MARKETING &

MARKETING PROCESS

Ms. Phuong Doan

[email protected]
WHAT IS MARKETING?
 WHAT IS MARKETING?

The process by which companies

engage customers, build strong
customer relationships, and create
customer value in order to capture
value from customers in return.

→ Engaging customers and managing

profitable customer relationships.
NEW VIEW OF MARKETING

OLD view of NEW view of

marketing: marketing:
Making a Sale— Satisfying
“Telling and Selling” Customer Needs
MARKETING PROCESS

Simple Model of the Marketing Process

 1.
UNDERSTANDING
MARKETPLACE
& CUSTOMER
NEEDS
 CORE CONCEPTS

 Customer Needs, Wants, and Demands

 Market Offerings
 Value and Satisfaction
 Exchanges and Relationships
 Markets
 CUSTOMER NEEDS,
WANTS, & DEMANDS
• States of deprivation
Needs ▪ Physical—food, clothing, warmth, safety
▪ Social—belonging and affection
▪ Individual—knowledge and self-expression

• The form that human needs take as

Wants they are shaped by culture and
individual personality

• Human wants backed by buying

Demands power
 CUSTOMER NEEDS,
WANTS, & DEMANDS
• States of deprivation
Needs • Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression

• Form that human needs take as

Wants they are shaped by culture and
individual personality

• Human wants backed by buying

Demands power
 CUSTOMER NEEDS,
WANTS, & DEMANDS
 CUSTOMER NEEDS,
WANTS, & DEMANDS
• States of deprivation
Needs • Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression

• Form that human needs take as

Wants they are shaped by culture and
individual personality

• Human wants backed by buying

Demands power
 CUSTOMER NEEDS,
WANTS, & DEMANDS
 MARKET OFFERINGS

 fulfill customer needs and wants

 include both tangible and intangible products

Some combination of products, services,

or experiences offered to a market to
satisfy a need or want
 MARKETING MYOPIA

Focusing only on existing wants and losing

sight of underlying consumer needs
They forget that a product is only a tool to solve a consumer
problem.
 MARKETING MYOPIA

Smart marketers look beyond

the attributes of the products
and services they sell.
MARKETING MYOPIA
 CUSTOMER
VALUE & SATISFACTION
• The customer’s evaluation of the
Customer difference between all the
Perceived benefits and all the costs of a
marketing offer relative to those
Value of competing offers

Customer • The extent to which a product’s

perceived performance matches a
Satisfaction buyer’s expectations
 CUSTOMER
VALUE & SATISFACTION
Customers often
do not judge
values and costs
accurately or
objectively.

They act on
perceived value.
 CUSTOMER
VALUE & SATISFACTION
• The customer’s evaluation of the
Customer difference between all the
Perceived benefits and all the costs of a
marketing offer relative to those
Value of competing offers

Customer • The extent to which a product’s

perceived performance matches
Satisfaction a buyer’s expectations
 CUSTOMER
VALUE & SATISFACTION
 Customer satisfaction -> Customer loyalty
 Delivering more than promise -> Delight customers
 Delighted customers = “Customer Evangelists”
EXCHANGE & RELATIONSHIP

Exchange is the act of obtaining a desired object

from someone by offering something in return.

Marketing consists of actions taken to create,

maintain, and grow desirable exchange
relationships with target audiences involving a
product, service, idea, or other object.
 MARKETS

Market is the set of actual and potential

buyers of a product or service.

-> Marketing means managing markets to

bring about profitable customer relationship.
 MARKETS

How can we influence our customers?

How can our customers influence us?

How can our customers influence

each other?
MARKETS
 2.
DESIGNING
A CUSTOMER-DRIVEN
MARKETING STRATEGY
 CONTENTS

 Marketing Management
▪ Selecting Customers to Serve
▪ Choosing a Value Proposition
 Marketing Management Orientation
▪ Production Concept
▪ Product Concept
▪ Selling Concept
▪ Marketing Concept
▪ Societal Marketing Concept
MARKETING MANAGEMENT

Marketing management is the art and

science of choosing target markets and
building profitable relationships with
them.
MARKETING MANAGEMENT

1. What customers will we serve?

(What is our target market?)
2. How can we serve these customers best?
(What is our value proposition?)
MARKETING MANAGEMENT
ORIENTATION

Societal
Production Product Selling Marketing
marketing
concept concept concept concept
concept
 PRODUCTION CONCEPT

The idea that

1. consumers will favor products that are
available or highly affordable,
2. the organization should therefore focus on
improving production and distribution
efficiency
 PRODUCT CONCEPT

The idea that

1. consumers will favor products that offer the
most quality, performance, and features,
2. the organizations should therefore devote
its energy to making continuous product
improvements
 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
 MARKETING CONCEPT

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
 MARKETING CONCEPT

It calls for Customer-driving Marketing

“Our goal is to lead customers where they

want to go before they know where they
want to go.” (Coursebook, p.12)
 SOCIETAL MARKETING
CONCEPT

The idea that a company should make good

marketing decisions by considering
1. consumers’ wants,
2. the company’s requirements,
3. consumers’ & society’s well-being
SOCIETAL MARKETING
CONCEPT
It calls for Sustainable Marketing
 3.
PREPARING AN
INTEGRATED MARKETING
PLAN AND PROGRAM
INTEGRATED MARKETING
PLAN AND PROGRAM

Integrated Marketing Program is a

comprehensive plan that communicates
and delivers the intended value to chosen
customers.
It transforms the Marketing strategy into
action.
INTEGRATED MARKETING
PLAN AND PROGRAM
The Marketing Mix – 4Ps
INTEGRATED MARKETING
PLAN AND PROGRAM

4Ps 4Cs
Product Customer Solution
Price Customer Cost
Place Convenience
Promotion Communication
INTEGRATED MARKETING
PLAN AND PROGRAM
The Extended Marketing Mix – 7Ps
 4.
BUILDING
CUSTOMER RELATIONSHIPS
 CUSTOMER RELATIONSHIP
MANAGEMENT

The key to building lasting relationships is to

superior customer
create and deliver
value and satisfaction .
CUSTOMER SATISFACTION & DELIGHT

Higher financial performance

Greater customer loyalty

‘Customer Evangelist’
 PARTNER RELATIONSHIP
MANAGEMENT
Working closely with
 other departments inside the firm
 marketing partners outside the firm –
suppliers, channel partners, or competitors
to jointly bring greater value to customers
 5.
CAPTURING VALUE
FROM CUSTOMERS
CREATING CUSTOMER LOYALTY & RETENTION
CREATING CUSTOMER LOYALTY & RETENTION

Losing a customer means losing more than a single sale.

It means losing the customer lifetime value .

 BUILDING CUSTOMER EQUITY

Ʃ customer lifetime values of the company’s

current & potential customers

→ Building the right relationship with the

right customers
 THE CHANGING
MARKETING LANDSCAPE

 The Digital Age

 The Changing Economic Environment
 The Growth of Not-for-Profit Marketing
 Rapid Globalization
 Sustainable Marketing - The Call for More
Social Responsibility
(Course book, pp.48 -53)
SUMMARY