Principles of Marketing Chapter 1 Fall 2024 PDF

Principles of Marketing Chapter 1 Marketing: Creating Customer Value and Engagement Copyright © 2024 Dr Ibrahim Al-Sahouly. Copyright © 2024 Dr Ibrahim Al-Sahouly. Learning O...

Principles of Marketing Chapter 1 Marketing: Creating Customer Value and Engagement Copyright © 2024 Dr Ibrahim Al-Sahouly. Copyright © 2024 Dr Ibrahim Al-Sahouly. Learning Objectives 1-1 Define marketing and outline the steps in the marketing process. 1-2 Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. 1-3 Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. 1-4 Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return. Learning Objective 1 Define marketing and outline the steps in the marketing process. Marketing Is Important to You Important to every consumer! Important to your job! (and your next job, too) Affects innovation and standard of living DoorDash, Inc. What is Marketing? Marketing is a process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. You already know a lot about marketing—it’s all around you: Discussion Question: How would a knowledge of marketing benefit an accountant? A computer system designer? An attorney? A physician? What is Marketing process? Learning Objective 2 Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. 1.Understanding the Marketplace and Customer Needs A. Needs are states of felt deprivation such as physical, social and individual ones. Wants are the form human needs take as they are shaped by culture and individual personality such as type of food. Demands are human wants that are backed by buying power. Think about the following products: 1. Water 2. Mobile phones 3. Education 4. travelling 1.Understanding the Marketplace and Customer Needs B. Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Examples include banking, airline, hotel, retailing, and home repair services. Think of your favorite place you like to spend time there like in summertime or outings with friends…  1.Understanding the Marketplace and Customer Needs c. Customer Value and Satisfaction Customers Value and satisfaction Marketers Set the right level of expectations Not too high or low Copyright © 2024 Dr Ibrahim Al- Ch 1 - Copyright © 2011 Pearson Education 11 Sahouly.  d. Exchange is the act of obtaining a desired object from someone by offering something in return. 1.Understanding the Marketplace Marketing actions try to create, maintain, and grow desirable and Customer exchange relationships. Needs A political candidate, for instance, wants votes 1.Understanding the Marketplace and Customer Needs e. A market is set of actual and potential buyers. Consumers engage in marketing when they: search for products interact with companies to obtain information make purchases Question: who have more influence now..the marketers or the consumers? Understanding the Marketplace and Customer Needs Learning Objective 3 Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. 2.Designing a Customer Value- Driven Marketing Strategy Marketing management is the art and science of choosing target markets and building profitable relationships with them. What customers will we serve (target market)? How can we best serve these customers (value proposition)?  Designing a Customer-Driven Marketing Strategy Selecting Customers to Serve Market segmentation refers to dividing the markets into segments of customers. Target marketing refers to which segments to go after. Think of AL-Marai, Juhyana. Real estates, Banks Ch 1 -17 Copyright © 2011 Pearson Education 2.Designing a Customer Value-Driven Marketing Strategy A brand’s value proposition is the set of benefits or values it promises to deliver to customers to satisfy their needs. BMW promises “the ultimate driving machine” Amazon Echo smart speaker is “Always ready, connected, and fast. Just ask.” YouTube “provides a place for people to connect, inform, and inspire others across the globe.” 2. Designing a Customer Value-Driven Marketing Strategy Societal Production Product Selling Marketing Marketing concept concept concept concept concept  1.Production Concept Consumers will favor products that are available and affordable. Management should focus on improving production and distribution efficiency. Such as: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall  2.Product Concept Consumers will favor products that offer the most in quality, performance, and innovative features Under this concept, marketing strategy focuses on making continuous product improvements. Such as: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 3.Selling Concept Consumers will not buy enough without a large scale selling and promotion effort The selling concept is typically practiced with unsought goods—those that buyers do not normally think of buying, such as insurance and timeshare companies Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4.Marketing Concept Focus on satisfying the needs and wants of target markets. The job is not to find the right customers for your product but to find the right products for your customers. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall  Designing a Customer-Driven Marketing Strategy Marketing Management Orientations Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do such as VOD and Dove Sense and respond not make and sell Ch 1 -24 Copyright © 2011 Pearson Education Designing a Customer Value-Driven Marketing Strategy 2.Designing a Customer Value-Driven Marketing Strategy 5. Societal marketing: The company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests. (such as Public health, environmentalism..Think about Body shop and others) 3. Preparing an Integrated Marketing Plan and Program The marketing mix is comprised of a set of tools known a the four Ps: product price promotion place Integrated marketing program—a comprehensive plan that communicates and delivers intended value Next LO4 Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return…Part 3 Read Part 1 and 2 Prepare the groups’ list