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Marketing & Marketing Process

This document provides an introduction to marketing and the marketing process. It defines marketing as engaging customers and managing profitable customer relationships. The goal of marketing is to attract new customers by promising superior value and to keep current customers by delivering value and satisfaction. The marketing process involves 5 steps: 1) understanding customers, 2) designing value-creating strategies, 3) constructing marketing programs, 4) engaging and building relationships with customers, and 5) capturing value from customers. Steps 1-4 focus on creating value for consumers, while step 5 is where companies capture value from consumers in the form of sales, profits, and long-term customer equity.

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Azael May Penaroyo
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68 views3 pages

Marketing & Marketing Process

This document provides an introduction to marketing and the marketing process. It defines marketing as engaging customers and managing profitable customer relationships. The goal of marketing is to attract new customers by promising superior value and to keep current customers by delivering value and satisfaction. The marketing process involves 5 steps: 1) understanding customers, 2) designing value-creating strategies, 3) constructing marketing programs, 4) engaging and building relationships with customers, and 5) capturing value from customers. Steps 1-4 focus on creating value for consumers, while step 5 is where companies capture value from consumers in the form of sales, profits, and long-term customer equity.

Uploaded by

Azael May Penaroyo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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UNIT I.

DEFINE AND UNDERSTAND MARKETING

Lesson 1: WHAT IS MARKETING AND THE MARKETING PROCESS

I. WHAT IS MARKETING?

 According to Peter Drucker (the father of business consulting)


- "Because the purpose of business is to create a customer, the business
enterprise has two--and only two--basic functions: marketing and innovation.
- Marketing and innovation produce results; all the rest are costs. Marketing is
the distinguishing, unique function of the business."

Marketing, more than any other business function, deals with customers. Although
we will soon explore more-detailed definitions of marketing, perhaps the simplest
definition is this one: Marketing is engaging customers and managing profitable
customer relationships. The twofold goal of marketing is:

(1) to attract new customers by promising superior value, and


(2) to keep and grow current customers by delivering value and
satisfaction

Sound marketing is critical to the success of every organization. Large for-profit


firms such as Google, Target, Procter & Gamble, Coca-Cola, and Microsoft use
marketing. But so do not-for-profit organizations, such as colleges, hospitals,
museums, symphony orchestras, and even churches.

 Example : Large for-Profit Firms

 Example : Non-Profit Firms


Marketing—it’s all around you. Marketing comes to you in the good old
traditional forms: You see it in the abundance of products at your nearby shopping
mall and the ads that fill your TV screen, spice up your magazines, or stuff your
mailbox. But in recent years, marketers have assembled a host of new marketing
approaches, everything from imaginative websites and smartphone apps to blogs,
online videos, and social media. These new approaches do more than just blast out
messages to the masses. They reach you directly, personally, and interactively. Today’s
marketers want to become a part of your life and enrich your experiences with their
brands. They want to help you live their brands.

At home, at school, where you work, and where you play, you see marketing in
almost everything you do. Yet there is much more to marketing than meets the
consumer’s casual eye. Behind it all is a massive network of people, technologies, and
activities competing for your attention and purchases.

This lesson will give you a complete introduction to the basic concepts and
practices of today’s marketing. We begin by defining marketing and the marketing
process.

II. MARKETING DEFINED

What is marketing? Many people think of


marketing as only selling and advertising. We are
bombarded every day with TV commercials,
catalogs, spiels from salespeople, and online
pitches. However, selling and advertising are
only the tip of the marketing iceberg.

Today, marketing must be understood not in the old sense of making a sale—
“telling and selling”—but in the new sense of satisfying customer needs. If the
marketer engages consumers effectively, understands their needs, develops products
that provide superior customer value and prices, distributes, and promotes them well,
these products will sell easily. In fact, according to management guru Peter Drucker,
“The aim of marketing is to make selling unnecessary.” Selling and advertising are
only part of a larger marketing mix—a set of marketing tools that work together to
engage customers, satisfy customer needs, and build customer relationships.

 Marketing Mix / Tools - 4 P’s of Marketing

(1) Product or Service


(2) Price
(3) Place
(4) Promotion (Selling and advertising)

Broadly defined, marketing is a social and managerial process by which


individuals and organizations obtain what they need and want through creating and
exchanging value with others. In a narrower business context, marketing involves
building profitable, value-laden exchange relationships with customers. Hence, we
define marketing as the process by which companies engage customers, build strong
customer relationships, and create customer value in order to capture value from
customers in return.

III. THE MARKETING AS A PROCESS


Figure 1.1, presents a simple, five-step model of the marketing process for creating
and capturing customer value. In the first four steps, companies work to understand
consumers, create customer value, and build strong customer relationships. In the
final step, companies reap the rewards of creating superior customer value. By
creating value for consumers, they in turn capture value from consumers in the form
of sales, profits, and long-term customer equity.

In this Unit and the next, we will examine the steps of this simple model of
marketing. In this chapter, we review each step but focus more on the customer
relationship steps—understanding customers, engaging and building relationships
with customers, and capturing value from customers. In Unit 2, we look more deeply
into the second and third steps—designing value-creating marketing strategies and
constructing marketing programs.

Figure 1.1

Step 1 Step 2 Step 3 Step 4 Step 5

• STEP 1 - 4 - creating value for consumers,


• STEP 5 - They in turn capture value from consumers in the form of sales,
profits, and long-term customer equity (companies reap the
rewards of creating superior customer value)

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