PRINCIPLES OF MARKETING MANAGEMENT

THE MARKETING PROCESS

AGENDA

TOPIC: DEFINITION & PROCESS MODEL

ACTIVITY: VALUE PROPOSITIONS

TOPIC: MARKETING ORIENTATIONS

ACTIVITY: DEVELOP A MARKETING MIX & QUIZ

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.

4. Activity: Develop a
1. Definition & Process Model 2. Activity: Value Propositions 3. Topic: Marketing Orientations
Marketing Mix & Quiz
WHAT IS MARKETING?
Capture value from customers to
create profits and customer equity

Engage customers build profitable

relationships and create customer delight 04
Construct an integrated marketing
03 program that delivers superior value

Design a customer value-driven 02

marketing strategy 01
Understand the marketplace
and customer needs and wants
4. Activity: Develop a
1. Definition & Process Model 2. Activity: Value Propositions 3. Topic: Marketing Orientations
Marketing Mix & Quiz
BASIC CONCEPTS IN MARKETING
Needs
“stats of self-deprivation”
_ Phillip Kotler
| Self-actualization needs

| Esteem needs

| Love and belongingness needs

| Safety needs

| Physiological needs

4. Activity: Develop a
1. Definition & Process Model 2. Activity: Value Propositions 3. Topic: Marketing Orientations
Marketing Mix & Quiz
BASIC CONCEPTS IN MARKETING
Wants

“The form human needs take as they are shaped by

culture and individual personality”
Philip Kotler

▪ Wants are more specific than needs

▪ Differences
E.g. everyone needs to eat, but each one wants
different things (depending on culture and
individual personality)
⇒ What characteristics should the goods have? What
are the most important features?

4. Activity: Develop a
1. Definition & Process Model 2. Activity: Value Propositions 3. Topic: Marketing Orientations
Marketing Mix & Quiz
BASIC CONCEPTS IN MARKETING
Demands

“Human wants that backed by buying power”

Phillip Kotler

▪ E.g. a person need keep in touch with friends and

family → want to buy a mobile phone
iPhone/Samsung → price,
▪ Consider money → can afford
▪ Tasks of marketers

⇒ To produce those goods, which level of costs is the

business only allowed to control? Corresponding to it is
what price will customers buy

4. Activity: Develop a
1. Definition & Process Model 2. Activity: Value Propositions 3. Topic: Marketing Orientations
Marketing Mix & Quiz
BASIC CONCEPTS IN MARKETING
Needs, Wants, Demands

All are equally important, it depends on the company operate in which fields
(everyday products, luxurious products, etc.)

Happening in market which have exchange (value, profit) and relationships

(form relationship with parties)

4. Activity: Develop a
1. Definition & Process Model 2. Activity: Value Propositions 3. Topic: Marketing Orientations
Marketing Mix & Quiz
MARKET

A market is the set of actual and potential buyers of a product or service. These buyers
share a particular need or want that can be satisfied through exchange relationships.

Company

Marketing Final
Suppliers intermediaries consumers

Competitors

A Modern Marketing System

4. Activity: Develop a
1. Definition & Process Model 2. Activity: Value Propositions 3. Topic: Marketing Orientations
Marketing Mix & Quiz
CUSTOMER VALUE AND SATISFACTION

What customers will we serve How can we serve these customers

(what’s our target market)? best (what’s our value proposition)?

4. Activity: Develop a
1. Definition & Process Model 2. Activity: Value Propositions 3. Topic: Marketing Orientations
Marketing Mix & Quiz
 CUSTOMER VALUE AND SATISFACTION
Choosing a Value Proposition: how it will
Selecting Customers to Serve (market differentiate and position itself in the
segmentation, target marketing). marketplace.
A brand’s value proposition is the set of benefits
For example, Nordstrom profitably
or values it promises to deliver to consumers to
targets affluent professionals; Dollar satisfy their needs. JetBlue promises to put “You
General profitably targets families with Above All” by bringing “humanity back to
more modest means. travel.” By contrast, Spirit Airlines gives you
“Bare Fare” pricing: “Less Money. More Go.”

4. Activity: Develop a
1. Definition & Process Model 2. Activity: Value Propositions 3. Topic: Marketing Orientations
Marketing Mix & Quiz
TARGET MARKETS, POSITIONING AND SEGMENTATION

Market Segments: Divide the market into segments by examining

demographic, psychographic and behavioral differences among buyers

Target Markets: The firm develops a market offering that it positions

in the minds of the target buyers as delivering some central benefits.

Example: Volvo develops its cars for buyer whom safety is a major
concern for => Volva positions its car as the safest a customer can buy

4. Activity: Develop a
1. Definition & Process Model 2. Activity: Value Propositions 3. Topic: Marketing Orientations
Marketing Mix & Quiz
MARKETING MANAGEMENT ORIENTATIONS
Production concept: the idea that consumers will favor products that are available and highly affordable and that
the organization should therefore focus on improving production and distribution efficiency

Product concept: the idea that consumers will favor products that offer the most quality, performance, and
features and that the organization 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: a philosophy that holds that achieving organizational goals depends on knowing the needs and
wants of target markets and delivering the desired satisfaction better than competitors do

Societal marketing concept: The idea that a company’s marketing decisions should consider consumers’ wants, the
company’s requirements, consumers’ long-run interests, and society’s long-run interests

4. Activity: Develop a
1. Definition & Process Model 2. Activity: Value Propositions 3. Topic: Marketing Orientations
Marketing Mix & Quiz
QUESTION
Q1: Compare and contrast needs, wants, and demands. Which one(s) can
marketers influence?

Q2:

4. Activity: Develop a
1. Definition & Process Model 2. Activity: Value Propositions 3. Topic: Marketing Orientations
Marketing Mix & Quiz
 QUIZ

Q1. Which of these items is made up of elements known as the "4 Ps" (product, pricing, place, promotion)?
A) Marketing mix B) Target market
C) Marketing Plan D) Marketing Concept

Q2. According to the simple five step model of the marketing process, a company needs to _________
before designing a customer driven marketing strategy
A) Determine how to deliver superior value
B) Build profitable relationships with customers
C) Use customer relationship management to create full partnerships with key customers
D) Understand the marketplace and customer needs and wants
E) Construct key components of a marketing program

4. Activity: Develop a
1. Definition & Process Model 2. Activity: Value Propositions 3. Topic: Marketing Orientations
Marketing Mix & Quiz
 QUIZ

Q3. ______ are human needs as shaped by individual personality and culture
A) Needs B) Wants
C) Demands D) Values

Q4. There are five alternative concepts under which organizations design and carry out their marketing
strategies: the production, product, selling, marketing and societal marketing concept
A) True B) False

Q5. Which step of the marketing process is most important?

A) Step1 : Understanding the marketplace B) Step2 : Designing the marketing strategy
C) Step 3: Constructing the marketing program D) Step 4: Building profitable relationships with customers

4. Activity: Develop a
1. Definition & Process Model 2. Activity: Value Propositions 3. Topic: Marketing Orientations
Marketing Mix & Quiz