Marketing Concept

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

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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

Information Information

Organizations Organizations 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 

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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 Market Segmentation: Divide the market into segments of customers

Target Marketing: Select the segment to cultivate

# 2

Customer Satisfaction 

Dependent on the product’s perceived performance relative to a buyer’s expectations.

Value and Satisfaction Expectatio n 8

Performanc e 10

Expectatio n 10

Performanc e 8

If performance is lower than expectations, satisfaction is low. If performance is higher than expectations, satisfaction is high.

Customer Perceived Value

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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 Relationshi p

Continuum

Full Partnershi p

Loyalty and Retention Social Benefits

Financial 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

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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)