Mkt Chap-1 A

Chapter-1 Marketing: Creating and Capturing Customer Value.

1. What is Market? Ans. Market is a set of actual and potential customers or buyers of a product or service. 2. What is Marketing? Ans. Marketing is managing profitable customer relationships. Marketing means satisfying customer needs. Marketing means influencing the behaviour of people. 3. What is product? Ans. Solution of customer’s problems. 4. Types of product: Two types: Goods and Services. 5. What is Goods? Ans. Goods are tangible products which can be touched and seen. Solutions of customer’s problems and that can be touched, seen and felt. 6. What is Services? Ans. Services are intangible products which cannot be touched and seen. Solutions of customer’s problems and that can be touched, seen and felt. Service is a one kind of product which cannot be touched and seen.

Basic Concept of Market Place:

1. The Concept of Needs, wants, and demands. Needs: States of felt deprivation. Example: Hunger, Thirsty. Need is basic human requirements. Need is God Gifted, not created by market or marketer. [ Human needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression. These needs are not invented by marketers; they are a basic part of the human make-up.]

Wants: Need shaped by culture and personality. Example: An Indian in Kolkata needs food but wants a bowl of rice and fish. [ Wants are the form human needs takes as shaped by culture and individual personality./ when needs are shaped by culture and personality.] Demand: Want backed by buying power. [ Human wants that are backed by buying power./ when backed by buying power, wants become demands.] Marketing targets demand as everyone has need and want but does not have buying power. Need Hunger Writing

Want

Demand

Bangladesh (BD)-Rice America (USA)- Fast-food Marker

If he/she has buying power (Money). Having enough taka.

2. Offerings/ Market offerings (products, services, and experiences): Means Product (each and every product). The combination of product, service, information and experience. In short, Offerings are products. It is not necessary that every product has all of the combinations.

Example: Laptop

Goods. After sale service.

Some products such as salt, pen etc. these are the products and these are also offerings.

 10 Entity of product: 1. Goods: Tangible- pen, chair etc. 2. Service: Intangible benefits. 3. Event: Cricket Match (BPL, OLYMPIC), Concert, Event etc. 4. Experience: Selling Experience like west world. 5. Person: Advertisement model, Celebrity etc. 6. Place: Tourism Marketing (Any place tourist, tourism marketing.)Investor can invest. 7. Information: Google, Newspaper, Magazine etc. 8. Organization: An university (Total university is a product) (CSR-increase.) 9. Property: Real State. 10. Idea: Social Marketing, NGO (Population Control, Dowry, Corruption- these idea are promoting is called Social Marketing.)

Marketing Myopia: The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. Many sellers make the mistake of paying more attention to the specific products they offer than to the benefits and experiences produced by these products. These sellers suffer from marketing myopia.

Exchange: The act of obtaining a desired object from someone by offering something in return. Marketing occurs when people decide to satisfy needs and wants through exchange relationship. Marketing is called Exchange Relationship. Exchange is the act of obtaining a desired object from someone by offering something in return. Exchange is only one of many ways people can obtain a desired object. For example, hungry people can find food by hunting, fishing or gathering fruit. They could beg for food or take food from someone else. Finally, they could offer money, another good or a service in return for food. Exchange is the core concept of marketing. For an exchange to take place, several conditions must be satisfied. Of course, at least two parties must participate and each must have something of value to offer the other. Each party must also want to deal with the other party and each must be free to accept or reject the other's offer. Finally, each party must be able to communicate and deliver. These conditions simply make exchange possible. Whether exchange actually takes place depends on the parties coming to an agreement. Marketing Management: Arts and science of managing profitable customers relationship. [The art and science of choosing target markets and building profitable relationship with them.] Price = Cost = Value =

(Benefit-Cost)

Value Proposition: Means a set of benefit. [ A company’s value proposition is the set of benefits or values it promises to deliver to customers to satisfy their needs.]

Marketing Orientation/ Marketing Concept/ Marketing Management Orientation:

The Production Concept The production concept holds that consumers will favour products that are available and highly affordable. Therefore, management should focus on improving production and distribution efficiency. This concept is one of the oldest philosophies that guides sellers. The Product Concept Another important concept guiding sellers, the product concept, holds that consumers will favour products that offer the most quality, performance and innovative features. Under this concept, marketing strategy focuses on making continuous product improvements. The Selling Concept Many organizations follow the selling concept, which holds that consumers will not buy enough of the organization's products unless it undertakes a large-scale selling and promotion effort. The selling concept is also practised in the non-profit area. A political party, for example, will vigorously sell its candidate to voters as a fantastic person for the job. The candidate works hard at selling him or herself - shaking hands, kissing babies, meeting donors and making speeches. Much money also has to be spent on radio and television advertising, posters and mailings.

The Marketing Concept The marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. Surprisingly, this concept is a relatively recent business philosophy.

The Societal Marketing Concept The idea that a company’s marketing decisions should consider consumer’s wants, the company’s requirements, consumer’s long-run interests, and society’s long run interests. The societal marketing concept holds that the organization should determine the needs, wants and interests of target markets. It should then deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer's and the society's well-being. The societal marketing concept is the newest of the five marketing management philosophies.

Customer Relationship Management: The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Customer Lifetime Value: The value of the entire stream of purchases that the customer would make over a lifetime of patronage. Share of Customer: The portion of the customer’s purchasing that a company gets in its product categories. Customer Equity: The total combined customer lifetime values of all of the company’s customers.

MD. TAZWARUL ISLAM TASNIM BAM 15TH BATCH, PSTU