1
Principles of Marketing
By:
Dr Imamuddin Khoso
(PhD, Japan, Post Doctorate, Canada)
Director IBA, University of Sindh, Jamshoro.
Principles of Marketing
Text Book:
? Principles of Marketing: A South Asian Perspective
13
th
Edition
By:
P. Kotler, G. Armstrong, P.Y. Agnihotri and Ehsan ul Haque
Suggested Readings:
2
Chapter 1
Marketing:
Creating and Capturing
Customer Value
3
What Is Marketing?
Marketing is a process by which
companies create value for customers
and build strong customer relationships
to capture value from customers in
return.
Pepsi-Cola
These variants include
? Crystal Pepsi,
? Pepsi Gold,
? Diet Pepsi,
? Pepsi Max,
? Pepsi Twist,
? Pepsi Holiday Spice,
? Pepsi Samba,
? Pepsi Blue,
? Pepsi Jazz,
? Pepsi One,
? Pepsi Raw,
? Pepsi Next (which is only available in Japan and South Korea),
? Pepsi Retro in Mexico,
? and Pepsi Ice Cucumber in Japan.
The Marketing Process
10
1
2
3
4
5
1. Understanding the Marketplace
and Customer Needs
? Customer needs, wants, and demands
? Market offerings
? Customer Value and satisfaction
? Exchanges and relationships
? Markets
Core Concepts
Understanding the Marketplace
and Customer Needs
• States of deprivation
• Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression
Needs
• Form that human needs take as they are shaped by
culture and individual personality Wants
• Human wants backed by buying power
Demands
? Market offerings are some combination
of products, services, information, or
experiences offered to a market to satisfy
a need or want.
Understanding the Marketplace
and Customer Needs
Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction
Expectations
Customers
• Value and
satisfaction
Marketers
• Set the right level of
expectations
• Not too high or low
Exchange is the act of obtaining a desired object
from someone by offering something in return.
Markets are the set of actual and potential buyers of
a product or service
Understanding the Marketplace
and Customer Needs
2. Designing a Customer-Driven
Marketing Strategy
Marketing management is the art and science
of choosing target markets and building
profitable relationships with them
– What customers will we serve?
– How can we best serve these customers?
Designing a Customer-Driven
Marketing Strategy
Market segmentation refers to dividing the
markets into segments of customers
Target marketing refers to which
segments to go after
Selecting Customers to Serve
Designing a Customer-Driven
Marketing Strategy
? The value
proposition is the
set of benefits or
values a company
promises to deliver
to customers to
satisfy their needs
Choosing a Value
Proposition
Designing a Customer-Driven
Marketing Strategy
Production
concept
Product
concept
Selling
concept
Marketing
concept
Societal
concept
Marketing Management Orientations
Designing a Customer-Driven
Marketing Strategy
Production concept is the idea that consumers will
favor products that are available or highly affordable
Product concept is the idea that consumers will favor
products that offer the most quality, performance,
and features. Organizations should therefore devote
its energy to making continuous product
improvements.
Selling concept is the idea that consumers will not
buy enough of the firm’s products unless it
undertakes a large scale selling and promotion effort
Designing a Customer-Driven
Marketing Strategy
Marketing concept is the idea that achieving
organizational goals depends on knowing the
needs and wants of the target markets and
delivering the desired satisfactions better than
competitors do
Designing a Customer-Driven
Marketing Strategy
Societal marketing concept
is the idea that a company
should make good
marketing decisions by
considering consumers’
wants, the company’s
requirements, consumers’
long-term interests, and
society’s long-run interests
Designing a Customer-Driven
Marketing Strategy
Societal marketing concept
? The marketing mix is the set of tools (four Ps)
the firm uses to implement its marketing
strategy. It includes product, price, promotion,
and place.
3. Preparing an Integrated
Marketing Plan and Program
4. Building Customer Relationships:
Customer Relationship Management (CRM)
Customer
perceived value
• The difference
between total
customer value
and total
customer cost
Customer
satisfaction
• The extent to
which a
product’s
perceived
performance
matches a
buyer’s
expectations
5. Capturing Value from Customers
Creating Customer Loyalty and Retention
? Customer lifetime
value is the value
of the entire stream
of purchases that
the customer would
make over a
lifetime of
patronage
Capturing Value from
Customers
? Customer equity
is the total
combined
customer lifetime
values of all of the
company’s
customers
doc_852594591.ppt
Principles of Marketing
By:
Dr Imamuddin Khoso
(PhD, Japan, Post Doctorate, Canada)
Director IBA, University of Sindh, Jamshoro.
Principles of Marketing
Text Book:
? Principles of Marketing: A South Asian Perspective
13
th
Edition
By:
P. Kotler, G. Armstrong, P.Y. Agnihotri and Ehsan ul Haque
Suggested Readings:
2
Chapter 1
Marketing:
Creating and Capturing
Customer Value
3
What Is Marketing?
Marketing is a process by which
companies create value for customers
and build strong customer relationships
to capture value from customers in
return.
Pepsi-Cola
These variants include
? Crystal Pepsi,
? Pepsi Gold,
? Diet Pepsi,
? Pepsi Max,
? Pepsi Twist,
? Pepsi Holiday Spice,
? Pepsi Samba,
? Pepsi Blue,
? Pepsi Jazz,
? Pepsi One,
? Pepsi Raw,
? Pepsi Next (which is only available in Japan and South Korea),
? Pepsi Retro in Mexico,
? and Pepsi Ice Cucumber in Japan.
The Marketing Process
10
1
2
3
4
5
1. Understanding the Marketplace
and Customer Needs
? Customer needs, wants, and demands
? Market offerings
? Customer Value and satisfaction
? Exchanges and relationships
? Markets
Core Concepts
Understanding the Marketplace
and Customer Needs
• States of deprivation
• Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression
Needs
• Form that human needs take as they are shaped by
culture and individual personality Wants
• Human wants backed by buying power
Demands
? Market offerings are some combination
of products, services, information, or
experiences offered to a market to satisfy
a need or want.
Understanding the Marketplace
and Customer Needs
Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction
Expectations
Customers
• Value and
satisfaction
Marketers
• Set the right level of
expectations
• Not too high or low
Exchange is the act of obtaining a desired object
from someone by offering something in return.
Markets are the set of actual and potential buyers of
a product or service
Understanding the Marketplace
and Customer Needs
2. Designing a Customer-Driven
Marketing Strategy
Marketing management is the art and science
of choosing target markets and building
profitable relationships with them
– What customers will we serve?
– How can we best serve these customers?
Designing a Customer-Driven
Marketing Strategy
Market segmentation refers to dividing the
markets into segments of customers
Target marketing refers to which
segments to go after
Selecting Customers to Serve
Designing a Customer-Driven
Marketing Strategy
? The value
proposition is the
set of benefits or
values a company
promises to deliver
to customers to
satisfy their needs
Choosing a Value
Proposition
Designing a Customer-Driven
Marketing Strategy
Production
concept
Product
concept
Selling
concept
Marketing
concept
Societal
concept
Marketing Management Orientations
Designing a Customer-Driven
Marketing Strategy
Production concept is the idea that consumers will
favor products that are available or highly affordable
Product concept is the idea that consumers will favor
products that offer the most quality, performance,
and features. Organizations should therefore devote
its energy to making continuous product
improvements.
Selling concept is the idea that consumers will not
buy enough of the firm’s products unless it
undertakes a large scale selling and promotion effort
Designing a Customer-Driven
Marketing Strategy
Marketing concept is the idea that achieving
organizational goals depends on knowing the
needs and wants of the target markets and
delivering the desired satisfactions better than
competitors do
Designing a Customer-Driven
Marketing Strategy
Societal marketing concept
is the idea that a company
should make good
marketing decisions by
considering consumers’
wants, the company’s
requirements, consumers’
long-term interests, and
society’s long-run interests
Designing a Customer-Driven
Marketing Strategy
Societal marketing concept
? The marketing mix is the set of tools (four Ps)
the firm uses to implement its marketing
strategy. It includes product, price, promotion,
and place.
3. Preparing an Integrated
Marketing Plan and Program
4. Building Customer Relationships:
Customer Relationship Management (CRM)
Customer
perceived value
• The difference
between total
customer value
and total
customer cost
Customer
satisfaction
• The extent to
which a
product’s
perceived
performance
matches a
buyer’s
expectations
5. Capturing Value from Customers
Creating Customer Loyalty and Retention
? Customer lifetime
value is the value
of the entire stream
of purchases that
the customer would
make over a
lifetime of
patronage
Capturing Value from
Customers
? Customer equity
is the total
combined
customer lifetime
values of all of the
company’s
customers
doc_852594591.ppt