The Marketing Concept

Evolving Perspectives
 What Is Marketing?

 Simple Definition: Marketing is managing

profitable customer relationships.
Goals:
1. Attract new customers by promising
superior value.
2. Keep and grow current customers by
delivering satisfaction.
Marketing Management Philosophies

Societal
Societal Marketing
Marketing Concept
Concept

Marketing
Marketing Concept
Concept

Selling
Selling Concept
Concept

Product
Product Concept
Concept

Production
Production Concept
Concept
The Production Concept
The Product Concept
Marketing and Sales Concepts Contrasted
Societal Marketing Concept
This Is a Need

Needs - state of felt

deprivation
including physical,
social, and
individual needs.
Maslow’s
Hierarchy
of Needs
This Is a Want

Wants - form that

a human need
takes, as
shaped by
culture and
individual
personality.
 Need / Want Fulfillment

 Needs and Wants

Fulfilled through a
Marketing Offer :
 Some combination of
products, services,
information, or
experiences offered to a
market to satisfy a need
or want.
 What Satisfies Consumers’
Needs and Wants?
Products
Products
nything that
Anything that can
can be
be Offered
Offered to
to aa Market
Market to
to Satisfy
Satisfy aa Need
Need or
or Want
Wan

Persons
Persons Places
Places Organizations
Organizations

Information
Information Ideas
Ideas

Services
Services
Activity
Activity or
or Benefit
Benefit Offered
Offered for
for Sale
Sale That
That is
is Essentially
Essentially
Intangible
Intangible and
and Does
Does Not
Not Result
Result in
in the
the Ownership
Ownership of of Anything
Anything
 Marketing Myopia

 Sellers pay more

attention to the specific
products they offer than
to the benefits and
experiences produced
by the products.
 They focus on the
“wants” and lose sight
of the “needs.”
 This Is Demand

Wants Buying Power

“Demand”
 What is a Market?

 The set of actual

and potential buyers
of a product.

 These people share

a need or want that
can be satisfied
through exchange
relationships.
Segmentation and Target Marketing
#1 #
2
Market Segmentation:
Divide the market into
segments of
customers

Target Marketing:
Select the segment to
cultivate
 Customer Satisfaction

 Dependent on the
product’s perceived
performance relative
to a buyer’s
expectations.
 Value and Satisfaction

Expectatio Performanc Expectatio Performanc

n e n e
8 10 10 8

If performance is lower than expectations, satisfaction is

low.

If performance is higher than expectations, satisfaction is

high.
Customer Perceived Value

 Customer’s evaluation
of the difference
between all the
benefits and all the
costs of a marketing
offer relative to those
of competing offers.
 Customer Relationship Levels

Basic Continuum Full

Relationshi Partnershi
p p
Loyalty and Retention

Financial Social
Benefits Benefits

Structural
Ties
Customer Relationship Management

 The process of
building and
maintaining
profitable customer
relationships by
delivering superior
customer value and
satisfaction.
Customer Loyalty & Retention
 Customer Lifetime Value
 The entire stream of
purchases that the customer
would make over a lifetime of
patronage.

 Share of Customer
 The share a company
gets of the customers
purchasing in their
product categories.
Marketing
 There will always, one can assume, be need for
some selling .But the aim of marketing is to make
selling superfluous. The aim of marketing is to
know and understand the customer so well that
the product or services fits him and sells itself.
Ideally marketing should result in a customer
who is ready to buy. All that should be needed
then is to make the product or services available.

Peter Ducker
Definition of Marketing

 Marketing is the process of planning and executing

the conception, pricing ,promotion, and distribution
of ideas ,goods and services to create exchanges
that satisfies individual and organizational goals.

AMA
Customer Value Proposition
 Value =Benefits/costs
 =(functional benefit +emotional benefit)/(monetary
cost+time cost+energy cost+psychic cost)