BBS 3RD YEAR
Introduction to
Marketing
Date: September, 2023
Prepared by: Ayushma Malla
Legal Disclaimer: This presentation is for informational purposes only.
Introduction to Marketing
Meaning and Definitions of Marketing
Marketing Concepts & Business Practices
Emerging Concepts in Marketing
Marketing Mix
all activities a company does to
promote (advertising) and sell (selling)
products or services to consumers
BUT IT'S NOT JUST THAT
The aim of marketing always should Marketing is a means by which a
be to make selling unnecessary. company communicates the value of its
products or services to its ideal
- Peter Drucker customer.
Marketing is the series of activities that provides products and
services to meet the customer needs and achieve
organizational goals.
MEETING NEEDS PROFITABLY
Important/Basic concept that
is the most important in
marketing
Core
Concepts of Needs, wants and demands
Marketing Product, service and experience
Market
Exchange, transaction and relationship
Customer value and satisfaction
NEEDS, WANTS AND DEMANDS
Needs are state of felt deprivation.
Physical- Food, clothing, shelter,
safety, water
Social- Belonging & Affection
Personal- Knowledge & Self
Expression
NEEDS, WANTS AND DEMANDS
Demands are wants for specific products backed by an ability to
pay
Companies should keep in mind not only how many people want
their product, but how many are willing and able to buy it.
Demand = A want/desire to buy + Capacity to pay + Willingness to
spend
NEED WANT DEMAND
Product, Service, and Experience
Products, services, and experiences are collectively called market offerings.
They are offered to customers to satisfy their needs, wants, and demands.
This market offering maybe tangible or intangible.
Product - tangible in nature. Eg. food, house, car, phones, etc.
Service - intangibility, inseparability, perishable, variability. Eg. banking, insurance,
education, etc.
Experience - bungee jumping, paragliding, flight simulation, etc.
MARKET
Pool of all potential customers who share similar needs or wants and are
willing/able to exchange money to satisfy needs and wants.
Combination of actual and potential buyers of a product or a service.
Various concepts of market include the following.
1. Place Concept
2. Commodity Concept
3. Area Concept
4. Demand concept
5. Exchange concept
6. Space Concept
Exchange, Transaction, and Relationship
Exchange is one of the ways people can obtain products out of the many
ways available.
Exchange involves getting a product by offering something in return. Eg.
eating out at a restaurant by offering money.
A transaction is a basic unit of exchange.
For a transaction, there must be 2 parties- one giving and another taking.
Relationship are the long-term interconnectedness between buyers and
sellers
Customer Value and Satisfaction
Customer Value = Total Benefits – Total Customer Cost
Normally value is determined by the level of satisfaction of customers. If
satisfaction level is low, it means the value of the product is low and
consumer will leave this product.
Customer Value and Satisfaction
Satisfaction is the desire of mind that cannot be measured or it cannot be
quantified.
If the satisfaction level you've set is too low, your customers will go to your
competitors.
If the satisfaction level you've set is too high, you cannot achieve them and
your customers will go to your competitors.
VARIOUS TYPES OF MARKETING CONCEPT
MODERN SOCIETAL HOLISTIC
PRODUCTION PRODUCT SELLING
MARKETING MARKETING MARKETING
CONCEPT CONCEPT CONCEPT
CONCEPT CONCEPT CONCEPT
Production Quality Seller's need Customer Society States that all business
oriented (Mass oriented oriented oriented oriented components are
production of (Production of (Production of (Production of (Consideration important in achieving
products and quality products products of customers defined objectives, says
services) products) according to according to needs with all components should
seller's needs) customer social work together as one
needs and responsibility) single to achieve a
wants) common goal.
Consumers will favor those products Marketers use this concept when they
that are widely available and are want to expand the market. Thus,
Production affordable. increase production, cut down costs.
Concept
Focus is on achieving high production Eg: majority of Apple iPhones are
efficiency, low costs, and mass assembled in China where the labor
distribution. costs are low.
Consumers will favor those products However, a new or improved product by
that offer the most quality, itself is not enough to attract customers
performance, or innovative features. or to run a successful business.
Product Focus is on developing quality product
Eg: Apple offers best products to their
Concept consumers that are perceived to be and continously improving it with time.
very high quality with innovative
features and great performance.
Consumers, if left alone, won't buy Applicable when customers don't think
enough of the organization's products of buying the product/service and
or services when competition is high.
Selling
Concept Practiced mostly with unsought goods Firms with overcapacity aim to sell
that consumers don't usually think of what they make, rather than make
buying, such as insurance policies, what the market wants.
door to door selling.
Customer-centered, focuses on meeting Finding the right products for the
the needs and wants of customers customers, not the right customers for
Modern better than the competitors. your product.
Marketing
Concept Eg: Dell. They don't prepare perfect
computers for their target market.
Firms make profit by creating long-term
relationships based on customer value
Rather, Dell provides platforms for and satisfaction.
customizing desired features.
It focuses on satisfaction of customer Focus on minimizing the possible
and the maintenance, and conflicts between short-run consumer
Societal improvement of society's well being wants and long-run consumer welfare.
Marketing
Concept Various problems such as rapid Eg: The Body Shop, cosmetic company
population growth, environment that uses only natural, vegetable based
deterioration, improper resource materials as ingredients for it’s products.
utilization etc.
"Everything matters" - Marketing It builds a positive and united business
strategy that takes the entire image and brand building. It pushes
business into account. the customer to buy the business's
offerings instead of their rivals'.
In it, a business with separate
departments come together and This marketing concept effectively
these departments work sends the brand message by
together in related marketing building a synergy, i.e. it is effective.
Holistic activities.
Marketing It is easier to remove or reduce
repetition as all business aspects
Concept Simply put, it takes a business
are managed together. It saves
and its parts into account. Thus,
funds and time, hence it is an
it looks at a business as a whole.
efficient strategy.
Hence, it provides a shared It maintains consistency via its
purpose and goal to all activities components, which is a crucial
in a business and to everyone aspect that helps companies stay in
involved in it. the market in the long-run.
Internal Marketing
Relationship Marketing
Internal marketing caters to the
The aim of relationship marketing is particular needs of the business's
to create enduring and solid employees.
relationships with the stakeholders The aim here is to decrease departmental
and other important entities related conflicts in the firm. This increases
to the firm. synergy in marketing activities given to
customers.
HOLISTIC
MARKETING
Integrated Marketing CONCEPT Performance Marketing
Businesses take marketing decisions It is important to understand the
that create value for the stakeholders financial and non-financial returns to
in this component and it does so business and society from the
through a concise and clear marketing marketing activities and programs.
message. Emphasis is on higher level
Public relations, direct marketing, performance from all levels of
online communications, social media management focusing the financial and
marketing, and advertising are in sync. social aspect of the organization.
Relationship Marketing Internal Marketing
Eg: aim of Starbucks is to give 100 Eg: Starbucks brought 9,600 managers
million trees to farmers by 2025. This to Leadership Lab to give their
started in 2015. They started this managers the skills needed to be
under the campaign name 'One Tree for successful. The aim here was to
Every Bag' to ensure coffee supply for a mobilize workers to become brand
long time. promoters.
HOLISTIC
MARKETING
Integrated Marketing CONCEPT Performance Marketing
Eg: Microsoft and Starbucks employed Eg: Via CSR.
reinforcement learning technology (a #WhatsYourName campaign.
kind of machine learning) which "Mermaids" is an org that supports
provided users with tailor-made order young gender-diverse and
suggestions in the app. This was transgender people.
hosted in Microsoft Azure.
More than 16 million active users get
helpful recommendations till this date.
HOLISTIC MARKETING CONCEPT
Managing Customer Relationship
Engaging Customers: Customer
engagement is the degree and depth of
Importance of Customer Relationship Management
brand-focused interactions that a
customer chooses to perform. 1 Improve customer services
Customer engagement interactions
2 Increased personalized service
between company and customer,
offered by the company, chose by the 3 Customer segmentation
customer. 4 Responsive to customer’s needs
Managing Customer Relationships:
5 Improve customer knowledge
Customer relationship management is
the overall process of building and 6 Improve customization of marketing
maintaining profitable customer
relationships by delivering superior
customer value and satisfaction.
Customer Relationship Level and Tools
Customer Satisfaction: Customer
satisfaction is the level of perception of
customers in relation to the product
performance. There are 3 levels of
5 Levels of Relationship Marketing
customer satisfaction: dissatisfaction, 1 Basic marketing
satisfaction and delightful.
2 Reactive marketing
Customer Relationship Level and Tools:
Customer relationship marketing is the 3 Accountable marketing
key for building customer relationships.
4 Proactive marketing
This concept is focused on the idea that a
stronger relationship between a customer 5 Partnership marketing
and a business will undoubtedly lead to a
customer spending more money with the
company, engaging with the company and
advocating for the company.
Customer Generated Marketing
Customer Engagement and Today’s Digital
Consumer Generated Marketing: Consumer
and Social Media: Customer engagement is
generated marketing is an affordable
the ongoing cultivation of a relationship
marketing strategy that uses customer
between the company and consumer that
created material and feedback, such as user
goes far beyond the transaction. It is an
created content and reviews. Consumer
intentional and consistent approach of the
generated content is used to describe the
company that provides value at every
products of the company.
customer interaction to increase loyalty.
Capturing Value from Customers
Customer Value: Customer value refers to
the customer’s perception towards your
goods and services to be worth. Customer
1 Understanding the marketplace and customer needs
value is the incremental benefit which a
customer derives from consuming a 2 Designing a customer-driven marketing strategy
product after paying in return. It is 3 Preparing an integrated marketing plan and program
dependent on 3 factors: price, quality and
4 Building customer relationship
service.
Capturing Value from Customers: A 5 Capturing value from customers
simple model of marketing process for
creating and capturing the value from
customers are on the side,
Creating Customer Loyalty
Customer loyalty refers to the decision of
a customer to continue purchasing
particular goods and services, due to the Methods of Customer Loyalty
belief that the business offers the best 1 Interact closely with customers
combination of product, customer 2 Develop loyalty programs
experience and price within its category. 3 Club membership programs
A high customer loyalty will stop a
4 Create institutional ties
customer from easily switching brand to a
5 Create value with brand communities
competitor based on simple factors such
as better advertising or a better price.
Creating Customer Retention
Customer retention refers to the activities
and actions the companies and
organizations take to reduce the number Customer Retention Strategies
of customer defections.
1 Focus on creating a positive customer experience
The goal of customer retention programs
is to help companies retain as many 2 Implement customer loyalty programs
customers as possible, often through
3 Stay in touch
customer loyalty and brand loyalty
initiatives. 4 Appreciate your repeat customers
It is important to remember that customer
retention begins with the first contact a 5 Ask for feedback
customer has with a company and 6 Build strong employee loyalty
continues throughout the entire lifetime
of the relationship.
Emerging Concepts in Marketing
1 2 3 4 5
Direct Quality E-marketing Relationship Green
Marketing Marketing Marketing Marketing
-
Direct marketing consists Quality marketing is a E-marketing is an Relationship Marketing is Green marketing is the
of any marketing that customer-oriented advertising discipline that a strategy of Customer practice of promoting
relies on direct approach and its key includes all marketing Relationship Management products or services that
communication or priority is customer activities conducted by a (CRM) that emphasizes are sustainable and eco-
distribution to individual satisfaction. Its main business online using an customer retention, friendly. Companies that
consumers, rather than objective is producing electronic device or the satisfaction, and lifetime invest in green marketing
through a third party such products and services as internet. Other names for customer value. Its benefit from increased
as mass media. Mail, email, per customers' desires and this type of marketing purpose is to market to customer loyalty and a
social media, and texting making them available to include internet current customers versus positive brand reputation,
campaigns are among the customers at the right marketing, online new customer acquisition while also helping protect
delivery systems used. place, at the right time, and marketing, digital through sales and the planet and
at affordable prices. marketing or web advertising. contributing to a more
marketing. sustainable future.
Marketing Mix
Marketing mix is the combination of the Primary Components (4Ps)
various components that comprise a
1 Product mix
company’s marketing program.
Marketing mix is the core essence of 2 Price mix
marketing program.
3 Place mix (Distribution mix)
Marketing mix refers to a set of
controllable elements or variables that a 4 Promotion mix
company uses to influence and meet the
needs of its target customers in the most Supportive Components (3Ps)
effective and efficient way possible.
1 People mix
Marketing mix is a selection of marketing
tools that include several areas of focus 2 Process mix
that can be combined to create a
3 Physical evidence
comprehensive plan.
Thank you.
Email Phone LinkedIn
[email protected] +977-9803653836 Ayushma Malla
