Lecture 1 Defining Marketing and the Marketing Process

Defining Marketing and the Marketing Process

1. Defining Marketing and the Marketing Process October, 2020

2. Write a few words that associate you with Marketing!

3. Words that associate with Marketing! TV Advertising Selling Promotion Sales person Web-pages Pop-ups Magazine’s ads Radio ads Display

4. Marketing is all around us! TV advertisements Product’s displays Newspaper & Magazines Brochures & Leaflets Direct mail offers Web sites

5. Marketing is about…..4P Product Promotion Price Place Marketing deals with customers!

6. Marketing is managing profitable customer relationships! Marketing is about satisfying customer needs! Marketers must: Understand customer needs Develop valuable products Price them Distribute them & Promote them! It’s not only selling & advertising!

7. Marketing is all about customers! Two goals: Keep and grow current customers Attracting new customers

8. Definition of Marketing AMA: Marketing is a process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return! Production Producer Distribution Customer Pricing Promotion Strong relationship between them!

9. Who uses Marketing? Large companies Non-for-Profit organizations Museums Hospitals Colleges Churches

10. Who uses Marketing?

11. The Marketing Process (simple 5-phased model) ted A) B ) C ) D ) E ) Understand the Marketplace & Customer needs and wants Design a Customer-driven Marketing Strategy Construct an Integrated Marketing program that delivers superior value Build profitable relationships and create customer satisfaction Capture value from customers in form of sales, profit and long-term relationship Understand customers, create value & build relationship Reap rewards of created superior value

12. The Marketing Process (First phase) A) Understand the Marketplace & Customer needs and wants Needs, Wants & Demands Marketing offerings Value & Satisfaction Exchange & Relationships Markets

13. Needs, Wants & Demands NEEDS State of felt deprivation! Feeling that something is missing (for living!) Basic needs Social needs Individual needs

14. Needs, Wants & Demands NEEDS Maslow’s Hierarchy of Human Needs

15. Needs, Wants & Demands Exercise: Arrange the given words on the five levels of the Maslow’s pyramid! Which word belongs to which level? Health insurance Safe-box Vegetable House Sleep Coffee with a friend Nomination for Nobel prize Fruit Car insurance Employment Getting PhD Breathing Proclaimed as the Best student in school Finished Marketing course Award for your patent for Covid 19 vaccine

16. Needs, Wants & Demands Exercise solved: Physiological Health insurance Safe-box Vegetable House Sleep Coffee with a friend Nomination for Nobel prize Fruit Car insurance Employment Getting PhD Breathing Proclaimed as the Best student in school Finished Marketing course Award for your patent for Covid 19 vaccine Safety Love / belonging Esteem Self-Actualization

17. Needs, Wants & Demands WANTS Wanting things to feel & live more comfortable! You can live without them! Ex: An American NEEDS food & WANTS a Big Mac, Coca Cola, French fries!

18. Needs, Wants & Demands DEMANDS Human wants that are backed by buying power! Ex: I want it, I have money & I will buy it!

19. Needs, Wants & Demands Companies: Try to understand customer needs, wants and demands, through: Consumer research Data analysis

20. Marketing Offerings PRODUCTS Physical items! SERVICES EXPERIENCES Intangible acts! + people, places, ideas, information

21. * Marketing Myopia PRODUCTS Focusing more on products than consumers!

22. Customer Value and Satisfaction How do customers choose to buy from so many product offerings in the market? EXPACTATIONS SATISFACTION Word – of –Mouth! Satisfied customers buy again and tell others to buy! Dissatisfied customers switch to competitors!

23. Customer Value and Satisfaction RIGHT EXPACTATIONS TOO HIGH – Disappointed customers! TOO LOW – Fail to attract more customers!

24. Exchange & Relationships EXCHANGE Act of obtaining a desired object from someone by offering something in return! Kinds of Response: A company likes consumers to buy its products/services A political candidate wants votes A church wants membership An orchestra wants an audience A social action group wants followers

25. Markets Market = set of actual and potential buyers of a product / service! Individual (consumer) market Business (company) market

26. Markets Marketers need to manage markets and create relationships with customers! They must: Search for buyers! Identify their needs and wants! Design good marketing offerings! Set prices to goods/services! Promote them! Store and deliver them! Marketing core activities: research, product development, communication, distribution, pricing & services

27. Homework Write down two products for each level on the Maslow’s pyramid of hierarchy of needs