Prepared  by:    Faindra  Jabbar  

1 Home  Lecture  (HL)  with  Faindra  Jabbar  

Chapter  Overview  

•  What  is  marke=ng?  •  Basic  concepts  of  Marke=ng  •  The  evolu=on  of  marke=ng  •  Societal  marke=ng  concept  •  Holis=c  marke=ng  concept  •  The  marke=ng  process  

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What  is  Marke=ng?  

Marke1ng  is  a  process  by  which  companies  create  value  for  customers  and  build  strong  customer    rela=onships  to  capture  value  from  

customers  in  return.    

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Basic  concepts  of  Marke=ng  

•  A  simple  defini=on  of  marke=ng  is  about  managing  profitable  customer  rela=onship.  

 •  2  important  things  to  look  at:            -­‐  Managing  exis=ng  customers  and            -­‐  Acquiring  new  customers    

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• States  of  felt  depriva1on  • Physical—  food,  clothing,  warmth,  safety  • Social—  belonging  and  affec1on  • Individual—  knowledge  and  self-­‐expression  • Eg:  I  am  thirsty  

Needs  

• Form  of  human  needs  that  are  shaped  by  culture  and  individual  personality.  

• Eg:  A  hungry  person  needs  food,  but  what  do  you  want  for  food?  Capa1,  SpagheK,  Rice  or  vegetarian  food?  

Wants  

• Wants  that  is  backed  by  buying  power.  • Eg:  I’m  hungry,  I  have  money  to  but  Pizza  today.  Yesterday,  during  lunch  1me,  I  can  only  buy  a  RM1  nasi  lemak.  Demands  

Customer  needs,  wants  and  demands  

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Market  offerings  

“…refer  to  a  some  combina=on  of  products,  services,  informa=on,  or  experiences  offered  to  

a  market  to  sa=sfy  a  need  or  want…”  

 

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Marke=ng  myopia    

 “Mistakes  made  by  the  organiza=on  where  they  are  too  focusing  on  exis=ng  wants  and  losing  

sight  of  underlying  consumer  needs.”  

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Market  offerings  

•  Products  -­‐  anything  that  can  be  offered  to  a  market  for  a[en=on,  use  or  consump=on  and  that  might  sa=sfy  a  need  or  want.      

•  Services  -­‐  ac=vi=es  or  benefits  offered  for  sale  that  are  essen=ally  intangible  and  don’t  result  in  the  ownership  of  anything.    

 

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Customer  Value  &  Sa=sfac=on  

•  Customer  Value  -­‐  benefit  that  the  customer  gains  from  owning  and  using  a  product  compared  to  the  cost  of  obtaining  the  product.  A  customer  buys  from  the  firm  that  offers  the  highest  customer-­‐perceived  value.  

 •  Customer  Sa1sfac1on  -­‐  depends  on  the  product’s  

perceived  performance  in  delivering  value  rela=ve  to  a  buyer’s  expecta=ons.      

•  Product  Performance  vs  Customer  Sa=sfac=on.      Product’s  performance  >  buyer’s  expecta=on    =  Sa=sfied    Product’s  performance  <  buyer’s  expecta=on    =  Dissa=sfied    

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What  is  Market?  

A    set  of  actual  and  poten=al  buyers  of  a  product  who  share  a  par=cular  need  and  want  

that  can  be  sa=sfied  through  exchange  rela=onships  .  

 •  Consumer  market  –  customers  who  purchase  for  their  own  consump=on  

•  Industrial  market  –  customers  who  purchase  product  for  further  processing  or  for  reselling  to  other  businesses  or  consumers.  

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The  Evolu=on  of  Marke=ng  

Societal  marke=ng  concept  (1980s)  

Marke=ng  concept  (1950s  –  1980s)  

Selling  concept  (1920s  -­‐1950s)  

Product  concept  (1869  –  1920s)  

Produc=on  concept  (1869  –  1920s)  

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Societal  Marke=ng  Concept  

•  Societal •  Marketing

•  Concept

Society (Long-term consumer & societal welfare)

Company (Profits)

Consumers (Short-term want

satisfaction)

Maintain & improve long-term well-being Social responsibility

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Holis=c  Marke=ng  Concept  

•  Four  components  of  holis=c  marke=ng  are:  §  Rela1onship  marke1ng  –  build  mutually  sa=sfying  long-­‐term  

rela=onship  with  key  par=es;  customers,  suppliers,  distributors,  etc  §  Integrated  marke1ng  –  using  a  communica=on  mix  of  sales,  

promo=on,  adver=sing,  sales  force,  public  rela=ons,  direct  mail,  telemarke=ng,  and  interac=ve  marke=ng  to  reach  the  trade  channels  and  target  customers  

§  Internal  marke1ng  –  ensuring  everyone  in  the  organiza=on  embraces  appropriate  marke=ng  principles.  

§  Socially  responsible  marke1ng  –  incorpora=ng  social  responsibility  marke=ng  &  understanding  broader  concerns,  and  the  ethical,  environmental,  legal,  and  social  context  of  marke=ng  ac=vi=es.  

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The  marke=ng  process  

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Understanding Environment

Analysis of market, their needs and wants Analysis of other environment factors affecting marketing Develop and maintain marketing information

Develop Market-oriented

Marketing Strategy

Choose market to serve Develop positioning strategy for the chosen market

Develop relationship

with customers and

partners Continuously delight chosen customers Build good relationship with marketing partners

Develop Marketing Mix (4 Ps) Strategy

Product strategy Price strategy Distribution (Place) strategy Promotion strategy

Create satisfied customers Capture customer lifetime value Increase share of market and share of customer

Offer value to market  

Gain value from customers  

Home  Lecture  (HL)  with  Faindra  Jabbar  

 Prepared  by:    Faindra  Jabbar  

15 Home  Lecture  (HL)  with  Faindra  Jabbar