Week 1-2 Two Interacting Components of Marketing

Definition and Concept of Marketing COMPANY – MARKET

Principles, Goals and Approaches
Core Marketing Concepts
Marketing
1. Needs, wants, and demands
 is the creation and communication of value to 2. Products and services
customers. 3. Value, satisfaction, and quality
 It involves the customer’s maintenance of 4. Exchange, transactions, and relationships
relationships that should last for lifetime. It is 5. Markets
the link between society’s material
requirements for its needs and wants.
Marketing must satisfy human needs and Concepts of Marketing
wants through the exchange process and the Need
building of long-term relationships.
 is one important component in the marketing
of products.
“Marketing is an organizational function and a set  It is the consumer’s desire for a product or
of processes for creating, communicating, and service.
delivering value to customers and for managing
customer relationships in ways that benefit the Wants
organization and its stakeholders.” American  are higher-level human needs as they appeal
Marketing Association or AMA more to the emotions.

Dr. Philip Kotler, “A social and managerial process According to Garovillas (2004), he stated that the
whereby individuals and groups obtain what they marketing concept is a business philosophy, which
need and want through creating and exchanging holds that the key to achieving organizational
products and value with others.” goals consists of determining the needs and wants
of target markets and delivering the satisfaction
more effectively and efficiently than competitors
Marketing is also an integrated process through do.
which companies create value for customers and
build strong customer relationships in order to
capture value from customers in return. Simply Abraham Harold Maslow
put: Marketing is the delivery of customer Maslow’s Hierarchy of Needs
satisfaction at a profit.
1. Self-actualization
 Desire to become the most one can be
Goal: Attract new customer by promising superior 2. Esteem
value and keep and grow current customers by  Respect, self-esteem, status,
delivering satisfaction recognition, strength, freedom
3. Love and belonging
 Friendship, intimacy, family, sense of
connection
4. Safety needs
  Personal security, employment, Factors for Developing Marketing Concepts
resources, health, property
1. Capturing Marketing Insights
5. Physiological needs
2. Effective Financial Management System
 Air, water, food, shelter, sleep, clothing,
3. The Value of Human Resources
reproduction
4. The Production Process
5. The Presence of Competitors

MARKETING CONCEPTS

1. Marketing must be Customer Oriented Factors for Developing Marketing Concepts

2. Marketing must be Coordinated Activities
1. Capturing Marketing Insights
3. Marketing must be able to achieve the
 The overall direction must focus on its vison
performance Target Goals and Objectives
and mission. The organizational goals and
objectives must be directed towards the
creation of value to its customers. These must
MARKETING CONCEPTS
be the inherent philosophy of the marketing
1. Marketing must be Customer Oriented organization. The functional areas in the
 The planning and operation must be directed marketing organization must be focused
towards customer orientation. The whole towards its ultimate set of tasks in the
marketing organization and its operating staff building of long-lasting relationship with its
must be focused on determining what will target market.
satisfy the needs and wants of the target 2. Effective Financial Management System
customers, the important link in the business  This system in the procurement of quality and
operation. affordable materials for processing of the
2. Marketing must be Coordinated Activities product is a vital component in effective
 Coordination activities must start in the operation of the marketing system. The
product planning process, the process. The competition in the market is based on
product is the key element that the customer affordable quality products where labor and
wants to buy that is worth his money. Price is materials interplay in their production.
another important component as customers Financing the marketing program will develop
would like to get his money's worth. The place effective sales program that will bring in
of distribution must be within his reach and sustainable profitability.
the promotional activities must be appealing 3. The Value of Human Resources
for him to decide which product to purchase.  All business activities need human resources
3. Marketing must be able to achieve the in their operation, The employees must be
performance Target Goals and Objectives committed in the production of quality
 Customer-oriented and coordinated products and the delivery of quality service.
marketing aims to achieve its profit, objectives They must develop work ethics and strong
and goals. These goals and objectives hinge on commitment to the marketing efforts of the
the increase in sales volume and customer's organization. Sustainable development and
patronage. When product planning, price, progress rest with people who are willing to
promotion and distribution. and properly put all efforts towards the organizational
coordinated, it will result in the most effective objective of quality products and service.
way of satisfying the customer's needs and 4. The Production Process
wants. The sales volume and profit objective  The process must conform to standards in
will be realized. terms of product quality. The race to
economic profitability is the production of
 products that shall satisfy the customer's  an approach that centers on maintaining and
wants and needs. The role of marketing is to improving value-added long-term
sell more products, but it must conform to relationships with current customers,
customer demand. Production may produce distributors, dealers and suppliers.
so many products, yet they are useless 5. Societal Marketing Concept
inventory when they fail to reach their target  views that organizations must satisfy the
market. Marketing efforts will turn them into needs of consumers in a manner that gives for
profitable inventory. society’s benefit.
5. The Presence of Competitors
 The marketing of products becomes
interesting with the presence of competitors. The Goals of Marketing and their Social Effects
Marketing outfit must develop strategies in
capturing their target market and develop and 1. Maximize the Consumption of Goods
sustained patronage. These marketing 2. Maximize Consumer Satisfaction
strategies must develop customer loyalty to 3. Maximize Choice of Goods or Service
the brand or the product. Product 4. Maximize the Quality of Life
improvement and pricing strategies with
sustained promotional and advertising
program are important components in the The Goals of Marketing and their Social Effects
competitive market. 1. Maximize the Consumption of Goods
 The Aggressive marketing strategies and
policies had increased the consumption of
Traditional concept marketing goods and services. The demand of the
 is a marketing strategy a company uses to market is tremendous. Sellers face many
determine if it can produce a viable product challenges on what products to offer. Buyers
consumer want or need, whether the want quality products at reasonable price and
company can produce enough products to fill t the most convenient location.
the need, and the marketing method by which  The marketing job is to stimulate greater
the need can be filled. product consumption. Greater production
requires consumption of material inputs and
more goods in the market that create more
Several Distinct Traditional Approaches: employment. More jobs are created, and
more people enjoy economic wealth.
1. Production concept
Maximum consumptions generate economic
 focuses on the internal potentials of the
development for the nation.
company and not based on the desires and
2. Maximize Consumer Satisfaction
needs of the market.
 The market demand is varied, and customer
2. Marketing concept
satisfaction is the challenge of the marketing
 a philosophy which states that organization
organization. Measurement of customer
must try hard to find out and satisfy the needs
satisfaction is difficult. It embraces careful
and wants of consumers while at the same
analysis of the market demand which varies
time accomplishing the organizational goals.
with the time and the social development of
3. Sales concept
society.
 refers to the idea that people will buy more
 The customer may be satisfied with the
goods and services through personal selling
product the marketing people produce but it
and advertising done aggressively to push
may create pollution to the environment.
them in the market.
Plastics are good packaging materials for
4. Relationship concept/marketing
 consumer goods but they create flood and 2. Integrating all the organization’s activities to
environmental pollution. Cars and other satisfy customer wants and needs.
vehicles using gas serve the convenience of 3. Achieving the organization’s long-term goals
the riding public, but they create global by satisfying customer wants and needs
warming that result to environmental
imbalance.
3. Maximize Choice of Goods or Service
Week 3-5
 Some marketers believe that the goal of
marketing is to maximize the variety of the "The Value of Customer Relations and
product in the market and provide consumers
a wide assortment of choices. The main
Customer Service"
objective is for customers to find the goods
"Building Loyalty and Driving Success"
that will satisfy their biological needs as well
as their emotional and social wants.
 Development of new products needs research What is Relationship Marketing?
but that will mean time and costs. Maximizing
 "Long-term mutual benefit between
consumer choice entails cost as the
customers and businesses"
economies of scale do not operate in
 A strategy of Customer Relationship
production of goods. The consumers must
Management (CRM) that emphasizes (1)
spend time studying the benefits of the
customer retention, (2) satisfaction, and (3)
production of goods.
lifetime customer value
4. Maximize the Quality of Life
 The improvement of the quality of life is the
target of marketing people. New hand phones
are created to communicate with various Relationship Marketing
sectors of society, friends and families. Easy
communications access satisfies not only
social needs but also business requirements.
Computers and others electronic gadgets
bring pleasures to homes and enjoyment of
the comfort of living.
 The quality of life is difficult to measure. Life
satisfaction is more than the physical comfort.
The impact of electronic radiation has created
health problems among the many users of
modern gadgets. People in the previous
generations lived longer because they lived a
simple life. They ate unadulterated food and Key elements:
lived free from pollution and radiation.
1. Trust
2. Communication
3. Loyalty
4. Personalization
Goals of Marketing

1. Focusing on customer wants and needs to Customer Value

distinguish products from competition  "Perceived benefits minus costs"
 The customer's perception of the worth of 2. Discovery – Then you learn and identify the
your product or service. needs of the prospects and share information
to fulfill their requirements.
3. Evaluation – Moving ahead the prospects
Types of value: compare and evaluate your products/services
with your competitors.
1. Monetary 4. Intent – Finally your prospect is convinced and
2. Emotional made a decision to buy from you.
3. Social 5. Purchase – After making the payment the deal
4. Functional is done and the prospect converts into your
customer.
6. Loyalty – Make a follow-up after purchase to
Four types of customer value determine customer success with your
1. Functional value: How well a product meets product and ask for referrals.
the customer's needs.
2. Monetary value: The customer's perceived
value of the product.
3. Social value: The social connections the
customer has after making the purchase.
4. Psychological value: The feelings a customer
has after making the purchase.

Key Elements of Customer Relations

"Customer Relations Strategies"
The Impact of Customer Service on Consumer
1. Communication Trust
2. Empathy
1. First Impressions matter
3. Responsiveness
2. Consistency is key
4. Personalization
3. Personalization goes a long way
5. Proactive issue resolution
4. Handling complaints effectively

Customer Relationship Model

Benefits:
1. Align systems with goals and strategy
1. Increased revenue
2. Consolidate customer data
2. Positive word-of-mouth
3. Segment customers
3. Competitive advantage
4. Personalize customer interactions
5. Re-evaluate and recalibrate CRM strategy

Strategies:

The customer relationship management model 1. Loyalty programs

can be further categorized into below stages : 2. Exclusive offers
3. Personalized communication
1. Awareness – It is the first touchpoint where
prospects try to know more about your brand
as a whole.
Why Is Customer Relations Important?
 The primary benefit of healthy customer
relations is the influence that you can have
over long-term customer retention. Building
trust today means giving your customers what
they want, both in terms of product
performance and also services that your
company provides.
 Strong relationships with customers will
benefit your business in a number of different
ways: You'll build goodwill and increase the
value of your business. Your customers will
remain loyal to your business. You'll attract
new customers with good word of mouth.

Key takeaways

 Customer-centric companies put their

customers at the heart of everything they do,
which increases loyalty and reduces churn.
 Becoming a customer-centric organization
takes time and effort but can be accomplished
by following seven easy tips.
 Monitoring key metrics and gathering
customer feedback can help you more
accurately measure your company’s customer-
centricity.