1-Principles of marketing.ppt (1,094Kb)

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Chapter

  1 Chapter

  1 Marketing in a Changing World: Creating Customer Value and Satisfaction PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong

  1-2 What is Marketing?

  What is Marketing?

• Process by which individuals and groups obtain what they need and want

  need want through creating and exchanging exchanging products and value with others. products

• More simply: Marketing is the delivery .

  of customer satisfaction at a profit

  1-3 Core Marketing Concepts

  Core Marketing Concepts Products and Services Value, satisfaction, and quality Needs, wants, and demands Exchange, transactions, and relationships Markets Core Marketing Concepts Core Marketing Concepts

  1-4 What Motivates a Consumer

  What Motivates a Consumer to Take Action? to Take Action?

• Needs - state of felt deprivation for basic items such

Needs as food and clothing and complex needs such as for belonging. i.e. I am thirsty

• Wants - form that a human need takes as shaped

Wants by culture and individual personality. i.e. I want a Coca-Cola

• Demands - human wants backed by buying power.

  Demands i.e. I have money to buy a Coca-Cola.

  1-5 What Will Satisfy Consumer’s Needs and Wants?

  What Will Satisfy Consumer’s Needs and Wants?

• Products
• Services

  Products - anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a need or want.

• Examples : banking,
• Examples : persons,

  places, organizations, activities, and ideas.

  Services - activities or benefits offered for sale that are essentially intangible and don’t result in the ownership of anything.

  airlines, haircuts, and hotels.

  1-6 How Do Consumers Choose

  How Do Consumers Choose Choose Among Products and

  Choose Among Products and Services?

  Services?

• Customer Value - benefit that the customer

Customer Value gains from owning and using a product compared to the cost of obtaining the product

• Customer Satisfaction - depends on the

  Customer Satisfaction product’s perceived performance in delivering value relative to a buyer’s expectations. Linked to Quality and Total Quality Management (TQM).

  1-7 How do Consumers Obtain

  How do Consumers Obtain Products and Services?

  Products and Services?

• Exchanges - act of obtaining a desired object from

Exchanges someone by offering something in return

• Transactions - trade of values between parties.

Transactions Usually involves money and a response

• Relationships - building long-term relationships

  Relationships with consumers, distributors, dealers, and suppliers.

  1-8 Who Purchases Products and Services?

  Who Purchases Products and Services?

  Market - buyers who share a particular need or want that can be satisfied by a company’s products or services. Market - buyers who share a particular need or want that can be satisfied by a company’s products or services.

  Actual Buyers Actual Buyers Potential Buyers Potential Buyers

  1-9 Modern Marketing System

  Modern Marketing System Suppliers

  

Suppliers

End User Market

  

End User

Market

Marketing Intermediaries

  

Marketing

Intermediaries

Competitors Competitors Company (Marketer) Company (Marketer) E n vi ro n m en t

  E n vir o n m e n t

  1-10 Marketing Management

  Marketing Management

Marketing Management

  

Implementing programs to create exchanges

with target buyers to achieve organizational

goals

  Finding and increasing demand, also changing or reducing demand Demand Management Attracting new customers and retaining current customers Profitable Customer Relationships

  1-11 Marketing Management Philosophies

  Marketing Management Philosophies Production Concept Production Concept Product Concept Product Concept Selling Concept Selling Concept Marketing Concept Marketing Concept Societal Marketing Concept Societal Marketing Concept

• Consumers favor products that are available and highly affordable
• Improve production and distribution
• Consumers favor products that offer the most quality, performance, and innovative features
• Consumers will buy products only if the company promotes/ sells these product
>Focuses on needs/ wants of target markets & delivering satisfaction better than competitors
• Focuses on needs/ wants of target

   markets & delivering superior value

• Society’s well-being

  1-12 Marketing & Sales Concepts Contrasted

  Marketing & Sales Concepts Contrasted

  Factory Existing Products Selling and Promoting Profits through Volume Market Customer Needs Integrated Marketing Profits through Satisfaction

  The Selling Concept

The Selling Concept

  

The Marketing Concept

The Marketing Concept

Starting

  Point Focus Means Ends

  1-13 Societal Marketing Concept

  Societal Marketing Concept

Society (Human Welfare ) Society (Human Welfare )

  Consumers (Wants) Consumers (Wants) Company (Profits) Company (Profits) Societal Marketing Concept Societal Marketing Concept

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Emerging

Challenges

  

Emerging

Challenges

^{Nonprofit Marketing New Marketing Landscape & Information Te chnology Ethical} _Concerns ^{Globalization}

Changing

_World

Economy

  New Marketing Challenges New Marketing Challenges