve quality, performance and features. This would lead to increased sales and profits.
- 40. The Selling Concept Consumers , if left alone , will not buy enough of company’s products. Therefore, promote sales aggressively. And, build profit through quick turnover.
- 41. The Marketing Concept The key to achieving organizational goals consist in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors. As per Kotler et all, 1996 And build profit through customer satisfaction And loyalty And Innovation. (Quote of P. Drucker-7Sources of Innovation )
- 42. Marketing and Sales Concepts Contrasted
- 43. Evolution of the Societal Marketing Concept The Production Concept –Existing -Scales The Product Concept- Features The Selling Concept-Aggressive Promo The Marketing Concept-Integrated Societal Marketing Concept- New Deliver value to customers in a way that improves customers’ and society’s long term well being.
- 44. Marketing Myopia – Fit or Feature? Management’s failure to recognize a company’s scope of business. Sellers pay more attention to Need a the specific products they drill? offer than to the benefits and experiences produced by the products. They focus on the “wants” and Need a lose sight of the “needs.” cloth?
- 45. Your 2nd Homework and Last Can you Think of some marketing myopias that might crossed into your life? This is your 2nd and last homework today?
- 46. The Marketing Myopia People buy holes, not drills! Fashion, status, reference groups approval, and warmth, but not coats!
- 47. The New View of Marketing 4R The modern marketing concept emphasis today is on keeping existing customers as well as getting new ones Four principles guide marketing- 4R: retention: keeping them coming back referrals: encourage them to recommend us relationships: build an emotional connection recovery: solve problems as they arise
- 48. Next Class Marketing Mix and Market segmentation, Target Markets selection, Consumer and industrial buyer behavior Discussion Session: 2 Case Studies Next Class Debate: What is the Marketing Mix?, What are the Market coverage different strategies?, What are Steps in Segmentation, Targeting, and Positioning? How would you segment consumer and Industrial Markets
- 49. THANK YOU
Editor's Notes
- #16: More simple: Marketing is the delivery of customer satisfaction at a profit.
- #36: 16
- #38: The CEO of Zappos.com says that "every call is perceived as a way to make a positive emotional connection with a customer." So, what does "emotional connection" mean? It's about capturing hearts and minds, for how a company makes us feel determines our opinions about it and our buying decisions. It is more psychological than logical. And, more unconscious than conscious.
- #42: The ultimate goal of any organization is to gain and retain customers. The only way to achieve this goal is Innovation and Marketing. The rest only Adds cost. Peter Drucker.
- #45: If we want to know what a business is, we have to start with its purpose. And its purpose must lie outside the business itself. In fact, it must lie in society since a business enterprise is an organ of society. There is one valid definition of business purpose: to create a customer. P. Drucker
- #47: Web TV seemed like a couch potato’s dream a TV with a set top box that allows you to surf the WEB and watch TV. Despite 50 million promotional blitz by WEBTv and partners Sony and Philips Electronics only 50,000 subscribers signed up. Nothing was wrong with the product itself which displayed Internet information on a standard TV set, it is just the original owner of WEB Tv (now owned by Microsoft) didn’t know the market. The problem was the wrong marketing message. Couch potatoes want to be better entertained whereas computer users want to surf the WEB using small PC screens. The WWW had trouble with TV. To people conditioned by the tube the WEB is slow, static and arcane at least when compared with star truck or Baywatch reruns. A revamped campaign now emphasized entertainment over education.
- #48: “ Trust is the glue of life. It's the most essential ingredient in effective communication. It's the foundational principle that holds all relationships.” Stephen R. Covey- The 7 habits of Highly effective people.